Professorlocknload
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Guess Tesla needs to get to work on a line of electric farm equipment and solar charging ports? Caterpillar? Deere?
Here is a start. https://www.tillersdirect.com/Reviews/GreenWorks-27062-Cultivator/rv10839.html
Think I’ll get one and charge it on my RV Solar set up, to see if it’s even viable.
QE 4 will be massive. And it will be directed at Main Street. Beware of the Deflation Trade!
Or,
Hi, let me introduce myself. I’m Upchuck D. Gladhander. I used to be a Subprime Mortgage Broker, helping ‘Muricans achieve the American Dream, but I’ve decided to run for POTUS, on a platform of cutting your Social Security, Medicare, Schools, interest deductions and all other forms of .gov handouts,,,for the children, mind you. Can I count on your support in the fall? Crickets.Political Solution? Only under extreme duress.
Triv,
The Fed could be dismantled in a heartbeat by Congress. Central Bank cartels have been broken throughout history. The question is, what will force Congress (Government) to finally file for divorce from it’s marriage of convenience. For that matter, even the EU will ultimately be disassembled, given sharp enough pitchforks and volatile enough Molotov cocktails.The problem here is not so much the Fed being immune from the law as it is Congress protecting it from the law. While I don’t see another Andrew Jackson riding into town anytime soon, as ill advised as he was in most matters of State, when enough pressure is exerted upon the electorate to make it miserable enough, it will likely demand change.
That said, the dollar’s value being eroded by 98 odd percent since 1913, I don’t see any revelation coming up to protect that remaining 2% of it’s purchasing power. And no, when Bernanke suggested helicopter money as being an ultimate perceived panacea on the Fed’s part for the Black Plague of deflation, I do not think he was joking.
Nicole,
Greece, having handed over it’s sovereignty to Northern and Central Europe, in joining their cartel, is not a good example of what’s going to be for dinner in the U.S., Canada etc. They still have control over their currencies. Knowing the debt cannot be paid, and understanding how uncomfortable mass protest by fire and polls can be, I see the .gov’s opting out through the expedience of devaluation, making the prols feel richer in the process of pushing the ultimate solution off onto future generations of prols and their selected governments.Weimar, Argentina, The Roman Empire, The Spanish Empire, Zimbabwe, Venezuela, the list goes on,,,hell, to bring it local, the Continental Dollar, seem more appropriate examples.
Not talking necessarily Weimar type blitz’s here, just consistent, incremental, slow burn devaluation as deemed “needed” to preserve the status quo. At least until it finally goes ballistic, and crashes the whole dog and pony show.Venezuela being a micro, as well as present example, I look more to the Euro mess to provide the convincing grand finale that will cause tremors in the Eccles Building. At that point, dollars, Continental or otherwise, will be the last place I would want to be, Exter’s Pyramid not withstanding.
Not being a conspiracy theorist, but if I was one, even I understand CFR castles could be burned out as easily as Rome was,,,likely from the inside.
Add, this isn’t 1929. Money then contained, and was backed by, precious metals, and was hoarded for that reason. How does one cram electrons into a mattress? Why, when there are plenty to go ’round?
Liquidity crunch? Enter cashless e-money as the TPTB solution of choice. There are way more electrons in the world than there are physical trees with which to make Federal Reserve Notes. And electrons are much faster to put to work than mechanical printing presses.
I would be willing to guess that new electronic entries can be generated at a faster rate than any rate of withdrawals, required to meet everyday living expenses. Was it Greenspan that said he could guarantee all the money necessary to meet future debt obligations, he just couldn’t guarantee it’s purchasing power? And this before the technology that exists today, to create bit-money?
This new means of creating unlimited liquidity should certainly assure that demand will exceed supply to the point of causing ever increasing price rises,,,until, of course, the supply chain breaks down, sometime in the future, and on someone else’s watch. And, after all, isn’t that what politicians do, take credit for temporary solutions, while pushing problems onto the next watch?
In light of the fact that there is nothing backing today’s money, and considering the above points, I must continue to keep the horse placed before the cart,,,that deflation to a central banker is like garlic to a vampire, and won’t be tolerated, until the currency is destroyed, along with it’s producer. As in “Whatever it Takes.”
That is when you will get real deflation and revaluation of medium of exchange.
Can’t help but wonder what happens to velocity when all are paid (carry trade?) by negative rates, to borrow against this; https://research.stlouisfed.org/fred2/series/M1/
Animal Spirits rising from the dead, maybe? And it can happen very fast.
So,,,no more QE to infinity? The Fed just throws in the towel and relinquishes it’s power and stature in the Statist scheme of things? The World’s Central Banking Elite simply shut down the printing presses and fade off into the sunset?
OK, but I believe I’ll maintain a hedge, just in case history decides to repeat,,,again. At least until inflation can once more be equated with currency depreciation and associated costs of living rising beyond the means of most to afford, rather than being explained by assorted techno definitions brought about by academics in overpriced government sponsored education mills, most of whom couldn’t earn a living if they had to in the real world. Let alone predict for us the future of our well being.
ps Not sure how “Keene’ it would have been to short the Australian house market back in 09 either. Or that of Silicon Valley, for that matter. Seems the only given in all this is, currencies the world over are always shrinking in value. Still haven’t found one that appreciates.
In preparing for what’s coming, I certainly do not feel it’s a good idea to collect Federal Reserve Notes here, unless one truly believes the issuer of these IOU’s has ones best interest at heart.
On the contrary, until I can find in history, a list of Great Nations destroyed by Deflation, at least close to the number of those listed that succumbed to devaluation and inflation, I’ll stick to the collection of things “Real,” that can either hold their true value, or offer a real return on investment,,,as any true Capitalist would,,,in the interest of self preservation, mind you.
Hoping for change as a panacea is a bet against history, as well as a cop out from the responsibility of moving toward self sufficiency,,,, or at least minimal reliance on the benevolence of “Others.”
Certainly, the Communal activity of heading for the polls to vote for one of two colors of the same agenda is not an answer. Time to develope some individual and critical methods of reasoning and thinking at this juncture.
So, the Government/Corporate sector is running out of other people’s money? This isn’t Capitalism at all. It’s Fascism, though still presented with a happy face of illusions of “Safety Nets” in exchange for votes.
Government/Corporate partnerships (Fascism) cannot be referred to as the “Private Sector” here. This arrangement has more in common with the term “Public Sector.”
As I stated earlier, as more and more resources are consumed by this concentration of power, the real private sector, those not in the loop, will suffer. From the periphery to the core it all goes. It all ends up in the hands of the ruling elite, the new Aristocracy. Likely, in the end, .gov will even expell the Corporatists from it’s forbidden city, after it has used them up as well.
Look for a “New Deal” and price supports that will make FDR look like an amateur. Dams in the desert, high speed rails and bridges to nowhere, brushfire wars popping up everywhere,,,whatever it takes,,,Central Planners don’t do deflations.
There are only two ways out of debt. Default through repudiation, or default through massive devaluation of the currencies in which said debt is denominated.
Only one of the above is politically expedient.
Hyper inflationary Depression, resulting in the destruction of currency, is where this all ends. THEN you will get deflation, by default, after the printer’s demise.
“Fed Rate Hike Would ‘Crush’ US Housing” (CNBC)
Nonsense! Real Estate lending is now concentrated among GSE’s. And GSE’s can set their own specific interest rates and incentives. Hell, they could even offer loan to equity ratios of 200% if they want to.
Moral Hazard has destroyed it all. But for sure, owning any physical asset will turn out a better bet than holding ever depreciating Bennie Bucks.
Especially in a regime that offers a choice between a Megalomaniacal Narcissist Real Estate Developer, a Corporatist/Statist Warmongering Mad Woman and a Utopian Dreaming Throwback from the Silly Sixties, Hippie. We’re doomed, I tells ya!
The pudding will continue to be served as a component of the Bread and Circuses charade, kept alive by monetary authorities, as they await the massive devaluation they have prepared for us, to hit the streets.
Not if, when. It is the only solution they know. When I read phrases like “The Fed is waiting for more favorable inflation numbers,” and realize that means higher inflation is “favorable” to them, well, to me it means the Central Banks have one real mission in mind. The destruction of currencies by increment.
Hold soon to be rendered worthless cash at your own discretion. Or, wake me when a beer is 5 cents again and the Dow is 100.
Aside, can anyone even imagine the number of warehouses that are being packed in Spain, Italy, Portugal etc. with tonnage quantities of newly printed fiat? Let alone what has been stuffed into Greek banks over the “Holiday?”
Nicole, thanks for taking the time to present some very astute and clear thoughts and ideas re; the mess that misgoverned international societies find themselves in.
Has your predicted sequence of events changed any from the credit contraction-to-deflation-to-long economic winter scenario? Or do you now see a possibility of substantial devaluation first, coupled with inflation? Of course, both lead to the same conclusion, but the latter can certainly present different investment/survival choices.
Yes, Greenpa, do read Machievelli, then counter it with Bastiat, “The Law.” The contrast experienced will top off the politico/intellectual part of the survival toolbox.
Though, after reading the short work of Bastiat, you will be left wondering why people run off to the polls every so often to vote for others to tell them how to live.?.
And yet they continue to consent to the institutions of government for solutions to all of their earthly problems by insisting that another election will fix everything.
You know the schtick, installing an alchemist in Athens who promises to turn water to wine,,,Nobel Peace Prize winning populists droning ME wedding parties and assassinating folks he doesn’t like, half way around the globe, sans the hassle of due process, yada,,,
Brings back thoughts of an old talk show host in San Francisco who used to answer callers who were under election season hypnotic trances with “Never fall in love with a politician, they’ll break your heart every time.” Lee Rogers
So, the Prince of Greece is found out to be just another corrupt politician. And to remember how so many went gaga over his election. As usual, the voters were only congratulating themselves for winning another ill-informed election. But, of course, after the fact, they point blame at their choice rather than at themselves for choosing.
“If there is a deal, the U.S. Is behind it.”
https://globaleconomicanalysis.blogspot.com/2015/07/obamas-time-machine-can-he-really-turn.html
As I said earlier, NSA gets it’s “Man” installed in Greece. Europe is likely just a proxy battle ground between the U.S. and Russia/China. Need to beat back the “Hun”, no? Besides, a Greek bailout is only equal to a few months of QE for the Fed. Hell, the U.S. Taxpayer has plenty of money. Just look at the big spenders they elect to government office.
Really, it’s all just denominated in electronic balance sheet entries. And electrons are cheap.
When all the grandstanding ends, there will be a debt jubilee. It just won’t be in a form most expect, originating from political committees meeting in smoke filled rooms. Packs of wolves and a couple sheep deciding what’s for dinner.
It will end with the destruction of indebted currencies. Jim Rickards is likely right,,,just early.
That will be when the .gov guns come out.
Need to keep in mind, though, that it took Rome around 600 years to go full tilt. Then again, the USSR managed it in a couple three generations.
And the Funny Buck has been on life support now since ’71, so, maybe there is some kinda “Moores Law” of economics that adds an accelerated exponential feature these days.
Greece is the center of the universe these days. It has become the default diversion of all these chicken little blogs that have been calling for some sort of deflationary catastrophe resulting in the demise of western civilization these last seven plus years.
I’m sure the Fed appreciates all the ink (electrons?) being spilled over some irrevelant little province on the periphery of a larger geopolitical entity that is itself unsustainable in the long run. This makes it much easier for the political Fed to grease the skids for it’s favored candidates in the upcoming U.S. elections. Not to leave Goldman and company out of the equation, mind you.
So, until Greece actually hard defaults, and the lights are found to remain on in NYC and Podunk, ID, the billions of kilowatt hours of media power consumption devoted to any distraction available will likely continue. For sure, in an election cycle, incumbent domestic political parties understand that any local news regarding social or economic “discordance” needs to be purged from media dialogue. I mean, even Gramma Janet says all is just peachy keen here at home.
So, until common sense again prevails, has anyone heard what’s going on in Greece?
Another name for direct democracy is mob rule. That said, could it be some folks voted themselves out of the frying pan into the fire? Hard to figure where this leads. If this was a psychological vote against austerity (living within means) then there is going to be some disappointment ahead. Certainly, if the same government that sold the public trust down the river nationalizes the banks,,, well, good luck with that.
All eyes on France, Italy, Spain and Portugal now. Looks like some major Nationalists/Socialists have been handed an example at which to point,,, provided it doesn’t all implode, and they all find a need to run from the splash back.
Marine Le Pen, are you watching this?
But, rich countries like Denmark already know all this. https://www.nationaldebtclocks.org/debtclock/denmark
,,,nothing to lose, but lots to sell? I heard somewhere, that during the Great Depression, in Oklahoma, bullshit was a dime a bail, but no one had any money.
This, like any crisis, won’t likely be allowed by some very dark forces, to go to waste. What should be more concerning is, what happens after all the can kicking ends, border gates reappear and assorted Neo National Socialists occupy various halls of governance?
Of course the Euro is toast, as are all fiat mediums of exchange. It was doomed from the start. At this stage of debt collapse, there is simply no fix. Any attempt at such is not much more than a further waste of time/resources.
Here, again, is the crux, though no one wants to believe it. Especially egotistical anointed Statist Apparatchiks.
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” Ludwig von Mises
I know,,,too simple, and it might put some pundits onto the EBT rolls. I mean, hell, hope is cheap provided one has nothing to lose, but lots to sell.
In the end, the NSA gets it’s man installed in Athens, the Greek debt vanishes into the ether of Central Bank largess, and Putin loses a pipeline corridor. This ain’t about Greeks. It’s just Geopolitics.
All of Western Europe, having existed these past 70 years under a massive U.S. Military umbrella, is now going to need to cough up it’s dues. Call it whatever, it’s just Imperialism with a Corporatist face.
Looked at another way, the EU will likely ultimately be “owned” by;
1. Russia
2. China
3. The U.S.Three guesses on the winner, (and the first two don’t count.)
Think about it. All three of the above possess tremendous military power. All but France, in the EU, have been disarmed. And surrender is not a “foreign” concept in France, especially considering today’s bankrupt Hollandesque mess.On another note, have to take note of your comment there, Diogenes. 5 Sigma “Events” generally happen unannounced 😉
And Greece has now become the center of the monkey see, monkey do blogespheric universe,,,to the point of absurdity.
Oh, well. Better than taking the risk of coming up with something unique and useful. 7 years on, no collapse, no blood in the streets, no anarchistic breakdowns. Kinda disappointing for those who thrive on bad news, but maybe it’s just human nature to find scenarios such as that depicted in “The Road” to be in no ones best interest, thus to be avoided.
I wonder if maybe the “Alternative” media has run it’s course now, and is feeding on itself to the point of becoming mainstream?
“The entire thing is a charade based on perception and propaganda.”
By Jove, I believe you have just described the meaning of life itself.
And now, for the secrets of the Centrally Planned universe of .gov economics. Say, Gresham and Minsky aside.
“We can guarantee benefits of what ever size and as far out as you like, but we cannot guarantee purchasing power” The Maestro
The above considered, play your best game.
Dear Fascist Jon,
Could it be you and your Corporatist pals erred in your decision to take the “Moral Hazard?”
Ever even consider that? Didn’t think so.
True to the present state of economic affairs, there Ilargi. But, markets, yes, even grossly distorted ones, tend to look forward. And RE is, along with stawks, among the few inflation hedges mom and pop America know, and can use. Most aren’t savvy in the more sophisticated techniques used in hedging futures, options etc.
Might it be, the “bubbles” apparent in these instruments are looking at one of the most tightly compressed money supply springs in the history of a Keynesian dominated economic universe, all while moar and moar compression in being exerted? And, of course, the longer this additional pilling on of accelerant goes on, the bigger the bang when a little heat is applied?
Put another way, having come this far into artificial stimulus, and listening to the wailing that resulted in even the suggestion we live within our means (austerity), who, or what, is willing to step forward and take away the punch bowl?
I liken it all to a conversation that took place between members of an informal motorcycle club I ride with. A fairly new rider asked a more experienced one (?) how he knew what speed to be going into a curve that would assure him making it through it. Reply; “You can’t really know that for sure ’till you are in it, at which point, what are you going to do, lean over even farther and hang on, straighten up and run off the road, or bail off the bike in mid turn?
Looking at history, my bet is the Fed’s of the world lay ‘er over until she is finally on the rim, loses traction and slides over the edge. What other choices do they have?
Deflation, in the eyes of these psychopaths, is suicide. They will take their chances with the storming of the Bastille as their signal to head for the fueled up Gulf Stream sitting there on the Tarmac. That, or start WW III and be in the doomsday bunker in Pueblo, or where ever, in time for the grand finale.
On that little egg house, as I commented on Fred’s Humboldt blog, throw an axle under that and it would make a fine RV. Neo Teardrop Trailer?
Not too far ahead of it’s time, considering design of the first ones in the 1940’s.
Still a little bit of Greece in there. But the trend seems to be subsiding. Wonder when Chicago will take it’s place in the media as Zombi Prince. It does, after all have a GDP of, what, twice that of Greece?
Add in Illinois as a whole, and, well,,,
Austerity, austerity, austerity,,,buzz word. It will not come in the form of balancing budgets and cutting spending. It will manifest in the devaluation of currencies, until very little is left affordable for those not in the government/corporate structure, or directly connected to it.
There is no other way out. Deflation (real austerity?) was only possible when currencies were backed by value. They are no longer backed by anything, therefore, there are no checks against unlimited dilution of their base.
Unless, of course, one believes TPTB will simply give up all they have commandeered to date and become all benevolent, warm and fuzzy?
