Debt Rattle May 26 2016

 

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  • #28359

    NPC Graf Zeppelin over Capitol 1928 • Britain’s Property Market Is Going To Implode (BI) • Trillions in Debt—but for Now, No Reason to Worry (WSJ) • I
    [See the full post at: Debt Rattle May 26 2016]

    #28363
    Dr. Diablo
    Participant

    May have missed this recent release by the St. Louis Fed:

    “As stock prices rise, the gains are disproportionately distributed to the wealthy. Lower- and middle-income families who are also wealth-poor are less likely to expose their savings to the higher risks of equity markets…. gains in the stock market tend to benefit those in the wealthiest portion of the income distribution, who have better access to and higher participation in these asset markets.”

    So you’re saying that the Fed causes income disparity? Thank you very much. Our lawyers will be in touch.

    #28365
    Dr. Diablo
    Participant

    May also be interested in Armstrong’s quote today:

    “so many are chiming in to keep Britain in the EU. All their reasoning is nonsense. This is a very sad day for Britain. It will see its independence slip away into thin air. You cannot save the EU. This is like someone falls off the cliff so you jump as well to hold their hand on the way down.

    The EU is a total failure. This federalization of Europe is a deliberate utopia for politicians with high paying jobs, tax exemptions, and the people have no possible ability to ever vote for a policy change.

    **This is the most anti-democratic structure ever thought of in Western culture**.”

    Should make that TAE’s new tag line.

    #28366
    Ken Barrows
    Participant

    In the modern world, total debt always rises faster than GDP. Although our betters never address this issue, they implicitly assume it will remain so forever. Have you ever heard anyone (even Steve Keen) grapple with the problem?

    #28369
    rapier
    Participant

    RE, more QE

    More QE is absolutely certain and buying corporate debt is certain as well, and then probably equities.

    We may be only in the second inning, or mid first half for the soccer world, of central bank money printing and the next act is going to be to monetize corporate debt and even assets. I predicted this 14 years ago, in so many words, before I really knew what it meant. Not that I couldn’t be wrong but at least consider that the general trend of monetizing corporations and thus keep the system intact could stretch out for a very very long time, a decade or even two.

    That isn’t to say the end won’t come a lot sooner for many humans, of which there is a huge supply. Or as has been said when disaster strikes because of war and other human folly’s, it won’t be the end of everything, just the end of you (them). This is especially true of America where isolation from histories vagaries and violence are the norm, and in fact this is obviously ingrained in Americas strategic thinking. For the less strategic thinking Americans, a large plurality, chaos and destruction and death in the rest of the world will vindicate the belief that American is favored by God.

    As always you will know when the game is up, when rates rise on US Treasury and AA corporate paper.

    #28370

    Dr., I’ve been ranting against the EU for years, no need to use someone else’s tagline.

    Ken, once you take out speculation and leverage – i.e. modern investing- I think you could be halfway there. As long as people keep buying homes with the idea that they’re cash machines and/or retirement vehicles, however, debt is king.

    #28371
    VisionHawk
    Participant

    What’s the difference between an ostrich and an Aussie?

    One has a bar-b-que.

    <sigh>

    #28372
    V. Arnold
    Participant

    Pres. Putin’s stand against GMO seeds/foods is stellar. Russia has vast land holdings across many climate zones for growing literally any food crops they want.
    Adherence to organic growing practices will ensure sustainable agriculture.
    The U.S. is out to destroy human habitation with NAFTA, GAT, TPP, TTIP, and national sovereignty of the nations of the planet.
    Tally ho; we’re well on the way…

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