Comments on the EBC actions today
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AAAAAAAAAAA ! INSANITY ! https://www.youtube.com/watch?v=aIjHkLzror4
YOUR RULER IDIOTS ! https://www.youtube.com/watch?v=ZW4NKONRyU0
Franky, you can spell here as well, fantastic, I always wondered how you can spell correctly into the youtube search yet you can’t spell here.
Well done Fakeeeeeeee
Thanks Cory. Thanks Chris. Fascinating interview and some good thoughts. I agree currencies are everything right now. It is a focus of mine lately. And good point about Richard Russells comments “inflate of die” because that is the theme we all need to understand. We could see interventions for many years until that need is fulfilled to the satisfaction of all. Basically we cannot deflate becuase we will be overwhelmed by our debts. Neither can rates rise unexpectedly. Meanwhile, inflation itself must hit targets but not exceed them too excessively. That is the world we live in and it just means that management of the macro economy will continue as long as necessary until we supposedly normalize. When that is God only knows.
I think its bloody time God was on Al’s show, don’t you!?!?
Lets just say Inflation starts to heat up across all sectors, Dow to 30,000 silver to $200 Gold to da moon, coffee $10lb…you get the idea, so IF the global economies don’t burst and massively deflate on their own how are the central wankers going to control the inflation they so desire, well in the past they raise rates, raise rates!!!!! now that option is pure nuclear disaster as the insane amount of global debt from municipalities to feds to consumers would be a fireworks show the world has never seen before and we’d all have a great seat no matter where we live or think we hide.
There is no way out except inflate our way out. Debt is too heavy.
Yes it is. On a high note though the deficit is actually come down and work progresses so I am not too concerned. It is an easy recipe really. Balance the expansion of debt….add in a little growth…stir the pot with some stealth inflation….throw in a dash of tax changes….keep rates flat….and throw in a sprinkle of subsidy elimination while getting the other guys to cooperate at the currency level and pretty soon the problem does not look so insurmountable any more. While we are at we can get some program spending directed at job creation on the infrastructure front, reduce red tape and keep markets open. This stuff takes years of course. Little by little you make progress though despite the naysayers doomers and doubters.
There is also future liabilities of hundred trillion. To get rid of those, it is not a little stealth inflation, you pretty much have to impoverish the population.
US is in an unchartered territory. Optimism helps but reality will sink in. The debt is still growing fast. They even have to hide it under Belgium. Government is taking on more and more socialism.
If ZIRP is held another few years, insurance and pension will evaporate …
Very good synopsis.
BIRD…..THE DEFICIT IS COMING DOWN !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ?
Hi, Bird
Hope all is well with you and yours.
With all due respect, I think that is what the ‘powers that be’ want you to believe. I do not think you are going to grow your way out of the kind of debt we have. Also don’t think that the goldi-locks scenario is going to play out, in which you get just the right amounts of everything on the global, three-dimensional chess board.
Five/six years into the so-called expansion and you’re still running deficits that are in the hundreds of billions of dollars. The second you go back into a honest to goodness recession with unemployment climbing again and you’ll see the resumption of trillion dollar+ deficits.
Another wild card is the debt service. If we should enter a period in which rates rise meaningfully, the burden on the debt service would explode and it could take up a significant part of the budget for a time.
If I’m a naysayer, doomer and doubter — that’s ok. The math is the math and the U.S. is not immune from it, as much as people want to believe it isn’t so.
I’m with Lawrence — the memory of the depression (which is now becoming more textbook than actual), will not allow for a default. They are going to inflate their way out of it (my own guess — Japanese style in a way that will eventually put the dollar at risk.
Have a good night everybody.
As I have said numerous times in the past, Bird: I hope to heckler it works. Not sure that it can but there is no reason that I can’t hope is there!
Simple jj…..just do as has been done. The inflation numbers will be fudged to ensure that we don’t need to raise rates to combat them. There really is not another way. Inflation will be driven nonetheless in the softs and energy which is the only area that can be moved without upsetting all the other formulas the economy works off. So we need inflation but we cannot admit to it. Hell, I am not even getting creative in saying the obvious. We all know inflation is higher than posted rates. Everyone with a lick of sense and insight knows inflation is higher than posted rates. That is the price to be paid by past profligacy and public demands that drove debt as high as it is. Everyone wants to blame the government. I find that stupifying. Who the hell do they think was pushing the electoral buttons and filling out ballots? We, (as in all of us) got exactly what we demanded and now it has to be paid either through a debt resolution driven by default and bankruptcy or by inflating the damned problem away and hoping we can eventually grow out of it.
So true the powers at be will always, always move the goal posts!!
#$%@@!!
I don’t mind you calling me simple
Oops! Should have said “Easy jj” instead!
BIRD….There is not a dogs chance in hell that the US can grow out of it ..IMO
Bird, The idiots who voted them in, for the most part, will never be able to pay anything. You know that as well as I do !
So no crash in the next 1-2 years, just a slow plodding upwards that doesn’t keep up with inflation…. ?
Most likely
Despite all the negative statements made in Europe today, I was impressed by Greek stocks, e.e. ETF, GREK
I was less impressed by the Greek governments attempts to reduce its debt by selling off islands in the Aegian and Ionian seas. Way over-priced. Who is going to buy a couple of acres of rock with no water and a little grass for over a million Euros?
DAY NEVER STOP EUROPE ! NR 1 JOB ALL IN PRISON !http://www.ft.com/intl/cms/s/0/51ef66f8-ebca-11e3-8cef-00144feabdc0.html#axzz33n5KGPrn