Debt Rattle Jul 15 2014: Janet Yellen Is A Religious Nutcase
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DPC Unloading cotton, Mississippi sternwheeler City St. Joseph,Memphis TN 1910 Janet Yellen is a religious nutcase. She may not appear like one at fir
[See the full post at: Debt Rattle Jul 15 2014: Janet Yellen Is A Religious Nutcase]Posted this comment elsewhere this morning, in response to a very similar guest piece from, I think, Phoenix Capital, in regard to the Fed trumping the Rule of Law, and what to do before the “Crash.”
‘All fine, but I figure “it” doesn’t just blow up one day. No, ‘it’ slowly, steadily fades away into stagflation, as the reality of devaluation and moral hazard gradually seeps in, and the faithful fall off the wagon, slowly and one by one.
Where it ends? Most likely, with something similar to Mexico or Venezuela. But that can take decades. Surviving financially isn’t hard, just get “real.” However, the big problem will be inherent in political upheaval.
It’s no fun sitting inside the gray bar hotel, dreaming of all the doubloons you have buried in the hills. So it’s best to work within the system, keeping enemies close in order to front run the chaos as best as possible. PMs, no debt, no substantial visible ‘confiscatable’ assets, and a couple of escape plans, tailored to different scenarios.
Not a plan to run off the cliff and into some other messed up regime, but more one of slipping into safer, more rational zones amidst the turmoil right here.
Think boiling frog, only don’t get in the pot!’
Ps. I might add, here, escaping to some frozen tundra in northern Idaho or Minnesota isn’t a good plan, either. All resources and wealth will be drawn in by the Cities. The periphery will wither. It doesn’t have the voting power.
“Well, if she feels that the Keynesian approach has been such a ravishing success”
Ha! Past QE’s will be proven a joke. As the Fed is now the ruling body politic in this Corporatocracy, it is in command. In near future, in an environment of an executive order/ national emergency neo “New Deal,” a $trillion a month will make a one time $720 billion Tarp fix, back in 08 all seem chump change. Let alone a paltry $trillion a year. But, of course, this information won’t be made public at that juncture. Domestic Terra-ism and all, and national interests, mind ya.
We will witness new meaning of the old Socialist mantra “The ends justify the means.”
Meanwhile, grocery shopping at the local Costco, I was elated that deflation had brought the price of a new tablet PC down 3% this year, and there was plenty of room for it among the $350 worth of food in that cart! Oh, and when I pulled the jitney around for $30 worth of unleaded, there was plenty of room left in the tank afterword.
Arthur Burns reincarnate?
The Fed follows the law of the instrument.
If the only tool you have is a hammer everything looks like it needs pounding. For the Fed all they have is money, or ways they hope will lead to the creation of more of it by credit via low interest rates, so everything seems to need more money and more credit..
https://en.wikipedia.org/wiki/Law_of_the_instrument
The belief is so total,so all consuming, that there is no possible way to break its grip on people. People powerful and people small. Arguing against it is a futile as shooting rubber bands at the moon.
Bernanke and Yellen may not look so bad when a future Fed simply drops purchasing bonds and putting them on a fuddy duddy old fashioned balance sheet. Instead just printing the money and dropping it. Not on citizens from helicopters of course, heaven forbid. Maybe on the Treasury but more likely the banks.
This has nothing to do with religious fanaticism. Yellen works for the big banks. Her priority is protecting the big banks. Money printing protects and feeds the big banks. It’s really as simple as that. Does she believe a word she says? Does it even matter? The policy ain’t gonna change. Yellen ain’t gonna fall on her sword. What are you expecting, Ilargi? A selfless public servant?
The political angle is substantially the same. No politician wants to face the pain today when they can kick the can down the road. Money printing and QE kicks the can. Sure, there is a little political resistance for show, but for the most part the status quo helps the politicians too. No politician wants to preside over a deflationary collapse. If things have to get bad, a slow grind is much better for politicians and central bankers, because as lockandload says, its a whole lot easier to cook the proverbial frog in the pot (while at the same time building up the security surveillance state just in case things don’t turn out so good).
SHE KNOWS …
There’s no money in the banks. There’s no savings. Its all a lie.
Every dollars that was saved and put away for a rainy day has been spent and loaned out (even when it wasn’t there), multiple times. It cannot be given back to the savers.
Let’s not explain things like “gravity”. Tell it so simply that the people will understand.Your bank accounts have already been stolen. THEY are pretending that your savings are still there. THEY cannot steal it more than once.
jal says “SHE KNOWS …
There’s no money in the banks. There’s no savings. Its all a lie.”One day, the people will know that there’s no money in the banks, their savings is gone, they lied to us. I see lots of angry people.
jal and bluebird, you seem to believe that a dollar is something real. But what if a dollar can be conjured out of thin air? If a dollar can be conjured out of thin air, then everyone can be made whole in nominal terms if and when the system collapses. Everyone is going to get paid in nominal terms. Everyone. Cyprus was a head fake, and even then it only worked because Cyprus cannot print its own currency. You can ignore all the warning about Cyprus being the blueprint for the future. Fuggedaboutit. As you say, people are gonna get angry, so they are going to be paid. Their dollars aren’t going to have any buying power, but that’s another story.
You got to explain things very simply so that everyone can understand what happened to their savings. Don’t use words and concept that they don’t understand. ie. leverage
The money is not in a bank to give back. Its been stolen.
“… people are gonna get angry, so they are going to be paid. Their dollars aren’t going to have any buying power, but that’s another story.”
“… then everyone can be made whole in nominal terms if and when the system collapses.”Who is the intended audience?
Can you explain that to those that are financially illiterate?
Just to act stupid, what do you mean by “nominal terms”? 😮jal, What it means is this: No worries. Sure, the bank lost your dollars, but there’s no reason to be upset. When the bank loses your dollars, the central bank simply makes more and gives them to your bank for free. So you will get paid. No problem. Don’t believe everything you read in the newspaper. Janet Yellen has your back.
What’s Nominal, and what’s Real?
Saving dollars is as foolish as believing deflation is possible, in terms of what they will buy in future, therefor believing they are not constantly being devalued under the guise of “growth.”
Here is a case of Real deflation;
Here is another, though sort of in an inverted sense;
On being sold the “hold cash and wait for the opportunity to buy up everything at pennies on the dollar” meme, do you feel lucky enough to bet against the house? The same house that prints it’s own chips?
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