Debt Rattle Feb 7 2014: Why Is Up Always Good And Down Always Bad?

 

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  • #11142

    Carl Mydans Auto transport at Indiana gas station May 1936 Why Is Up Always Good And Down Always Bad? And once again, the financial media insist that
    [See the full post at: Debt Rattle Feb 7 2014: Why Is Up Always Good And Down Always Bad?]

    #11145
    bluestem
    Participant

    I like this newer fomat, not only do we still get a personal review from you, we also get new articles to consider as well. Thanks, John

    #11146
    Professorlocknload
    Participant

    Fiat money issued directly by government? Great, but let’s wait and see how that works out in Argentina and Venezuela first, maybe. Not sure “official” rates of interest in the single digits will long be able to compete with street rates in the high double digits. Unless enforced by tanks and machine guns. Even then?

    Aside from the fact 0.25% might sound high to some?

    But yes, everyone would be rolling in dough every election year, for sure. And imagine the wars that could be printed. Hell, we could even take Mexico’s and Canada’s oil. sarc/

    The only answer over long term is honest money. We must go back to the days when the government had no money. It belonged to the people, and they entrusted government to use it prudently on their behalf.

    And, as bad money drives out good,until the bad becomes worthless, good money will again surface, or at least return slightly under the States radar. It will need to if even the State expects to eat.

    The alternative is, of course, a Soviet style economic system where the State makes all the calls, from the creation of currency, to who sinks and who swims. Under those conditions, good money is driven out of the system and the country, so in the end even the 10% gov elite don’t eat. Problem is, it usually takes 60 or 70 years to consume the wealth and come full circle.

    In that scenario, don’t expect the appointed “block monitor” to allow you to keep your little survival compound, when he doesn’t have one. Same goes for the tax assessor and his buddies.

    Plan Z might want to include keeping an eye on a well found sloop down in the harbor, and enough real goods to set sail for greener pastures, before the fences and gates go up. Or at least a dirt bike or burro with which to probe the many holes in the Northern and Southern borders in a pinch. Might be favorable to living in a maximum security state, demanded by the afraid inmates.

    My view is, he who travels light, maintains a personal medium of exchange and remains keenly aware of surroundings will likely be better off for it.

    It’s interesting the people I talk to all have one rebut to my suggestions. “It can’t happen here.” Seems they think we are too exceptional, not like the multitudes of exceptional failures that fill history reads.

    https://www.goodreads.com/book/show/1575977.Cruising_in_Seraffyn

    #11150
    peter
    Participant

    Illargi – have a look at this if you have the time
    https://www.zerohedge.com/news/2014-02-06/guest-post-limits-growth-out-doorstep-not-recognized
    It is saying a lot of what TAE say (eg cost of capital will limit energy availability,etc, etc)
    When I read this, I kept thinking of you and Stoneleigh, time and time again.

    #11151
    Viscount St. Albans
    Participant

    Quick: Where were you and what were you doing between August 8, 2008 and August 24, 2008?

    Me? I was on my honeymoon in Hawaii. Swimming in cool pools and soaking in a hot tub at the foot of Mount Waialeale. All was calm and quiet. Birds were chirping, the Olympians strutted and twirled on TV, the food was good and the sex was excellent. But I still couldn’t stop biting my nails. Money was moving and I knew the world was about to change. I’d been reading TAE for 2 months, and it was very clear a global colon cleansing was coming due in September. It felt so surreal. The calm before the storm. A burp and gurgle from deep in the abdomen. Here we are in 2014. Two weeks of lean muscle once again marching, flipping and climbing podiums. Behind the scenes, money is moving once again. My nail tips are history. The raw reddened puffy skin tells me we’ve returned to where we come from.

    #11155
    Viscount St. Albans
    Participant

    Late July 2008. Hank pointed at his pocket bazooka and the S&P stabilized. The bulkhead groaned as incoming water stressed the rivets. But she held steady. The band played on.

    But I&S were hard at work. They’d lifted a few curtains. And I was beginning to doubt the strength of the superstructure. And then I clearly remember watching a Charlie Rose interview with the junior rising star senator from Virginia — Jim Webb, a man known for speaking his mind in clear unambiguous language. It’s too bad that you can no longer watch that interview in full without paying for it, but he breaks the news with the glint in his eyes and the twitch in his mouth — the little people trapped in the lower decks were about to become fish meal. There is a reason everyone looks quite calm in the photo of the famous “hair on fire” Congressional Crisis Meeting from September 18, 2008.
    https://www.nysun.com/pics/8313.jpg
    Not a single person in that room is even slightly surprised by events on the ground. The air of authority stems from more than an a weak reference to Rome’s 16th century Baroque-Styled thought control. These are people who’s money is safe.

    Fast forward to Obama’s State of the Union and the rollout of MyRA.
    “MyRA guarantees a decent return with no risk of losing what you put in.”

    Every single word in a State of the Union speech is scrutinized 3 ways from Sunday. Why would POTUS remind the people about, even indirectly, that they might lose their money in the markets?

    Take your protein pills and put your helmet on

    #11182
    John Day
    Participant

    @ Viscount St. Albans
    In August 2008 I had been reading TAE for about 6 months, and this other site called “Zero Hedge” for about the same, and I wondered why the hell gold was going DOWN, when obviously people should be fleeing to gold for safety.
    Later that year it was apparent that JPM had massively shorted gold, and ships full of gold had gone to Saudi Arabia.
    “My” analysis was confirmed, but markets were revealed as deceptive scams.
    I went to Hawaii to work for a few months later that year, then early 2009, too.

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