Hyperinflation: Niall Ferguson vs. Chris Martenson; Reminiscences of a NYSE Floor Trader

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It's been a long time, kids!  But, EB's back and he has a new gig: television.  While we don't watch it (personally), we don't hesitate to make it.  Here's what's went down over the last two days...

Day 1: We sat down with Niall Ferguson and asked him about the hyperinflationary potential (1:56) of our current monetary situation.  Here's what he had to say. Hint: excess reserves don't matter :-<

At 14:42, we interviewed floor trader Ben Willis about the diminishing role of the sapien-trader-entity.  We get into HFT, the Flash Crash and Knight Capital.  Judge for yourself if Reg NMS (LMNOP?) destroyed our markets.

Day 2: Chris Martenson weighs in on the FOMC meeting and current market conditions. "[I]f [our present markets don't] look, smell and taste like a liquidity crisis a la 2008, I don't know what does."  Indeed, Chris.  There's also an interview with Adam Lebor about secret banker meetings in Basel.  

Finally, at 18:52, the lovely Justine Underhill...

...digs into our 2009 paper, "A Grand Unified Theory of Market Manipulation" and explains the mystical "POMO Effect" -- yes, the means by which the Fed has magically levitated the S&P 500 to 15k+ (three times a charm, Ben). Unfortunately, she "tin-foils" our 2009 claim that:

"Once long term yields reach a critical Level (which we
cannot know
 and would be difficult to
estimate [and we have still not reached, obviously]), the [Federal Reserve] becomes
locked in a money printing cycle that will ultimately become hyperinflationary
and result in the [Federal Reserve] having to buy every US Bond, Note and Bill
in order to prevent the economic Armageddon that comes with a panicked exodus
from the US debt and currency."

 

We stand by it, Justine.

Best,

EB (Bob)