Debt Rattle Jan 21 2014 – Animal Exuberance
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Office of War Information ‘How to identify danger classes’, Newark 1942 Debt Rattle Jan 21 2014 I got a few complaints about the Daily Links disappear
[See the full post at: Debt Rattle Jan 21 2014 – Animal Exuberance]When I was a child, my father used to tell me not to pay any attention to the stock market. He would often say that the people who run it could rig matters so that it was hitting new highs every day while the majority of people in the country were living in tents.
That simple observation made by a lifelong roughneck is starting to look prescient.
Absolutely, Rebecca. I got a mail from a friend earlier who said that in India, Brazil, Kenya this is the normal: stock markets do great while the masses starve. It’s just that in America, this is at least 50 years ago, the middle class rose with the markets, and are still heavily invested through market funds and pension funds. It’s an order of magnitude different than in the poorer countries, but now it’s returning there.
Stagflation, leading to a currency crisis.
That’s where this ends. Skip deflation. It won’t be seen until the present dollar is abandoned, and either real money again takes it’s place, or Authoritarian rule is established, in which case money won’t much matter to the Proles.
Why would the paper of S&P 500 companies be worth “something,” and government IOU’s become worth less? Well, some of the former actually represents capital production, the latter only capital consumption and redistribution.
But then, in the end, it is all paper, or bits of electrons harnessed and directed in one form of manipulation or another.
On employment, sans government safety nets, there would be a much needed deflationary reset sooner. With these unnatural programs, only further economic distortions will result, the reset taking place later, and with the total destruction of the currency.
An old school sailor once told me, fewer are lost overboard on a sailboat that has no lifelines.
I think we are going to be hearing a lot of “But the Government Promised” in future.
Like when the Kremlin fell, there they all were, sitting on the curb, hands out, with not a clue how to take care of themselves.
Accordingly, work for (depend on) the State, or work for Yourself. It’s getting time to choose.
Ilargi,
Well you are right…but what does it matter. The collapse that is coming will wash over all of us and very few will survive. Unless you were think a soft landing but I am afraid that even when you look at the facts that is not possible. The destruction that comes with financial collapse will be horrendous….I believe you will be sitting at your computer to write one of these post and you will see it spread across the net like a great tsunami….and watch with awe as it comes.
I don’t expect the Tsunami to start in the US. China is a more likely possibility, but war with China is possible too. When it comes, no one will see it before it hits.
Andrew, There are a lot of straws on the camel’s back….which one that finally breaks it is still hard to tell but I am afraid we are getting very close. The FED has to pull back again on its QE and when it does enough the markets are going to go in a tailspin and then they will have to go back to QE and reveal that they have no control of the market. I used to think that Bernanke was making a big mistake….now I believe he was just buying us a few more years before collapse..He is quoted as saying when they see the situation they will understand why I did what I did. I wish we had 3 or 4 more of BAU but I am afraid we will be lucky to get out of 2014 without the water pulling out. It is easy to blame our leaders but what would you have them do…the are only human and scared for their families too. Their lives will be in jeopardy too… Ted
“Like when the Kremlin fell, there they all were, sitting on the curb, hands out, with not a clue how to take care of themselves.”
I think Orlov had a slightly different take, but whatever…
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