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Must Watch: David Stockman Says The Fed Is Injecting High Grade Monetary Heroin Into The Financial System
Today's absolutely must watch clip comes from David Stockman, director of the OMB under Ronald Reagan. "An independent Fed is what we had when I was in the government. Volcker was the head of it...Today the Fed is scared to death that the boys and girls and robots on Wall Street are going to have a hissy fit. And therefore these programs, one after another, are simply designed to somehow pacify the stock market, and hoping to keep the stock indexes going up, and that somehow that will fool the people into thinking they are wealthier and they will spend money. The people aren't buying that. Main Street is not stupid enough to believe that engineered rallies as a result of QE2 stimulus are making them wealthier and so they should go out and buy another Coach bag. This is really crazy stuff that I can't say enough negative about...The Fed is telling a lot of lies to the market... it is telling all the politicians on Capitol Hill you can issue unlimited debt cause it doesn't cost anything. We have $9 trillion of marketable debt. Upwards of 70% of that has maturities of 5 years or less down to 90 days. All of those maturities are 1% down to 10 basis points. So from the point of view of Congress, the cost of carrying the debt is essentially free. When you tell politicians they can issue $100 billion of debt a month for free, how do you expect them to do the right thing, and ask their constituents to sacrifice... I think the Fed is injecting high grade monetary heroin into the financial system of the world, and one of these days it is going to kill the patient."
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You still did not go and watch Animal House did you?
B9...look around the world at the rousing success that austerity attempts have met with. Iceland: said fuck you. Ireland...finance ministry surrounded. France: riots. Greece: riots.
Do you *really* believe that the idiot sheeple understand what "austerity" means in their lives? The TP people with their keep your gov't hands off my medicare?
If austerity is delivered, the GOP will be voted out on their heads in the next election. It ain't happening.
The bankers make money by getting bonuses, man. They don't really care about lending to people...that is what nobody seems to deeply GET. This is NOT George Bailey banking. They have an entire synthetic economy for themselves upon which they can conjure profits. They only needed the little people in the housing bubble to close the last mile of a gigantic loop.
The Fed was going to print with or without a GOP landslide. And still not 1 in 1000 understands what QE is or why.
There is NO WAY out of the math on this...printing is INEVITABLE. I had this argument to the point of banning by Douchinger and his entire stinking kissass forum in 2008.
The people do not want austerity, they want the good times back and if they don't come back they want at least the banksters to NOT be living larger than ever. That's it. A simple redistribution to the upper middle and lower upper classes will suffice to placate enough voters to carry this. The lower class is bought off with food stamps and free bennies.
The GOP is *not*, repeat NOT going to pick a fight with the bankster class or the Fed. They sure as shit did not in 2008 and they won't now.
"The TP people with their keep your gov't hands off my medicare?"
It's classic, voting one's own interests. Of course, those interests really aren't what's best for the individual, it's what they've been programmed to believe are best (thank you Edward Bernays). But, yeah, pretty sad. Matt Taibbi's Rolling Stone article (http://www.rollingstone.com/politics/news/17390/210904) speaks volumes about this.
"If austerity is delivered, the GOP will be voted out on their heads in the next election. It ain't happening."
The game is that one pings, and the other pongs, and that they both expect this, lest the game is over. The GOP will blame the Dems for blocking "reform" (never mind that there's no fucking such thing in mind- it's about whose group of rich fuckers is going to get their mouths on the big tits).
Oh how I wish that I were a god-fearing Christian, cause if I were I would then be able to feel that I was sincere in wishing the entire lot [to] "burn in hell."
well said
Bernankie seems upset over the reaction yesterday. So, he spiked futures and tries to insure everyone thinks his plan is sound. Previously didn't the Market go down on the weak dollar? What has changed?
I think he is Minical. On the end of Madness.
I also think he watches his personal account all day long to see how much he has made from his Madness.
How does HFT fit in here? Reportedly 40-70+% of trading volume. Nanosecond trading amongst computers can ignore any outside information and defy gravity causing the market to take on a life of its own.
QE2 is insane and will destroy the dollar.....and the markets go up.
Europe is living on borrowed time and cannot excape defaults....and the markets go up.
The financial mess with housing will cause another crisis....and the markets go up.
Bonds are in mindboggling bubble.....and the markets go up.
Someone convince me that the markets won't go up for as long as Benny and the Fed want them to go up.
sunny
Markets are ultimately living organisms and just like Nature , they cannot be manipulated or corrupted indefinitely. I shall enjoy the process of equilibrium. Bernanke is going to find out being an Academic on the Great Depression is going to be as useful as having a chocolate fireguard when the forces of physics play out.
But if the mkt collapsed this time, won't it also collapse the dollar?
+1
IMO, the dollar is in for a big rally. As the debt bubble implodes, everyone will try to move to cash at the same time. I mean look at all of the junk bonds that people have been buying. They are worthless pieces of shit. I mean they are totally worthless in the most basic meaning of the word. Dollar down is the most crowded trade on the planet right now.
"I mean look at all of the junk bonds that people have been buying."
What people?
The progression is that everything goes over to computers in which "people" are basically traded (their wealth, their debts), and that as the wealth is more tightly constrained (that which is being created/added is insuficient to overcome that which is being destroyed [which was created by taking from the future]) people will be squeezed out (up until this point it's been job losses, as it goes forward it's likely to directly operate at the level of one's own life, either directly, or indirectly by people taking their lives [programmed to do so]), until, eventually, as the entities get bigger from consolidation, there's only one left. At the point of there being only one entity left (or just two) it's game over, because, well, how can one make/steal wealth without transactions (trade) occurring?
Eq-mv
question today is: "is that Carbon based life or Silicon based life." Current evidence leans toward silicon substrate.
- Ned
Now you're catching on..
I'm waiting for that sound in StarWars, you know, when Obi-Ben-Bernanke shuts down the tractor beam. Then all the accounts will read 'insufficient funds'.
Your avatar gave me the idea.
Yes, We know this to be so. Now what? Too many observations, Not one solution. Fucking crazy.
One of these days it is going to kill the patient.
Then they will inject it into the corpse. It won't help.
http://www.youtube.com/watch?v=dQ_pKqiB5Rg&feature=related
+1. LOL. I hadn't thought of that!
As I sit here tonight in stunned amazement at what is going on [printing, market manipulation, prices, rule of law, Fed], the only question I have is who finally stands up and fights back...and in what form does the counter punch come?
I cannot imagine the world will stand quietly on the side of the globe while Bernanke destroys the dollar.
So who? And how?
Good grief!
My hope is Ron Paul, but he is only one man. He needs an army of supporters to stand behind him.
I don't think he was referencing domestic politics, he was talking about the other 6.6 billion people around the world... and when food prices quadruple because we collapsed the dollar and most of them can no longer eat, they will be pissed. Very pissed.
It would not surprize me at all to know that very high level, very quiet talks have been going on amongst representatives of major countries deciding what coordinated action they will take in response to the Fed printing, and when the dust clears we will see that others, not US actors, will have precipitated the final blow. Preemptive strike, as it were- the ultimate Black Swan event will be initiated politically, from outside the US. And we will be toast.
This is all they got left.
+1000
Alan had his bubble now Ben wants his very own.
Great news everyone! Equities only down 1.5% today when priced in gold which is up a staggering $55 US LOLars!
Market has been strong for weeks.
More stocks breaking out than breaking down.
Especially after the cloud stocks tanked and immediately recovered.
Anyone following the tape knew this was coming weeks before.
Oh, by the way....
NILE just reported. Got flash crashed down $4 immediately after the report, then recovered. Now up about $1.50.
Why is that?
75% of the float is sold short, with 27 days to cover.
Any wonder why junk stocks like this are rallying?
Flash crashes on inidividual issues EVERYWHERE during this manipulated rally. The criminal syndicate known as Wall Street is really working it.
Tells me...the correction is drawing very near.
I think you should BUY, BUY, BUY these junk stocks and dump that cancer stick company Altria for more quality.
LOL
"Market strong...stocks rallying'...hey Robotrader do you think everyone here is an idiot?
Stocks today are down 1.5% when priced in gold. If youre scampering after 1-ply US $LOLlars you have brain damage.
Dude, i see you pop up cheerleading this rally and pointing out how obvious it has been - well , the only thing that is obvious to me is the market can only RISE when the dollar FALLS. Now , i dont know when the dollar is going to stop falling , but before globalization disappears up its own asshole i fully expect a final swansong rally for the old greenback and when that happens 2008 will appear like a picnic. Dont talk to me about how obvious the stock market action has been - its IRRELEVANT. Study the dollar basket , the main dollar crosses and gold. Then deduce from there.
This dynamic is not a perpetual motion machine. It will reach a tipping point and then the pendulum swings.
I have and I come to one conclusion:
the Fed will PRINT INTO any significant dollar strength.
Why can you people not understand that deflation DESTROYS ALL THE BANKS and the Federal Reserve AND the USG all in one swoop? Do you HONESTLY believe in this outcome?
WTF, has ZH been infected by idiots from TF? We already had this argument in 2008; I was right. TARP was unpopular, QE was unpopular, the deficits are unpopular...so fucking what?
At what point does the popularity have to do with anything? The stinking Republicrat OneParty is in power STILL. The Fed will act to CRUSH any real dollar strength as they have for 3 years now
The response to deflation, money printing, leads to hyperinflation, aka the loss of confidence in a fiat currency.
But make no mistake, the Fed is purposefully destroying the dollar.
http://psychonews.site90.net
Robo, I think I heard Alf laughing at you today.
What if the U.S. defaults on the debt owed to the Fed?
Been thinking that the Fed transmutes it somehow...
'Transmutes it'? Damn sounds like a cool sci-fi term.
Transmogrification of T-bills and all maturities under 10 years to 30 year zeroes will fix a lot of Fed problems. Hence the catch phrase, "no problem".
"Healthy Banks will be allowed to increase dividends" ?
What? Where is a healthy bank? Is Ben actually serious? If yes, then he is going to go all the way...and rob the entirety of America...simply take if out of the greenback.
This is the largest crime in the history of the world freakin world.
"The Fed is telling a lot of lies to the market"
and to a lot of other people including congress and the american people to whom they have an obligation to lie as asshole alan blinder informed us during the 1990s.
gideon gono runs the fed. but surely as day follows night and night follows day the crap is going to incinerate into thin vapors leaving a putrid stench as heavy as a beach full of dying whales....
bernankrupt should be sent to the guillotine.
He's just doing what his masters tell him to do. Just another shadow on the cave wall.
This is their hail mary pass. Problem is he will continue to do QE till either he gets thrown out, or the economy recovers on its own.
I've got the under - Ned
i am so angry i am deciding whether to take justice in my own hands and shoot the agents of evil either geithner or bernake. ..... i decided to cry instead....i am going to sleep. someone please wake me up after my crazy pill wears off...
BNY comes in at #30
World's 50 Safest Banks 2010
http://www.gfmag.com/tools/best-banks/10533-worlds-50-safest-banks-2010.html
Nice link. It was good to see my bank on the list. I thought it was a winner.
And that's where I stopped reading.
Will the U.S. monetize the U.S. Military to serve the U.S. Treasury instead of private banking/industry? We can pay the Fed/China debts with minerals from Afghanistan and a military protection tax on Saudi Arabia, the UAE et al. After all, we're already doing these things, these are public costs, but the benefits have been privatized.
It might be imperial and work within the current system, but at least it serves the American people instead of international capitalists.
The U.S. can pay down these debts. It's private banking and industry that's stopping us.
Part of the payback by the Saudi's and UAE is to keep oil denominated in dollars. I am sure they would prefer another currency right now but we have a fleet and several combat divisions in the area...which they like. They were the next targets of Saddam after Kuwait.
Read this FreedomGuy you will like it.
http://fofoa.blogspot.com/2010/10/flow-addendum.html
A bit long but good. Puts a different light on the past oil crises. Nobody has real money anymore.
Pretty good, except the "right thing" would be to have billionaires and friends of the Fed to sacrifice....while the constituents get lower taxes. People who lent to the government deserve to get wiped out. People need to learn not to lend money to governments.
"When you tell politicians they can issue $100 billion of debt a month for free, how do you expect them to do the right thing, and ask their constituents to sacrifice"
Everyone on TV who makes sense on some fed issues ends up advocating for higher taxes and "sacrifice" from the middle class.
How about "End the Fed", end the worldwide military occupation, end the drug war, go on a gold standard and drastically lower taxes. The litmus tests for those who are serious about liberty and those who are firends of the Oligarch clear. These rich bastards who come on advocating higher taxes are no better than David Rockefeller, Alan Greenspan, Henry Kissinger, LORD Rotchchild Vader and Warren Buffet.
Speaking of Rockefeller, why is laurance S. Rockefeller and James C. Kautz on the board of trustees for National Geographic?
And how about Joe. Allbritton? Don't know Joe? here is a linkhttp://www.washingtonpost.com/wp-dyn/articles/A62544-2004Jun22.html
And my favorite NG Trustee, Lewis E Branscomb
As a manifestation of his otherness, he has played an active role in the Presidential campaigns of at least two US candidates: Michael Dukakis (1988) and Barack Obama (2008). His son Harvie is married to a Japanese girl. Professor Branscomb travels widely and is a good friend of many nations, such as Japan, China and France. Need we say more.
Ooohhh! The high grade heroin, no wonder I feel light headed.
Obama just gave the all clear.
The automaker has been given the go-ahead by the federal government to use chartered aircraft as early as Thursday to ferry managers on a "road show" promoting G.M.'s public stock offering, according to government and company officials who declined to be identified.
It is believed to be the first time that G.M. will use private jets for business-related purposes since the government demanded that it sell its fleet of corporate aircraft in 2008. As a condition for accepting emergency federal assistance, G.M. has required its executives to travel on commercial airlines.
Obama says as long as you are pimping out Government Motors stock you can fly private. WAIT. I thought Obama said the Fed Govt isn't involved in day to day operations of formerly private businesses?
.
The U.S. government now has leverage over the FED which it will never use, unless we have a political revolution. A future president could sue the FED's private players for RICO activities between 2006-2012 and withhold debt payments and/or structure a settlement whereby the FED banks private shareholders have to eat half the U.S. debt over the next ten years in return for their 2008-2012 bailout.
Isn't this all a quid pro quo based on timing, anyway?
In response to the video clip and the closing soundbite - lets kill the patient already.Its going to happen one way or another. Its about time we just got this over with. Drawing it out is like tantric sex. Pointless.
If the U.S. nationalized just the BENEFITS from the U.S. military (false assumption that most people have) we'd all be getting dividend checks in the mail and we'd have no debt.
Instead, international capital owns the U.S. military and its benefits are accrued to international capital, solely, while its costs are borne by American citizens with interest.
Had Rome a similar policy, it would have collapsed in 200 years.
Meanwhile, Americans are indoctrinated everyday that international capital and private rights to publicly created benefits are a religion. We could lose 20,000 troops invading a nation and no one would question the rights of international corporations lapping up the loose assets. It is un-American to suggest the treasure accrues to the Treasury!
and if we did seek the treasure of our blood, the two-faced leadership of tea party would be the first in line calling that a "government takeover" and socialism.
But wait - I don't remember international capitalists making direct investments and paying costs to build our military or fight our wars. That was the citizens. Their reward is more costs, interest payments, and no dividends.
That's theft. It doesn't even fit within any theory of capitalism. It's closer to a mandatory investment minus the return or slavery.
And who, pray tell, is this monolithic leadership of which you speak? I'm DYING to know.
those who hold the most capital and their organs. I thought that was obvious.
Stockman fails to recognize the new FED playahs are leftist easy money gurus and the failed supply side run of the Reagan years sowed the seeds for ever more debt creation - embrace the monster - no debt never has to be repaid - party on - free Ipads for everyone.
Ohhhhh...uhnn...Ben, you filthy pig, where did you get this stuff? It's so pure! Pump it. GO! Untie the latex. Oh, God...I feel...Oh, my head. Up, up, up, nowhere to go, but up...a...surge...ohh...yeah, baby. That is one sweet two-year high. I want 12. I want twelve thousand, Ben. I need twelve thousand. Can you give me that? I promise to make it worth your while, you bald-headed stud, you. I am...whoa...I can see your house from here...I am going to introduce you to...I have hookers that you will not believe, Ben! They bring the coke, man, you don't have to bother. End times, Ben. You stuck with me. You and me, together during end times. I have to...sleep, now. I love you, man.
in case you missed it this video from Bloomberg two days ago is also worth watching
Sean Egan, president of Egan Jones Ratings Co., Paul Lountzis, founder of Lountzis Asset Management LLC, and Adam Seessel, founder of Gravity Partners, discuss the U.S. stock and bond markets, the economy and their investment strategies.
http://www.bloomberg.com/video/64166364/
When your only tool is a hammer you view every problem as a nail...
it is obviously a destructive course of action
everyone knows this - everyone who understands these things knows this anyway
yet he has been allowed to pursue it
the only resistance is the likes of david stockman saying "oh dear, this will not end well" yet nobody stands in the way to declare "NO FUCKING WAY ARE YOU GOING TO DESTROY OUR CURRENCY AND NATION!"
nobody but us nobodies
and so it happens. what the fuck? what the fuck?
Why is no one saying anything? Because the oligopoly spread its investments TWICE when they needed to the most. First, in the 2007-08 Democratic Primaries when the Democrat president writing was on the wall. They brought you the fake populist Obama. Then, again, between 2008-2010 when you couldn't stop SOME KIND of populist movement, they got in front of the tea party, funded it, co-opted it, and put their chosen representatives on corporate media insuring the direction of the SECOND FAKE populist movement.
I sympathize with rank and file progressives and conservatives, who are generally honorable people who want to help their country, but I'm afraid they've both been co-opted. That's why Obama lost his base and the young didn't show at the election. Rank and file tea parties are about to learn the same lesson as the Obama-bots learned in the last two years!
Good. After everyone "establishment oligarchy" fails, we be able to bring forth a REAL populist movement. These things take time, head fakes, multiple disappointments, pied pipers must all fail.
exactly correct. whoever junked you for stating that is lower than contempt.
Right, like these guys...
http://www.youtube.com/watch?v=gb_qHP7VaZE
All I know is that I have been following inflation/hyperinflation/FED/money for ................ 2 WHOLE YEARS! Wow..... right? But based on the last trends of the last 2 years on the dollar, gold, silver, etf's, etc. Everything is culminating to be the truth that we have all seen for some time now. Thank you ZeroHedge, and thank you everyone who has raised my level of enlightenment on these various subjects. The wool no longer exists over my eyes.
Does knowing "the truth" make trading any different or any easier? Nope. Same old entry and exit discipline, whatever the Fed or whoever does, as long as we stick with the trading discipline you can safely forget about all the fed/inflation/deflation nonsense.
It's just a distraction and a waste of time.
Welcome to the Titanic Patrick.
http://www.youtube.com/watch?v=QrzKd5Wexmw
Stockman getting forced out of the Reagan administration was the turning point of that administration away from something that actually might have made somewhat radical changes. The Republican insiders - the Baker/Bush crowd - were in control from then on.
Atomic, according to stockmans book, he left on his own when he realized Reagan wasn't really committed to a balanced bugdet. The massive increases in deficit spending started there. Stockman made a calculator error in cap weinbergers office and Reagan rfised to reverse it, so defense got more money than what stockman knew we could afford. Also, after getting only half the cuts from congress stockman knew we needed to balance the budget, reagans cronies told him to take s hike and Reagan wouldn't back him up. Stockman left at that point because all he could see was a lot of red ink. It always amazes me that conservatives eulogize Reagan. My grandfather wad a republican his whole but couldn't vote for Reagan a second time because "he nearly bankrupted the country". The addiction to debt in this country started with Reagan, and we're all looking forward to "growing our way out of these deficits".
Why only inject it? Let's smoke it I say!
Well, Stockman certainly knows enough about lies.
He's half the reason we are where we are and he knows it.
Read stockmans book and see if you still hold that opinion
Main Street is not stupid enough to believe that engineered rallies as a result of QE2 stimulus are making them wealthier and so they should go out and buy another Coach bag. This is really crazy stuff that I can't say enough negative about...
Some people are indeed stupid enough to believe that elevated stock prices mean that wealth is created. It's naive to think otherwise. Obv not everyone, but some . . .
In any case, BB's just following orders. He's a tool, not in charge.
Off topic kind of but JWR over at SurvivalBlog.com has pretty much said the Schumer(his term for that stinky brown stuff) is hitting the fan.
Quit picking on Bernanke. Obama is the fuctastic leader of this Fed catastrophe.
Very interesting article on the man. A lot of reading between the lines on this one. Bottom line, he knows this game very very well, and is now more than happy to share it with anyone who will listen. But besides us here at ZH, who really is listening? Anyone? Bueller?
http://www.time.com/time/business/article/0,8599,1607046,00.html
Limbaugh, a regular reader of this site with 20,000,000 listeners, was raging against the Fed today. Just keep on truth-telling. Information is the second highest form of power. Be patient; the Universal Ponzi will collapse. Then, after a good purging via civil war, a healthy re-set.
The interest rate swaps on the muni bonds alone are enough to blow this country up and into the hands of bankers on the last transaction. Bankers were getting $100 per person on utility bills in Alabama. That's how evil bankers can be. They want to be in on every bill that comes to your house. They want a piece.
The only way out is to suspend the contract clause and re-write these contracts as a national emergency. We're not doing it. The courts will not be able to handle the load when the time comes. We start re-writing now or we have unconstitutional federal legal panels untying knots later under emergency.
QE2 just buys time...
they get a vig on every dollar in existence, my friend. The apex parasite bankers, that is
I honestly think I have fallen asleep and woken up in some strange universe. I have never seen such absolute stupidty from the credntialed and elite crowd. In fact, I call it the third greatest grand theft I have ever witnessed.
Our leaders and this country have sold us into debt slavery and essentially- they have sold everything we own...converting our assets to themselves.
I have been sharpening the guillotine blades. For the elite and thieves I say this. He who has the most toys...still dies.
The elite aren't stupid, they are simply following a plan and doing what they are told. It's not about not learning from our past mistakes like the Great Depression. Those weren't mistakes, they were well orchestraded plans, like this one.
Oh yeh, the FED is shaking in their Lucchese boots about what Wall Street is going to do? Oh please.
Like I said to my buddies over beers last night.
$60 dollar Silver and $1600 gold is guns. grub, and bitchz time. Be careful what we wish for. Yes we're backing up the truck in profits but jesus this could easily turn into The Night of the Mostly Dead Neighbour".
Yeah they come over to your house every day looking for scraps to eat to cause they are broke from making their $2000 monthly car lease payments that they suckered themselves into cause they didn't make any more mortgage payments and are living free.
Gawd help us all
High grade monetary heroin? Feels like shwag to me.
Go look at dollarcollapses site )sorry TD and Darla) watch teh Chinese Professorr video on the right side.
Benny and the Inkjets legacy
I DISAGREE COMPLETELY!!! I't not monetary herion, it's monetary crack!
it's both, a speedball...see john belushi.
"An independent Fed is what we had when I was in the government. Volcker was the head of it..."
This guy is just big-noting himself. It's thanks to Volcker & his regime of irredeemable debt that things are so far up Shit Creek today. Volcker is the ultimate bubbliser, that of the USD.
Bill Still the Great hit the nail again with this documentary...
http://www.youtube.com/watch?v=U71-KsDArFM : The secret of Oz
Something to watch and think about it for the whole ZH Community
The consumer debt addicts are going through withdrawal, as expressed in the Nov 2 elections. But the addicts within the financial system get to keep shooting up courtesy of the Administration and Fed... or should I say courtesy of the future consumer addicts who will never exist.
http://peakcomplexity.blogspot.com/2010/10/fear-loathing-in-united-states.html
yeah, but that is still somebody's money
no one can say for sure what hft does, although the formerly de-listed fannie and freddie might lend a clue
the flash crashes could be hft on mute... but again, as long as somebody has money at stake in hft transacts, its still market forces-ish
ROFLMAO
Dave was one of the greatest proponents of fiat supported central bank shenanigans in the governing process. To listen to him snivel about heroin induced dragon chasing hallucinations is simply quite remarkable. He would carry more juice if he would actually come clean about his own years of addiction. After all, the whole of the MI mess is a direct result of his wanting to expand home ownership to support trickle down... In this Dave and Barney are the best of buds. Neo-Liberalism my ass
Dave, write your version of Hopscotch and share it with at least one other person then we'll talk some more
BULLSHIT, people are dumb fucks,period. When the most popular search yesterday on google was McDonald's new McRib, people are DUMB FUCKS and do not see what is going on.
Did you know that the new McRib can now be found at most outlets and is a delicious and tasty sandwich, especially when ordered with the extra sauce? Enjoy.
i would be skeptical of search term popularity...that metric is as maniputlated as the stock market...think bots hitting 'McRib' a thousand times a minute. McD's wants us to believe it's popular so peeps will go and try, cuz everyone else is doing it. last time i checked, machines don't eat.
I wish there was a full recording of today on Bloomberg there was just a string of people bashing Bernanke one after the other it was great. Bernanke is finished. I hope his noble prize keeps him warm...I mean his Time Person of the Year award.
It's never too late to save the patient.
http://www.naltrexzone.com/
Gold will be the ultimate debt settlement.
With gold at 1 milj a kilo Amerika will be
solvent again(8,5 tril) will at this burn rate
last another let see 85 months.haha lol
I just can not get these numbers right.
Can not understand why he is calling it
high grade while the problem is the
grade is diminishing with fiat falling in
value;especialy the $
That's a good point, he should be saying the Fed is injecting draino into the financial system of the world.
Maybe he's a dis-information agent, he's a Fed man after all.
The US has a structual high unemployment rate, This is because of Free Trade over the past decades, The math an average working wage in China is $0.80c an hour and India is probably less, Excluding pensions and welfare the basic math as it stands every job in the US is going to China or India.
This is the root problem and how can it be corrected?
The US has hit a brick wall so to change direction is to end free trade or devalue the Dollar so wages are near its trading partners, A 90% devaluation of the dollar would change the offshoring of US jobs and until this happens the structual unemployment will only get worse,
The Fed cant state this fact for clear reasons but until this happens the jobs will keep leaving the US unless free trade ends
Wages in China are raising at 10% area and a stronger Yuan is the same thing as a Dollar debasement but until some kind of balance is made the root problems will only get worse.
I am not happy with things but this imbalance will correct and the Fed is doing its bit and the price of global trade flip side to cheap goods is structual unemployment and the bill is now due for payment,
The US has no choice compete or die and the high unemployment is crystal clear fact and the math explains why and a debased Dollar cures the math,
I think the tragic flaw of your points is that I feel you believe that "Growth" is still possible after the next few years of Peak Oil kicking in.
Canterall is below 500 kbpd and Ghawar is next, North Sea is already there.
End Of Growth People.
He can print FRN but no one can Print Oil.
Jus Sayin
The government doesn’t control the value of assets, but it does control the value of the currency. It can do something that actually fools almost all of the people almost all of the time. The government can devalue the dollar. It can create inflation. What the government can do is it can take that hundred thousand dollar asset, that wants to fall to $20,000 in real terms, and let it fall, but still make it worth $200,000 in nominal terms simply by devaluing what each of those dollars are worth. Which means the homeowners are no longer underwater, and the banks are no longer insolvent.
Inst-o, prest-o, change-o
Mo money for everybody, yeah! PM's have only just begun the move.
The Fed, with all their 'wisdom' is printing in an effort to avoid mad-max. Sad to say, this might be the only option left!
But who is the patient, the Fed, Goldman Sachs, or me?
Stock man was a real buzz kill on the tax cut thing at the end.
We need to raise tax revenues, not necessarily taxes.
EXIT STRATEGY. I have now coined the term "BB GUN." I DEMAND ATTRIBUTION. "They're gonna have to pick these balloons off if he wants to wow his girl." First balloon? Republicans in da House. Second? "Tax cuts for the rich."-- third, fourth, fifth? 24th, 25th, 125, 148--let's just say "per Hollywood script in the end the black dude dies a heroic death."
Coach bags actually suck, and are quite inferior. so for this dude to mention that the wealthy can afford to buy more Coach bags, well he just doesn't know the higher end brand names in bags. just sayin.
perhaps he should consult his wife about putting out rubbish like Coach bags are the end all to the end all. now, i know a good bag when i see one, and COACH just ain't it.
by John Rubino on November 3, 2010
Back in 2006 Meredith Whitney was an obscure Wall Street analyst who bit the hand that fed her by declaring housing a bubble and the big banks a disaster. This took guts, both because analysts who dis their research universe tend to lose access and/or their job, and because the overwhelming consensus, from Alan Greenspan on down, held that things were fine, home ownership was good, and big banks were rock-solid.
Whitney was right, they were wrong, and since then she’s used her considerable cred to keep hammering away at the illusion of a recovering US financial system. Her current target is state and local finances, which, she says, are far worse than the mainstream realizes. In today’s Wall Street Journal she lays out this thesis and asserts that a federal bailout isn’t coming — it’s already here.
I intended to post a few excerpts, but couldn’t find a single paragraph that didn’t contain something useful. So here’s the whole thing:
Some thoughts:
"eventually the markets will understand that Washington, just a few years after nationalizing the mortgage market, has taken on another several trillion dollars of junk paper from the states."
The situation is similar here in Australia. The Reserve Bank buys state government paper outright & repo's significant amounts of the same every business day, thus providing a permanent federal backstop. State government finances can't be much better here than in the US, or else they wouldn't require the backstop.
Going on the recent appreciation of the AUD, I'm wondering if the markets know this!
+1
(Reuters) - Republican Representative Ron Paul on Thursday said he will push to examine the Federal Reserve's monetary policy decisions if he takes control of the congressional subcommittee that oversees the central bank as expected in January.
"I think they're way too independent. They just shouldn't have this power," Paul, a longtime Fed critic, said in an interview with Reuters. "Up until recently it has been modest but now it's totally out of control."
http://www.reuters.com/article/idUSTRE6A35QB20101104
When you finish the Reuters story on Ron Paul, you fellas might want to take a look at the Reuters video of what Russian spy Anna Chapman has been up to...
Think gold at this moment a bargain in euro
currency with spot just under 1000eur/ounce
This hurdle will be taken soon like with the
dollar when next victim will be in the spotlight
(Ireland)Remember what happend to gold with
the Greeks in trouble in bondmarket.It rose along
with the dollar;doubling the rise in euro.
Just load up you euro goldbugs.
Buying hell for leather, mostly silver for now. Ireland will be down soon, I live here. :-(
Still, could be worse, could be over there ;-)
You know the obvious thing to say is "I agree with Stockman" (which obviously I do). As for Bernanke I am sure a man this intelligent has taken time to ponder this too. Either he knows something we don't, he is planning something we don't know about or somehow he can make the impossible, possible. I mean seriously folks even Stockmans point of view is a little too obvious isn't it? I mean we are dealing with the world's reserve currency here to which commodities, equities and other forms of world wealth are stored? I don't have the answer but I somehow think that I am missing something as this seems to directly obvious. It is like front running the FED on the DOW on POMO days. From all that I have learned about trading there is no such thing as a guaranteed trade profit. All I am saying is someone has to be wrong much the same as I know trading to be. Just a thought. I have come to know that Mr. market usually suprises when everyone thinks like this? You know.
Hmmm, you v'e got a point there
Surprise! Mr. market is actually Mr. Riggs and he knows about all surprises in advance!
Mr B creating 400$ of new fiat against 1 ounce of
gold every month if you do the math your head starts
spinning,so let no morron tell you gold is the bubble
because this will mean your financial distruction.
when the bonds mature that the fed buy with qe what happens to the cash then?
The Federal Reserve is leveraging the U.S. military - the core U.S. asset- to bailout bondholders and banks, if you really break this down. The U.S. military brought you the mandatory petrodollar demand, the reserve currency and U.S. dollar hegemony.
The int'l capitalists, who now make money without risk or are prevented from losing it, (proven in 2008) are leveraging the core U.S. asset and diminishing the wealth of all U.S. citizens to further enrich themselves.
I need to blow off some steam today, this is ridiculous. What's worse is show me ONE fresh candidate from yesterday's election that mentions any of this.
let's ponder on the FED
a private BANK owned organisation that prints our currency (odd concept that a private banking cartel prints legal tender for the nation)
1. prints FRN's
2. buy US Treasury bonds
3. bonds come due, Fed issues more FRN's and buys those bonds..
amasses assets based on US gov debt.
debt becomes larger than income (tax base) of US gov.
FRN's are devalued as world gov's cannot finance the debasing of the FRN( called the dollar by some.)
Fed becomes insolvent..
Congress enacts the repeal of the Fed charter to print legal tender
Congress enables the treasury to print US NOTES to be only legal tender in USA
Fed Bank cartel goes BK.
Holders of FRN's get to convert to US Notes for pennies on the $. (implication that all private debt will be reduced by this amount so offset of loss of FRN value)
US debt to fed is abolished as Fed Bank cartel goes BK and debt is now in illegal tender the FRN.
US economy recovers and borrowing by Fed Gov
is again possible..
a dream or is this the game plan.
Benny & congress will kill the FED off before he commits total mega Zimbabwe inflation..if so better get out of those 18 banks who own the FED..and hard assets are perhaps one way to protect from the above ..comments welcome.
We're headed for a bloody civil war in our time. Brother against brother -like the last one.
"He was just eighteen, proud and brave, when Bernanke laid him in his grave. And I swear by the FIAT below my feet, you can't raise a Cain back up when he's in defeat......"
- like the last one? How...
If there's a next one it will be 90% on 10%, or those with the capital versus those without it. Those with it will have the things you need to fight and will be able to pay off others to increase their ranks.
But - if there is one, it will be nothing like the last one.
If the Fed is going to rule, and effectively tax us (by debasing our currency and purchasing power), it's only just we know who these people are and their contact information. We have this for our elected representatives--who no longer apparently decide anything of substance.
Anyone have a list of Fed governors, their email addresses, phone numbers, home addresses...?
Actually, include Brian Sack's info if you have it...
How could we begin to compile such a list?
Uncle Sam has a bad case of meth mouth, I don't think he got it from high grade heroin.
Ben, you ignorant slut.
Silver surging again
So are Dow futures. I watched the moves in gold and especially silver and thought to myself.......are things spiralling out of control? I am certain Hoenig is in horror over how markets reacted today.
It is really kind of amazing as all of this QE bullshit has been fobbed off under the pretense of a sudden concern that job creation has been too slow.
How many jobs have been created since the FED made its announcement yesterday to compensate by percentage for devaluation of the dollar and the increase in the cost of consumable commodities over the same 24 hours?
Sympathy for the devil: The Woebegone, Melancholic, Sleepy, Sad-Eyed Recent Faces of Ben Bernanke
I am curious to see how long before we see TMZ and People Magazine slide shows on Ben walking his dog, or the latest in Central Banker fashions.
Heroin is a laydown drug that smooths you out.
This is more like freebase coke or an amphetamine
I don't know. I see it as a drug you take after an all night bender, like xanax with a smaller amount of the coke you were on all night.
Their plan is an establishment-preserving Japan soft landing, isn't it? That way the soil isn't tilled and people remain in hand reliant on the next QE or social program. Tax cuts and estate tax destruction is next up. Permanent stagnant wealth is the goal. Opportunity and upward mobility are notions of the past. As far as the establishment is concerned, that's competition.
They're preserving themselves no matter how stupid they are. This isn't even survival of the fittest, we're creating the perpetually powerful, unfit and lucky.
Or maybe not:
http://www.youtube.com/watch?v=6xcwt9mSbYE
SCOTUS is about to rule to take away the consumers rights to class actions. The oligarch coup is almost complete. After that day, corporations will be defrauding consumers left and right without fear of reprisal. Fraud will become part of the business plan at AT&T just like it is at Goldman Sachs.
Prepare!
http://www.latimes.com/business/la-fi-lazarus-20101105,0,639054.column
Go David!!!!!
I'm just going to throw this one out there to see what happens.
A while back, a guy named Walter Burien started looking into departmental CAFR's and found that, in short, government entities at all levels maintain "rainy day funds" that are very heavily invested in stocks. OK, so Burien seemed like a bit of a conspiracy nutter which made me suspicious, so I talked to as many government contacts as I could to confirm / deny it. What I found is that Burien was right, government departments do indeed maintain semi-secret rainy day funds to buffer against disaster and work around their (ridiculous) budgeting rules.
Now add in all the pension funds and I would suggest that this is the *primary* reason for trying to prevent stocks from tanking. Sure, there is great risk of default coming out of Europe, but there is also great risk of default coming out of US States and their rainy-day funds are largely tied up in stocks.
Therefore stocks can't be allowed to tank. The boomers would throw a hissy fit and the States would start to default. States need to be able to cash out and save their hides so the Fed needs to be on the other side of the trade. Of course it's not just states, it's thousands of govt entities at all levels all around the world. There's no organised conspiracy, it's just a natural consequence of bureaucracy.
Once again, as with the housing debacle, what is really being traded here is fraud. The Fed is ending up holding all of it, which is probably a good thing because, let's face it, birds of a feather, stay together.
I just know this will end so badly. It's sad that it's been allowed to go this far. Destroying the world's reserve currency will have insane ripple effects that I don't even want to visualize.
High grade H-h-h-h-heroin? Nah! No need for a fix here!
This stock market looks more like a bubble every day!
DOW/S&P500/FTSE daily and weekly overbought charts are now at an extreme level. Similar extreme conditions were detected before the correction started in mid 2007.
http://stockmarket618.wordpress.com
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