Professorlocknload
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No,,,wait,,,”Sovereign Islamic Bonds?” Islam as a State?
Where might the Capitol of this new “Sovereignty” be located? Teheran, or maybe Riyadh? No, I’ve got it, locate it in a disinterested third party place, like Tel Aviv!
So, now we Financialize Religion. What a concept. And next, instead of sanctions, we could devise a sort of neo- inquisition to discipline “policy” backsliders.
I’m going to need to quit reading all this comedy, lest I find myself tempted to someday actually invest in it.
Let’s see? If the Fed is only just behind the chain of events in Japan, then when it bids for all debt, public and private, here in the USSA, the Dow should hit, I dunno, maybe 34,000? And interest rates will go negative?
Way I see it, the Fed will deposit $ thousands in every Charge Card and EBT card account before letting “D” happen here.
At this point, Equities and Bonds are both right. Imagine the day when they diverge?
QE (or whatever the nomenclature will be) is the only way to keep the lights on for now.
Expect WPA themes, extensive price support measures, massive infrastructure boondoggles, in short, widespread window breaking, and hiring of glaziers. Oh, and intermittent paper blizzards.
Might add, populist politicians doing standup FDR impersonations about how .gov is our only savior,,,oh, wait?
Then, all eyes on the Pentagon.
Agree, Oxen. These “markets” are muppet bait. That said, shorting them is akin to shorting the Fed. Do ya feel lucky?
QE as a brand name is dead. Call the “New Improved” what you will, the fact is, the Fed now owns all this.
It’s theirs to either save or lose. There is nothing representing intrinsic value behind their currency, only faith and credit psychology. Put another way, Bullshit.
On gold as religion, money is money. About all one can do is try and guesstimate median production cost and fundamentally base purchases on that. Certainly, Au will be around longer than Granny and her Cookie Dough.
Likely Au, Ag, Cu, Zn, et al, will be around even longer than present systems of government, as well. Rather than thinking of things “real” as religious, I like to think of them more as a bridge, on which to cross over to the other side, when all the “Great Ones” finally swamp their little fiefdoms, and are exposed as the phony alchemists they really are.
Or is this Empire somehow immune to the fate of all others that have gone before?
Of course everything is scripted in politics. And yes, the Fed is a Political animal.
“Management Of Perception Economics.”
But, what of the comment the Maestro made on gold?
The Feds will do whatever it takes to pump up housing again. Even make Section 8 government rent vouchers permanently apply to mortgage payments. Home Building/Sales/Materials is big business with powerful lobbies. It’s also a big jobs producer for the lower end of the labor market.
Might be, when the common folks realize that their only means of hedging against currency devaluation is Real Estate, housing will again become a conduit for wage and price inflation. Who knows. But for sure, we are heading further into a state controlled economy, and away from any semblance of a fundamental market based one, so place your bets.
Seems to me a politically inspired blanket amnesty should put some buying and renting pressure on inventory, as well. And I just don’t see the Feds cutting rent subsidies and home buying incentives anytime soon, if ever. Plus, we’re talking the old “American Dream” here, aren’t we?
The FDIC stance on decoupling Money Market Funds from insurance coverage in the next rout should send chills down the backs of Mutual Fund investors. First, the buck will be broken in these MM institutional holdings, then up through the risk curve goes the illiquidity until it breaks them all, these funds of funds of funds.
And yes, they are too big to bail. $15- $16 trillion plus re-hypothecated related derivatives? That’s going to require some turbo charged QE in the end. But, isn’t that obviously where this ends? I mean, when the Bread and Circuses finally end?
“I used to feel so alone in the city. All those gazillions of people and then me, on the outside. Because how do you meet a new person? I was very stunned by this for many years. And then I realized, you just say, “Hi.” They may ignore you. Or you may marry them. And that possibility is worth that one word.” Augusten Burroughs
The Fed QE’s, by whatever name you want to pin on it, until every new dollar it creates results in zero GDP increase.
An no, it can’t force folks to spend on frivolous stuff, but it can sure force ’em to spend more on necessities. A lot more! The process is currency devaluation. The result, sans productivity growth, is called Stagflation. Or, in it’s advanced stage, an Inflationary Depression. The worse kind. Like in Venezuela, et al.
Watch for ever more, and obviously increasing Supply Chain disruptions for clues.
In word clouds, look for words like “Shortage” and “Bottleneck” to stand out in media headlines.
But, ya’ll have to admit, it’s amusing watching the world’s “Anointed” scurry around grasping at straws while their fiefdoms wobble and list.
Common sense will prevail. Meanwhile, just need to find peace amidst the storm, while riding it out.
Keep up the good work, Ilargi. All this needs to be recorded for posterity.
“I used to think that if there was reincarnation, I wanted to come back as the president or the pope or as a .400 baseball hitter. But now I would like to come back as the bond market. You can intimidate everybody.” James Carville
“Even the Fed” P. l’n’l
Is the Fed bigger than all the world’s market players? Or is it swimming necked? Stay tuned.
“The richest 1% of the world’s population are getting wealthier, owning more than 48% of global wealth, according to a report published on Tuesday which warned growing inequality could be a trigger for recession.”
Zero sum, is it? Going down the class envy bunny trail is a missallocation of productive investment (Capital preservation?) time.
Rate hikes? Negative waves, Moriarty, negative waves. Just think bridge and it’ll be there,,,
https://www.zerohedge.com/news/2014-10-14/fed-about-pull-qe-plug-and-happens
A wildcard in all this oil glut talk is war. Wars run on oil, and they can consume excess capacity in short order. Matter of fact, they consume ALL excess manufacturing and industrial capacity, as well as solidify allegiance to political power in the process. This is why war is vital to the continuance of the State power structure.
Book it!
As for OPEC, it will go the way of all cartels eventually. Certainly, in time of war, it will yield to western “national interests.”
Could be the Fed’s rate hike jawboning has been intended to cause a “Lock rates in now, while they are still cheap” spending spurt. What with housing flattening and spending going south again.
Why they would blow up the remnants of what artificial Econ activity remains at this point, along with their own “Balance sheet” is hard to figure.
Of course, in the end, a fully nationalized economic system is doomed anyway. And we still haven’t gone through the Neo New Deal and cash for cars, houses, old shoes and broken down TV’s yet. Shovel ready on steroids is still in the wings.
But, who knows, maybe they read this and got religion ‘er sumpin’ ?
Oh, not to mention War in a couple dozen more places like Nigeria, Iran and Ferguson.
Yeah, let’s counter #4 on your list up there with this https://finance.yahoo.com/news/feds-fischer-foresees-smooth-u-211120063.html#
Hope ya didn’t sell your bonds into a Fed manipulation using simple jawboning as lever. Rest assured, friends of the Fed were advised well in time to profit handsomely by this maneuver.
“get into western Africa now, with all we have.”
Don’t say that too loudly around MIC elements. They have become proficient at destroying villages in order to save them.
But the band’s still playing, and no one is going to have any problem finding a chair when it stops,,,right?
This all reminds me back in 05 when all my neighbors thought I was nuts because instead of refinancing and going out and buying Hummers and Jet Skis and Cruizes to Europe, I was instead patching the old jitney together and paying off my mortgage with the savings.
Now the shack is paid off and the neighbors are all gone, their houses foreclosed and their Hummers worn out.
“The Quickening” continues to accelerate. Must agree, the sooner it’s all over, the better.
The only thing I find unsettling about it is, the French have Nukes.
Zero percent low income home loans? Wow, I wonder what that cost the home builders lobby?
On share equity for debt, why, again, is it not a good idea to lock in some of the lowest long term interest rates in all of history?
There is some nice leverage there, and when rates begin rising again, shares can always be re-issued. And at that point, maybe the Fed will buy them all.
palloy,
Might add to the “patriot” scheme of things, Western Europe is consistently, and conveniently, turning more “Muslim” by the day, with even more refugees expected as a result of Nobel Peace Bombs raining down around the Middle East.
Another excuse for destruction of European infrastructure?
Of course this ends in war. What else are nukes and other military hardware for?
This will get granny off her rocker and onto the treadmill. https://mhanson.com/archives/1674
Interest will by necessity reach 8% eventually. But only because the actuaries require it and inflation (not the academic kind, the kind caused by too much money chasing too few goods in a supply chain disruption) will be considerably in excess of that figure.
Hanson’s piece tells me the yield curve may flatten a bit, or even flatline, but not invert anytime soon. Houses and stocks are the Feds favorite play things. Bonds scare the bejesus out of ’em.
There goes the bias,
Sorta blows the whole deflation theme.
Below 666, eh? Rather sinister sounding figure for the Biblically persuaded. But granted, my concern is that someday Edwards might actually be right.
Still, with a gazillion recently created dollars coming home to roost, mostly pouring into T’s it’s difficult to see even artificially boosted short rates sticking to the wall for any significant length of time. Oh, maybe a couple basis points until all squeal uncle, then comes the paper blizzard. The rulers need a convincing “We told you that you needed us” panic to help the Proles find “Religion.”
But, either the bond market, what little is left of it, or the equity casino, can’t really call it a market anymore, is right. Highly unlikely to be both.
Unfortunately for Europe, after the wealth has been pulled, the breaking of the infrastructure begins. Especially now that the U.S. is lead by an administration that no longer needs congress or the consent of the ‘electorate’ to make unlimited international war.
Europeans might be better served here to start a bunker building program, rather than braying for more government cheese.
But then, the U.S. MIC has salesmen standing at the ready to fill orders for arms and ammo to European “Allies,” then later reconstruction bonds to fill in all the craters.
Right on the mark, Jef.
It’s just that collapse can take several generations. 60 or 70 years is a long wait.
Inverted yield curve going into a deflation?
.001% interest rate is negative in a 0% inflation.
0% interest is negative in any rate of deflation.
Hard to figure here.
Shorten duration to a couple years,,,in short term TIPS?
Unless of course, this is political.
Can’t stand any of ’em, they lie but, let’s say;
Red “juggernaut” wins both houses of Con-gress.
Blue Janet raises rates. Result hits the street 12 months out, in middle of 16 campaign.
Boobus Electorate believed everything was fine before the election.
To the rescue,,,,ta, da! https://www.realclearpolitics.com/2013/11/05/hillary_from_benghazi_to_goldman_sachs_319270.html
Does absolute power corrupt, or what?
Can’t bank on much these days, can we?
Oh, other than political opportunists like Lizzy jumping in front of the parade, and of course, whatever personna in the image of a new, improved, politically anointed Attorney General is foisted upon us.
So, I guess we’ll have to bank on ourselves.
Will that be “Full Faith and Credit Federal Reserve IOU’s” or is the faith finally wearing a bit thin here?
Ron Paul, Griffin and myriad others have been warning of all this for decades, but it is just now making the fringe edges of public perception.
With jaw dropping amazement, enlightenment comes, one by one, with “We didn’t think our government would ever do this to us.”
Nothing to do now but await the lid, to be slammed down on all this to take it out of sight and mind. National security, mind you.
Well, I learned many years ago what the US Corporatocracy and it’s MIC was capable of,,,never mind, you don’t want to hear it.
No one likes war stories.
Murrow might say, Good night and good luck.
Arnold,
To take it a step more, who “owns” the currency.
There was a time when government had no money, it belonged to the people. But that was back when currency was money, not a Federal Reserve IOU issued in lieu of confiscated wealth.
My, what checks and balances real backing of currency provided, before the State decided it knew more about economic progress than all the world’s market players in all the world’s markets.
What Capitalism? All I see here is a hybrid form of Statist sponsored Corporatism.
Capitalism, in the grass roots sense, is each of us trading with one another with mutual benefit the goal. A kind of economic liberty, if you will.
I’m sure a hefty carbon tax will save Central Planning. And certainly help it afford much better financed wars.
Yeah, Arnold,
Not as sure if it’s debt folks don’t understand, as much as it is the concept of deferred gratification.
Schiff a wacko? How is he anymore a wacko than all the fringe bloggers that have called for deflations and market collapses in light of fantastic stock gains since 09 and almost equally as good housing gains over the same period?
Or those who call for substantial interest rate hikes,,,in the face of deflation predictions???
Might be Schiff has it right, just way too early. At least he isn’t calling for stuffing ever depreciating cash in mattresses.
On gold, how many link war preparations with gold falling in price, as nations build foreign reserves? Not sure even Schiff has figured that one out.
Oh, well, Kettles and pots. Carry on.
So, I guess it’s time to smash AfD like the yes bunch in Scotland. The Central Banks will put their media divisions right on it. If they can’t get ‘er done, Diebold will fix it.
Equal opportunity debt?
Start up the liars loans again. That will get the economy firing on all 8, just like last time. Do it under the guise of “equality.” Why not, even minorities should be allowed to be put into debt up to their eyeballs. It’s the American way.
So, if .gov decides to offer a 100% tax credit for mortgage payments for 5 years (Central Planners like 5 year plans) and HUD continues to apply Section 8 rent vouchers to mortgage payments, and all mortgage originations stay “in house” in the Fed, as buyer and of last resort, to be distributed on an as needed basis, to align statistics with goal seeking agendas, housing won’t boom?
Rest assured, some $trillion, some time, is going to fire this thing to the moon.
And, in exchange for votes, how about a blanket amnesty for 40 million aliens, and a generous housing voucher to boot? Poof, there goes inventory.
Add to that the demolition of existing housing stock considered “toxic” due to lead paint, asbestos, mold, fiberglass insulation, formaldahide laced particle board, and assorted “Chemicals Known to the State of California to Cause Cancer” , which is pretty much every component of a house now.
Don’t under estimate what the power center is capable of.
Or, fight the Fed, and good luck to ya.
For sure, if something along the lines of an economic calamity doesn’t take place soon, some gloomer websites are going to start going dark.
The Fed has held this together since at least 1987 now. Who’s to say they can’t go another 50+ years?
Yes sir, Ken. When they pretend to feed us, and we pretend to eat food that is no longer there, about two thirds will sit on the curb and cry, while the one third will develop some individualist cajones and instigate the healing process.
Meanwhile, I am reminded of Claire Wolfe’s book “Freedom Outlaws Handbook:179 Things to Do ‘Til the Revolution.”
Yesterday was the election. Today we feel so betrayed. Duh?
https://www.zerohedge.com/news/2014-09-19/was-scottish-vote-rigging-caught-tape
Betrayed my ass, stupid is more like it. Legitimacy was just given to the power, in the form of “voter” turnout.
