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Debt limits are so quaint.
And, wait until people realize "debt limit" is really "debt subject to limit" (allowing us to go ever-higher), that we don't even need a vote to blow past the "debt subject to limit" (it's merely a polite non-binding formality), just like this year's Federal budget is a polite non-binding formality (which we've ALSO decided to not even bother to address with a vote this year).
This is going to be FUN.
Timmy and Ben must be action junkies. I can just picture them around a roulette table in Vegas, in tuxedoes with bow ties undone letting the deed to America ride on "00".
They should dig out & dust of their 1975 hardback addition of Adam Fergusson's
When money dies: The nightmare of the Weimar collapse.
How do you know they aren't intentionally playing out that script?
Or just look to Bloomie today:
German Households Are More Indebted Than Greeks: Chart of Day...
...and way to go Ireland! If only debt was an Olympic event.
That's an excellent book. I read it while the von Mises Institute still had it for free on their website. They had to take it down at the request of the publisher. It became too popular I guess.
Let's face it: There just isn't that much to say. It's like watching a slow motion video of a car wreck you know is going to happen. It's not as if you can scream out at one of the drivers "Look out!" and make a difference.
It's actually like watching a slow motion replay of the same wreck over and over again. Yet each time you still want to scream, but no one is listening.
Yup. It's coming time to start taking actions to prepare for the whirlwind. It's been happening for a while, of course, but it's now percolating throughout the wider society.
People who only watch television tend to have short historical memories. Anything that's not being mouthed by the pagan gods on the telescreen appears to be heresy.
Now the heretics are being proven right...
Depressions make generals. Hard times make for stronger men and women. We'll do fine... it's just a question of how to handle all the hopeless ones, the madmen, the killers, the drunks, the addicts, the displaced...
As long as the bastards don't start bombing people randomly, we can make it. If they kept restaurants open in Baghdad, we can keep them open here. We have the intellect, the values, the technology, and the time.
Depression for them. Prosperity for us.
I'm starting a guillotine manufacturing biz. I foresee soaring demand for these once useful machines.
That can be very bloody. It was reported that the scaffold was very slippery with blood. Also, how many before the blade must be sharpened? I thing a 0.75" to 1" dia hemp rope, stretched by several drops of 200 pounds, should be considered. The scaffold wouold 10 ft off of the ground, a trap door placed in the floor, and then since the door may open and to comply with OSHA, and to keep the guest from breaking their legs, the safety rope would be secured to their neck and wiht the appropriate drop, they will be dead in less than 1 minute, and 30 minutes later, the process can be repeated. low cost, re-useable material, and every 200 or so executions, replace the rope.
Mr. Pierrepoint, the famous English hangman family never had a recedivism case and no complaints.
But just for piece of mind I would leave the really big cities with historically high unemployment and crime rates. That values thing you mentioned. Personally I like Montana and the mid-west, cold winters help keep things in perspective.
One thing about the midwest: If you can't get a check from the gubbiment, and you don't like hard work, it ain't the place for you. FIREWOOD BITCHEZ!!
"how to handle all the hopeless ones...." Easy, just keep re-electing them.
Between caliber, muzzle velocity and accuracy, you can usually sort out most issues...
It is like watching a drunk teenager driving 120 MPH down the wrong side of the interstate at night with no headlights in an ice storm, saying, haven't crashed yet.
LOL. My state senator (Louisiana), Joe McPhearson did this, sans the ice storm, in the 80's on an unopened portion of I-49. State police nabbed him, which saved his life considering that he was approaching an unfinished span. Been re-elected ever since and will be term limited later this year.
I'm moving to Greece!!
Who cares? We all know that deficits don't matter.
Dr. James Galbraith... Junior... has it all under control. You can trust him. He works for the University of Texas. His daddy was just as brilliant as he is.
And he has a beard. And we all know that beards mean wisdom.
he's a dick..
'japanese lost decade' in their dreams!
Bernanke has a beard too..
Thank god we have Bernanke to save the world. Imagine if that crazy Greenspan was still jacking the hell out of the currency
"deficits don't matter."
Seems they're trying their best to go down the G.F Knapp chartalist school of thought.:eek:
Of course they don't matter (defecits).After all these are merely "byte to byte" transactions. The computers have been programmed to not have "circuit breakers". Heck one day they too will collpase due the weight of the endless 0000000's.
...just keep buying Treasuries).
Well, that's what we was a figurin' on doin'!
i came to this site looking for porn and all i hear is negativity.
Reality is neither negative or positive my friend and that is what you get on this site like no other, REALITY! Profit is made from either side of the argument and in some cases using straddles both!
The more they try to fix it, the more broke it gets! Like a machine with rusted bolts and stripped screws.
The Paulson "globally coordinated" Bazooka is still reverberating through the global economy. It had the effect of only temporizing the overall deflationary inevitability of a burst 30-year asset bubble of gargantuan proportions. But it also had an inflationary effect on energy and raw materials. Misallocations are the inevitable consequence of blindly flushing money into markets without letting market forces determine the allocation.
So we have a financial sector that's still booming (though the engine is just starting to sputter) while the rest of the economy is in the tank. The TBTF's are still alive, quacking like lame ducks all the way to the grave and sucking huge resources as they go. Resources that might have been deployed usefully elsewhere.
Their thinking is simple. Next time, use a Bazooka armed with a nuke! I think we get stimulus 2.0 by the end of the year, and QE 2.0 whenever the opportunity arises
So AAPL, KO, GOOG, MSFT, IBM, GE, and WMT all have more cash on hand than the UST right now? LOL
An easily correctable situation...
Tim and Ben believe in fat finger finance. Just add a couple zeros on the debt limit.
This guy taught Timmy and Ben all they know about maths
+1000. Awesome. Wish I had learned my math this way!!
Well I'm convinced. Who wants to buy my physical Gold? I just found out 7 X 13 = 28
The smarter person is always convinced by the idiot to take a back seat as the idiot is threatened by the smart person and in turn threatens the smart person who would never resort to the violence of the idiot as it is beneath their level of conduct. Or at least that's what the smart person has been taught in the "school of manners." Now in the school of "idiots and psychopaths are running the show as smart people are asleep" what is to be done?
Perhaps this is a reminder of where we are headed. If you had this note in 1914 you would be very very wealthy.
HAMP getting worse too.
Can someone please answer my rookie question ? here goes = why isn't the govt issuing longer dated treasuries to try and capture low(er) rates for a longer period of time ? Is it b/c no one, no lender will buy this paper if it's too far dated ? Or at least not w/o being paid more for it ?
I have another, please; what's the 'need' from european central banks for US $'s via the Fed swaps ? What investments or transactions are they servicing that requires US$'s ?
Many thanks in advance !
would you lend to someone for 20years at 4% knowing inflation was going to be >10% between here and maturity? Nope.
Considering the mortgage/auto etc. loan market uses the ten/twenty year monies UST would crush the consumer loan market like a black hole.
Because it's cheaper to issue shorter term paper, which carry lower interest rates.
One of the way Clinton "fixed" the budget was to shorten the average maturity term.
I don't call that a fix, I call it a band-aid.
Unless you're using it in terms of "the fix is in." Then I agree.
I agree. Hence the quotation marks.
Sorry, didn't take my vitamin B-12 before that reply and was a little grumpy.
I don't think this will be a completely satisfying answer to your second question, but the ECB can only reduce the euro money supply to strengthen the euro. With the fx swaps, the Fed becomes a buyer of euros, thus strengthening the euro vs. the dollar without the ECB having to contract liquidity. Central banks can't print money to defend their own currencies.
If your looking for a more fundamental reason why the ECB 'needs' dollars, you'll need to look at their counterparties and the ultimate goals of central banks.
Does anyone have a view they can share on what they anticipate the sequence of events will be when the SHTF, i.e. failed bond auction, bank holiday, etc etc.
Everyone talks about all hell breaking loose and I've scared enough people with stories of the horrors that will ensue and for which they should be prepared but I haven't heard much from anyone regarding the specific events that might take place.
I know it's all just theoretical.
React to the data as it comes in. Have a flashlight, some emergency food, and access to clean water.
Be in good physical shape (this is the most important one).
Be prepared to leave behind the old, the sick, and the deluded.
Never gawk at explosions or gunshots. Stay the hell away from combat.
Anytime they need to float bonds, all they have to do is engineer a "Flash Crash" and commodity and stock prices collapse.
Ergo, bond prices rocket and new debt is floated off with ease.
What's the worry???
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