Mark T
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“Besides, banks shouldn’t be obscenely profitable: they’re intermediaries, and in an efficient economy their profits should be quite easily competed away. When bank profits are high, that’s a sign that the bank in question is extracting rents from the economy, rather than helping it to grow.”
https://blogs.reuters.com/felix-salmon/2013/09/29/the-jp-morgan-apologists-of-cnbc/
Chart of the total credit market debt in the United States versus its gdp
I would have to agree with peacegarden’s comment “So, my vote is for a format similar to the old one…allowing for a building of commentary and community”.
I really like the old photographs from the past being used as article headers.
Another news article on the same topic:
Anglo Irish Bank scandal ‘damages democracy’, Angela Merkel says
German chancellor delivers a strong condemnation of the revelations that the Irish bank’s executives mocked the country’s role in Anglo’s bailout
https://www.guardian.co.uk/business/2013/jun/28/angela-merkel-anglo-irish-bank-scandal
Anglo Irish Bank tapes: executives mock Germans amid bailout
https://www.guardian.co.uk/business/2013/jun/25/anglo-irish-bank-tapes-bailout
Creating links using bbcode
https://www.bbcode.org/examples/?id=9
bbcode test board where you can test your links to see if you made them right before posting them on the blog
Canadian readers of this blog may be interested in the following post:
One of these days we in Canada really should have an adult conversation about the total government (federal, provincial, and municipal), business, and household debt that is being built up in this country.
The following statistics are taken from a credit market summary data table released yesterday by Statistics Canada: (The link to this data table is at the end of my post.)
The total debt outstanding in Canada at the end of March 2013 (bottom line of the data table) was $5.33 Trillion. From the end of March 2012 to the end of March 2013 the total debt outstanding in Canada increased by $323 Billion. For that 365 day period the total debt outstanding in Canada increased at a rate of $885 Million per day.
From the end of December 2012 to the end of March 2013 the total debt outstanding in Canada (bottom line of the data table) increased by $90 Billion. For that 90 day period the total debt outstanding in Canada increased at a rate of $1 Billion per day.
https://www5.statcan.gc.ca/cansim/pick-choisir?lang=eng&p2=33&id=3780122
Canadian readers of the blog may be interested in the following article:
How Do You Say “Housing Bubble” In Canadian?
John Ivison: Grim report warns Canada vulnerable to an aboriginal insurrection
Quietly, without much public fuss or discussion, a new ruling class has risen in the richer nations.
These men and women are unelected and tend to shun the publicity hogged by the politicians with whom they co-exist.
Power Shift: First in a series on the rise of the central bankers and the global imposition of cheap credit
https://www.cbc.ca/news/business/story/2013/04/26/f-rfa-macdonald-power-shift-savers.html
The following information is from a credit market summary data table on Statistics Canada’s web site:
The total debt outstanding in Canada at the end of December 2012 (bottom line of the data table) was $5.25 Trillion. From the end of December 2011 to the end of December 2012 the total debt outstanding in Canada increased by $269 Billion. For that 366 day period the total debt outstanding in Canada increased at a rate of $735 Million per day.
https://www5.statcan.gc.ca/cansim/pick-choisir?lang=eng&p2=33&id=3780122
With a total credit market debt of $5.25 Trillion and a gdp (at current prices) of $1.83 Trillion Canada’s total credit market debt is 2.86 times the size of its gdp.
https://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/dsbbcan-eng.htm
This post may be of interest to the Canadian readers of this blog.
The link at the end of my post is to a credit market summary data table (as of Sept. 30, 2012) on Statistic Canada’s web site. The total debt outstanding in Canada was 5.17 Trillion $ (bottom line of the data table).
From Jan. 1, 2012 to Sept. 30, 2012 (a period of 274 days) the total debt outstanding increased by 194 Billion $. Over that 274 day period it increased at a rate of 708 Million $ per day.
I can’t see how this can end well.
https://www5.statcan.gc.ca/cansim/pick-choisir?lang=eng&p2=33&id=3780122
Hiding the government’s liabilities from the public makes it seem that we can tax our way out of mounting deficits. We can’t
Cox and Archer: Why $16 Trillion Only Hints at the True U.S. Debt
https://online.wsj.com/article/SB10001424127887323353204578127374039087636.html?mod=googlenews_wsj
Let me try that link in my post again:
https://www5.statcan.gc.ca/cansim/pick-choisir?lang=eng&p2=33&id=3780122
If it still doesn’t work please go to the Statistics Canada website and put “credit market summary” into the search box to get to the data table I have referenced in my post.
I haven’t heard any discussion by the economists or politicians about the tidal wave of debt that is engulfing Canada.
The following information is from a Statistics Canada credit market summary data table as of the end of June 2012: (The debt statistics for Canada up to the end of September 2012 will be released in about 3 weeks by Statistics Canada).
Total debt in Canada as of the end of June 2012 (bottom line of the data table) was 5.1 Trillion $
From the end of June 2011 to the end of June 2012 the total debt in Canada increased by 209 Billion $.
For that 12 month period the total debt in Canada increased at a rate of 572 Million $ per day.
I would have to agree with Karl Denninger when he said (a few years ago) “You cannot expand credit at a rate faster than GDP forever without suffering a financial panic and collapse”.
https://www5.statcan.gc.ca/cansim/pick-choisir?lang=eng&p2=33&id=3780122
Today the world is bedeviled by a a modern day equivalent of alchemy. Those that study this modern day equivalent are called economists. Like many alchemists before them economists hold positions of great power and influence. Their words are listened to by world leaders with reverence and an almost fawning adoration. The emergence of economists is significantly more dangerous to the world than Wizards working in dingy laboratories trying to turn iron into gold. Economists are in the driver seat, pedal to the metal, driving us over a cliff in a manner that would make Thelma and Louise proud.
The basic alchemy that economists are preaching to the world is that we can keep borrowing more money and printing more money to get our way out of the debt crisis. This theory, like the obsession of turning iron into gold is by any measure of common sense, impossible, stupid, dangerous and absurd. However like any good ‘con job’, the leaders and the general population are a perfect ‘mark’ because they desperately want to believe the myth. The alternative is to accept that developed countries and their baby boomers are going to have to endure years of hard times and a lower standard of living while global debt is paid down, defaulted on and deleveraged.
Economist or Alconomist
https://www.safehaven.com/article/26864/economist-or-alconomist
Poor in India Starve as Politicians Steal $14.5 Billion of Food
“We now live in a world where deflation has become public enemy number one. In this current economic environment, governments seek a condition of perpetual inflation in order to maintain the illusion of prosperity in the developed world. But in reality, deflation is the free-market approach to rectify a secular period of superfluous money supply growth, debt accumulation and asset price appreciation.”
“The plain truth is that the current debt levels, carried by the developed world, demand a period of massive deleveraging to occur. A healthy and cathartic period of deflation is needed; where asset prices fall, money supply shrinks and debt levels are reduced to a level that can be supported by the free market. This is the only viable answer for various nations struggling with solvency.
However, the return journey from rampant inflation and asset bubbles always carries insolvency and defaults along for the ride. Defaulting on debt is deflationary in nature and restructuring your liabilities is the only choice when you owe more money than you can pay back.
The prevalent idea among heads of state and central banks is that a country can borrow and print more money in order to eliminate the problems caused by too much debt and inflation. But more inflation can never be the cure for rising prices and piling on more debt can’t solve a condition of insolvency. “
Deflation Isn’t the Enemy
https://www.huffingtonpost.com/michael-pento/deflation-isnt-the-enemy_b_1542278.html
“We are about to find out that economics and finance has a far bigger impact on your life than politics, and if you don’t believe me let me finish with a very clear declaration, and hold me to this, come back at me years in the future.
The sovereign debt problems along with the costs of an aging population are going to revamp society in the most profound way, and the part that worries me, that includes violent social unrest, and those who don’t understand it are just going to be road kill along the way.”
Michael Campbell (the brother of former B.C. Premier Gordon Campbell) made the above statement on his “Money Talks” radio show last Saturday on radio station CKNW in Vancouver, B.C.
If anyone wishes to listen to these words for themselves click on the following link to CKNW’s audio vault enter March 24 in the date drop down box, 8:00 AM in the time drop down box and then click on “listen”. When the audio starts to play, move the slider ahead to 39 minutes and 30 seconds to hear the quote. (Put your mouse on the bar just above the “listen” tab, click the mouse, hold it down and then slide the pointer ahead on the bar. You have to release the mouse to see where you are, and then repeat the process again one or two times to get to the 39 minutes and 30 seconds mark.) You do not have to register on the website to use the audio vault. It is strictly click and play. CKNW’s audio vault stores program audio for a period of 30 days.
In case anyone is interested the RT television channel has a good business program which runs weekdays from 4:30 to 5:00 PM (Eastern time).
It is called Capital Account. All of the shows which run on television can be accessed from their website, but it sometimes takes a day or two before all of the links to the latest shows are added. The following is the link to their website:
The Federal Reserve secretly selected a handful of banks to bid for debt securities acquired by taxpayers in the U.S. bailout of American International Group Inc., and the rest of Wall Street is wondering what happened to the transparency the central bank said it was committed to upholding.
“The exclusivity by which the process has shut out smaller dealers is a little un-American,” said David Castillo, head of sales and trading at broker Further Lane Securities LP in San Francisco, who said he would have liked to participate. “It seems odd that if you want to get the best possible price that it wouldn’t be open to anyone who wants to put in the most competitive bid.”
Fed Plays Wall Street Favorites in Secret Bond Deals: Mortgages
