This page has been archived and commenting is disabled.
Dear Ben, Please Print us More Money
Dear Ben,
Please print us more money. We want you to prop up the stock market. Everybody knows it's a Ponzi scheme that will collapse without your support. You don't want us to end up like Bernie Madoff's clients. No, Ben, we love Ponzi schemes. We get in early and get out before they collapse. That's why we're rich. The bad thing is that they sometimes collapse before we can get out. But you already bailed us out twice in the last couple of years through printing trillions of dollars. Why not a third time?
That will also keep the bond-market bubble inflated. We have to admit that you've done an excellent job there, hands down. Negative real yields all the way up the yield curve! Awesome. Now if you could just print a few trillions and buy up the sovereigns from the PIIGS. Euro crisis over. End of story. And we'd get richer because we'd sell them to you at face value though we bought them at fifty cents on the dollar.
And why not forever? Just keep printing. Because as soon as you stop, stock markets will crash again, and credit markets will seize, and then we're back on this awful ride to hell.
Of course, it'll cause inflation, which is good. You yourself said that. You stated many times that you want inflation. In fact, you said that one of the goals of the Fed, after propping up the markets, is to create inflation. So stick to it, Ben. Don't slack off suddenly just because some cowboy threatened you.
Inflation, in conjunction with your near-zero yields, has all sorts of benefits. For example, it will eat up the Social Security trust fund, whose $2 trillion balance is invested in treasuries. Fixed-income investors, retirees, and everybody who has any savings will also be demolished. And homeowners. But don't worry. They won't figure it out. They don't get a statement every month that shows how much inflation cost them. It's a quiet way of stealing from them, and it'll impoverish them over time, but it'll make us, the recipients of the money you print, richer.
You see, Ben, we can charge higher prices for our goods and services. And even if we have to pay more for raw materials, we look good. Our inventories increase in value, and we can claim sales jumped 10% because we raised prices by 10%. Analysts dig that.
Recently, Ben, you've done a decent job on inflation. In July, we were running at an annual rate of 6%. Not bad. But you need to preempt any cooling off. So keep printing.
Now, we're not talking about wage inflation. Oh no. We have to keep wages down. We need cheap labor, or else we'd have to send these jobs to China—which we're doing anyway. And not just to assemble iPhones. Heck, our lawyers in India are doing the same work as our local lawyers for one-tenth the pay. So, if our local lawyers want to be competitive.... Just think how much more profit we could make if wages collapsed!
Real wages have been declining for ten years and fell another 1.7% since July 2010. But that's not enough. So get with it, Ben. Print more. And don't worry about the wusses out there who say that choking the middle class like that will put us into a permanent recession. Just get the banks to loan them lots of money so they can buy our stuff, and when the loans blow up, you buy them from the banks at face value. Full circle, Ben.
The trillions you've printed and handed to us, well, we put them to work, and we created jobs in China and Mexico and Germany, and we bought assets, and it inflated prices, and now we're even richer. We're proud of you, Ben. Think of the influence you have. And not just here. Around the world, Ben! Look at the Middle East and North Africa. See the food riots, rebellions, and civil wars it caused? Thousands of people died and entire governments were toppled.... Oh, wait. That's a bad example.
And then there is Congress. We invested in them through campaign contributions and other mechanisms to get them to spend trillions of dollars every year on our products and services, and they even started a few wars, and it made us richer—without taxing our companies or us. It's a wonderful system.
But the deficits have become so huge that they exceed what the Treasury can borrow. So we're glad, Ben, that you stepped up to the plate and printed enough money to monetize the deficit. But Ben, you can't just stop now! You've got to keep at it. Or else, the whole system will blow up. Well, it'll blow up anyway, but we don't want it to blow up now. So, Ben, you don't have a choice. Otherwise, we'd lose a lot of money in our schemes, and nobody wants that.
»
- advertisements -
Wholesale Flag
Wine Set
Wholesale Ruler
Wholesale Waterproof Case
Bottle Opener
Garden Decorations
Wholesale Swimming Products
Wholesale Clap Hands
Flash Gift
Wholesale Racks
Wholesale Apron
Wholesale Jewelry
Wholesale Speakers
Wholesale Bag
Wholesale Frisbee
Wholesale Memory Card
Poncho Raincoat
Reflective Safety Vest
Business Gift
World Cup Products
Wholesale Tag
Silicone Products
Medicine Instrument
Wholesale Fan
Promotional Products
Personal Safety Products
Wholesale Camera
Wholesale Flashlight
Computer Accessories
Hair Products
Wholesale Tableware
Wholesale Pom Poms
Wholesale Knife
Electrical Gifts
Fishing Supplies
Mouse Pad
Wholesale Glass
Wholesale Mobile Phone
Wholesale Waterproof Case
Wholesale Scale
Wholesale Pen
Wholesale Clothes Rack
Wholesale Vase
Wholesale USB Flash Drive
Wholesale Glasses
Tomorrow
Tomorrow
I'll tighten, tomorrow.
You're always a day away!
People need to wise up, it isn't inflation, it is biflation. Printing money inflates commodities but depresses assets, wages, savings. Average inflation could be zero but you'd be screwed even worse. It's because GDP= M*V, since there are two variables (M and V) you can't tell where inflation will pop out from monetary growth and where deflation will result from velocity deceleration.
http://www.futurnamics.com/biflation.php
Who's the moron with this "biflation" bullshit?
It's plain ole inflation dumbass. And yes it does both, dilute the purchasing power of your wages AND make commodities more expensive.
Actually it's not two different things happening, it's one thing happening, the dollar losing value. Less puchasing power and higher commodity prices are one in the same. It takes more dollars to buy something. Simple.
I can't help it if your pay isn't keeping up with inflation. That's your damn problem dumbass. Maybe you should spend less time spewing bullshit fantasies like "biflation" and more time working.
Interesting article, especially the consideration of economic warfare on the population.
I have to deduct points though for your slander of anarchists. You should read some Rothbard to get an understanding of the non-aggression axiom of anarchy, as your portrayal is typical regurgitation of "conventional ignorance."
Also, there is little to gain from investigating Reid (or any other politician for that matter). That they are criminals is obvious by the positions of power that they hold.
Ben can print money from here too the Moon!
But!! Ben cant print Energy!
Affordable Cheap Lite Sweet Crude.
Maybe they could print some factories. They would be better than fiat dollars, even if they were made of paper. We could go into them and play like we still a functioning economy. Maybe they could print some little blue collars too.
Ben cant print food or jobs, he can only print padding for a few Wall St pirates.
Personally I think he's done, there wont be any QE3 at least not in the form everyone expects of free diamond encrusted trillions.
At best, theres a big disappointment coming in a couple weeks.
Alas, has the road to recovery through innovation and entrepreneurship succumbed to Oliver Twist asking for "some more" from the centrally-controlled Tron-a-matic?
I guess it comes down to a simple choice...
Get busy holin' up or get busy arranging for a one-way trip to Zihuatenajo (via Fort Hancock, Texas)
Damn, that is good! took the thoughts right out of my mind....shit fire. As if I wrote it!!
Ben doesnt give a frogs fat ass what goes on...he doesnt buy food, he doesnt feed himself or wipe his own ass! The mother fucker is so far removed from reality....fucking slob will be in Daunte's 7th level of hell....along with Stalin, Hitler, Madoff, Skilling, Fuld...the list goes on.....
"Death to the people who like to go down slow!" JMorrison
Ben may not buy food but credit it where it's due, he's been digging a bloody deep debt hole for 3 years ....right alongside Blankfein, Dimon, Paulson, Bush and Obummer.
But it looks like Benny, slow on the uptake at the best of times, has had an epiphany this week. Having dug deeper and deeper for years he's had a second thought maybe it's not so clever afterall. Afterall his digging has not had any impact whatsoever on any part of the economy he said it would ...there's been no strikes, just all strike-outs
Benny U-turned this week, he did more than flip-flop. The penny dropped on the stupid little crone as he realised 3 years too late the problem was not a printing issue, but a spending issue. He realised you can't stop the US Govts spending orgy by fueling it with truckloads of Federal KY jelly. And maybe he's realised you can't solve Big Bwankers bankrupt fraudlulent business models with more fraud on the printing presses
Only problem is Benny is looking up facing an even bigger hole to climb out of at Jackson Hole. It's 3 years deeper than it should be and the rain (recession) is getting worse by the hour. Those wet slippery muddy walls look mighty high to our Ben... he may not make it, he isn't made for hard graft and is quite a bit overweight to be climbing out all by himself
So the $4 Trillion Dollar question is, will this now mighty confused Federal Reserve muppet who's now realised he's got it completely wrong, really stop digging?
By doing what he's doing now, a wink and a nod at Wall St boys, 2 strikes so far on the diamond encrusted QE $trillions delivery dates means the deal is off and he's now dangling a carrot as insiders are distributing to the daily ramp jobs.
Predictions are that China and Australia RE are a Bigger Bubble then USA. If that is true...and their bubbles meet The Pin...RE will not be an "investment" for years.
THE US DOES NOT PRINT MONEY.
IT HAS NOT IN DECADES.
IT PRINTS DEBT. I UNDERSTAND YOUR POINT, BUT LETS ATLEAST GET THAT STRAIGHT. PRINTING DEBT IS 10 TIMES WORSE THAN PRINTING MONEY. IT GARNISHES THE SAME EFFECT ON INFLATION (ALTHOUGH STRAIGHT MONEY PRINTING WOULD BE MUCH WORSE) AND IT CREATES A PERPETUAL DEBT THAT ONLY GROWS, NEVER GETS PAID OFF AND ONLY GETS ROLLED OVER.
HONESTLY...I AM NOT SURE WHICH IS WORSE....PRINTING MONEY AND INFINITE INFLATION....OR PRINTING DEBT AND A DEATH SPIRAL......
IT PRINTS DEBT.
Really?
Suppose Fed prints $10 billion and buys (worthless) securities from Goldman Sachs with it.
Where is debt created in that scenario?
So no, printing currency isn't printing debt. It's just printing currency.
If that cuurency is loaned to someone, then yes, debt is created.
Paper currency is not money. Paper currency is a claim check on money, like the US dollar was a claim check on gold or silver originally. You could take $20 to the bank and redeem them for 1 oz of gold or 16 oz of silver.
FRNs however aren't redeemable for anything, which is why they have no set value, they're worth whatever people believe they're worth. It's all based on confidence.
If that confidence collapses for some reason, it's called currency collapse. The stuff is worthless suddenly. And yes, it can happen that fast.
Printing promises really...'I'll promise you this money which someone will work to pay off generations down the line to benefit your inflated stock today'...yea this ends well Im sure.
I guess it's printing debt.... at a 0.25% interest rate..so barely, then if you are paying 2% interest on deposits..it's no longer printing debt, it's printing money..I guess it depends on how you slice it. Money for nothing!
http://www.youtube.com/watch?v=lAD6Obi7Cag
In fiat, credit economy printing debt and printing money are the same thing. What is money? Money, here in the west, is an obligation of credit which pays in labor units. Its a u it of labor, and as such can be paid now or in the future at a higher labor cost.
So, technically speaking, the FED lrints money that the Treasury obligates itself too. Or private banks print money for themselves and the labor cost is borne by US
Printing debt is promising to pay that debt PLUS added interest. That is the difference.
I follow Mises and Hayek and Rothbard....You don;t have to agree with everything ones says to be a fan of them.
MONEY is not DEBT. Debt is MONEY PLUS INTEREST....... DEBT IS NEVER REPAID.....only rolled over.
Show me a government that has actually ever re-paid their debts...... Using deavlued money to pay back debts is technically ad efault in my view.... THE US DEFAULTS DAILY on their obligations.
The fact that debt can have an interest component, or that it is always rolled, in no way nullifies that it is money. You're talking about two different things here, and they are not mutually exclusive.
Printing debt now to support inflated bubble stocks now is a promise someone ELSE will be glad to pay it back later with interest...LOTS of interest. Diabolical. And stupid too.
I think you are all saying the same thing. Almost all "money" starts as debt... and you are correct... debt plus interest. Most money is created by our banking system (something like 97%, IIRC). When a mortgage is created, money is created out of thin air (a computer entry) and enters the market. The amount of money needed to "retire" the debt, is the amount of the debt plus the interest that begins to accumulate. Only the interest doesn't exist. So more debt need to be created to roll over the existing debt... and thus begins the cycle.
You can't reduce aggregate debt because more debt exists than exists money. The system works fine until the burden to maintain the debt overwhelms the productive economy... then we collapse. The collapse should have happened in the early 2000's, but the fed went all in and blew up the housing market. The last bubble is treasuries... nothing bigger. That collapse will be the end and a news system will replace this one.
'Debt' & 'Money' are precisely the same thing under a fractional reserve banking system where fiat backed by nothing of tangible, inherent value is created from nothing and circulated.
Mises, The Theory of Money and Credit, Part IV, Chapters 21-23Now you know why I call him "Bubbles". Bubbles Bernanke!
He should be shacked up in a prison cell, not the Eccles Building!
I couldn't have said it better!
In other words, disaster this way comes!
SILVER: if you dont hold it, you dont own it.
if you put it that way... the system works :)
INFLATE MY SILVER AND GOLD BEN AND MAKE ME RICH!!!
That comment inspired me to pull out the calculator.
The current spot price of gold ($1830 / oz) means the US dollar is worth 1.9125% of its original value ($35 / oz). The US dollar has lost 98.0875% of its original value.
Next time you hear Bernanke (or Geithner) talk about a strong dollar, throw that 98% loss number in their face.
By the way, the US dollar has lost 52.7% of its value since Obama took office (1830/865). Sounds like hyperinflation to me. Still like those safe secure Treasuries?
At the original 16-1 ratio silver should be $114.375 / oz.
I'm buying all the physical silver I can afford during this (JPMorgan?) 64% off sale.
The dollar hasn't lost buying power and gold has gained it. The sum of those two gets you your 52.7%, but it doesn't mean that the lost purchasing power of the dollar has lost all of that - not yet. But it's a good proxy for where the dollar is in the mind of gold-holders.
incorrect...if the US dollar had lost 52.7% of its "value" then most everything we purchase would cost approximately twice as much.
if there is an outbreak of bird flu and flocks of chickens are killed and the cost of chicken doubles it does not mean that the value of the dollar has dropped.....not the best analogy but it should suffice
IF we were on a gold standard then your statement would be more correct, as it is now the amount of monopoly money we collectively determine will purchase 1 once of gold is just that, not the obscenely large hyperinflation you suggest.
and for your reference heres an article on ZH frontpage right now refrencing our inflation
http://www.zerohedge.com/news/annual-inflation-hits-4
jacklives, most things HAVE doubled in price! Gas has. Rice has. Many many other things have as well!
if the US dollar had lost 52.7% of its "value" then most everything we purchase would cost approximately twice as much.
Gasoline up 100% under Obama
if there is an outbreak of bird flu and flocks of chickens are killed and the cost of chicken doubles it does not mean that the value of the dollar has dropped
Gold isn't affected by bird flu.
and for your reference heres an article on ZH frontpage right now refrencing our inflation
If you actually believe that 4% number you're out there in lala land like the other sheeple. What other government bullshit do you believe? Unempolyment just 9%?
Agree. A better way to measure inflation may be to see how many hours you have to work for a specific good/service. For example, how many hours did you have to work in 1930 to pay one month's worth of rent vs the number of hours now.
Or how many hours you'd have to work to buy one oz of gold.......
Best
WeekendTrader
The gold measure is better and $20 an oz is better starting number, since that was about the value of gold in 1913 on the Creature's birthday.
The fact that things are cheaper in constant dollars is primarily a measure of increases in productivity/effiiciency. Those things would be vastly cheaper if the gains from those efficiencies hadn't been siphoned off through money printing and interest on debt concentrating wealth. A $20 gold coin has about .9675 oz of gold. Measured against that, it's lost closer to 99% of it's value. I think 1950 or so gets us there.
The gold measure is better and $20 an oz is better starting number, since that was about the value of gold in 1913 on the Creature's birthday.
Gosh, that's right, I forgot about that.
Ok, let's see, starting at $20 / oz, the US dollar has lost 98.9% of its original value. So yes, about 99%.
98.872% at $1832/oz. $2067/oz gets us to 99%. USD is asymptotic to the X axis. looked at the other way.
No problem, it'll be 2067 soon enough.
Yes it will . . . and more.
Appease the Sheep -- Foodstamps for the masses (albeit, without adjustment for inflation, because we all know that calculating inflation to include food and energy is just for whiners)!
BLUE LIGHT SPECIAL on aisle 14: Friskies and Purina Ready-to-eat meals!!! Only $1.98 a can.
I prefer Wally World Sams Brand Dry Kittie Kibbles. You can put them in a bowl as a substitute for chex mix at parties, add water for a nutritious breakfast cereal, mix them with mickykeez dumpster grease for stew or grind, mix with (acquired) restaurant half and half paks then freeze for delicious ice cream. All that for $27.95 (USD) per 47 pound bag! you can't beat that budget menu! And as an added bonus you can get treatment at your local hospital under Odumbo care for FREE!!! Yaaaaaa! I love the new Amerika with a change of atmosphere to hopium! Perfect for the unwashed masses.
Stop it! You're making me hungry.
I put this on another thread but thought it reasonable to repeat:
Bennie and the Feds
Hey kids, step over to the printer
Our new policy action
Is just in time for winter
We’ll pound the last few basis points left
Into the ground
You're gonna’ see how negative interest
Is made to compound
Oh,Barry and Timmy, have you seen them yet
But they're so spaced out, B-B-B-Bennie and the Feds
Oh but they're weird and they're wonderful
Oh Bennie he is really mean
He’s got Keynesian roots, an Armani Suit
You know you’re going to need some Vaseline
B-B-B-Bennie and the Feds
Hey kids, just try to get some credit
When you are jobless
And starting to get desperate
You might survive if you sell your house off for a song
And your family is out on the street
Panhandling all day long
Oh,Barry and Timmy, have you seen them yet
But they're so spaced out, B-B-B-Bennie and the Feds
Oh but they're weird and they're wonderful
Oh Bennie he is really mean
He’s got Keynesian roots, an Armani Suit
You know you’re going to need some Vaseline
B-B-B-Bennie and the Feds
"The Bearded Banking Buttfucker"
Priceless!
BBB Rated. Nice.
Haha!
Fuck, kill them both. Then call Ben stupid asshole.
Ben Bernanke the Bearded Banking Buttfucker
great name.
A billion butts served.
Lesson learned: Buy gold and silver, strive for independence in all fields of life.
Powerful message, served best with dead-pan delivery. Will look forward to more from this author.
Who wrote this article... GovtSacks or JP Morgan??