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I'm ready to predict today that QE2 will be formally announced before the end of the month. Whether it takes the form of new direct intervention in the bond market, a new economic "stimulus" package or some combination of both, it is clear now that the announcement is imminent.
Why? This Krugman interview is the final signal. Don't think for a moment that Krugman isn't wired in to Dem/Obama politics. These statements today are just trial balloons meant for clearing the road.
This also explains the desperation of The Evil Empire to drag down the price of gold for the past two weeks. Obviously, the announcement of QE2 will cause gold to rise $50-100, just as it did in 3/09 when QE1 was announced. The deliberate gold slamdown of the past two weeks makes that move start from $70 off its high, minimizing the impact and appearance.
Now it all makes sense.
Perhaps this will be when the Fed starts purchasing Muni bonds and notes and rescues water districts and hospitals with TARP.
That's what ObamaCare is for.
Krugman's going to get rolled. Overt QE has no chance, it is kryptonite now.
please stand by...
Keynetards will be the death of us.
BN 11:58 *NOBEL LAUREATE KRUGMAN COMMENTS IN BLOOMBERG TV INTERVIEW
BN 11:58 *PRINCETON'S KRUGMAN: `MARKETS HAVE BEEN FAIRLY CALM SO FAR'
Let's just call him Superman Krugman and get it over with, OK?
Ah, the logical fallacy of the appeal to authority.
Fake tits for everyone!
ESPECIALLY dudes. They get six huge cherry tits, right on the back.
That should be fun if you go dancing.
Better would be liposuction for everyone. Much larger market in the US for that procedure. Much more stimulative....to the economy, that is.
Yeah, Bernanke could use the bags of extracted fat to make designer soap to sell back to us at obscene markups...
Human fat to make the world's best soap... Tyler Durden agrees.
Also to the Zero Hedge soapmaking community.
I am soooo against fake tits. This is really a sore point with me.
Size doesn't matter, as long as they are real.....
I agree. At what point did we decide that two ziplock bags filled with salt water and stapled to your chest was anything more than overcompensating for an untreated sense of inadequacy. It's the same phenomenon that drives the American culture of "consumerism."
Fake. All fake.
When we doubled down on phony - the 80s.
This is Smoke and Mirrors.
They don't have enough votes.
They're just using this as another excuse to blame the GOP for not supporting their fradulent agenda.
Dems are taking the talking points back to 2005. Bush, Social Security!
Votes? Who needs votes!? Just executive order that shit. It's a national security issue!
PRINT PRINT PRINT!
BN 11:59 *KEITH RICHARDS SAYS 'KRUGMAN SHOULD SHUT HIS BLOODY GOB!'
Typical British understatement.
BN 11:59 * KRUGMAN: 'WITH NO CHILDREN OF MY OWN, I HAVE NO RESERVATIONS ABOUT EXPLODING DEBT'
+3.14159 Pie Break!
Does this mean.....FOOD Fight !?
Thank God! I wasn't sure if I'd have enough paper for fire starting my fireplaces this coming winter.
Call me releaved.
The capsized letters make it funnier like those LOL cats internet images.
I'll side with Ferguson on this, don't listen to Krugman, he's insane, and ultimately he will always say that there was never enough spending. That's always the fallback position, we never spent enough. I call BS.
Maybe Krugman is just using talking points from the Obama press control.
Ferguson and his neofeudalist rulers, right.....more tax cuts for corporations that don't pay taxes.
Those that can't do teach.
Those that can't teach talk.
...and I would like to intriduce Exhibit "A" your honor. I give you Barack Obama.
BN 11:59 *KRUGMAN SAYS HE WILL SHOW UP NAKED AT ALL MEETINGS UNTIL QE2.0 IS PASSED.
Made me laugh, good one D.
All of Krugman's desires will be satisfied.
BS 12:04 *KRUGMAN SAYS NEIGHBORHOOD KIDS MUST BE CLONED TO SUPPORT BABYSITTING COOP
BS 12:04 *KRUGMAN: ANYONE GETTING BACK FROM LUNCH A MINUTE OR TWO LATE SHOULD SET THEIR WATCHES BACK AN HOUR AND GO BACK TO LUNCH.
.. and the ramp job provides the backdrop that Krugman's sentiment is in line with the "market".
let's see how high they get it this time .. and how many will follow
this morning did not work as planned, I can tell you that much.
they're bringing out the big guns. talk about QE.. just talk of course but it might put the markets onto a solid footing.
what a charade.
.. nothing seems to work though (for the pumpers).
Slightly OT, but...
Has the UK woke up? Or just another power grab from a different angle?
Set up for the Great I Told You So. It's not going to work this time. The profession is completely discredited.
It's time to shift focus from the debt to the roll risk. This Is the difference this time around. Krugman and the We-are-so-full-of-shit-it's-difficult-for-us-to-even-be-considered-keynesians crowd wants to play the debt off as a problem 30 years from now. It's an almost weekly problem for the treasury at this point. No amount of growth can solve a near-term balance of payment problem except direct monetization of new issue of debt.
Do ya see what happens if ya don't sing.So please everyone......a 1-2.....a 1-2-3-4,
"One,two,Krugerman's coming for you.Three, four, better lock your door. Five, six, grab your crucifix. Seven, eight, gonna stay up late. Nine, ten, never sleep again.One, two Krugerman's coming for youthree, four better lock your doorfive, six grab your crucifixseven, eight gonna stay up latenine, ten he's back again."
I would suggest that the study of macroeconomics in general has a giant blind spot, which is the economic and governmental mechanisms in operation. Talks of QE vs. austerity miss the whole point, which is that we are functionally operating under an unholy hybrid system of plutocracy and kleptocracy. Until we move away from that system, it really doesn't fucking matter what direction we go in re: QE vs. austerity, we're going to get fucked either way. Please read between the lines as to what I'm really saying there.
Or to rephrase it, with the fantasy finance sector and war spending making up 95% of the GDP, there is NO economy.
None, zero, nada, null, nil. Why is this so difficult for so many to grasp?
Yes, we still have some commerce, but that dates back to the cave dwellers.....
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