This page has been archived and commenting is disabled.
Mike Pento Kicked Off CNBC For Telling Truth, As Dumb Money Manager Says "Nothing Is In A Bubble When People Want To Buy It"
Today we got a freshly mindboggling example that CNBC is nothing but a propaganda machine reliant on fishing for the few remaining idiots among its audience. Mike Pento, in his traditional role as a bond bear, for some ungodly reason decided to grace CNBC with his presence, and proceeded to roundly refute Erin Burnett's statement, not question (this is important further down), that right now the US does not appear to be about to be considered "junk", to which Pento responds that the Fed is setting up interest costs by buying up the entire curve (today's $2.7 Billion POMO action being a stark reminder of who is in control), cautions that the $8.9 trillion in marketable debt will rise to $14 trillion by 2015 (according to the CBO), and that the result would be that instead of paying 5% of Federal Revenue on interest expense, the US will be paying 30% at "a bare minimum" in just a few years. The consequence is that once China and Japan get their fill of USTs (especially if China follows through with its threat of focusing on its own middle class, and thus exhausting its foreign FX reserves driven by a massive positive trade balance), interest rates will have no choice but to go up, especially to attract the meager US domestic savings. But this is not enough for Erin, who follows up with another "subprime is contained" assumption, which is that the US is the safest location for capital (which is only true until tomorrow everyone decides to go to China, or a gold-baked ruble/deutsche mark, or Zurich, which incidentally is currently happening - just look at the EURCHF) and that no matter what happens to the US, no matter how many trillions in debt the US will have on its books tomorrow, the idiocy of today (which again is completely Fed driven) will continue. Pento at this point throws the ball in Burnett's corner to explain why this assumption is so irrefutable, to which the "moderator" basically tells Pento that "he is so rude" because he doesn't buy CNBC's Kool Aid assumptions, and that "he has gotten her temper up by being rude after she has done nothing but ask questions." Questions which, of course, are presented as statements of fact, and precisely the fact that works with CNBC's, and of course the administration agenda - the oldest trick in the media book.
Yet the piece de resistance is some guy named Joseph Balestrino who works as a Fixed Income market strategist for Federated, opens his mouth and to much CNBC praise says the most moronic thing ever uttered on cable TV (at least since the last Bernanke/Greenspan testimony): "nothing is in a bubble when people want to buy it." Yes.... You heard that right. Although maybe he is right, and everything in this world is insane when these kinds of intellectuals (we wonder if Mr. Balastrino has a Ph.D.) are not only are allowed to run money, but asked to come back to CNBC and feed the public yet dose after dose of the administration's version of the "truth."
Mike, you are always welcome to tell the truth on Zero Hedge. Which is much more than we could say for that other guy, whose Bond Fund at Federated somehow manages to pull a 1.31% gross expense ratio, for a whopping 3.81% return after taxes on distributions.
Full must watch clip below.
»
- 48940 reads
- Printer-friendly version
- Send to friend
- advertisements -
Everyone knows erin burnett is CFR right?
http://www.prolognet.qc.ca/clyde/cfr.html
The late Carroll Quigley member of the CFR, stated in his book, "Tragedy & Hope":
"The CFR is the American Branch of a society which originated in England, and which believes that national boundaries should be obliterated, and a one-world rule established."
Rear Admiral Chester Ward, a former member of the Cfr for 16 years, warned the American people of the organization’s intentions:
"The most powerful clique in these elitist groups have one objective in common — they want to bring about the surrender of the sovereingty of the national independence of the United States. A second clique of international members in the CFR comprises the Wall Street international bankers and their key agents. Primarily, they want the world banking monopoly from whatever power ends up in the control of global government."
And Dan Smoot, a former member of the FBI Headquarters staff in Washington, D.C., summarized the organization’s purpose as follows:
"The ultimate aim of the CFR is to create a one-world socialist system, and to make the U.S. an official part of it."
That website would gain credibility if it were hosted by geocities.
Wow, so it isn't even up to tripod standards then...
Man, those were the days when everyone was 'doing' their own web design on geo and the garish backgrounds with strange fonts and endless dragons breathing *.gif flame.
Erin Burnett's ass slammed in this CNBC spoof!
http://www.youtube.com/watch?v=adTnyC4MLB0
Ouch, that hurt. Way too funny. She actually reprimanded Michael. Now class. Do as I say, not as I do.
Exactly.
It's rude for him to ask her a question?
It's rude for a guest to ask the moderator to substantiate their assertions?
Outright Orwellian moment, what a trollop she is.
A perfect representation of why this will all come crashing down; perception trumps reality...until it doesn't.
Erin,
If you come lurking to read this post and watch the replay, you really need to be mindful of who is the Investment Professional, and who is paid to read scripts issued her by the Ponzi Masters.
Because any guest disagrees with your less informed opinion, tries to expand your mind and speaks the truth, does not mean you can brush him off.
That was pretty good.
PMSing big time. Where is that St John's Wort? I would prescribe me, Dr Chad Feelgood.
Erin is an illuminati minion, a stooge for the CFR. Her opinion means nothing except to hard up over 40 types who fantasize about fondling her B cups. Personally, I´d rather watch a good porno.
My ex had B's. This waitress I screwed the next day had DD's. DD's are fun but they can get in the way sorta. But great for T***y f**k.
Erin is hot but an idiot. I'd rather bang an ignorant girl than a pseudo-intellectual girl. That said my arousal level remains in the dumps after watching her talk.
or if it had a cramer ad like zero hedge !!!!!!!!!
Look on this About the CFR page for a video with Erin.
Thanks. Everyone should read Tragedy and Hope.
CFR, Bilderbergers, Trilateralists, Pilgrims Society, Council for National Policy and all major establishment think tanks are mortal enemies of the American Republic and its citizens. It's us or them.
C'MON PEOPLE...US HAS LOTS OF DEBT, GOLD SOUNDS LIKE A SAFE ASSET, BUT ALL THISE CONSPIRACY THEORIES ARE WAAAAAY TOO MUCH
@ liberal sodomist preoccupied with the sexual habits of others ( its a sin docha know) Log cabin republicans practice....conservative ass fucking?
Oh would you weave me awone? I have enough fweakin pwobums of my own. My wancid cwap seeps into my extwuh wodge 58W twouzuhs. I bewieve I have been affwicted with a howwible case of wectal cancuh and or mawawia.
Ouch, I don't know what hurt more - the horrible pronounciation or the actual message behind it. Thanks for making my eyes bleed.
I want to put my peener in Erin's botox while Barney watches.
Quigley published Tragedy & Hope in 1966 and died in 1977. Has the role of the CFR changed in the past forty years? Consider an article & book published in 2004: “Three long-term trends are threatening to bankrupt America: the burgeoning costs of waging the war on terrorism, the U.S. economy's increasing reliance on foreign capital, and rapid aging throughout the developed world. Washington must understand that committing the United States to a broader global role while ignoring the financial costs of doing so is deeply irresponsible.” The Foreign Affairs website uses that sentence to summarize one of its articles: “Riding for a Fall”. The article was adapted from a book: "Running on Empty: How the Democratic and Republican Parties Are Bankrupting Our Future and What Americans Can Do About It". The article & book were written by the Chairman of the Council on Foreign Relations, Peter G. Peterson.
Take off the Tin-foil hat, dude.
It looks ridiculous on you.
Pathetic.
.
youtube pulled this video.
apparently cnbc has at least 9 ZH accounts.
CFR = completely fucking retarded? If so, then yes. We do know that.
Mike Norman thinks Burnet was right, & Pento's an idiot
http://mikenormaneconomics.blogspot.com/2010/09/pea-brain-automaton-of-p...
without doubt my favourite comedy economist bar none.
check this comedy genius http://www.youtube.com/watch?v=W_QQhE_EUAs
One Comet Sized Comeuppance This Way Comes.
obama cheerleader burnett angry if someone challenges the propaganda
Setting the premise of the discussion (which is done by declaring basic assumptions and statements of "facts" before the start or during the process) is imperative if you wish to control the outcome. As all lawyers know, you never ask a question you don't already know the answer to. This is the basis for any interview done on CNBC Bloomie etc, including giving the producers your "notes" as well as a list of "questions" you would be willing to answer.
I suspect what happened here was that Pento, who has been branded "persona non grata" unless he sticks to a script of agreed upon questions and a premise that assumes certain inalienable truths Ponzi Style, probably strayed off the beaten script and was roundly punished by "B" cups.
Yes, that works in debate also. Framing the debate "We can borrow at zero" now who objects is framing the debate. I admire Michael Pento to the extreme, but his points would be much more powerful if he let each person finish their sentence. His viewpoint is no longer considered fringe nor was it ever in any case. But he will empower his opponents and diminish his points by attempting to use brute force.
I disagree. Honesty shouldnt have to pander to compromised stupidity. Speed it up and roll over her.
Who are you ? Frank Lutz ?
Mike was being Mike, he is always the same way. He was not trying to use brute force
The objective of participating in a debate is to win. The audience doesn't receive the full point when one of the speaker cuts off the other one. I know a bit about this topic but I am not Frank Lutz. I built some interesing stuff for political bigs at one point in my career but boring this audience with my details is not important.
but I am not Frank Lutz.
Even Frank Lutz is not Frank Lutz, he is Frank Luntz.
Always being set up as the whipping-boy, I don't know so much think that he went off script (they love it when he says those crazy things, after all), it's that Erin didn't know how go handle the "Fed is buying the yield curve" comment without having to "illuminate" the subject a bit.
So instead, she talks over him until they are both frustrated.
I loved it when he just gave up and rolled his eyes. That would make an awesome avatar.
They did the same thing to Pento's boss, Peter Schiff, too. Schiff only shows up as a guest on Fast Money once and awhile. Pento should have done his best Jack Nicholson impression and said, "Erin, you can't HANDLE the truth".
Naw... he should have pulled out an axe and yelled "heeeeres Johnny"
I loved it when he just gave up and rolled his eyes
An instant classic.
she makes blatant arguments and then when called on it claims, "I'm just a moderator asking questions."
shes been pitching the summer of recovery and the brillance of her demigod for months
That's right. She said something like this has been the fastest recovery in the history or some bullshit on Meet the Press. My jaw dropped.
Found it, from the transcript:
http://www.msnbc.msn.com/id/39011239/ns/meet_the_press-transcripts
"never ask a question you don't already know the answer to."
Bingo. -1000 for Erin for acting like a dumb brunette.
really embarrassed for erin. its awful when you believe the propaganda ....and end up looking like a complete fool for it......
i mean, how dumb is this chick? pretty damn dumb, it seems
Really Emabarrased for her???
Really?
How stupid can you be?
You can't be embarrased for someone unless you somehow have empathy for them.
AND YOU HAVE EMPATHY FOR ERIN??
ARE YOU NUTZ????
.
really embarrassed for erin. its awful when you believe the propaganda ....and end up looking like a complete fool for it......
i mean, how dumb is this chick? pretty damn dumb, it seems
In this plastic culture that has been created for us, IQ is not a prerequisite for the spokespeople.
Rather, there is an expectation that those who present 'the truth' are dialed in, comfortable and numb.
Intellectual paralysis as a result of temporary demand fulfillment.
Another double post Sacrilege.
go look for bush`s wmd`s under john MCcains TARP !!!!!!!!!!!!! lol
She asked Pento to make the case why interest rates would rise. Pento didn't make that case.
Intuitively Yes, interest rates can't continue going down, approaching zero assymptotly forever.
Asset prices never always go forever in the same direction. But making the case of why bond prices, which have been increasing for the last 30 years, should eventually come down, is not "that easy" to make.
Let's back up for a second : I think everyone will agree that we are in a crisis caused by the deleveraging of the private sector in the Western economies, which is caused by the gradual bust of ponzi and speculative borrowers. Meanwhile the public sector is trying to stop the collapse of private credit money by piling on more debt, which means for the moment the overall supply of credit money is staying more or less constant, while it was increasing at a 10%% rate per annum pre crisis. Eventually, the overall supply of credit money is going to be decreasing because public leveraging is going to slow down and private deleveraging will accelerate, Ok?
The supply of credit money is composed of Govt bonds, corporate bonds, lines of credit, the alphabet soup of levered financial instruments, net credit derivatives, Mortgages and MBS, LBOs, margin accounts, private loans, credit cards, etc... Let's remember that all of that credit money, which is mainly composed of "valueless tokens" (electronic data transfers in debtors and creditors account) and has a net value which represents the total supply of fiat money. Credit money is an order of magnitude larger than fiat, it completely dominates the economic system. And contrary to what most people believe, it's not the supply of fiat money that creates the supply of credit money, but the other way round, credit money creates the fiat, unlike the money multiplier model of fractional reserve banking most people have been brainwashed to take for granted and still haven't understood doesn't apply in our credit dominated system. So it is absolutely useless to reason in fiat money terms, which essentially doesn't matter in the overall picture of things.
If the overall supply of all of this credit money stuff is going down, its price, ie the opposite of interest rates, can only go down if the demand for this stuff decreases faster than the supply. I mean, that's basic stuff.
So to understand how, and when interest rates will eventually go up, we have to make the case that the demand from investors for credit money will decrease more rapidly than its supply.
And that's not that easy, especially when private savings are going up. I mean what are the alternatives for investment of those private savings?
Equities? Come on, demand going down.
Industrial commodities? Demand going down if the overall output of the world economy is going down because of the overall deleveraging of the economy.
Real estate, Commercial real estate? Come on, same thing, going down.
Precious metals? Demand going up, but can it absorb all the declining demand from all other asset classes?
I think looking at the overall picture, demand for credit money is going to continue going up relative to a decreasing supply of it for a long time. Eventually,Yes, it will reverse itself, it ALWAYS does, but how and when, it's really not easy to make the case in a rigourous manner, especially as long as we are in overall deleveraging mode. And Pento certainly didn't make that case...
Also, within the different categories of credit money, I don't think US Govt bonds are going to be considered more risky than Japanese, Euroland, or British Govt bonds, and not riskier than the rest of the credit money supply which is all going to move, as it does always, in a very correlated way.
Of course, there's also the hyperinflationary scenario, that's when people will want to get out of credit money en masse and convert it in anything hard they can get their hand on. But that's the "end of the credit system" scenario. There is of course a gradually increasing risk that this eventually happens. But that's a psychological thing, a sudden loss of confidence of investors that causes them to flee en masse, and interest rates skyrockett to the roof. That's not the "gentle gradual rising of interest rates" scenario.
So I think the most likely scenario is going to be that interest rates will continue declining assymptotly towards zero for another 5 to X number of years and that eventually, for one reason or another, the black swan event everybody feels is going to happen will happen and the house of cards that is the credit system will collapse in a matter of months.
But how, and when? That is the question Mr Watson.
Hi Erin-
Please post a pic of your titties.
Pan
You're disgusting Pan.
She should post a photo of her assymptotly.
Tyler, I can't believe you'd even stoop to turning on that channel with anythign but the sound muted. Or is it just a perverse form of entertainment? And besides, who wants to watch their stinkin' commercials on these videos? Not me.
I have the channel on in the background. When I saw Pento I paid attention and could not believe what happened. It was amazing.
So, CNBC has its moments.
Alltime best moment was the initial Santelli rant.
I refuse to put CNBC on any more. The sounds of silence keep my head clear and let me concentrate on ZH and the rest of the relevant blogosphere.
I saw this live.... Erin Burnett aka Ms Moneyshot....
too bad - I used to want to fuck her
f*ck her? not me, can you imagine the inane conversations....she gives me a headache.
she's an air head with an attitude.
?? am sure he said fuck her, not talk to her?
hands over mouth, hows that yield curve for you now darlin?
How about if you fuck her while you make her blow your dog?
Hey, don't junk me.... I love dogs.
Silence is golden. Duct tape is silver.
+1
Man, she's just gonna be heartbroken when she finds out you've changed your mind.
kinda like she likes mikey.
Fucking classic!
Can someone explain why the Japanese yen is at a 15 year high relative to the dollar? I mean their GDP and economy is in the toilet and the Nikkei is barely above 9000 which is less than a quarter of where it was more than 20 years ago. Their population is declining and their economic prospect is bleak. Not to mention a debt to GDP ratio of over 200 percent. Compare them to the US, why is the Yen gaining strength?
Is it just deflation that causes a strong currency? If this is so, then what makes Pento right in his bearish outlook on US bonds? Why cant the US piss ten years worth of GDP away and borrow 20 trillion more to get us to 200 percent like Japan and have a 10 year yielding around 1 percent like they have in Japan?
I totally agree with him with respect to gold but being a bear bond is not a settled issue in my opinion.
China buying Yen to diversify.
Carry trade unwind + refusal of further monetary easing?
So what did the carry traders unwind out of? Usually they buy something when performing a carry trade, I would imagine they'd have to sell something to unwind it.
AHA! YOU WANT A LOGICAL EXPLENATION I SEE!
Well, Once upon a time on a cold day in march 2007, 2 looney tunes where talking about what the greatest joke in history would be.
I don't know the hole story but 1 of them said I'll become PRESIDENT OF THE UNITED STATES of Looneyland alias the U.S. OF A, the richest country in the world.
The other looney was kind of angry and said to himself: we'll see how he deals with that if I flip the switch and evaporate it's money!
Like I said, I don't know the hole story, I even never heard how the story ends, but I'm guessing at the end, those 2 looney's will have their fun.
You are like the Lady Gaga of commenters here. I just wanted you to know I noticed.
More like the wacky waving inflatable arm tube man boyfriend of lady gaga.
I feel sorry for his avatar. It's scary, but it seems to need help -- maybe just a friend.
hole vs. whole- learn the difference and lend some credibility to your intelligence
it would be nice if you shut your whole hole for the good of the group.
and stop being an a--hole.
Sam, a few things come to mind.
1. Japan has zero (0) natural resources (excluding sushi.) Strong Yen buys lots of steel, oil etc. (Let's not forget food.)
2. Japan debt (85%) or so, is owned by Japanese people. In a crunch the Japanese people being the most patriotic than any country I know, will support the goverment in a state of adversity and pull through, forego the few basis points of interest and even the principal.
3. Asians no longer trust the dollar. Money goes to PM's and Yen.
There are more but too esoteric to mention. As I have posted before, the BOJ gives signals to the keiretsu on when the yen is most likely to depreciate so that oversees profits can be repatriated. A 15% swing in the yen/dollar exchange brings huge profits to these companies (especially if they can maintain these profits in dollars by borrowing from the BOJ at 1/2% rate.)
Adding to point #2, their patriotism was once their religion, with the Emperor seen as a living deity. So yeah, I'd say it's hard to match that level of patriotism.
At least in the US they let them die first.
....I didn't know that DaOne died?
or to quote an imbecile in CNBC.... He is above country and boundaries as a kind of god...
20% savings rate for years procured by real productive capacity
Well there are some tiny little strengths:
1. they owe the debt to themselves
2. they aren't running a fatal current account deficit with China
3. they still make products that the rest of the world wants to buy
Other than that Japan is sunk.
Why is the yen strong?
Because Japan's savings rate is going negative, and their economy is in the doldrums. Mrs. Watanabe is repatriating funds to live, as are corporations. Imports are dropping, so the country has little need for any currency other than yen, of which it needs a lot to fund ever-increasing deficits. Also, the September 30 marks fiscal half year end, so balance sheets are being dusted. I suspect UST sales are coming, at least from Japan's private sector. 79 is in sight and may well be challenged, but long term I just cannot like the yen.
This lady is incompetent, and I can't believe they have people like this on the air. And this other idiot, Joseph whoever, is just as much a moron as the rest.
CNBC needs to be sent off air permanently. I can't believe people even watch this trash anymore. They know CNBC is full of nothing but government paid pumpers.
You're advocating censorship because you don't agree with their programming?
Slippery slope there. Even I wouldn't go that far. My TV remote has a whole array of buttons on it.
Added: I see some junks... step up you COWARDS! Speak your piece. If I can go out on a limb and make a comment so can you.
The entire world will squander their savings into our debt because....
they love us for our freedom and we are a beacon of light for free-market capitalism.
Hold on a minute. I thought they hated us for our freedom?
Let's roll!
+1000
they're ambivalent about our freedom...it's like an ike and tina turner thing....
michael pento @ 4:20 (no pun). rolling eyes. too funny.
Holy shit - thanks for pointing that out. Fucking priceless!
Fixed:
"The reality is that this is like 40% of NAV for us, so if I said Treasuries were in a bubble, I'd be fired before they turned off the lights."
Be polite and gracious bitchez.
word
nice lol...
I am grateful for my enslavement. What would I have without my masters?
Careful, you're getting awfully cllose to letting the secret out of the bag.
illuminati bitches
Could it be that maybe the problem is that Erin, her CNBC producer, and 99.9999% of the rest of America, really do not understand the basic concept that bond prices move in the opposite direction of interest rates?
It is so simple. The Fed buying Treasury bonds (false demand) causes the price of the bonds to go up, and the effective interest rates of those bonds to go down, giving the illusion that the USA is a better creditor than it really is, compared to other bonds.
This is not sustainable, as The Ponz (BSB, not The Fonz) will eventually have to jump the shark, and devalue the dollar.
The false demand, coupled with the US Gov "Real" supply will end up making a real mess. The false demand allows the politicians (with krugman theory) to provide more supply, since "interest rates are so low, we'd be a fool not to borrow the money". This is a train wreck about to happen.
It drives me crazy when she starts out with a false premise that the reason UST rates are low is because investors are confident the US will be able to pay back the debt. The reason rates are low is because of POMO, and other not not so open operations.
Erin, either you are stupid, or you are putting the con in the confidence game. Which is it?
There will be a point in the future when the FED pulls the plug. Since the FED is a private entity, owned by the banks, and with profits slipping due to reserves held at the fed earning a pittance, the owners of the FED will start to pass secret notes to the board of governers to end the game. Bernanke, as a political oppointee, will be brought into the back room and instructed when to publicly announce the closing of the money spiggot. They are trying to do it secretly (adjusted monetary base is flat), but eventually will go public if they have to.
When that happens I will want the password to your lair, please.
This is close to what I've been calling. I figure that the Fed will just spontaneously combust, wiping out all that debt. It'll be taking it for the team! You see, we thought that the Fed was bad, when in reality it's our way out! Let them such all the bad crap up and then collapse into one big black hole!
"It'll be taking it for the team!"
so Ben is basically like another Jesus.
Damn, them jews got some Soul!
The FED has become one giant zombie bank with only the member bank shareholders and congress (who's asses they are saving) to answer to. The FED will live on as a huge septic tank to fill with crap debt until the toilets start to back up and overflow.
You try explaining that at a family dinner and watch everybody rolling their eyes. I did it once and after 30 minutes was beggin me to stop talking about it because it made them depressed.
Ignorance is a bliss. It really is.
I spoke about "fiat" money once. They couldnt even comprehend the dollar is a only piece of paper with fancy ink on it and a promise. The public paradigm is the dollar is money and is worth something, no matter what. I never spoke of it again.
I read somewhere that the majority of Americans believe the Dollar is backed by gold in Ft Knox. Sad.
I quizzed a dinner party this weekend about who owns the Federal Reserve. Of course, no one got the answer right...
To be fair, it is a hard question (who owns the FED). The easier question is who doesnt: the us government.
I like to explain that the dollar is really just a note, aka a loan, and show how it says Federal Reserve Note right at the top. I then ask people to fill in the following blanks for this note.
Lender:
Borrower:
Amount:
Term:
Interest:
Collateral:
Guarantor:
What would your answers be? I could probably answer 5?
Lender: Fed
Borrower: holder of FRN
Amount: Face value
Term: On demand?
Interest: None
Collateral: None
Guarantor: NONE
Cost of Carry: ?
Lender: Federal Reserve Bank.
Borrower: United States Treasury.
Amount: Face Value.
Term: On Demand.
Interest: This is the hard one for me. My best guess is that it is essentially part of a tranche of zero coupon notes with variable rate depending on series and average UST issuance during its duration.
Collateral: Taxing authority of the UST.
Guarantor: The U.S. Taxpayer (Gold isn't backing it, you are).
That's interesting. Thank you.
Guarantor of the Fed: You, my friend, it is you.
I am not a Guarantor of the Fed. Nowhere can direct evidence of my agreement to this indenture be produced.
Show me the contract with my signature, wherein I pledged my efforts or labors (past and/or current and/or future), my assets or wealth to the role of assuring the solvency of the Non-constitutional entity that has usurped the authority to issue debt money on my behalf.
LOL!
I was reading the Creature from Jekyll Island the other day and my wonderful wife asks me what the book was about. I said the Federal Reserve and got that snide remark .. oh, one of those ....
I simply asked - what is the Fed? She had no answer and this provided an opportunity to explain the mess we are in, she responded in a positive manner.
The Fed has perpetrated the greatest hoax on America, it is by design of course. Much like the devil, his greatest achievement is convincing people he does not exist.
sschu
You need to get a new wife.
Seriously.
Dump this dumb one and find one that has a brain.
.
You are not kidding. The truth will not make you popular at parties. For God sakes, judging by the reactions that the subject of ponzi finance generates you would think that someone had farted in a diving bell.
Oh yes they do understand it, and I would guess that everyone here understands it too.
It's just that do not want the sheepies to get it. Otherwise, the gigs up.
What a bitch!
"nothing is in a bubble when people want to buy it."
who does this guy think he is? a congressman?
He's the spokesman of the Ministry of Truth.
People wanted to buy houses, tulips, cabbage patch kids, and urls when they were in bubbles.
no lets rephrase that,
"nothing is in a bubble till the last sucker buys it"
I can't believe how may people are going to lose money because of that dumb ass
+1000 for europacific capital for calling bullshit as always.
I wonder if he'd say the same thing about gold?
duplicate post
(excuse the profanity)
WHAT FUCKING PEOPLE ARE BUYING US TREASURIES???? WHAT FUCKING PEOPLE??? WHERE??? THE PRIMARY DEALERS WHO GET FREE MONEY AREN'T PEOPLE!!!! THE BRITISH BANKS WE DO SWAPS WITH AREN'T PEOPLE!!!! DOES ANYBODY WITH A PULSE ACTUALLY BUY THIS CRAP???
AAAAAHHHHHHHHHHH!!!!!!!!!!!
No problem with the profanity, but can you give your cap locks a break?? The crazy part is that everyone (the Erin Burnett's, Joseph whatever the hell his name was, etc) actually believe that somehow the economy is better off than a year ago or two years ago -- they simply can't believe things haven't gotten better (or have gotten worse). They obviously don't ever look around or talk to any "real" people.
Let's see who is buying treasuries? It would have to be something that has severe inabilities to distinquish self from other and follow basic mathematical rules that come from the definition of self and other. Perhaps their balance sheet would look weird with one set of numbers on one y axis and another set of numbers on the other side y-axis. Some kind of person who would think loaning the same money over and over to various groups somehow made it multiply. Someone who thinks it makes sense to both owe and borrow from social security at the same time.
I can't put my finger on it. But they would have to fit that specific behavioral profile if I were a criminal behavior profiler. So just keep your eye out for someone or something fitting that description.
The truth is so rude!!!
+10
+10,000
Erin might spank you for that.
Ooooh.
or I put it in the wrong hole ???????? maybe she would like that ?????
Tyler & team - great job - Erin needs to understand that not EVERYONE is employed by GE & must tow the CNBC QUACK BOX disinformation agenda - I think Erin Burnett should interview the crew of the Jersey Shore - and there my friend would be an object lesson in rude OR the self-absorbed - tragic irony - poetic justice - your call - Mike Pento - one should not cast your pearls to swine...
If she thought he was rude, she obviously doesn't get out much.
chick has no gravitas so cannot command respect...
Erin is a jumped up soccer mom
Mike Pento can wear as a "Badge of Honor" the fact that he was chastised by the Queen Cheerleader at CNBC. Pento did rant a bit, but his point is 100% correct and neither of the other two people he was talking to would acknowledge the looming "interest owed" problem.
Good job, Mike. You will be proven right someday. And CNBC will say that they saw it coming too.
Honestly, Pento doesn't have a clue either. Insolvency means there is no interest rate - it is default - nothing being paid - nada - zero. Interest rates cannot go UP under this scenario.
Don't know why people junked you. I agree. ZIRP is a trap. There could be no medium rise in interest rates. Sure 10-year to 3.5% - ok. To 4.5%, 5% and beyond? Nope. Would demonstrate a total loss of control by the Fed. Would only happen at QE3, QE4 failed.
The US has too much debt to roll. Higher interest rates would be higher interest payments which would be higher borrowing. It's a liquidity spiral. There can be no normalization of interest rates.
Do not pass go. Do not collect $200. Go straight to Jail.
Anyone see NBG is out raising money? Stock down 13%. ECB not going to make it through the Autumn.
Another OT: my local individual insurance premiums are going up 15-20%. No inflation? Ha.
Lemme fix that for ya.
Agreed. But...
"Would only happen at QE3, QE4 failed."
I think Pento is basically saying that QE3+QE4 attempt & failure is inevitable - and right around the corner - and I agree with him. And that brings you right around to his doorstep in the end, yes?
The $USD's run as reserve currency peaked awhile ago. It's holding the title belt the same way a 45 yr. old George Foreman held a title belt: nostalgia and a historically weak division at the time.
The CNY is already the undisputed cruiser weight champ and No.1 contender for the HW crown. How much longer will China place 10:9 bets on a bloated, damaged $USD when it's own young stud can win the belt by TKO every day of the week, and re-orient (pun intended) the global balance of power on it's own terms?
All we are arguing about here is the timing of the inevitable...
I agree the probability is inevitable. But here's hoping we have a leader out there that can pull this nation from the brink.
You know- we make our living the old-fashioned way, we earn it (not print or skim it).
IMHO, China goes down in flames too. We have ripped them off very well. We have left them with more of the bag than most marks typically get left with (part of the Ponzi). They have no room to grow, they have already produced too much stuff no one can buy. If we don't buy enough stuff, it is all over. They need to sell the stuff they already made in order to create jobs resupplying. Until then, no jobs, no growth.
To service debt and to pay back debt don't mean the same thing. Also a treasury default would mean a complete loss of confidence in the USD and USA. rates going up by then would mean squat as that interest would be paid in worthless currency.
Hello? Do any of you guys worried about higher rates get this at all? We're way beyond fear of something as benign as an interest rate spike. We're talking about a total reset of sovereign currency. Just like the old days. You has $10,000 in a bank yesterday and now you only have $100. The offset is a loaf of bread is 10 cents again. You guys all worked up over an interest rate spike don't understand the real path this is taking.
I agreed with your original comment. But I do not think the reset is offset by anything. $10,000 becomes $1,000 BUT bread still costs $4. To default/pay off debts, you cannot simply lop off some zeros. Have to hyper-inflate.
Read your history. This kind of reset was done by royal decree countless times in history. The king simply re-issued new coins for old. Accomplishes the same thing as hyper-inflation and the price of everything naturally resets. Folks, this is the path of least resistance...
And another thing expanding exponentially is the black market. How many cops do you think they will have to hire to keep me from trading my turnips for your cabbage ?
everyone here knows that, but talking about higher rates is a good way of sugar coating the sovereign currency topic so that you can get on TV.
They will not allow sovereign currency crisis on TV but they will allow higher interest rate talk on.
No
just because there is no money to pay interest, doesn't mean there is no asking price.
Fucking excellent clip.
Although to be fair, both Balewhatshisface and Pento can be right, one after the other. But like Pento says, when the currency "tells us" we're screwed it's probably already too late to avoid a currency collapse. Like the real Maestro (Dr. Faber, not Dr. Greenspan) says: "In the long run, we're all toast."