venuspluto67
Forum Replies Created
-
Posts
-
If the vote is in favor of leaving and is close, the result may simply be jury-rigged to make it appear as though the vote were in favor of remaining. That’s how these things frequently go down.
Good title. That’s certainly my motto for what a thick-black-smoke-spewing train-wreck of a society in which we live in the USA in 2016!
@Mark: It’s exactly because of the unprecedented nature of this central bank behavior that we can predict that it can’t go on forever. It has all been a bag of tricks ever since late 2008, and such blatant manipulations can only go on for so long. That said, I’m pretty amazed the Masters of the Universe have been able to keep juggling all those running chainsaws as effectively as they have been for going on six years now.
Let us also not forget that all those TBTF Banks are all nice and set up for going even bigger boomsies than they were six years ago.
I recently saw a meme on Facepalm that attributed the drop in oil price to President Obama-sama’s brilliant leadership. How utterly out of touch with reality! The camp-followers of both the major parties are such Kool-Aid-drinking religionists these days that I have no doubt Republicans would be attempting to float the same meme had Mitt Romney won the previous presidential election (unlikely because people just didn’t like him and were generally weirded out by his Mormonism).
@Arnold: Perhaps, but one could ask, if this sort of money-printing is so terrible, then how is it that it has managed to keep the financial markets defying the economic laws of gravity for so long? IOW, exactly what mechanisms of economic gravity would make the Fed want to stop QEverlasting if that’s mostly what’s keeping these markets propped up?
Reddit.com has something called “ELI5”, or “explain like I’m five years old”, which is generally a request to explain some complicated phenomenon or thing in the simplest possible terms to an uninitiated questioner. I was wondering if somebody could “ELI5” what detrimental consequences would attend the Fed continuing to do QE (which I realize mostly involves the Fed buying up oodles of dodgy financial paper of one kind or another in order to keep financial markets propped up; and because the Fed essentially conjures the money for doing so out of thin air, many observers liken this to “money-printing”).
Rapier hits the nail right on the head in mentioning how the nosediving price of oil could negatively affect the fracking bubble. Here’s the thing about the fracking bubble, though: The real money isn’t being made in the production of oil but rather the finance-ponzi erected on the structure of trading land-leases for fracking. This means that bubble is a lot more vulnerable to being popped than most people realize, and the popping will be a lot uglier than nastier than almost anyone realizes. It could take down the whole US economy with it. You would think the geniuses at the NSA, the CIA, and the Department of State would realize this, but we’ve become such a nation of suckers and yahoos that they probably believe all that horseradish about fracking being an energy independence miracle. If only they had any idea just how quickly oil-shale formations stop being highly productive, not to mention how lousy shale oil’s EROEI is compared to conventional oil!
And I suspect the reason for the impending rate hike is the same as their reason for ending QEverlasting: Such financial gimmickry can’t be continued forever without serious consequences of one kind or another asserting themselves, and they’ve probably read their tea-leaves and see such consequences on the horizon.
