Professorlocknload
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What can we say, but,,,,,,,
https://www.antiwar.com/bourne.phpDebt is not money, be it public or private, unless it leads to increased productivity, and is self liquidating.
Return to honest money, held in individual hands and watch this dilemma right itself.
Let .govs stand on the corner and beg for alms,,,or maybe hold a bake sale.
Then again, there are “statistics” aren’t there? This one isn’t any more misleading than “GDP”, I suppose. https://www.tradingeconomics.com/united-states/productivity
Can’t help but think that ‘Too many consumers and not enough producers’ might also be a factor in all this. Further limiting supply, as demand increases along with population expansion.
On peak wealth, I was in the Silicon Valley area in the 70s 80s and 90s. I would have to place peak wealth somewhere between 95 and 2000, in the early stages on the IT Revolution.
On the Surgeon in Chief,,,
As reality itself is in a state of constant flux, so should be the actions of a leader.
Put another way, as the facts change, so should a good leaders mind.“Useful” Idiots.It was, after all, PhD’s that built Auschwitz. Their masters will likely put them to similar tasks in future.
New President = Same Shit,,,Different Day.
Now that the “election” is over, all eyes are back on the Fed.
Until debt “Does” matter again, the charade marches on.Not so sure Trumps election victory had as much to do with anger as it did being the outcome of a feeling of hopelessness among a wide swath of disenfranchised middle class law abiding working Americans.
I might have used the term “frustrated” in place of “angry.”
Lord Acton pretty much covered it all. Not much left to say but “Power corrupts,,,,absolute power corrupts absolutely.”
“Yeah, maybe net worth vs energy use is a good way to measure reality.”
Nominal “net worth” is a lot different than real net worth. But then,,,,statistics,,,,
So, they’ve tried almost everything. QE, Twist, Zirp.
But wait,,,,what’s that sound,,,,there, off in the distance? Sounds like chopper rotors warming up.
There is definitely a sea change at hand. We are headed for the only final “solution” power knows. Fiscal Stimulus. Slowly, at first, then all of a sudden. Only this time around it won’t stop until nominal GDP “growth” is well into double digits.
The only bubble we have here is the strong dollar. That is about to change.
Deflation,,,out. Inflation,,,in. Like it or not, it’s what’s for dinner.
Unelectable just doesn’t matter. So much money and power has been invested in her, she remains quite “Selectable.”
Guess the poor will always be with us,,,as will the black markets,,,,whatever they use for currency.
https://mises.org/library/how-government-forces-poor-black-markets
Agree, there Tulsa. QE will ultimately lead to a breakdown of the supply chain. And when that happens there will be shortages, leading to a massive money supply chasing too few goods. Velocity squared will be the result. Think Venezuela on a mass scale.
Deflation is what comes after, not before, the destruction of the currency.
Just as electronic money can be confiscated, so will land be. Best to travel light and be able to change directions in a moments notice. With .gov by emergency, property rights go out the window, along with other rights and liberties.
I recall reading, back in the 80’s, of the adventures of a western capitalist traveling behind the Iron Curtain. While on the streets of Moscow, he observed back alley “Venders” selling Levi 501’s at about the same dollar price as they went for at New York retail stores. And this in a totalitarian system, where the penalty for dealing in western goods, let alone holding US dollars was likely a one way ticket to the gulag.
One of these entrepreneurs, when questioned about the risks, replied something along the lines of “Where do you think the apparatchiks get their Levi’s?”
So, certainly, in a cashless, honest, law respecting US of A there will be an enterprising cattle futures dealer willing to sell a “Contract” to a future presidential candidate, not so much for cash, but for favors after she is elected.
And funny cigarettes were mentioned in the article as a substitute for currency (Although 215 is frequently found as an acceptable settlement medium on Craig’s List in Humboldt County, CA,,,,weed) I was once at a carnival in Central California back in the early 70’s where the booth had a row of numbers along the front counter, and a big roulette wheel in the back. We would place a quarter on a number at the counter, to win a pack of smokes, the man would spin the wheel, and if we won, he would reach over our number with a pack of Lucky Strikes, but drop our winnings in quarters on our number, pulling the cigarettes back, indicating he was buying them back from us. Gambling was illegal in California at the time, you see?
Yes, it is about control. Total control. As in, the Fed owns it all, including the currency in which it is all denominated. And no, there will be no deflation unless the Planners want there to be. They, after all, set the value of the medium of exchange.There is no escaping this “Brave New World.”
And soon, when emoney is the only form of transaction allowed, the loop will be closed and cinched up tight.
I too am tuning out of the “Brexit” meme, at least until/if it is actually instituted,,,,rather than being held in limbo by TPTB until public sentiment can be turned around.
I think I hear Chopper Rotors moving in our direction. Or maybe even B-52’s?
Destruction of all the currencies involved in this Ponzi is inevitable. Another Kyle Bass observation recently is, QE only works when we are the only ones doing it. Make that “were” the only ones doing it. Again, Rickards had it,,,Currency Wars imminent,,,just that he was way early.
What to do?
Get the hell out of the bonds, including the dollar? 1.47 Yield? Do we really think this is going even more negative? Or do we suppose the PPT/Fed is in full on liquefy-it-all mode, Katy bar the door?Busy weekend at Eccles 😉
And all this time I thought all these Economic Alchemists were granted license to practice their witchcraft because they had found the key to getting themselves out of any pickle they put themselves in, by simply hitting the Infinite Improbility Drive button. Douglas Adams must not have included the instructions on its operation.
Not to mention the tens of thousands of women and children western governments have killed in the MENA region with their drones, their creation if ISIS, and other means of death and destruction,,,creating the refugee crisis in the first place.
“I’m from the government and I’m here to help” comes to mind.
The world is a harsh place, made harsher by central power.
$538 b more in Chinese flight capital? Double that? Got Real Estate in Western Canada and the US?
It would be advisable that Mexican and MENA immigrants to the above learn Mandarin so they can communicate with their new future employers.
@ rapier,
Every religion/conditioned faith based belief system has it’s zealots. Something that is not exactly provable tends to have wide parameters of interpretation, attracting speculation and imagination. And, of course, a bit of goal seeking.
Not to worry. Gramma Yellen has decided to throw moar free money at Main Street now. We saw what $85 billion a month did for Wall Street. Imagine what, oh, say, $150 billion a month dumped on the general consumer will do?
By November this thing is likely to be roaring. B-52’s can carry a bunch more c-notes than li’l ol’ choppers. Gramma has received her marching orders.
Now, as for “Price Discovery” in order to discover a price one first needs something of value to mark it to. Not sure what that will be, but it certainly won’t be green zero term Federal Reserve note debt instruments. These themselves will need to be repriced in comparison to something of real value. That will be when the rubber hits the road.
Short term, dream on about disinflation. But in the interest of long term financial health, I plan on the inevitable eventual rejection of state issued promises to pay,,,in what??? I have no idea.
Far to much distance between the first and last paragraphs of Keen’s article there.
Suffice it to say, the Fed has two choices here. Inflate or die. Or, put another way, devalue or die. The method is irrelevant. The outcome is the target.
Are there any economists out there who have run a business, other than having .gov as captive customer/benefactor? You know, had to start out under capitalized, juggling and scraping by for years until they figure out the right formula to make it work? Or are they all wild eyed theorists who “Can’t, so they teach, or work their way into the protected illogical realm of bureaucracy?”
All said, are real estate prices really rising,,,or is the value of fiat currency falling? All being relative, it sure is hard to determine value for value anymore. Of course, there’s this;
Meanwhile, a good read, written back in 1840’s Russia,,,while we wait,,,
https://www.eastoftheweb.com/short-stories/UBooks/Over.shtml
The more things change, the more they remain the same.
Spot on, there debtserf. Three legs of great estates are precious metals, collectibles and real estate. This is the counter to the game of central banks, which now even own the very currencies in which it is all denominated.
As Faber stated, they have plenty of ammo left. Decades worth,,,before this all ends in a feudal collectivist quagmire, collapsing as it’s 10% ruling elite sit on the curb, hungry, with their hands out, wondering what happened.
It’s going to be a long journey to the bottom,,,maybe 60-70 years, ala the USSR?
Such is the Moral Hazard road TPTB decided to embark on back in 08. (Or maybe 1971 when the wealth was confiscated from the public via the decoupling of gold from money?)
It is far too late to turn it around now. And politicians will only accelerate the process, but the masses will still proceed to the prefabricated polls and cast their meaningless vote for the likes of trump/clinton or clinton/trump, or whomever promises to redistribute, an ever diminishing in value, pool of dollars from others to themselves.
Humm? Maybe there’s something worth looking at in that three legged analogy there? Trick is, of course, once it’s acquired, how to keep it until the system implodes.
Update,,,Europe Stawks Close Green after Terror Attacks. Buy, buy, buy,,,,lots of broken windows to replace!
The takeaway? Murder and destruction is good for GDP.
Somebody stop this dirt ball,,,I want to get off now.
Ah, yes,,,and too many cooks will invariably spoil the broth.
Aside from that, how ’bout that action in Brussels? Obviously, the borders just ain’t open wide enough yet? And to think, the blame is put on the government by it’s own lapdog media for being “unprepared?”
Guess they haven’t cracked down on their own citizens hard enough yet? But they will now. Freedom is for foreign refugees, not warmongering-government-enabling EU citizens.
About the only thing to sink one’s teeth into now is that the slope is going to get steeper and slicker. The political solutions that have brought all this about, will only throw it all from the frying pan directly into the fire now.
Brace!
““Monetary policy can never – repeat, never – ‘run out of ammunition’”, he says.”
Case closed. Get “Real” or get reamed.
That being what it ultimately comes down to,,,the Darwinian solution.
When the pretentiously strong and fit must eventually yield to those honestly worthy of survival.
And yes, pitchforks would certainly expedite the process. How bad does it need to get to finally warrant the sacrifices necessary to break the chains of tyranny?
Guess all one can do for now is get real and stay tuned.
Also, it might pay to closely follow events in Venezuala, as a micro example, of what may develop here in future. One could ponder whether those holding the Bolivar Fuerte made out better or worse than those who set aside a Silver coin here and there?
