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Chart Of The "New Normal": Ben Bernanke Doubles Down - Literally
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Abe will one up this before it all goes crashing out.
The first hill of the world's biggest roller coaster. Keep hands and feet in the car at all times and thanks for visiting Earth.
Forgive my snarkiness, but the chart is not jaw-dropping at all. It merely shows how successful Bernanke has been at doing his job: turning the American people into debt slaves to the banks, and tax slaves to the government.
Hanlon's Razor.
“Never attribute to malice that which can be adequately explained by stupidity.”
At one time, I too credited the follies of Bernanke and Krugman to being institutionally dim-witted academics unable to see beyond their sychophantic echo-chamber, but alas, no more. I believe them to be fully aware of their status as high-priests to the oligarchy, and that their role is to perpetuate said establishment. History, both past and present, has contradicted them too numerously for men with such great access to information to be blind of their own actions.
I love how Bastid Bernanke threw the responsibility back onto the politicians with his sensational term, "Fiscal Cliff." Great Psy-fake-out. What about the CURRENCY CLIFF you piece of trash?
All the prerequisites for a hyperinflationary collapse now taunt America
http://seekingalpha.com/article/1066721-6-scary-charts-on-the-hyperinfla...
So the money supply is increasing at great speed and decreasing at great speed at the same time?
There is nothing the Fed can do, this has been known before you were born. The collapse will happen as the demand/supply was no longer able to expand exponentially to pay for the prior i.e. interest.
The equation has been in place since the last collapse to once again collapse, usually a 60-80 year cycle or a generation.
"now taunt America"
Has nothing to do with America, more like the world as anyone that uses or is connected to the using the equation will feel the blunt force of the end result of the equation.
1-2 billion unfunded liabilities will have to be liquidated is my guess.
It's only $.164 Quadrillion
I think it would be .0164Q, they are really just numbers where the decimal point can be moved. After 60-80 years or a generation... whatever number base you are using is really irrelevant, the system will not be able to exponentially grow.
Weimar Republic here we come. Poverty is wealth. Slavery is freedom. Oppression is liberty.
How Orwellian of you
Here's another chart.
http://lewrockwell.com/clark-j/clark-j40.1.html
This is the end result every time... the Weimar Republic is just the symptom of the problem.
You start a system where you attach interest to your medium of exchange it's going to be the same result. There is nothing the government or the Fed can do, all paths lead to the same place.
$16,366 billion! The rest of us, we don't know so much about zeros. But Bernanke, when you talk about zeros, he knows about zeros. And when he comes around, your stuff becomes zero.
Mako's back !!!
+55 Mako has been right from the start. Is Mako Karl Denninger?
All the prerequisites for a hyperinflationary collapse now taunt America
Bernank will taunt us,
and now we are taut,
because we haven't been taught,
but he's now going to teach us, but good...
Can't wait for Bernake to leave, go back to Princeton, and start making the big $$ on the lecture circuit bemoaning his successor's "irresponsibility". Oh, the humanity.....
Incredibly well said, Mr. Magniloquent.
The qualifications for either of their positions is very, very unique. Just think about it. You would have to be devoid of a concious, and be able to tell everyone a complete lie with a straight face, and perform acts which would surely commit one to hell if there is such a place. For what?
I suppose the malice is in the fact that keep trying to cover up their stupidity.
I can't believe that we strung so many generations of stupid bankers together. They knew what they were doing if not by plan then by results.
Funny all I see is 7 billion bankers.
I thought about going into banking (as I have an engineering degree and MBA).....but, at about the time I was seriously considering it, I had an awakening and decided since I had a soul that I could not possibly do it. Was not going to compromise myself just for $.
Fuck the bankers and what they represent.
I see debt people
LOOOOOOOOOOL!!!
Sounds more like Pollyanna's excuse.
Are you saying US Gov't/Fed policies are adequately explained by stupidity?
Too bad the leaders are not a bit smarter (like ...you?), then they would no longer promote handouts to the TBTFs and their political cronies, no longer arrogantly support dictatorships and apartheid regimes, and no longer seek the power and enrichment that comes from global militarism and war profiteering.
I'd maybe believe that if the banksters that caused the crash didnt also profit so generously from it while everyone else not connected to the money cartel pays the bills with decreased wages, access to jobs, and inflation.
The Fed is the Soproanos mafia family and We the People are the Sporting Goods store owner -
Heninlein, I think
I believe Hanlon said it first and Heinlen slightly altered it.
"You have attributed conditions to villainy that simply result from stupidity"
And then there's:
"Never ascribe to malice that which is adequately explained by incompetence"
- Napoleon
"...misunderstandings and neglect create more confusion in this world than trickery and malice. At any rate, the last two are certainly much less frequent."
- Goethe
"Many journalists have fallen for the conspiracy theory of government. I do assure you that they would produce more accurate work if they adhered to the cock-up theory."
—Sir Bernard Ingham
Hey Frewheelin'freak, if you aren't some Fed suck-up troll and actually believe Berskankee is just stoopid ask yourself this simple question,. "How could the head of the private monoply controling the issuance of the nation's currency not know the function gold plays in the financial system?"
One word: Arrogance.
we are definitely tax slaves...but NOT debt slaves. at least not YET. to discharge a debt "all" i need to do is earn dollars. where the problem comes about is where the government uses "electro dollars" to discharge "balance of payment issues." (the trade deficit has SOARED under Obama: http://seekingalpha.com/article/1066221-the-trade-deficit-grows-the-u-s-... a currency is a MEANS OF EXCHANGE first and foremost. Once the "faith" is lost then all those dollars must find a home somewhere...what is called the "dollar overhang" (the fact that there are trillions of worthless greenbacks in circulation worldwide)...now "comes home with a vengeance." instead of being used to prop of a worthless debt regime those dollars are used to generate an inflation...causing foreign capital to flee and interest rates to start rising. i think Chairman Bernanke has STRONGLY hinted at that...not that he would ever raise interest rates of course... but that the..ahem.."market will." of course "this is a seemless process by which the entire US edifice called "an economy" collapses." it's really no big deal. how 'bout a slurpie to help keep your mind off these things!
To pass judgment on Bernake I need a chart of longer duration.
Are you a true Patriot¿¿¿¿¿¿¿¿
http://www.sequinking.com/images/detailed/0/FAN01-150.gif
That was half-vast!
Don't worry, soon enough it will be the Triple down.
http://ericsprott.blogspot.ca/
.... and place your seat in an upright condition with your meal tray stowed. Vomit bags are located in your forward magazine pocket. Please keep your seatbelt fastened.
Yes, vast-dom, the first BIG dominos of this new collapse look to come from poor, benighted Japan. Maybe we should just let them build nukes, balance of power and all...
But, as you imply, we have a big scary time ahead as huge "wealth" gets lost in the Great Deleveraging.
Funny thing is all that wealth is back with nothing but IOU's based from other IOU's.
If the wealth is lost, nothing is really lost.
The middle class and poor lost real wealth - that comes from LABOR.
The rest of the economy is simply wealth extraction by the Rentiers. Malinvestment.
Free markets used to be about the freedom from wealth extraction by the Rentiers - now the Free Market is the freedom FOR the Rentiers to steal everything not tied down - and to burn anything that Is tied down.
LIBOR CONNECTION………. Robert Holmes, father of James Holmes Batman Movie shooter, was going to testify in LIBOR Scandal.
Peter Lanza, father of Adam Lanza Sandy Hook shooter, was going to testify in LIBOR Scandal.
CNBC Ex had his small children murdered recently over 43 trillion banking scandal.
SOMETHING IS GOING ON HERE…….
Stop eatting paint... really, it's crunchy and all, but it's putting da'big hert on yur da' brain.
You are jumping to conclusions it could be caused by drugs, environment, being correct or even luck.
But John Holmes fucked anything and everybody
that is a chilling coincidence.
some of my first coherent memories were jfk assassination, i no longer believe anything from media or government.
they could have just poisoned his burrito. i don't know that they had to put something like this in motion. "GE Exec eats poisoned burrito, world cheers". everyone would have forgot about him the next day.
nope, killing him would lead to questions. threatening/killing family will ENSURE that he is compliant with their wishes....remeber he still has another son that is alive.
The whole Global Crime Syndicate Economic system is tied into intelligence, espionage, bribery, racketering, terrorism, False Flags and murder. Run by the CIA, MI6, Mossad out of the City of London of which Wall Street is just an extension of.
The new Jerusalem... Shalom...
Since we are talking strange coincedences ......
AVM made the following startling observation which can be confirmed on wikipedia:
Steven King is pissed
I am the wizard of America- Bernank
Is it me or QE4VA looks like Al-QAEDA??
Bernanke's man-tits squirt milk to the wealthiest.
The rest of us are forced to choke on dung.
That's life.
Peace.
http://www.angrysinner.blogspot.kr/2012/12/yesterday-i-hiked-ten-miles-through.html
I don't want his man tit milk. It will drown the world.
and so on opening Nikkei Stock Average soars 1.6% to 9,895.68
It will run like scalded dog, bro. Glad I sold all my yen 2 months ago but kept my Jap stox.
=Obamanomics
THE TRUTH ABOUT THE DEFICIT: It's Not Very Big, And There's Only One Way To Close It - Joe Weisenthal http://www.businessinsider.com/closing-the-deficit-2012-12
hang on .. running the text through google translate .. just a sec ..
Did it for you. If our economy was growing at a healthy rate the deficit would be managable. Just have to find the magic "Healthy Economy" button. Now where did I last see it...?
I think you loaned it to Iceland.
Krugman's Nobel Prize winning thesis summarized in one sentence: "If deficits didn't matter then deficits wouldn't matter so all we have to do is stop worrying about it and we can have a healthy economy." Krugman's solution to having us not care about deficits: "Fake an alien invasion or start a war so that we will be happy to deficit-spend."
krugman thinks that zero taxes and unlimited benefits are possible..indefinitely..and politicians only levy taxes and limit spending because they are stupid.
and here i thought it did serve a purpose. those in power have no limits and those with out power have limits so they do not gain power.
ie "only the little people pay taxes" , "to big to fail is to big to jail", "capitalism in good times, socialism in bad."
Thanks. It lost me at the "Kruggybear" citation.
Unless our treasury gives out $150,000 checks to everyone through more debt issuance our growth is limited. Once that's done it has other consequences. The modified Fed Keynesian plan is to trigger massive inflation. It's coming.
The government knows the REAL unemployment will remain high. The government's job now is to mask it.
absolutely. "the problem with exports is that the USA products are still too cheap." crash the dollar, soar prices...see what happens. So far we've had a massive Arab revolt, the collapse of the euro zone, the Fukushima nuclear disaster and land prices that keep surging in the USA. at some point the "bond ghouls" will appear.
Oh, if only it were only Obama.
Keep hope alive.
Well, when playing black jack at the casino if you lose you can keep doubling your bet until you win. Casinos have maximum bets though so you can't do that. But since Ben can never run out of money he can lose lots of hands in the hopes of finally winning one and getting his money back.
just keep doubling down until you own the casino
errr....sumthin
I am long Charmin, rice and beans.
Sooner you learn to live without the Charmin the better.
Rice and beans, not so much.
The poor mans bidet is a jar of water.Left hand only.
+ 1 for ultra-bleak scenario, let's hope is does not get that bad.
What are lefty's to do?
As long as the "no double dipping" rule is strictly obeyed.
Good to hear you have both ends of the "market" covered, Watching. ;-)
THE TRUTH ABOUT EMMALINA: She's not Very Ill, and There's Only One Way to Make Her Better Again
"Emmalina can't see or hear"
"She can't get out of bed with that broken hip"
"She's incontinent"
"Her mind is gone and she's no longer eating"
Those are the kinds of lines you hear from people as the next-of-kin debates about Death's Doorstep and so on.
But there's a couple of things you should know about Emmalina.
One is that talking about her "advanced age" (112 years) is basically nonsense.
As Buddy (her gardener) points out, her health issues are mostly about the current stomach virus that's been going around, combined with counter-cyclical emanations of the humours making the body ache, that naturally taper off as a person gets better.
He notes two key numbers. One is that if Emmalina were operating at about full potential (as her children remember her), she would be up at dawn baking biscuits, starting a load of laundry, vacuuming the carpet.
The other is that since she has been bed-ridden, her time spent on "idleness" (sleeping, groaning, asking for her morphine) has jumped by about 10 hours per day.
As such, it's probably safe to surmise, that just a return to her normal routine would generate about 16 more hours of productivity from Emmalina each day.
That still leaves her being a 112-year-old woman with arthritis and dizzy spells. But that's okay.
If you consider her age over the duration of her entire life, she has been, on average, 56 years old. That's less than retirement age.
History is pretty clear about what to do when you're in Emmalina's condition: Get healthy, and get younger.
So bottom line are three key points:
Emmalina's not as old as you think, especially when you adjust for these abnormal times during the past few years when she has been more than 100 years old.
Only health and youth can improve her condition.
Even with no change in her current condition, the projections about her expenses ($23,000 per month) swamping her income ($1100 per month) and her savings ($14,000) are dicey.
An "A" student of the greater depression is he.
"student" yet to learn real world.
Isn't "students" in Afgan spelled "taliban"?
We have a debt based currency. if the private sector is deleveraging, and debtors are defaulting, the public sector has to pick up the slack.
The problem is the currency
Or.... and here is a revolutionary thought... one can wait until a new deleveraging price equilibrium is established, one without the interference of the state which courtesy of central planning has made price discovery a mockery. In that alternative universe reality, no intervention by the public sector would be needed.
Of course, it would mean the wipe out of trillion in mispriced equity, equity belonging to the same entities that define public policy, and who will do everything to inflate the debt away, efficient markets and taxpayer savings be damned, before they allow their invaluable equity-based "net worth" be washed away.
Do you(s) think that continued exponential economic growth is possible under any circumstances at this point? I hate to say it, but serious question.
Of course. That is why everything in nature (and the un-natural, maybe even the supernatural) grows forever. It explains why trees are 8-9 miles tall, why elephants are the size of LNG carriers, why bumble bees look like 747s. Economies are just like that.
Great visuals. Now I'm beginning to see the problem a little clearer...we haven't been teaching this stuff in Kindergarten Economics 101.
The science fiction paradigm of whole planets covered with sky-scrapers assumes energy scources that are currently unknown to us.
Growth is obviously limited by the energy available to us, therefore it is reasonable to assume that major new breakthroughts in energy availability may enable us to keep growing. (the Romans did not know how to harness any of the Hydrocarbon fuels).
However if our civilization devolved into a statist/socialist model where everyone is on the government drip feed. Where will the innovation and drive come from for human progress.
The world used to look to the west for answers.
Hmmm...
Therefore: "The surface of a planet is NOT the correct place for an expanding, technological civilization." -- R.A. Wilson
the simplest approach is for an "internal attack" on the dollar hegemony. say for example "Texas secedes and declares itself independent Republic." dollars will be accepted...but along side other currencies...none of which currently trade in the USA. in other words "what's the value of Texas real estate in euros? in yen? in Chinese Yuan?" we will immediately know that. once all these currencies are allowed to to trade openly then you will see Uncle Salami get serious about "deficit reduction."
^ This ^
Why all the busybodied do-gooding, and fancy calculus? Just allow currency competition. May the best form of money, win.
Unlikely. A single dominant, centrally-controlled currency is an incredible power that the elite will not give up voluntarily.
"we will immediately know that. once all these currencies are allowed to to trade openly then you will see Uncle Salami get serious about "deficit reduction."
At that point the Federal gov't will be irrelevant. States won't seek independance until the dollar is dying, and the Federal Gov't is too weak to prevent succession.
At this point Deficit reduction is irrelevant. The gov't simply owes too much debt. If Bernanke raises raises modestly (say 4%) The interest payments on the existing debt will eat up the majority of tax revenue. The only thing keeping WDC operating are the deficits and the ZIRP. That said it may be awhile before things get dicey. Consider how long the EU has been able to play kick the can so far. All the non-northern EU members are insolvant and have even worse financial problems than the US.
I think that is a great question. May be "the question." Through some reorganization/redefinition of currencies/debt/etc. - maybe they can morph this mess into some new ponzi scheme where everything is based on derivatives of the previous system. Heck, if every major country winds up on thier knees facing mutually assured economic destruction, who knows? But, such a transition would probably require some seriously wierd transformations regarding private/public, property rights, etc.
But, I always come back to the physical limitations. So many promises that can't be kept. Energy. Social complexity. Food/water supply/demand/distribution. Etc. I just don't see anything buying any significant length of time. Rather, just containing the damage.
Just speculating here... thinking out loud.
Just stopping by Bloomberg at the late hour to see how things are going. Apropos your comment, the Yen/Japan is just a seeming miracle. How they keep afloat is the marvel of this century... so far. It doesn't bode well for how long the U. S. can continue the charade. Imagine how destitute and downtrodden our middle class (if there is one left at all) will be after the looting is done over such a long period. Things go a bit differently here it seems. There isn't even a hint of the rule of law any longer. Theft is now blatant. Hell, there isn't even the tiniest bit of a whisper of enforcing law any more. Just plain weird. Even weirder that nobody seems to care; anyone who can do something about it that is.
Of course it's possible you just have to find more slaves producing goods allover the world (they are very hard to find nowadays) supplying US for free and we develop services making sillicon boobs and fake nails+banks+military hardware.
Still I don't understand something US deficit on average 133 bln per month and maniac buys something around 85 bln per month where the rest is coming from?
depends if you mean "per capita GDP" in which case (barring wars, pandemics or martian invasions" GDP will grow at the rate of increase in the (increasingly aging) population.
now, if you are a realist, there simply isn't enough water and food to keep cleaning up the shit the species produces or the greenhouse methane gases being "farted" out. When there were just a billion people farting 6 times a day, it wasn't a problem..when it's 6 billion..the arctic melts, when its 12 billion..well, you will be able to get a tan in the antarctic!!!
diminishing returns is already evident. we don't create wealth or value..we either allow corporate bodies to kill us off ...or..we settle for a smaller (non-obesity creating) share of the same ..ummm...marie antionette.
The status quo works for those at the top, with the power and influence. The currency, on the other hand, is debt saturated and broken. Our debts are their assets, so debts will be preserved, just like in Greece. I think we can reasonably predict the status quo will be preserved at the expense of the currency, and the population at large.
actually you can "unreasonably assume that." every dollar in you pocket is being MASSIVELY devalued. there is something called "Peak Value Theory "http://en.wikipedia.org/wiki/Extreme_value_theory this research was pioneered in the science of "rope creation." much of the technology in creating "super strong fibers" is still propietary...what we do know "it's only as strong as its weakest link." once one of the fibers starts to breaks...all the others will follow suit. in the context that "a dollar is made out of fiber" what is the breaking point now that we are "stretching it to the MAX." as with rope "there a multitude of weak links." for example the trade deficit, the budget deficit, the monetization scheme itself, the war, the resource dependency, public pronouncements that do not support the dollar, mass shootings, the power of the media, etc...etc. all places "stresses" on the various strands that "hold the value of the dollar intact." as we continue to...ahem..."stretch our dollar"...(FORCING economy on the people)...breakages start to occur ("i will not sacrifice Medicare"..."i will not sacrifice tax hikes on the rich"..."i will not contain the war effort"..."i will not put the debt on a sustainable path to repayment") all combine to "break the strand." hence "an extreme event" (Hurricane Sandy for example) having an "outsized impact" far out of proportion to its actual "reality."
http://giavellireport.files.wordpress.com/2012/11/whengovdoesit.jpg
The problem isn't the currency. You could have gold as the currency and it too could be debased. The problem is moral leadership. That is what of which there is a dearth.
The only checks and balances upon such a failure of moral leadership are independent strict & honest accounting and routine audits, sound currency, and bank runs. Bankers and financial managers must always fear the depositors/investors smelling fraud and pulling all their stored values (constrained by some physical good or commodity). That ends their careers and vaporizes their business. If the law also takes action giving sentences upon conviction and making lifetime bans on bad actors resuming work in the financial industry, then the economy can still prosper.
Even the illogical math of usury doesn't blow up economies as quickly as state-sponsored fraud, unbacked emissions of extensive credit, and dilution of the money stocks. THE GFC came about due to a rate of increase in the ability of bad actors to plunder which far outstripped the creative destruction built into the usury equation.
Make no mistake, this is an international take-down. First goes down Edo (Nihon) and then all will be able to share in Uhka (8+11=19 (S)), the red man, american indian, USA.
Russo Venician makes the push. Assets go East.
Debasing gold as currency, please tell me more I'd like to produce gold out of thin air.
how does one 'debase' gold....are you Merlin and do you have the secret to alchemy??
So, Rome and their Senators didn't debase their precious metal coinage? What would you call what happened to our coinage here in the U.S. in 1965 for quarters and dimes, and in 1982 for pennies?
http://www.merriam-webster.com/dictionary/debase
1
: to lower in status, esteem, quality, or character
2
a : to reduce the intrinsic value of (a coin) by increasing the base-metal content
b : to reduce the exchange value of (a monetary unit)
no reason debased gold can't go to refining to purify it again. It's merely a matter of energy cost & skill, the only barrier being if someone insists you can't have it at an affordable trade for what it is.
I had to reply to this. Because it's true. The only reason gold had value in the past is because the status quo said it had value; because they had it in abundance. There are dozens of other precious metals that are basically worthless despite their scarcity. Scarcity alone does not make something valuable. When the status quo said seashells had value, people wanted seashells. When the status quo said wheat had value, people wanted wheat. When the status quo said ivory had value, or silk, or salt, then this is what people wanted.
Plus, if you don't believe, look up the collapse of the Spanish empire. Conquests in the new world led to Spain having the biggest gold reserves in human history. The result? Hyperinflation, and everyone quit their jobs because they thought they were rich. The economy went into the toilet and Spain never recovered.
From Wikipedia:
During the 16th century, Spain held the equivalent of US$1.5 trillion (1990 terms) in gold and silver received from New Spain. Ultimately, however, these imports diverted investment away from other forms of industry and contributed to inflation in Spain in the last decades of the 16th century: "I learnt a proverb here", said a French traveler in 1603: "Everything is dear in Spain except silver".
The fundamental root of gold's value to men is that, throughout history, beautiful women all over the world will put out for it.
paper money can't be detected as debased at any given moment.
Gold & silver can be detected for weight, purity & volume and priced in trade as such.
I'll take 90% gold vs .9999 pure gold so long as I can test it to determine it's 90% and not 40% and so on. I CAN test it. Dollars look the same, the magic of theft works apart from the ones I'm holding.
#winning
Wait!
You mean raising taxes on 200-250k and above will have no perceivable effect when overlayed on this chart?
Let the "cliff" happen.
Hah - like it's even a "choice."
The only "choice" in a debt based fiat system where the tax base has been completely and utterly destroyed (that would theoretically cover the amount of debt issued plus interest) is debt repudiation...the "fiscal cliff" is a government/media construct meant to distract the sheeple from their own malfeasance.
And Benny is still my bitch ;-)
If the .gov bitchez tax us enough, you can always not earn anything and/or "Go Galt" by other means. Being a creditor of any sort also looks dangerous here... .gov and counterparty risk and all. Debt repudiation may indeed be in the cards.
Cash and gold look good.
Would you consider currency revaluation just debt repudiation by another name/means? Perhaps some combination of the two will happen?
Could be, anything could happen. I sure do not know.
Screw it, let it come. At least every one will get boned. Maybe the rich don't feel it as much, but they still have to pay. Speaking of reform, why don't they tax dividends and capital gains at 40% on all gains above $500,000? That would take care of Grandpa Buffett and all these scumbags taking their dividends early to avoid paying taxes on it.
I would like my "fiscal cliff" seared with basil/
I don't know why anyone is concerned. It's not like it's real money or anything.
It's not real... certainly not according to the Constitution. After the traitors are arrested, the little guys will get to turn in ther green monopoly money for the new Treasury Note at a 1:1 exchange. Paper billionaires and computer screen zillionaires will get pennies on the dollar or jail time.
The Federal Reserve has many asshats and many lie abilities.
Nice.
This chart is not about Bernanke or the Fed...this chart is about CONGRESS. The public debt increase occurs when Spending > Revenue. Congress directly determines the Spending portion of that equation, and indirectly (through tax rates) determines the Revenue side as well. This post should be relabeled "the new normal chart as Congress doubles down." The Fed has done a great job of allowing the US govt to finance its spending spree at record low interest rates. The problem with an out of control credit card spender is not the bank who issues the credit card...it is the person doing the spending. If congress were to cut entitlment spending dramatically...then the debt problem goes away in a jiffy.
http://govttrader.blogspot.com/
"The problem with an out of control credit card spender is not the bank
who issues the credit card...it is the person doing the spending"
The problem is when the invoice from the bank comes due, and when it realizes no payment will ever come. The bank, of course, are US taxpayers. But since at this rate the Fed will soon (3-4 years) hold all marketable US debt, at least it will all become one giant check kiting game: Fed buys all Treasury debt, and remits all interest on the debt back to the same Treasury, and everyone lived happily ever after.
What can possibly go wrong. Well maybe this:
And yes, you are correct that without some welfare state reform, the endgame is one.
Nice chart, + 1. Reform the welfare state (at least here)? Not gonna happen anytime soon. The endgame..., it's usually the last three minutes that matter the most.
When the US goes to the IMF for a bailout, it'll be too late
The thing is, even when the U.S. loses it's world reserve currency title, it will still play an "important" rold in the post-U.S. paradigm. The British Pound was still pretty relevent after the end of World War II, and Spain's currency was also still in wide circulation after the end of the American Revolutionary war.
But then again, those countries didn't print their money to infinity after they lost their world reserve/trading status. Who the fuck knows what will happen after the next reserve currency comes and the U.S. will continue its race to debase against it. Or will all currencies fail? That's when the Gold/Silver comes in I suppose..
WRONG!!!!! you have fallen into the accounting for economies trap.
let's put it this way, you think that
GDP = C + G + I + (X-M)
when in fact GDP represents historic (not todays) value and should now be written
GDP = C + G + F + I + (X-M)
where F = federal intervention, you can work your own sums out for when the Fed exits or you can try and finesse the monetization of government expenditure (G) by netting off Fed intervention.
So, each and every resident of the USA owes some nominal 52000$. Question is, to whom?
Ummm, no.
The government owes it, they chose to spend what they didn't have. I don't owe jack-shit...they do.
the Government says only "they owe it to themselves." Of course they only create PAYMENT for themselves as well. One of the oddities of the this "recovery" has been the lack of Government hiring. Government is in fact getting "smaller" if looked at from an empirical "jobs created" standpoint. yet this is while the USA is engaged in the biggest debt monetization in history while in the middle of a war? you would think "Government would be hiring." hmmmm. "i smell a rat." this strikes me as a "bank bailout by another name." as was famously said in the movie Patton "but i understand gentlemen we can still lose this war." the irony of course is "we may have to destroy the Middle East to save it." we shall see...
Hmmm, interesting.
"the Government says only "they owe it to themselves. Of course they only create PAYMENT for themselves as well."
It may come to pass that there are two side by side currencies. One type of "script" for government employees and one for regular folk.
I wonder which will last longer ;-)
A german would say "und ?" Live goes on.
clear you already sold your soul to the company store..pick any junta, you will feel right at home
Ben thinks he has a black belt in black jack where he can double down forever without losing. So far so good but for how long? The truth is he is heading us towards a black hole.
wish he'd do his FOMC press conferences wearing that mask, it'd actually be worth watching
Hell, he lures ya.
Tyler-
The good news that your chart exposes, as I see it, is that we have at least 12 years before we double our debt again. At that point, the chart may have some merit for your layperson's attention. Let's, at that point, revisit. At your leisure, please bookmark this comment for 2024.
I ask you to please keep Zero Hedge free of debt-scare propaganda, but instead filled with subjects that might be of more immediate importance.
Thanks!
I didn't realize it was mandatory any more on ZH to leave a <sarc off> every single time.
psy-ops working double time in here. making the appearance that the forum is full of poeple that can not grasp sacasms drives out the poeple that can grasp sacasm. it lowers the percieved threashold of inteligence in the conversation. i scene alot of lost intelegence in the comments this last two years. it comes with the game.
also, you contributed to a conversation that alot of people would read because of the parent post and did it rapidly before psy-ops could interject there well crafted responce. they hate you know. thanks for taking one for the team.
Yeah, it's that pesky ol' New Normal thingy, j-dub. Sam's Club has a good deal on <sarc off> tags. 1,000 for $29.96. Made in China, of course.
Phew that's good we have 12 years before we double our debt again.. that's such a good thing. </stupidity>
Zero Hedge doesn't have debt-scare propaganda, it's filled with realistic case scenerios over where our banking system, economies, currency, basic freedoms, and other topics close to finance are explained. There is no suppression of information, nor political constraint on any of the topics that are explained here. It's a blog, semi academic journal, and news-commentary website that explains everything from every perspective. Go read an MSM blog/website if you don't like what you're reading.
@ j-dub- leave my name out of this>>>> I don't even know you man. :)
This feels like speeding in total darkness. Deep down you know that you will either hit something bigger than yourself or that you will go over the edge.
Even so, the can will be dragged a bit further down the road...........
kinda makes you wonder why everyone is chasing such a rusty, kicked and dented empty tin of beans
I'll see your 16 trillion and raise you another 16 trillion...
That'll l'arn ya t' bluff!
Every condom has its limits.
only if you stretch the truth..which may not happen in Japan!