• Sprott Money
    05/26/2016 - 05:58
    How many “emergency” “secret” meetings do the central planners around the world need to have before the citizens of the respective countries begin to fully understand and take notice that something...


Bruce Krasting's picture


I got a laugh out of this headline:



Delta Airlines and the Pilots Association are suing the Exim bank for financing Air India. I think they have a great case. I hope they win.

Exim gives cheap money to India so it can buy Boeing planes. This story “sounds” good as exports mean jobs and business is booming at Boeing. You can count on Obama showing up in Seattle sometime, and crowing about all the jobs he has created thanks to the cheap money deals.

I wonder what he will be saying to the folks who work for the airlines. They don’t get cheap money, so they can’t buy the new aircraft they need to compete with the likes of Air India on the profitable transatlantic routes. (The basis for the suit.)

The only winners in this story will be the lawyers. The losers will be “us”. We will pay for it in the form of higher airfares, more debt and deficits.

Is this an example of an unintended consequences, or just stupidity?





A Greek, a Portuguese and a Spaniard are talking to god:

The Spaniard and the Portuguese ask, “When will our countries be free of debt?”

God answers, “In 100 years for Portugal and 150 years for Spain.”

The Iberians respond in dismay, “But, our children's children will be dead by then.”

When the Greek asks God the same question for his country, God answers, “I don't know — I'll be dead by then.”




Paper Money

Lee Adler at Wall Street Examiner has some interesting data on the amount of printed money outstanding:



Two things caught my eye. The recent percentage rate of increase has not been seen since the crisis days of 2008. The second thing is just the sheer amount of paper money “out there”.

I have only questions regarding the rate of increase. Are these 100-dollar bills ending up in the USA? Or are they going out of the country? Are they being used to transact business? Or are they being used as a store of wealth? I believe it is all of the above.

The $1.05 Trillion of outstanding currency comes to 7% of GDP. That is up from 5% in 2007. The increase of $300 Billion represents a 40% increase while the economy was basically flat. If this was all in 100-dollar bills it would stack up 700 miles high. Didn't Bernanke say the Fed wasn’t printing money?

He's increased that pile by 250 miles. He's printed enough to carpet all of D.C.

Gold has had a nice goose of late. There are many reasons for it to reprice higher. Deep in the corner of the demand is all this paper sloshing around. Sooner or later, it will seek  to hide somewhere safer than in paper under a mattress. I suspect some of it did today.


Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sat, 09/08/2012 - 03:09 | 2774065 bags
bags's picture

Even the democratized world of Mulberry Hobo, the creativity Louis Vuitton 2012 which go into making fashion inspiration come to life will still be relatively shrouded in secrecy.TheMulberry Cookie Tasker-2012 debuted on the brand's website, and simultaneously, a number of fashion sites dubbed it the next Louis Vuitton Empreinte.a couple of weeks ago, something curious happened.G-star Mens Jeans Online is often a new "it" girl, and today Mulberry Holdall,Louis Vuitton Mini Lin,g star jeans uk,g star jeans sale,Mulberry Tasker århus,G-star Skinny Jeans For Women offer an eponymous Mulberry Del Rey-2012,Mulberry Tasker københavn,Louis Vuitton Monogram to prove it.We covered these Louis Vuitton Sale when it was first seen.New Style G-star Hoodies can be easy to forget that there's human ingenuity behind every bag and two of Louis Vuitton Uk,Mulberry Cross Krop Tasker.Louis Vuitton Luggage has designed many hits.The greatest thing since the Louis Vuitton Cruise. All of that seems a little effusive.Honestly,Summertime is a bit of a slow news period in fashion, course, and mailing a nicely-timed blog post with many different photos along with a very clear narrative about G-star Cropped Women Jeans is indeed a smart way fill several of that empty summer space on fashion sites along with your company's pieces.Let us take a glance at how G-Star Sale sausage is created.I adore her Louis Vuitton Damier Geant.They are all directly from the Mulberry Skulder Tasker,G-Star Jeans while using superior quality and the most acceptable price for the choice.Over these months,the Louis Vuitton Damier Graphite-Canvas,Louis Vuitton Outlet are definitely more demand versus the others in Uk.Moreover,they've the good and fresh feeling after they carry the lastest bags in the pub.They are free shipment,no sale tax,high reputation in Mulberry Outlet.G-Star Online see daily most fondly.Particularly for Louis Vuitton Bags that were carried by any big international tastemakers that I can think of, other that normal Mulberry Tasker Outlet and Louis Vuitton Monogram Canvas.Where do ideas are derived from.What kinds of Louis Vuitton Denim do designers enjoy designing.there are a lot of preference of jeans as:Mulberry Pung,G-star Tapered Men Jeans.I've Mulberry Tote on in private while Sometimes often and that i totally like Louis Vuitton bags ebay, a fact which That's not me even planning to deny.A big quantities individuals Louis Vuitton Handbags,Louis Vuitton Utah Leather,Louis Vuitton Belt are directly from the Mulberry Tasker Danmark,Mulberry Clutch,G-Star Uk.How can designers decide a trend of Mulberry Tasker-2012 is right for their work.As consumers, there are only one side of Louis Vuitton bags Sale, the finished Louis Vuitton Wallet.Cheap G-Satr is often a prophecy which might be made self-fulfilling, or could it be just optimistic.Your second coming with theLouis Vuitton Damier Azur.People like the design with the newest bags while using best price.The Louis Vuitton Vernis,Mulberry århus dropped today on Net-A-Porter and that i believe it is best to take another think about the Mulberry Tasker,Mulberry Outlet

Tue, 05/22/2012 - 02:25 | 2449987 ccocoo87
ccocoo87's picture

Their particular great style cheap ray ban sunglasses not alone provides the the best possible inside security ray ban sunglasses uk and makes a person searching trendy as well as popular ray bans sunglasses cheap. Large ray ban sunglasses sale are all the phenomenon at this point, ray ban sunglasses outlet whether it is the antique style and also the aviator, ray ban wayfarer sale its out of the question to offer all of them the miss from the ray ban aviator sale found trend case.

Fri, 02/24/2012 - 09:51 | 2192336 NEOSERF
NEOSERF's picture

How's that Euro short trade working for you...told you, you can't fight central banks desire to keep the status quo and that money has no where to go (thanks to central banks) but into the stock market no matter what the deterioration in fundamentals and earnings...this will go until something real happens

Fri, 02/24/2012 - 05:06 | 2192053 sikefeier0728
sikefeier0728's picture

http://www.cheapredsoleshoes.org/ christian louboutin

http://www.cheapredsoleshoes.org/ red bottom Shoes

http://www.cheapredsoleshoes.org/ red sole shoes

http://www.cheapredsoleshoes.org/ red sole heels

http://www.cheapredsoleshoes.org/ red bottom pumps

http://www.cheapredsoleshoes.org/ cheap red bottom pumps

http://www.cheapredsoleshoes.org/ red bottom heels

http://www.cheapredsoleshoes.org/ cheap red sole shoes

http://www.cheapredsoleshoes.org/ cheap red bottom shoes

http://www.cheapredsoleshoes.org/Christian-Louboutin-Daffodile-160mm-Aurora-Boreale-cxv-239.html christian louboutin daffodile 160 in strass

http://www.cheapredsoleshoes.org/Christian-Louboutin-Daffodile-160-Suede-Pumps-Purple-cxv-150.html cheap 160 daffodile pumps

http://www.cheapredsoleshoes.org/Christian-Louboutin-Decollete-100-mm-Pumps-Black-cxv-12.html christian louboutin decollete

http://www.cheapredsoleshoes.org/Christian-Louboutin-Louis-Silver-Spikes-Men-s-Sneakers-Black-Patent-Leather-cxv-328.html louboutin spiked sneakers

http://www.cheapredsoleshoes.org/Christian-Louboutin-Volpi-150mm-Sandals-Emeraude-cxv-749.html christian louboutin volpi 150

http://www.cheapredsoleshoes.org/Christian-Louboutin-Hyper-Prive-120mm-Glitter-Pumps-Golden-cxv-526.html Christian Louboutin Hyper Prive

http://www.cheapredsoleshoes.org/Christian-Louboutin-Ron-Ron-100-Patent-Leather-Pumps-Nude-cxv-709.html christian louboutin ron ron pumps

http://www.cheapredsoleshoes.org/Christian-Louboutin-Sex-120mm-Patent-Leather-Pumps-Nude-cxv-507.html Christian Louboutin Sex 120

Fri, 02/24/2012 - 05:05 | 2192047 sikefeier0728
sikefeier0728's picture

http://www.cheapredbottomheels.com/ red bottom heels

http://www.cheapredbottomheels.com/ red bottom shoes

http://www.cheapredbottomheels.com/ red sole heels

http://www.cheapredbottomheels.com/ red sole shoes

http://www.cheapredbottomheels.com/ christian louboutins

http://www.cheapredbottomheels.com/ cheap red bottom shoes

http://www.cheapredbottomheels.com/ cheap red bottom heels

http://www.cheapredbottomheels.com/Christian-Louboutin-Big-Lips-120mm-Suede-Pumps-Pony-Hair-Red-cxv-111.html christian louboutin big lips pumps

http://www.cheapredbottomheels.com/Christian-Louboutin-Pigalle-Plato-120mm-Cork-Pumps-Naturale-cxv-213.html Christian Louboutin Pigalle Plato 120

http://www.cheapredbottomheels.com/Christian-Louboutin-Sigourney-Ankle-Boots-Metallic-Black-cxv-531.html christian louboutin sigourney ankle boots

http://www.cheapredbottomheels.com/Christian-Louboutin-Bourge-100mm-Leather-Boots-Black-cxv-445.html Christian Louboutin Bourge 100mm

http://www.cheapredbottomheels.com/Christian-Louboutin-Rantus-Orlato-High-Top-Men-s-Sneakers-Multicolor-cxv-231.html christian louboutin rantus orlato sneakers

http://www.cheapredbottomheels.com/Christian-Louboutin-Rollerboy-Flat-Spikes-Mens-Flat-Shoes-Black-cxv-364.html Christian Louboutin Rollerboy Spikes

http://www.cheapredbottomheels.com/Christian-Louboutin-Toutenkaboucle-150mm-Buckle-Sandals-Beige-cxv-300.html Christian Louboutin Toutenkaboucle

http://www.cheapredbottomheels.com/Christian-Louboutin-Change-Of-The-Guard-150-Sandals-Mint-cxv-241.html Louboutin Change Of The Guard 150

http://www.cheapredbottomheels.com/Christian-Louboutin-Maggie-140mm-Glitter-Watersnake-Pumps-Nude-Gold-cxv-675.html christian louboutin maggie pumps

Thu, 02/23/2012 - 04:24 | 2188200 Shigure
Shigure's picture

Thanks for the Steve Bell cartoon - brilliant

Thu, 02/23/2012 - 07:46 | 2188479 johnQpublic
johnQpublic's picture

who the fuck cares about the airlines?

i will never fly again while TSA inhabits our airports


and isn't that the point anyway?

do them thar theys really want us to travel any more ?

Thu, 02/23/2012 - 03:00 | 2188056 GoldmanSux
GoldmanSux's picture

Who is Exim Bank. Where are they from?

Thu, 02/23/2012 - 06:20 | 2188424 falak pema
falak pema's picture

Japan MITI and its government run import-export bank, EXIM, creamed the world in the 70s. Everybody tried to copy them to link trade and export perks to improve balance of payments; a protective tool disguised as financial incentive and guarantees to encourage corporates to go oversees.

WTO looks down on them as unfair trade practice subsequently, in certain conditions, whence law suits in this instance against US Exim bank which benefit Boeing but hurt US international airlines. Apples n oranges, protectionism is Sophie's choice!

Thu, 02/23/2012 - 02:59 | 2188055 OldTrooper
OldTrooper's picture

So, you mean it is somehow illegal for an agency or instrumentality of a government to bail out, make loans to or prop-up a stagnant or failing industry to the detriment of a foreign entity?  Is that really a precedent we really want to set?  And does anyone else see a parallel between US application of law and the Pirate's Code?


Thu, 02/23/2012 - 00:55 | 2187888 Dermasolarapate...
Dermasolarapaterraphatrima's picture



ECB has been doing its share...."immense expansion in the ECB balance sheet over the past few months." Take at look at this expansion in chart form by Murray Dawes:





Source: Sound Money. Sound Investments I would not be surprised if oil, gold, silver food and so on continue rising in price as the money supplies continue to expand. Imagine the prices when the ECB prints the next $500-to-$1000 Billion euros.  Great work Bruce. I really like the chart to supplement the wrticle and drive home the point of monetary expansion. Helps me understand on a deeper level somehow when I see the graph/chart. Thank you.


Thu, 02/23/2012 - 02:33 | 2188020 StychoKiller
StychoKiller's picture

But pundits on CNBS have stated that Gold is THE bubble to worry about!  Bwahahaha!

Thu, 02/23/2012 - 00:45 | 2187878 ISEEIT
ISEEIT's picture

We all have 'good fun' observing this 'transformation' eh?

What kills me is extending the timeline.

Pattern recognition is a bitch.

Thu, 02/23/2012 - 00:08 | 2187788 Stuck on Zero
Stuck on Zero's picture

Real jobs could be created if the Fed would give Boeing money to build 747 freighters to haul the newly printed cash to Sikorsky.  Sikorsky could then drop the money all over.  Problem solved.

Wed, 02/22/2012 - 23:20 | 2187673 rlouis
rlouis's picture

From various conversations with acquaintances over the last 4 months, those who can have put a fair amount of currency in SD boxes.  Watch out when it comes back into circulation again... it's not likely going to be due to increased confidence in the system.

Wed, 02/22/2012 - 23:13 | 2187657 chindit13
chindit13's picture

The EXIM credits to Air India are kind of like a golf handicap, which just tries to level the playing field rather than give an unfair advantage to a foreign competitor.  India has a long running scandal where it has been discovered lots of commercial pilots, including many for Air India, falsified their training and flight records, meaning that on an Air India flight a passenger might be relying on someone barely out of a Cessna-152, if even that.  So long as every aircraft is WAAS enabled, has a great autopilot, lots of system back-ups and redundancies, and is going to land at a CAT III ILS equipped airport, in VFR conditions, all should be okay.

Thu, 02/23/2012 - 02:23 | 2188012 OldTrooper
OldTrooper's picture

Very reassuring.  I'm almost tempted to consider maybe someday possibly getting on one of those planes.

Wed, 02/22/2012 - 22:40 | 2187574 disabledvet
disabledvet's picture

airline industry nationalization is right around the corner. so may be the nationalization of the trucking industry. if the Iranians decide to 'take a pot shot" at the Saudi oil fields well...

Wed, 02/22/2012 - 22:38 | 2187567 onlooker
onlooker's picture

This is a grabber format Bruce, really nicely done.

Wed, 02/22/2012 - 22:28 | 2187543 ebworthen
ebworthen's picture


More lawyers?  Oh, that will help.

I've given up on the law and politics and society other than my own sphere of influence.

I've rasied the Jolly Roger for me and my kin.

Wed, 02/22/2012 - 22:09 | 2187506 booboo
booboo's picture

OH, GLASS!! turn the desert in to GLASS, I thought cash sounded kinda funny sir, well then we have a small problem.

Wed, 02/22/2012 - 22:03 | 2187491 Zer0head
Zer0head's picture

the screamer will go for $220m

you learned it here first

Wed, 02/22/2012 - 21:55 | 2187472 money badger
money badger's picture

You mean they didn't even have to break a window and we're still helping them buy new glass ??!!  In-freaking-credible.

Wed, 02/22/2012 - 21:59 | 2187469 Zero Govt
Zero Govt's picture

"I have only questions regarding the rate of increase. Are these 100-dollar bills ending up in the USA?"

No the US Military "lost" the first tranche of pallets of $100 bills to Iraq ...so The Fed had to print some more (bribe money)

Not a problem, nobody sacked in the US Military or US Defence Dept and no investigation under way (just like Rumsfelds 'missing' Billions)... these things 'just happen' you understand, all staff are highly competent and beyond question just like every other Dept of the US Govt

...jobs for life (no matter how totally shit or corrupt you are) in Washington. No wonder the areas property is holding up throughout recession, there's probably pallets of cash under every house

Thu, 02/23/2012 - 02:12 | 2188002 oldman
oldman's picture


Some of it may be coming back from being washed in Mexico, Columbia, and Peru-------and some may be a bit of the 'counterfiet' printed from those plates that were lost about ten years ago----probably the same money-----I mean how does the govt. lose this stuff?

I'd write a fictional account of this comedy, but the real story has to be a whole lot more fun and unbelievable than a work of fiction.


can't make it up                   om

Thu, 02/23/2012 - 02:30 | 2188017 StychoKiller
StychoKiller's picture

Hmm, those poppies in Afghanistan don't harvest themselves...

Wed, 02/22/2012 - 23:40 | 2187740 Stack Trace
Stack Trace's picture

I caught my wife reading "End the Fed" and "Paper Money" this week. It gave me wood.

Thu, 02/23/2012 - 00:18 | 2187817 ihedgemyhedges
ihedgemyhedges's picture

Getting wood is a good thing.  But if you've been married long enough, you know that the axe will come out and chop down the tree prematurely and for no good reason................that's why a good forester works different tracts of land over his career to find out where the most receptive and fertile are........

Thu, 02/23/2012 - 02:19 | 2188010 OldTrooper
OldTrooper's picture

Well said, Hedge.  Perhaps we have both learned that a magnificent stand of old-growth wood needs someone young and appreciative to tend it.  It cries out for someone unspoiled by years of hard labor with the ax, saw and chains to admire and nurture its majesty.  Find such a forester and fresh, gentle winds will lend new vigor to the already impressive wood.

Thu, 02/23/2012 - 03:32 | 2188080 prains
prains's picture

Naah, they'll just cut it down,pulp it,make paper and print money you'll spend the rest of your life working to pay back

Thu, 02/23/2012 - 06:12 | 2188420 falak pema
falak pema's picture

You have a penchant for woody wood peckers...I can see that. Smart birds. Nice feathers. 

Do NOT follow this link or you will be banned from the site!