The Ben Bernanke Balance Sheet
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Byron “The close of a career in New York” 1905 Ben Bernanke announced a cut in QE by $10 billion a month this week, the financial press can’t stop tal
[See the full post at: The Ben Bernanke Balance Sheet]Re John Mauldin:
It is hard to dislike the man. He is the quintessential american salesman – 21st century version of the Fuller Brush Man. Optimistic, folksy, clever… But he is always selling something and good salesmen always believe in the product they are selling – while they are selling. If you read to the end of his current letter, you see that he is about to move into a large, expensive apartment in Texas whose systems are controlled by mini Ipads! So I think he is basically all in. But since he is a hedge fund guy you would think that he has something on the other side. I always wonder what it is. What is the solution if the ipads go down? Whatever it is, that is probably what causes him to hold his tongue.rheba,
And all you say about Mauldin is why The Automatic Earth is here, and needs to be, and deserves everyone’ support. Just about every single finance site has something to peddle, especially gold. If Nicole and I held gold, or stocks, or you name it, our views and writings about it would be influenced by that, and we don’t see that as a positive thing. And of course we realize that we limit our potential audience that way, and risk the very existence of TAE, something that’s very obvious to us right now, but we’re simply not interested in helping people make money, we want to help who have little, not lose it. And that’s a huge difference from John Mauldin, who in order to make you money dares not speak the truth.
THERE ARE MAJOR QUESTIONS ABOUT WORDS THAT ATTEMPT TO ENCAPSULATE REALITY.
A word is suppose to convey/communicate/summarize the body of knowledge that has been acquired by the participants.To get an insight, reflect upon the experiences you have had in attempting to teach a new word to a 4 year old or to an adult learning your language or to someone who has not acquired the same body of knowledge as you. (experiences, education)
If you do not wish to be misled, scammed, etc. you will need to question your understanding/comprehension/effects/causes of the words of your language.“The king is dead. Long live the king.”
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“… free market capitalist US
… Everyone seems more than happy to take the money,(QE), run, and persist in labeling the system “capitalism”. Which I would think is a curious label for a system that depends to such an extent on government hand-outs
… If a financial system is as dependent on public money injections as today’s one, there is a very real risk that this market has in fact stopped functioning,
… The reality, as far as we can get a grip on it, is that the mortgage related assets would not have ended up at the Fed if they were all that solid,… the debts hidden in the banks‘ vaults had grown to such heights that they needed immediate and large scale access to public money just to save themselves and their owners in the background from outright bankruptcy.”
And absolute power has now corrupted, absolutely. The Fed is a purely political animal, anointed immunity from The Rule of Law, and will stop at nothing in it’s quest to dominate the World, one incremental step at a time.
It now controls the Means of Production through it’s successful, at least for the time being, substitution of credit for wealth, driving out most forms of honest money.
As the Fed is now the economy, QE must continue, but will most likely be renamed and classified, in the “interest” of National Security, as the rein tightens.
When it all enters an information dark age, one might guess the question will be, will the periphery be reduced to ashes and rubble again this time, or simply economic destitution? The answer might be based on whether the Fed uses it’s in house Pentagon, or just the Credit Creation machine this time around.
Meanwhile, look out for false flags.
but we’re simply not interested in helping people make money, we want to help who have little, not lose it.
Fiat money is no way to preserve one’s wealth, and all else, at the moment, is speculation, but other than speculation in gold I see no surer thing to bet on, particularly if you can expect a long life to make that speculation more assured and find no need to sell it till it does glow brightly. lol!
“The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy’s long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates.”
The problem is that monetary policy can’t do these things. This was the Humphrey Hawkins bill and it marked the end of governance as we knew it. It soon followed that the Fed was full of people who were eager to take on the impossible task and so here we are. The Fed lead by people who believe despite the fact that almost nobody else who understands finance does, but most of who are happy to cash in.
Half of the richest counties in the country adjacent to the Imperial Capital where things have never ever been better by several orders of magnitude. One does not sense any possibility of change.
Karl Denninger calls out Barry Ritholtz as well:
“I’ve given up on Mr. Ritholtz; he’s become nothing more than a screaming shill for banksters and broad-based theft. When the time of reckoning comes his ass deserves to go in the dock along with the rest. […] And finally, what really*****es me off in regard to the outrageous hackery that passes for “journalism” these days is that nobody calls people like Barry out on this sort of outrageous and intentional distortion — presenting only the half of the impact of a given policy that shows whatever he wants to say, intentionally ignoring the other half that would refute the very point he is promoting.
How in the hell are we supposed to have an honest policy debate and reach valid conclusions about economic matters that impact everyone in the country when half of the information necessary to do so is intentionally withheld by the people hosting and debating same?”
https://market-ticker.org/akcs-www?post=226951
Karl was criticizing Barry Ritholtz’ piece entitled, “Why Do So Many People Hate Q.E.” Barry is loving it, and he says:
“A huge swath of market participants have not been properly positioned to profit from market upside. Hence, the relentless bubble talk, crash warnings, end of days chatter. You should have no doubt that this rally will end someday. In the meantime, find a better source of criticism than the sour grapes of those folks who missed most of a generational 170 percent (and counting) U.S. equity rally.”
https://www.bloomberg.com/news/2013-12-19/why-do-so-many-people-hate-qe-.html
It made me sick just reading it, but he did get blasted for it in his “Comments” section.
Maudlin and Ritholtz both know better, but the money they’re making is keeping their mouths sealed shut. Even Hugh Hendry changed his stance recently (probably had too many investors pulling out of his hedge fund, so had to change).To say nothing when you know the truth, to stay neutral, means you are really siding with the bully. And we all know what happens when we align ourselves with a bully – it is only a matter of time before they come for us. I agree with Denninger about what should happen to their asses.
Thank you for telling the truth, Ilargi and Nicole.
Same fraud going on in Japan. The power structure is trying desperately to hang on.
“Just look at the data. Abenomics is a fraud. Japan’s economy is in a state of near-terminal sluggishness bordering on complete inertia. In fact, the only reason GDP rose to nearly 4 percent in Q2 was because Abe frontloaded his program with a sizable chunk of fiscal stimulus ($100 bil) which generated some much-needed activity via government spending. Unfortunately, the fiscal component was a one-shot deal that will run out sometime in 2014 clearing the way for another bout of severe stagnation. […]
Businesses aren’t borrowing, because there’s nothing to invest in. And there’s nothing to invest in because there’s no demand. And there’s no demand because people’s wages are dropping, they have to set aside more money for their daily expenses and retirement, and because the outlook for the future has never been more bleak. So they’re not borrowing, the economy is not growing and the prospects for a strong recovery–or even an end to deflation–are minimal to none.
And on top of it all, Japan’s fiscal situation continues to deteriorate. The debts are piling up, “the trade balance has turned into a deficit and the current account surplus has shrunk.”
No matter. Shifty Shinzo would rather shower his crony carpetbagging friends with filthy profits than worry about anything so incidental as the economy, the people or the nation.
What difference do they make?”
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