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Mike Krieger Explains Why QE 3 Will Merely Keep The Lights On
From Mike Krieger of KAM LP
Whenever the economic life of a nation becomes pre¬carious, the central government is forced to assume additional responsibilities for the general welfare. It must work out elaborate plans for dealing with a criti-cal situation; it must impose ever greater restrictions upon the activities of its subjects; and if, as is very likely, worsening economic conditions result in polit¬ical unrest, or open rebellion, the central government must intervene to preserve public order and its own authority. More and more power is thus concentrated in the hands of the executives and their bureaucratic managers. But the nature of power is such that even those who have not sought it, but have had it forced upon them, tend to acquire a taste for more. "Lead us not into temptation," we pray -- and with good reason; for when human beings are tempted too enticingly or too long, they generally yield. A democratic constitu¬tion is a device for preventing the local rulers from yielding to those particularly dangerous temptations that arise when too much power is concentrated in too few hands.
- Aldus Huxley, Brave New World Revisited
A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. …He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist.
- Marcus Tullius Cicero (106 BC—43 BC)
QE3: It Will Merely Keep the Lights On
This is a piece that has been festering in my head for quite some time now and I was waiting for the right moment to pen it. That time is now. In some ways The Bernank made a huge mistake by not launching QE3 right away when he had the chance. Now don’t get me wrong, I am not in favor of any of this nonsense and I think The Bernank’s profession needs to go the way of the dodo bird, but I mean from the perspective of a Central Banker I think he made a big mistake by taking a breather from at least the printing and manipulations that they admit to. The reason I say this is because up until the last month or so The Fed had been essentially telling the American sheeple that all was under control and that since The Bernank had studied the Great Depression and Japan he could save us from all the mistakes that were made back in those less enlightened times. The Fed was saying that they could pull off the equivalent of preventing a serious hangover for someone that chugged an entire bottle of tequila. They basically claimed to have found a way to break the laws of the universe.
Unfortunately for them, the cruel forces of reality have intervened and proven that they actually did not figure out how to change the immutable laws of physics. This truth became abundantly clear at The Bernank’s most recent press conference (which if he is smart will be his last) where it became all too clear that even he comprehends on some level that his theories and in fact his entire life has been a complete waste of time and energy. That would be ok if he were confined to some University lecture hall; however, his lunacy was unleashed on the entire planet and we will all suffer the dire consequences of it for many years to come. He has basically shoved another bottle of tequila down the throat of the already passed out drunkard and now he not just unconscious but is DYING.
The response by TPTB to the utter failure of QE2 and everything else these mad intellectually bankrupt central planners have done was to try to smash commodities. First, they released oil from the SPR in an act that more than any other proved to me we are in now in the final stage of this thing. Not only was it pathetic in its desperation to anyone that knows the commodity markets but it was an utter failure. For example, wholesale gasoline prices are now 5% HIGHER than they were the day before the raid. Then just last week there was the crop planting data, which everyone I talked to involved in the agricultural sector thought was a complete sham. Nevertheless, the “data” was used to create a 10% plunge in corn and 9% smash in wheat. Of course, China was reported to have been a size buyer on the weakness. How convenient. What a disgrace. This thing had TPTB fingerprints all over it and that is exactly why I do not participate in futures markets at all. It’s a giant controlled game in the short-term. Nevertheless, grains prices are of course moving back up again and I expect a huge spike in food prices in the months ahead related to weather that has already occurred around the world and the dire flood situation on the Missouri river. More importantly, if TPTB continue to play their little games in the commodities futures markets we are going to have actual shortages. In oil and in food in particular. They are playing with fire. Big time. Reread the quote at the top by Huxley. Whenever anyone one claims they need to do something for the “general welfare” run the other way as far and as fast as humanly possible. That is the line of every tyrant and wanna be dictator.
Ok, so time to talk about what is next. The Bernank has already gone too far and there is no turning back. There will be QE to infinity until the point where the system collapses on itself, which is probably not too far off once the next round of official QE is started. What form this may take is anyone’s guess but as I mentioned in a recent email, the whole rate cap idea makes the most sense since it will allow infinite QE to occur without having to announce subsequent iterations. The simple fact that they tried to pretend QE would end and then tried to raid commodities to create the justification for it later on demonstrates to me how much trouble we really are in. If The Bernank had merely gone ahead and continued the program he had a CHANCE of perpetuating Disneyland for a little longer at least. Instead, he is praying that the economy can stand on its own, which of course it can’t and so then when he launches into QE3 after the economy weakens and proves QE1 and QE2 did nothing to create a self-sustaining recovery the entire mindset and understanding going into the next money printing party will be entirely different from a psychological standpoint. QE3 will not lead to confidence or anything even similar to the last rounds. Rather it will be used to basically “keep the lights on.” More than anything it will serve as that proverbial “bell” that will ring and in the minds of the savviest and wealthiest people on the planet to get the hell out of the system while they can. This is inevitable. It is already happening. The stampede is yet to come. But come it will. It is time for everyone to take additional steps whatever that may mean for you personally. I know I am. Don’t get gorged.
Things to Read
There are two pieces I suggest as must reads for the weekend. First, I have attached an incredible piece by the always brilliant Brodsky and Quaintance. Second, the latest from Martin Armstrong. Read it here
One last thing, given the market action today I would expect some sort of major desperate move by TPTB on Monday. Whenever we have had days like this that his what they have done. Brace yourself indeed. Have a great weekend.
Peace and wisdom,
Mike
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I can't see the rectangular blob. Can you do a screen shot and posted here?
what is that exactly? a compound? crash site? the image is blurry as all get out.
Might be a satellite base of the Joint Space Program.......
It looks like a building of some sort. I used the ruler function and measured it as about 190 metres long. I don't know how to do a screenshot.
1) hit print screen key
2) in lower left corner of your cptr screen, click on start flag
3)click on "paint"
4) at upper left, click on "paste"; click on 2nd "paste" pop-out
5) click on 'lil open book at upper left corner of screen
6) click on print icon
7) click on "print" in squared-off "print" box
tho why you would want to go thru all thus for anything but a girlie pic I cannot imagine
rick rolled
http://bit.ly/9R0c1v
Can't do it. It's just not worth opening up my system to backdoor penetration w/o lube if I use IE. How about you follow the advice and post a screenshot?
On another note: How f'ing insane is it that I can't use a Google product if I am running Google Chrome?
Should I use the 100,000 I have in unsecured credit to purchase physical gold??
what are you waiting for !
That would be a low risk, high gain trade from my perspective. However, if you can't take the pain of seeing gold prices manipulated and showing you a potential loss, don't take the trade. Similarly, if you might need the money soon and can't wait for the proper time to sell, don't take the trade.
The proper time: It will be unmistakable.
All BS, QE game over.
It's just getting started, boy.
Its over, ass hat...I hope youre here when your stocks collapse and stay down, while my gold shines ever higher. Better pull your head outta your ass boy.
Sic 'em Sheepdoggie, chase Greeny up a tree.
Grrrrrrrrrrr
Shadow QE I think will continue, but the publicized big number QE is done. Too many people now see it was useless and would raise hell.
You nailed it.
Romney will save us!!!!!!
Romney is a pompous, pretentious asshole, IMO. We've already got a bunch of those telling us what to do.
+1 more of the same.
but, but, but...hes a republican, a conservative, a savior!!!!!
Correction: He's a republican, a statist, a plastic mannequin!
but hes sooo handsome and has such great hair!! clearly i can trust him...
But you have to admit he has great hair.
He's no conservative( check out the Commie Care when Gov, bankruputed the state)...............want a real one, vote for Bachmann.
She would kick ass and take names quick.
Just once, once, we could get a really honest to God American patriot in that seat,with a majority in both the House, and Senate.
Lord i hope you are kidding
Right, Let's fight 15 more wars for Yizroel.
True, he is the wrost of all the contenders.
The best would have been Mr. Huckabee, hence he is eliminated - just like they say "The Good die young".
wait i just read that warren buffett sees NOTHING indicating a double dip, and that housing will bounce back within a few years lowering unemployment to 6%. hes the worlds second richest guy. so now i can sleep.
“The worst is over without a doubt.”
James J. Davis, Secretary of Labor.
- June 1930
Maybe if enough American voters wake up one morning & find that there's no groceries at the local grocery store & no gas at the local gas station they'll realize that the panjandra they voted for need to be replaced with some Austrian School economists.
I'd rather have a punch in the face and a swift kick in the nuts then read this well written coffin scented piece. But it's unavoidable, and I'd rather have brutal facts and observations from a impartial source ( If im storming omaha beach tell me, instead of "were off to coldstone for a baseball nut cup, yipppeeee!), then act like normalcy bias body snatchers I know. Bernanke and his clique are "The men who sold the world".
pondering thought...
for every seller
there is a buyer..
gold 1540 $ some thing
Bing cherries 1.99 lb
lets get this party started
I bought cherries for $0.80/lb last year. THis year because of long rain cherries have all gone bad and
now selling for $3.99/lb. cherry farmers destroyed and cherries are mostly split here.
Ah yes. We got a couple of pounds of Ranier cherries today at $3.99/lb. Worth every penny, though. I'm just glad we got any at all- only one of the stores in town was even able to get them from their distributor.
The U.S. Navy is already trying to add bio-fuel to the kerosene for their F-18 hornets.
http://www.youtube.com/watch?v=g1iHa-s9GXE&feature=related
In a financial system where every dollar that exists is debt (debt money) -- I suppose a central banker at some point would have to print like a madman just to keep the amount of dollars steady?! As debt defaults, dollars disappear.
What sucks about our Federal Reserve system -- is our country cannot issue the currency into the general population. It is stuffed hand over fist into the big banks, thus record "profits" and bonuses for the bankster pigmen.
Hasn't that been the story for the past couple years -- it gets worse for mainstreet while the banks and the stock market flourish?!?!
JFK tried, and look where it got him.
True -- if people only understood they would demand and end to the Federal Reserve system. That, of course, is why it is shrouded in mystery and it's favorite pastime is coining Acronyms (no pun intended). TALF, QE etc. - redistributing money from the public to the privately owned FED players!
JFK did it, and look where it got him.
as americans, we have a plan: The Big Whatever
all day, every day. stay focused on our plan, for clarity re how one might fit in.
as we can see, change remains the constant, and now we are certain to be subject to the "authorities' " re: why all the bullshit they have put out has been wrong, again. again. like calculus, we are now working on the second and third integrations of being absolutely fuking wrong. again. again. again.
we are always interpreting events, constructing reality. propaganda is the deliberate suppression of the truth for the purposes of exploitation, mostly politically and economically. the struggle for control of these "powers" (poli/econom) is the story of large-scale human aggression, if we are willing to accept that human or even biological aggression in general, is about control.
oh! what a feeling! aggression!
What move by TPTB? What does TPTB mean?
Sorry for my ignorance...can someone expalin what they mean by "action?" Do they mean the PPT will jump into action Monday?
Thanks.
The powers that be. The ultimate rulers/governors of the system.
As far as...." Whenever anyone one claims they need to do something for the “general welfare” run the other way as far and as fast as humanly possible.".....I agree. Reminds me of Bush's invasion of Iraq "to spread democracy"...or Sarkozy's invasion of Libya "to protect the civilians"....same stuff.
libya is getting weird, P_H. the rebels in the nafusa mountains south of tripoli, extending westward to tunisia have had a few recent victories. contol of these roads, especially the moQ-controlled northern one, is the next tactic in the UN strategy to: a) cut off supplies to the moQ in tripoli and, b) "join up with" the rebels from misurata for the battle for tripoli or the checkmate & surrender of the moQ.
we have 4 basic factions in this war, directly, 5 if you include the African Union. the other 4? the UN, NATO, moQ & co., and the revo's. they each have an agenda. guess what? NATO wants to win, militarily. they can do it, too. these victories in the nafusa range = NATO bombing the living shit outa the site and controlling the battlefields, including, now, attack helicopters.
but, if the moQ stays pissed, he might fight till his last breath, which could mean a bloodbath.
so far, these remote battlefields have been small. if the revo's keep succeeding, they will become quite large, quite soon, along this vector toward tripoli, as the thrust gets into the more populated area from these supply lines and ancient roads along these sahara desert hills and escarpments.
the UN is beginning to realize it may have created a monster in order to "protect civilians" and is calling for an immediate truce for humanitarian reasons. to supply food and medicine and to get casualties out, or cared for. of course NATO seems willing to destroy the whole country, so they will be the only salvation for the future. actually, they have pretty much achieved that, approaching 6,000 air strikes w/ ordinance delivered. if you're laying a seige, and trying to get tripoli to turn against the moQ, you certainly don't want the international nannies cooking dinner for everybody!
with the recent, asinine "crimes against humanity" indictment against him @ the hague, which the African Union has also extended the middle finger towards, the europeans and their allies have increased the probability of a military, rather than political, denoument. also, the revo's had come out publicly that he could stay in libya, under controls. oh, wait! they weren't authorized to say that. he must surrender power and leave. not negotiable. so sorry.
my 2 cents: i don't believe the UN can control NATO in its lusting for military ejaculation and organizational self-justification. they have a hammer; this looks like a nail; what's the problem?
poli/economically: the oil and the turf. oh, and the democracy of the muslim brotherhood, of course. militarily: i think NATO just wants to defeat the moQ and wear the new campaign ribbon triumphantly on their manly chests, as they continue to project the politically correct data that Operation Fuk Libya has cost not one "allied" life, as far as i can tell.
and, i think the moQ may be sincere in his hope to die fighting for libya. which, of course, NATO knew well before Day 1. although there is always hope and constant stories of negotiations and ideas to help, unless somebody blinks, well...you connect the dots.
Summary of the American and International Press on the Libyan Revolution - <i>Morgan Strong</i>
WTF (WHAT THE FUCK) is TPTB? I see too many posts with acronyms on the assumption that the readers know WTF the writers are talking about ZH needs to post an acronym schedule so everybody that isn't a finance geek can keep up.
tptb = the powers that be = da boyz
Too Pig To Bark.
There are a lot of acronyms here, but many can be found through a simple google search. Type tptb into your google search bar and you get 'the powers that be'. Not every acronym is that easy to find, but the point is: never forget that google is your best friend when you wnat to look something up.
TPTB are the MF BMOC and TBTFs causing the SNAFU making everybody say WTF about the economy being FUBAR.
SSDD
We are not better off than we were four years ago.
David Einhorn's Q2 letter where he spanks the idiotocracy.
http://www.fundmymutualfund.com/2011/07/david-einhorn-greenlights-capita...
So it is fair to say that U.S. air superiority is now dependant on veggie oil.
Scarcity, bitchez.
You know what this will mean to food prices, when crop fields are increasingly being used for fuel production ?
The only way is up.
Fiat Lux
kreiger your posts suck as usual.
Never met the Bitch! but I fucked her like I missed her!
Minor addition - there are also some nuke powered subs.
The weirdest thing...I was getting a haircut yesterday and the owner of the hair salon asked me where I bought my Gold and Silver. He told me that his father gave him 100 ounces of Silver and told him a story about the economy that scared the hell out of him and he wanted to pick up some Gold as protection.
Past experience has shown that sharing knowledge on the economic future of the U.S. is a good way to get labeled as a crazy gloom and doom-er. However, I believe that we are beginning to see the average citizen waking up to the realization that something bad is coming down the economic horizon.
if more such Barbers ralk about Gold, not good for Gold.
So... is Martin warning us about gold or about the stock market? I see the chart on gold, but am not sure if that is what he is talking about.
Agree with article. QE I and II failed so now everybody will know QE III is not going to work either.
Have always said this was a one way trip for the USD by the Fed. TPTB are just milking it as long as they can and will suddenly stick everyone else with the tab, like a thief in the night. The major damage will come like Belarus' overnight 52% revaluation; or FDR's revaluation of gold, once he had already confiscated it.
"Facilitating an orderly decline in the USD" is just The Bernank euphemism for "Don't panic until TPTB have positioned themselves ahead of the serfs for the crash". Not doom vs optimism, it's reality vs fantasy.
QE 1 and 2 did NOT! Fail!! look at all that money that can be leveraged and then used to mortgage Main Street with!! WOOOOHOOOOOO!!! can you say default we own your town for pennies on the dollar!
1. Use Free Money from the Government! Pick a POMO, ST OMO, TARP, FED Window and or add other ____________ there.
2. Leverage those Funds that were Freely Provided at the tax Payers Expense!
3. Take your .4 or .04 money and lend it out to Cities and Towns!
4. Sell the Paper Back to the Frannie Freddie!! FED.. whomever!
5. Insure the Mortgage!! for Failure!!!
6. Force Default.
7. Negotiate with whomever bought the mortgage that was built to fail for pennies on the dollar.
8. Collect insurance monies.
9. foreclose on the collateral!
Fuck!!! US!!! ALL!!!
What is America Worth? What is the Value of America? A Snap Shot Income Approach Valuation.
America has $2.4 Trillion Dollars in Income.
Is America a 10 Cap? America has $2.4 Trillion in Income which would mean that America is Worth $24 Trillion Dollars? America has $14 Trillion in debt.. so is America a 4 Cap? http://en.wikipedia.org/wiki/Capitalization_rate
Yet as of mid-January 2010, Microsoft trades at a much more attractive price-to-earnings multiple of 19.5, compared with Google (38.3x earnings) and Apple (33.1x earnings). Also, Microsoft offers a 1.7% dividend yield.
http://www.better-trades.com/analyst-exchange/tech-comparisons/google-vs-apple-vs-microsoft.asp
Maybe America should trade at a multiple of earnings?
The World is not getting any more stable.. thusly the one market that America has not sold of (completely, yet) to the Chinese would be our industrialized war machine complex. We really do have a foothold / semi monopoly on the best weapons on earth (even though we shipped our missile making / guidance operations to China http://www.gpo.gov/congress/house/hr105851-html/ch10bod.html / I could not find the 60 minutes {CBS} program describing the purchase of the Company by China a Contract to keep the Company Located in the U.S. and open, only to have the Chinese close the doors and move all operations to China).
So.. America Value in Multiples of earnings? $2.4 Trillion X’s 50?
America spending money at home.. even on welfare.. stimulates or keeps money moving, thusly it is not all that bad.. but when we spend twice offshore.. that is to say that when America Spends $5 Trillion - $10 Trillion Dollars in other Countries rebuilding their infrastructure instead of rebuilding our roads and bridges at home.. In the plainest of terms.. if America takes out a Mortgage and spend the money on America.. we are improving our Country and it will be worth more.. but if America takes out a Mortgage and runs off to a foreign Country to Gamble the Money on what may or may NOT! work out for the betterment of the American People??? That is unsound spending.. how many here would take out a mortgage on their house to go to Vegas for the weekend and bet outside of their earnings capabilities?
Our Congressmen and Senators.. are paid 4 X’s more by the Lobby than “We the People” pay them. I don’t know why some of the dumb fucks here believe that people in the Ghetto or Trailer Park have a multibillion dollar lobby????
Our Elected Leaders are bought and paid for by AAA rated Corporations.. $25,000 dollar coffee socials.. fuck not even breakfast for $25k?
Our Country has been Bought and Paid for.. Our Country is being Gutted and has been being gutted going back a solid decade.. all so China can build 9 – 10 Cities a year that no one lives in?
Tracking the PaybackWhat are the major issues before Congress and who's trying to influence the decisions? What are the special interests looking to get? We've got it all here in a concise, easy-to-follow format.
For each issue we cover:
Sector
Issue
107th
108th
109th
Finance
Accounting Industry Reform
107th
Airlines
Aviation Security
107th
Finance
Bankruptcy Reform
107th
108th
109th
Health
Bioterrorism
107th
Energy/Natural Resources
Bush Energy Plan
107th
Energy/Natural Resources
California's Energy Crisis
107th
Elections
Campaign Finance Reform
107th
Finance
Economic Stimulus Package
107th
Agriculture
Farm Security Act
107th
Health
Generic Drugs
107th
108th
Telecommunications
High-Speed Internet Access
107th
Terrorism
Homeland Security
107th
Health
Medical Malpractice
107th
Airlines
Passenger Bill of Rights
107th
Health
Patients' Bill of Rights
107th
108th
Finance
Pension Reform
107th
108th
Health
Prescription Drugs
107th
Finance
Terrorism Insurance
107th
International Trade
Trade Promotion Authority
107th
Energy/Natural Resources
Yucca Mountain Project
107th
Energy/Natural Resources
Arctic Drilling
108th
109th
Lawyers/Law Firms
Asbestos
108th
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Energy/Natural Resources
Energy Bill
108th
109th
Communications
Media Ownership
108th
Health
Medical Malpractice Reform
108th
109th
Health
Medicare Prescription Drug Benefit
108th
Health
Project BioShield
108th
Energy/Natural Resources
Superfund
108th
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Class Action Reform
109th
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Clear Skies Act
109th
Immigration
Immigration Reform
109th
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Social Security Reform
109th
http://www.opensecrets.org/payback/
China has been given our tech.. China was financed by U.S. Banks.. to build empty Cities? The Yuan or Renminbi has 1,200% leverage placed against it from birth at Chinas Central Bank??? But we borrow from them? With our 120% Leverage?
China's Ghost Cities http://www.youtube.com/watch?v=pbDeS_mXMnM
What is America Worth? What will America’s Green Spaces? What is New York Central Park Worth to Developers? When New York defaults.. no.. they would not do it there.. but in your town that no one cares about? All that city / state Land, Mineral Rights?? All for pennies on the dollar.. not even an open bid? They would never sell the mortgage to someone else.
http://www.bloomberg.com/news/2011-01-12/jpmorgan-s-dimon-says-he-expects-more-municipal-bankruptcies.html
Question: On an island, there are two people. One person is educated and productive and is worth millions saved in the bank. The other is an unemployed uneducated idiot but has a gun. What is the idiot worth?
Sooner or later the educated productive person will invent a better gun and revolt.
The issue you've missed is simple:
China has been sending the best & brightest students to the West for over a decade now. [Seriously: as a graduate "job" I worked finance for #5 UK university, where I was handling circa £375k / day [in fresh, not used £50 notes in envelopes for each and every entry] for ten days on MBA / PHD acceptance, and reading their resumes - 100-1 bet your shitty education doesn't include "Advanced Military Planning" or "Advanced Calculus" or "C++ > add a few other languages here". Western B.A.s are a single topic: Chinese resumes have circa 80 fields to measure. And yes, some of them we don't teach students because we're scared of them.]
The "West" has already sold their expertise out - we educated an entire generation of Chinese elites. I did this in 2002. Which means your comments are a decade out of date.
Please...
p.s.
I made friends with the Russians who came over in the mid-90's in education; I made friends with the Chinese who came over in the mid-00's. I'm thinking this was a smart move.
Yeah, "collapse monkeys", we only down 64 points and rising,
Kiss my a$$!
Given the Fact that the FED only has $62 Billion left in Retirement Cash left to pump the markets with..
means we will be moving into the cap rate, shake and bake!
QE will continue no matter what! no matter how! and NONE! of the proceeds will be spent to help Main Street! but monies will be used to Mortgage Main Street to effect default proceedings!
Money for Nothing and the Chicks are Free!! BITCHEZ!!!
QB ASSET MANAGEMENT
http://www.zerohedge.com/sites/default/files/QBAMCO%20-%20Brace%20Yourse...
.."It is a trader’s market, and traders are betting on the size of the ripples in baby’s bathwater as the tub is overflowing." ...
ps. baby died a while ago. ...
http://www.youtube.com/watch?v=CWUGLWeKF_Y&feature=related
In other news... the USA just "officially" (let's not count the underclass who never get seen by a GP since they can't afford it) passed 35% obesity rates for +20yr olds. JP Morgue is planning (want that document? oooh...) the buyout of municipal utilities on a scale Americans cannot comprehend (since.. they're naive, and don't pay attention to EU models of 'how its done').
The lean and hungry are coming, and we don't take credit anymore.
Can someone shine some light on this Martin Armstrong fellow? I know about Princeton Econ and the story- legit or not- of how and why he ended up in prison. I have also read several of his missives written from his typewriter (really?) full of poor grammar. OK, I get it, he was in prison; but now that he's out, with the following he has, why is he still submitting papers from afar rather than doing interviews, etc. in the blogosphere? I just don't understand this guy...
He's just not wired that way... which is why his story went the way it did instead of a GS helm. File under - savant, disposed of, not heralded and made welcome.
http://www.youtube.com/watch?v=FHixChYgGRI
"And I speak of spiritual suffering! Of people seeing their talent, their work, their lives wasted. Of good minds submitting to stupid ones. Of strength and courage strangled by envy, greed for power, fear of change. Change is freedom, change is life"
— Ursula K. Le Guin (The Dispossessed: An Ambiguous Utopia)
That quote makes me want to read the book, tks.
Note well: it is a savage attack on both Capitalism and the 'social dominance constraints' of AnSynd.
Worth a read, esp. regarding the fate of the playwright who gets ostracised and placed into a mental institution for criticising his society.
She's a very sharp writer, and worth many reads: her gender, and predominant linking to fantasy, has lead to her being largely ignored, sadly. She is a much smarter cookie than that.
But yes: if you've not read "The Dispossessed" then you really should - same goes for "The Left Hand of Darkness". Both are masterworks.
It isn't necessary. I mean a formal QEn.
All they need to do is just replace maturing assets, which they will, and are. The inflated assets in the balance sheet is the key to keeping faux liquidity scam rolling
Excellent post Mike.
What was never noticed - except by a discerning few - over the decades since the Roosevelt
administration(s) borrowed and spent their way out of the Great Depression was that each economic
downturn cost more to “rectify” and each economic upturn was flatter than its predecessor. Now, with
the GFC, the US has finally reached the end of this road.
from "The Privateer"
http://www.the-privateer.com/
It will keep the lights on and push commodities through the fucking roof.
The end of QE2 has been priced into precious metals already... basement prices.
the qbamco piece was brilliant. Half way through it I thought this sounds like FOFOA then sure enough he quoted:
Finally, consider this: it is mathematically impossible for
future labor to pay off existing debt in real terms. Thus, existing debt will be paid off by past
labor – with the net surplus in fiat money erroneously stored in debt. As our friends at FOFOA argue;
"Debt is the very essence of fiat. As debt defaults, fiat is destroyed. Hyperinflation is the process of saving debt at all costs, even buying it outright for cash. Deflation is impossible in today's dollar terms because policy will allow the printing of cash, if necessary, to cover every last bit of debt and dumping it on your front lawn! Worthless dollars, of course, but no deflation in dollar terms! We will have hyperDEflation in everything measured against real money, GOLD, and we will have hyperINflation in everything measured against paper dollars."
4
Greeny in the face of overwhelming evidence of widespred maniputliation I can only conclude you are a Douche.
But your right, keep playing the long side, humanity is waking up all be it slowly.
I am not a "military Maniac" I AM A FREE MAN!!
The United States has lost its way, the wars of the last 10 years have just transferred wealth the the military Industrial complex and have sent the true men over to be maimed and killed for oil and opium.
Men under the guise of "freedom" that have served 3 to 4 tours of combat duty and now are unemployed at 35% but rest assured they have some truly marketable skills.
Why might you ask so our "fearless leaders" could get ride of some of the men that swore to up hold the constitution. Its much better to have the fat ,dumb and disillusioned sheeple back in the states. ( American Idol rocks)
Keep playing the game I'm sure you will do well till............. the population wakes up hungry and homeless. Please place your faith in the 600 plus dumb asses that call them selves our leaders.
Cheers and have a ducky weekend.
http://www.youtube.com/watch?v=gAGP24eq_0o
+!
Thanks for this great stuff. Just another reason why ZH rules. Great contributors and perspectives.
http://www.youtube.com/watch?v=GHLjoAI2-iQ&feature=player_embedded
http://www.youtube.com/watch?v=GHLjoAI2-iQ&feature=player_embedded
We will see about inflation come QE3. Keeping the lights on will become VERY expensive.
prolly, in terms of fiat
prolly not, in terms of PMs
Once the Fed buys up all the treasury debt declare a new currency to be printed by the treasury and oops the Fed's left holding the bag of worthless money.
QE3 has already begun with Obama's plan to write down mortgage balances. Banks & bondholders will be made whole with trillions of freshly printed Fed money.
No, banks and bondholders never take a haircut.
It's not QE 3.0. It's TARP 2.0. Around 3 - 5 trillion this time.
look! up in the sky!
it's a bird!
it's a plane!
it's The Big Whatever!
yay!
c.o.geezer said trillions.
as we know, that's a start!
prob not enuf of one, but we can fix that later...b/c we have a plan!
and, if you throw it in with the rest of the housing clusterfukingclusterfuk, no one will notice, much less ever understand what happened, even in real time, at this point...
...unless they recognize: The Big Whatever...
"Just wish the reset would makes its way in ernest."
Dr. Head, surely you mean 'earnest'.
Economic Collapse a Mathematical Certainty - Top 5 Places Where Not To Be
http://youtu.be/b3-vwYJiD8g
I just have to scream. My brain stops working when on overload from all this money printing. With all this fucking inflation you would think a poor soul would have made enough of their stupid fiat to pay off their old debts by now. EXCEPT that the fungibles keep going up so FAST and the paychecks keep staying so THE SAME that it is a total FUCKING WASH.
AAAAAAAAAAAAAAAAAAAAAAAAHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH.
Mr. Krieger,
I couldn't agree more, things are getting curiouser and curiouser -- spooky even -- as this leviathan's lurches grow increasingly erratic. I get the sense they figured they could hold the center till...I can't even guess at what they could possibly be preparing, which leads me to believe they are in a panic, from which i can further conclude that they haven't the foggiest.
I took some time off to think this stuff all the way through (at least as far as my faculties would permit). I mean to say, it's a full frontal assault. In the last few weeks all the forces of persuasion have been brought to bear on ole Janus -- Harper's Magazine trying to layer the guilt on thick from T Frank's Easy Chair (btw, L Lapham, how could you turn Harpers over to these slime balls?), Vanity Fair offering us a deal on the eve of the ten year anniversary of The Great Perfidy ('we'll blame all this 9/11 stuff on the Saudis, via their proxies in Pakistan, which will imply guilt where it belongs (Anglo/American oligarchs); but since they'll kill before they run for cover, isn't it best to just let sleeping dogs lie...huh? Come on, be reasonable -- the entire global super-structure lies in the balance.') Guess what, Hitch, I can pull some irrelevant pakistani intellectuals out of my hat, too! And, Hitch, check yourself before I bring hell down on your head. The ceaseless expansion of war must end. I'm afraid this farce has gone too far. I've little doubt that morphine therapy is all that and a bag of chips; but, Hitch, you've slipped your fucking moorings -- and I'm just flat out of patience with you.) For clarification, check out the last two issues of Vanity Fair and please, someone, beat the shit out of Thomas Frank...he's no doubt polluting the air of some East Village bistro right about now. (But if you don't feel up to a bout of magazine flipping, I'll try to condense it: T Frank, in his typically insolent style, was attempting to shame folks like us into supporting this flatulent and jaundiced beast of an economy -- because it is our 'duty' -- and that the act of investing in gold/silver is tantamount to treason. Well, if treason's what it is, then I will remind mr. frank that when treason prospers, none dare call it treason. So, mr. frank, when I am king, you will be first against the wall...and your opinion, which is of no consequence at all (with thanks to Radio Head). And as for Christopher Hitchens and his buddy Graydon Carter, well, boys, I'll get to you later; this is getting a bit long.
Now I'll get to the gravy that's germane to your thoughts above: I was seriously considering a bit of tinkering with the oil market; and though all my thoughtful reckoning finds favor with that of your own, I couldn't bring myself to it. I'm trending along the trajectory of simplicity: this whole notion of diversity may be meet for those with big, bulbous foreheads, but Janus is keen to keep his attention focused on precious metals for now, and silver more specifically. Janus is very proud to proclaim that he, along with M Keiser and several others who think highly of their prognositicatiousness and cat-like reflexes (viz. the dip over the 4th), did buy gobs and gobs of the good stuff -- I bought in the mid 33s bitchez!!! -- and was able to increase his total holdings by over 37% in phys. I was ready for it to go to 31 or so, but it don't look like we'll be seein low thirties for a VERY long time now...possibly ever.
Along those lines:
Mr. Keiser,
Thank you for convincing Stacy. It takes a lot of woman to cover herself over in silver paint. It takes a greater gal still to pose and suffer for Art. To my mind, it was worth it. But, fret not, gentleman that I am, I drank the image in in aesthetic rapture -- not a gutter thought in sight...yet (i did, of course, save the image).
And, Mr. Keiser, when I finally do sell (at several multiples higher) and move into the energy markets, your favorite charity will receive 2% (sales commission); for it was you who finally pushed me into action...as long as the charity is not in any way affiliated with the preservation of a religious state in Palestine.
Mr. Durden, you get 1%...but it will be a direct donation to ZH. Also, I was poised to make my first minor donation to the site (25 smackers); but now I'm thinking of making a contest out of it...you know, to keep the kids on their toes.
I suppose that covers it for now; but, as always, I've got a regular peat bog of thoughts just waiting for the right time to percolate up.
And, finally, Agrotera, I've got bunches of stuff to tell you...along with an apology. So, if anyone sees her, please tell her that the gods must counsel.
History and future blaze bright in me/
in all my joy and pain
janus
it has been said that the truth hurts.
i say the truth will actually kill you.
good luck.
Hmm. On Friday, Mike predicted TPTB would make a desperate move. Today, the Euro is tanking.
HMMMMMMMMMMMMMMMMM..