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Late Friday Humor: Quantitative Easing Simplified

Tyler Durden's picture





 

With recent (post-Minutes) chatter of a gradually-tightening Fed since curtailed by a plethora of Federal Reserve market savants jawboning us back to creditopia - "the liquidity must flow"; we thought a gentle reminder of what Quantitative Easing really is was worthwhile. Whether goldbug, bond-vigilante, or permabull-stock-muppet; two-and-a-half minutes of reality (or comedy) depending on your perspective.

 

 

(h/t Rick B)

 


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Fri, 02/22/2013 - 21:04 | Link to Comment Edward Fiatski
Edward Fiatski's picture

Well, this is clearly a repost. Still, good enough for the lobotomised population.

Fri, 02/22/2013 - 21:37 | Link to Comment DJ Happy Ending
DJ Happy Ending's picture

Serious question: can anyone cite an example of money printing which did not end in devaluation or hyper-inflation?

Fri, 02/22/2013 - 21:43 | Link to Comment Meat Hammer
Meat Hammer's picture

Negative

Sat, 02/23/2013 - 01:14 | Link to Comment BKbroiler
BKbroiler's picture

no one does dry humor like the british

Sat, 02/23/2013 - 01:39 | Link to Comment Dead Canary
Dead Canary's picture

They're Aussies you wanker!

Sat, 02/23/2013 - 02:22 | Link to Comment The Proletariat
The Proletariat's picture

"Have you ever heard of Rumplestiltskin"....awesome, because I have.  Badass band that played phonic, melodic rock n' roll from the late 60's.  Rock On!  \m/ https://www.youtube.com/watch?v=HjfvUMkCAXU

Sat, 02/23/2013 - 08:03 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

They're Aussies you wanker!

 

They use to men of thunder from down under. Now they're just unarmed declawed descendants of convicts.

Sat, 02/23/2013 - 23:25 | Link to Comment ThorAss
ThorAss's picture

If it is as you Americans believe i.e. that your possession of guns keep you safe, then why is it your system which has devolved into a police state while your chances of being killed by your own guns is higher than anywhere else in the world? In the end it won't be lack of guns which will be your downfall but your ignorance and complacency.

 

Sat, 02/23/2013 - 02:53 | Link to Comment Rogue Trooper
Rogue Trooper's picture

John Clark is a Kiwi.... 

A blast from the past.  Clark has 'Fred Dagg'. The Gumboots song.

https://www.youtube.com/watch?v=5tAWwqKNI7g

Well, it's famous in NZ!

Sat, 02/23/2013 - 07:56 | Link to Comment Svendblaaskaeg
Svendblaaskaeg's picture

NZ is something else - respect!

One Man's Dream: The Britten Bike Story:

http://www.youtube.com/watch?v=OerCb40gteY

Sat, 02/23/2013 - 09:24 | Link to Comment _ConanTheLibert...
_ConanTheLibertarian_'s picture

Well yes, but around 80 per cent of New Zealanders have some British ancestry and an estimated 17 per cent are entitled to British nationality by descent.

They definitely have the Britisch humor.

Sat, 02/23/2013 - 13:00 | Link to Comment Rubicon
Rubicon's picture

...humoUr

Sat, 02/23/2013 - 02:35 | Link to Comment CaptainSpaulding
CaptainSpaulding's picture

Benny Hill bitchezz

Sat, 02/23/2013 - 05:21 | Link to Comment Motorhead
Motorhead's picture

"Michael Baldwin, this is Bruce.  Michael Baldwin, this is Bruce.  Michael Baldwin, this is Bruce."

"Is your name not Bruce then?"

"No, it's Michael."

"That's gonna cause a little confusion."

http://www.youtube.com/watch?v=_f_p0CgPeyA

 

 

Sat, 02/23/2013 - 10:21 | Link to Comment DaveyJones
DaveyJones's picture

the race to debase

hit shit on fan and face

Fri, 02/22/2013 - 21:52 | Link to Comment philipat
philipat's picture

@ Serious question: can anyone cite an example of money printing which did not end in devaluation or hyper-inflation?

 

Serious Answer. As of now, The US Fed. QEInfnity continues at a pace yet the DXY has recently increased from 79 to almost 82. Bernanke must be laughing all the way back to the Bank. Two riders:

1. I know you said "End in"

2. The Fed actually NEEDS the Dollar to devalue so as to be able to repay debt in davalued Fiat. So, actually, longer-term, a strong Dollar is counter-productive to their Big Picture Agenda. Unlesss, of course, they plan to default instead............

Fri, 02/22/2013 - 22:00 | Link to Comment Water Is Wet
Water Is Wet's picture

DXY is not going to work for any comparison; the dollar index is a measure of fiat versus fiat.  The Fed/Gov has been successful in suppressing gold prices so far though, and I'd say gold, silver and oil prices are a good barometer of the Fed's success.

Fri, 02/22/2013 - 22:25 | Link to Comment philipat
philipat's picture

Agreed. And yes the other CB's are all engaged in the same race to debase. So net net, no currency is devalued against any other. Indeed funds tend to flow into USD as a "Safe Haven".

But The Fed NEEDS to devalue the Dollar so as the make repayment of the debt feasible, as the ONLY alternative to default. It has been suppressing PM's in particular and commodities in general (See Crude last week for instance) to maintain the charade of safety in Fiat. But it seems to me that the ONLY way the Fed can achieve its primary goal of depreciating the Dollar would be to allow PM's and other commodities, which have an inverse correlation to USD, to appreciate, using (Or abusing) the position of the USD as the World reserve currency (At least still for a while longer). The Fed simply CANNOT have it both ways forever.

Thoughts?

Fri, 02/22/2013 - 23:04 | Link to Comment WTF_247
WTF_247's picture

This is something I have thought about for a few years, yet no one has provided a sufficient answer.

If all the global major governments print money at essentially the same rate, all the major currencies will remain valued against each other at the same rate.  The divergences will be due to economic differences only, not supply.

If the US prints 10x the current dollars but every other country does so as well at the same time, what happens?  The exchange rates likely remain the same, with the exception that certain countries may not be able to contain inflation as well as the primary currency can (USD).  

Where would money flee to in such a case - a country that does not print?  

In the scenario above, the EUR/USD rate might remain the same even if the 2 currencies are debased 5000%.  

Fri, 02/22/2013 - 23:17 | Link to Comment GubbermintWorker
GubbermintWorker's picture

Sell ya a house in Spain if you believe that.

Fri, 02/22/2013 - 23:58 | Link to Comment francis_sawyer
francis_sawyer's picture

 "Where would money flee to in such a case - a country that does not print?"

~~~

Soon enough, there will be enough to build the DEATH STAR...

Sat, 02/23/2013 - 02:28 | Link to Comment zhandax
zhandax's picture

The Fed actually NEEDS the Dollar to devalue so as to be able to repay debt in devalued Fiat.

I keep hearing this line, and it intuitively rings true, but those are not the results achieved to date.  Leaving metal prices off the table for the moment, look at oil or grain over the last four years.  The debt has grown from 10T to 16T.  For a dollar devaluation equivalent, oil prices would need to currently be ~$160bbl, and wheat prices would need to be ~1120.  Clearly the achieved result diverges from theory.  It seems an old cocktail napkin calculation of the runoff of shadow banking liabilities showed that the ~$3.4T overhang would be extinguished sometime around this year.  Could these persistent morning smashdowns of gold be signaling that we are getting close?

Sat, 02/23/2013 - 07:20 | Link to Comment philipat
philipat's picture

That is my Hypothesis and, Yes, I agree we are getting close. My summary was that "The Fed can't have it every which way forever" and, indeed, probably not for much longer.

Sat, 02/23/2013 - 10:35 | Link to Comment DaveyJones
DaveyJones's picture

you mean they're not gods?

oh, we're fucked 

Sat, 02/23/2013 - 09:24 | Link to Comment gmak
gmak's picture

The money printed is not flowing into consumption as previously. The intermediation system is down = velocity of money is dropping. Banks don't want to lend to most, and those they do want to lend to don't want to borrow. This is indicated by the fact that deposits have exceeded the amount of loans outstanding (in the USA at least, I'm not sure about elsewhere - but I think the same is true everywhere except China and some affiliates where credit creation continues unabated and has led to massive malinvestment).  

The money printed is flowing into CB reserves, but also into tradeable assets - mainly equities and credit instruments (debt and its derivatives - yes, again!).

Shadow banking is alive and well as indicated by the resurgence of debt derivatives such as securitization of garbage into AAA (student debt, credit card debt, automotive debt, corporate debt are all being bundled and sliced up into tranches like the old MBS, CDO, CDO squared (!!), etc).

The smashdowns in gold may be nothing more than over-leveraged shadow money managers having to liquidate assets to meet margin calls as credit bets come back on them.  It may also be the result of a vicious circle of borrowing gold to sell in the spot market and then buy gold futures - creating an 'instant gain' on the financial statement and raising capital to put against leverage.

 

The thing about leverage is that it feeds on itself until, at the margin, new debt is insufficient to increase prices anymore (or suppress them as in the case of gold), and the bubble collapses in fits and starts.

Sat, 02/23/2013 - 10:27 | Link to Comment DaveyJones
DaveyJones's picture

isn't part of this silly story that those silly bankers (silly is latin for criminal) and they're extra silly politicians (hand puppets really) forgot the real world. (Puppets and pompous both suffer from amnesia). And in the real world, stuff changes. Some stuff runs out, other stuff's quality changes and other stuff, well it can damage other stuff. So trying to control the dollar and commodties and more people that need stuff, that's difficult stuff 

 

 

Sun, 02/24/2013 - 03:43 | Link to Comment StychoKiller
StychoKiller's picture

Many trees died to bring us this intelligence...

Sat, 02/23/2013 - 08:11 | Link to Comment philipat
philipat's picture

@ Sell ya a house in Spain if you believe that.

 

Actually, I just BOUGHT a Villa in Spain on the basis that:

  1. They virtually gave it to me if I paid cash and the upkeep cost is nothing.
  2. I am a believer in "Buy Low, Sell High". But if you buy for nothing and intend to just use a property occasionally, the "Sell High" part isn't really so important over one generation
Sat, 02/23/2013 - 09:09 | Link to Comment tango
tango's picture

We're property investors but have shied from both Spain and Greece (incredible bargains) because we are concerned that foreign owners will be scapegoats in the chaos to come.  I am just not convinced that states in crisis will worry about the rule of law when scrounging for food and energy.

 

 

Sat, 02/23/2013 - 10:31 | Link to Comment DaveyJones
DaveyJones's picture

history gives you a +1

now can you find me a country cold to chaos?

Sun, 02/24/2013 - 04:03 | Link to Comment philipat
philipat's picture

At these prices, it would just be a Tax write-off. So long as we are not there at the time, who cares? Even then, drive down to the Marina, drop the keys in the water and bye bye. You win some, you lose some, it's jsut a question of risk/reward.

Sat, 02/23/2013 - 00:13 | Link to Comment TrulyBelieving
TrulyBelieving's picture

'Bad money chases out good'  People have naturally kept the desirable coin and spent the less desirable. If this principle is applicable to currencies, then currencies of less desirable countries would be traded first and the more desirable would be saved. But with that being said the question would be, What currency would be more desirable than gold and silver? None of course, so then money will flee to gold eventually. 

Sat, 02/23/2013 - 00:24 | Link to Comment e_goldstein
e_goldstein's picture

The lightest turd floats to the top.

Fri, 02/22/2013 - 22:12 | Link to Comment disabledvet
disabledvet's picture

and of course the dollar is getting much stronger now...which makes perfect sense (?). not only that but gold "is getting monkey hammered" and "the only other safe haven currency appears to be the Yen which not only makes the rest of the Western World look like choir boys when it comes to money printing but has recently suffered a (barely reported) nuclear accident of untold proportions which should have wrecked their society permanently." hmmm. go figure. to which i have to say http://www.youtube.com/watch?v=VyA5rjVQk7M&feature=player_detailpage which while you all are listening...is it wrong to say outrageous things just to get attention? i mean if you told me "the USA could run trillion dollar deficits and pay lower rates" i'd tell you "that's even more outrageous than anything i've ever come up with during my time on the internet...LET'S RUN WITH THAT! And of course it would have to be a complete fabrication since that is too unbelievable for even the crowd i hang out with."

Sat, 02/23/2013 - 00:33 | Link to Comment mumbo_jumbo
mumbo_jumbo's picture

the debts are designed to never be paid back

Sat, 02/23/2013 - 03:15 | Link to Comment All Risk No Reward
All Risk No Reward's picture

No, the debts are designed to be unpayable in the form issued, but they will be paid.

These debts will be paid with money, poverty, blood, sweat, tears, freedom, liberty and millions of lives.

Those who understand this reality are the ones out trying to get everyone else off their collective *sses.

Unfortunately, the boot will rest solely on the neck of most Muppets before they realize this Debt Money Tyranny conspiracy was not a theory, rather, it was an implementation of the highest Sun Tzu Art of War operation in human history.

Detb Money Tyranny

http://www.keepandshare.com/doc/4768883/debtmoneytyranny-6-1-pdf-60k?tr=77

If all the bank loans were paid up, no one would have a bank deposit, and there would not be a dollar of currency or coin in circulation. This is a staggering thought. We are completely dependent on the commercial banks for our money. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent monetary system.  When one gets a complete grasp upon the picture, the tragic absurdity of our hopeless position is almost incredible - but there it is.  It (the monetary system problem) is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and the defects remedied very soon.
Robert H. Hemphill, Credit Manager, Atlanta Federal Reserve Bank, in foreword to 100% Money by Irving Fisher 1936
 
http://www.thetwofacesofmoney.com/files/money.pdf

Sat, 02/23/2013 - 07:34 | Link to Comment francis_sawyer
francis_sawyer's picture

We've long past the point in the Monopoly game where all the properties are taken up [by one player], and the rest are all just trying to keep rolling 10's to jump back & forth between jail & free parking...

~~~

At this point in the game, it either becomes strip Monopoly, or the debts just add up as figurative amounts in somebody's head until somebody gets bored...

Sun, 02/24/2013 - 06:37 | Link to Comment All Risk No Reward
All Risk No Reward's picture

This is an active operation to create a depression and destory the Republic.  It is a grave mistake to think this is some kind of passive actrivity that will end up all right for debtors.  That's as foolish as thinking the hang man was passively tieinig the knot on the hang man's noose.

"The new law will create inflation whenever the trusts want inflation...they can unload the stocks on the people at high prices during the excitement and then bring on a panic and buy them back at low prices...the day of reckoning is only a few years removed."
~Charles A. Lindbergh, Sr. quotes

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. The one aim of these financiers is world control by the creation of inextinguishable debt.”
~Henry Ford

"If all the bank loans were paid up, no one would have a bank deposit, and there would not be a dollar of currency or coin in circulation. This is a staggering thought. We are completely dependent on the commercial banks for our money. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent monetary system.  When one gets a complete grasp upon the picture, the tragic absurdity of our hopeless position is almost incredible - but there it is.  It (the monetary system problem) is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and the defects remedied very soon."
~Robert H. Hemphill, Credit Manager, Atlanta
Federal Reserve Bank, in foreword to 100% Money by Irving Fisher 1936

Two Faces of Money

http://www.thetwofacesofmoney.com/files/money.pdf

Shadows of Power
http://www.youtube.com/watch?v=j_gj1uZ6194

So many on Zerohedge think they are soooo smart trading fiat for real assets.  They think the establishment is sooooo dumb that they don't know the very same principle.

They are victims of the Art of War psy-op.

"Pretend to be weak, that he may grow arrogant."
~Sun Tzu, Art of War

The deflationary collapse is the spiked pit between here and hyperinflation and that will allow the the Big Finance Capital criminals to come in and seize physical assets from nation states and buy the rest up for pennies on the dollar.

Sat, 02/23/2013 - 06:55 | Link to Comment Snoopy the Economist
Snoopy the Economist's picture

Phiipat: how about the currency I have? That seems to have been devalued quite a bit.

Sat, 02/23/2013 - 07:40 | Link to Comment philipat
philipat's picture

That is what everbody in every country is saying. And it is the other side of "The Con" isn't it? According to The Bernank and the other CB's, "Inflation is under control". Because they don't include the things we all use daily, like energy and food. Like everything else, put simply, The Data is "Fixed". But in a way, that is my point. The Fed can't have it every which way for much longer. They are running out of options.

The Fed Dilemna is that they NEED to devalue the Dollar BUT to do so must allow PM and Commodity prices to appreciate. Once unleashed, this trend will cause immesurable suffering for ordinary people and the daily inflation will become more than obvious. The ONLY alternative is default. Catch-22?

The end game is approaching

Thu, 03/07/2013 - 00:54 | Link to Comment All Risk No Reward
All Risk No Reward's picture

Your money isn't being "devalued" now.  Credit and monetary aggregates are essentially flat.

http://market-ticker.org/akcs-www?singlepost=2958798

Note that monetary and credit aggregates are flat. 

The devaluation occurred previously.

Your prices are going up, BUT NOT BECAUSE OF INCREASES IN THE MONETARY AND CREDIT AGGREGATES.

Repeat that enough times until you understand it.

Your prices are going up because the mega banks are looting society and GAMBLING THEIR LOOT IN COMMODITIES AS THEY TRY AND EARN A RETURN.

This gambling bids up prices which makes people think that money/credit supply must be increasing.

Nope.

The key is money is debt and it will all be called in, with unpayable interest, at some future point.

Then the Muppets will realize they won't even be allowed into the theater to perform for the Debt Money Tyrants.

Fri, 02/22/2013 - 21:47 | Link to Comment seek
seek's picture

Countries with fiat currencies that were invaded and currency replaced. While technically it would hyperinflate/collapse, the speed in which it happened was measured in days or hours, and really does seem to be a unique case compared to the others. It was so serious a problem for Germany in WWII that they created a special logistics currency to manage it, the Reichskreditkassenscheine, which was a country-specific replacement currency.

Sat, 02/23/2013 - 00:01 | Link to Comment Daily Bail
Sat, 02/23/2013 - 05:08 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

+1  Good one, DB!  I guess I'm still (shell)-shocked by the shot around the world that few heard, and another ZH blogger posted earlier:  http://www.reuters.com/article/2013/02/22/us-britain-china-swap-idUSBRE9... "The UK nears Yuan swap deal as London eyes offshore leader status".  Well, Phaser-stun-me and send me to Sick Bay to Dr. Crusher!  No, not to Bones.  To crush-her Crusher!

Sat, 02/23/2013 - 14:58 | Link to Comment WillyGroper
WillyGroper's picture

link not found. got another?

 

Thu, 03/07/2013 - 01:22 | Link to Comment All Risk No Reward
All Risk No Reward's picture

This grilling was pretty sweet as well...

http://www.npr.org/blogs/thetwo-way/2013/02/14/172045516/watch-sen-eliza...

Look into the eyes of those Vichy traitor Debt Money tyrant sycophants.

They will get burned eventually, too.  The Libya ambassador thought he was part of the team as well...  until he wasn't.

Fri, 02/22/2013 - 21:59 | Link to Comment Edward Fiatski
Edward Fiatski's picture

Not an example per se, but when the central bank is run by the Rothschilds, I would say that they don't want the world reserve currency in shambles, not yet anyway.

Perhaps, after a World War or two.

Fri, 02/22/2013 - 22:33 | Link to Comment Nimby
Nimby's picture

or three

Sat, 02/23/2013 - 01:02 | Link to Comment 2bit Hoarder
2bit Hoarder's picture

you can only be a trillionaire for so long without getting really, really bored.  they will decide to destroy the world at some point just for something to do.

Sat, 02/23/2013 - 04:52 | Link to Comment Haager
Haager's picture

If I am in that position of a Rothschild I won't care a lot about the name or value of money the world needs to spin - as long as the values in rent paid by the world is enough to close any way out of this situation.

Fri, 02/22/2013 - 23:40 | Link to Comment Edmon Plume
Edmon Plume's picture

What is, "Parker Brothers".

Sat, 02/23/2013 - 00:06 | Link to Comment OutLookingIn
OutLookingIn's picture

...and, still thinking...

Sat, 02/23/2013 - 01:13 | Link to Comment Lordflin
Lordflin's picture

Deleted...

Sat, 02/23/2013 - 03:11 | Link to Comment All Risk No Reward
All Risk No Reward's picture

DJ, the first step is to properly understand the monetary system so that you aren't caught up in the false narrative engineered to set you up for a fall.

Money IS NOT printed.

Money IS issued as debt.

The difference is significant.

To bring this home to the average "Joe," the difference is between a counterfeiting printer producing purchasing power (the false narrative) and using your credit card to produce purchasing power.

Every time you use that credit card, you lose wealth - you do not create it.

Context is critical as well.  Everyone goes off about Argentina being a hyperinflation - and it was, just not for everyone.  If you were outside of Argentina's currency, you could actually buy more than before.  IOW, from the stand point of the Big Finance Capital Debt Money Cartel, it was a deflation. 

You also need to understand the shot callers.

WHO actually runs things?

Most people think the government does, but I beg to differ.  While Napoleon had many faults, he nailed it when he claimed...

“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”
? Napoleon Bonaparte

Is America dependent on private interests to issue their debt based currency and credit?

Absolutely.  WHO runs the show?  The Big Finance Captial Debt Money Cartel is sovereign, NOT YOUR GOVERNMENT.

I get this sounds revolutionary, but it should - it is the truth in a world of lies and deceptions.

By DEFINITION, a sovereign government can not be dependent on its "operating system" (money) being controlled by a Big Finance Capital Debt Money Cartel.

BY DEFINITION.

Digging deeper, you'll see that this cartel is out contributes every other entity when it comes to financing the campaigns of those who run for office.  Digging deeper, you'll find out that this cartel finances the media and that this cartel exerts control over the multinationals that fund the media - you don't maximize profits in the media unless you promote the candidates that this cartel wants in office...  so they can do the bidding of the cartel while lying to the Muppets.

It follows that the real question to ask is...  what benefits the Big Finance Capital Debt Money Cartel?

They benefitted when they blew up an dhyperinflated Argentina's currency because it actually INCREASED THE PURCHASING POWER OF THE CARTEL!  You see, they weren't in Argentina currency...

They are in dollars, though.  They own/control trillions in dollar denominated debt (mortgages, car loans, student loans, etc...) and trillions more in debt receipts (society holds the unpayable debt, the cartel holds the debt receipt cash).

Let's role play.  You are Mr. Cartel Head.  Take that pinky and go Dr. Evil to get in the mood.

Do you tell your puppet Bernanke to hyperinflate and destroy your trillions in wealth?

Or, do you steal trillions and offload trillions in debt to society, accepting some amount of devaluation in the process, before restricting credit, collapsing the economy, bankrupting society (trading their cash for society's real chit), paying pennies on the dollar for whatever they can't get through bankruptcy and then hyperinflating at a much later date to balance their books?

When the question is properly framed, the answer is OBVIOUS.

BTW, now you know why the mega banks, which are Big Finance Capital Debt Money Cartel corporate fronts, are giving out 30 loans at 3% WHEN THEY ARE THE ONES WHO WILL DECIDE TO HYPERINFLATE OR NOT.

You never hear any of the straight to hyperinflationistas explain that, do you?  Nevah!  Why?  Because it is a contradiction and, therefore, exposes their theory as not being true.

Of course, a debt saturated society wants to believe they will be bailed out with cheaper dollars.  The mega banks are on the ender of that deal - Bernanke wants you to bleed, that's why he lies all day long trying to sucker the Muppets into making decisions that will destroy their family's future.

This is Art of War (all war is deception, bitchezzzz!) and these people are cold blooded criminals.

Debt Money Tyranny

http://www.keepandshare.com/doc/4768883/debtmoneytyranny-6-1-pdf-60k?tr=77

If all the bank loans were paid up, no one would have a bank deposit, and there would not be a dollar of currency or coin in circulation. This is a staggering thought. We are completely dependent on the commercial banks for our money. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent monetary system.  When one gets a complete grasp upon the picture, the tragic absurdity of our hopeless position is almost incredible - but there it is.  It (the monetary system problem) is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and the defects remedied very soon.
Robert H. Hemphill, Credit Manager, Atlanta Federal Reserve Bank, in foreword to 100% Money by Irving Fisher 1936
 
http://www.thetwofacesofmoney.com/files/money.pdf

http://www.thetwofacesofmoney.com

Nicole Foss oon Finance and Bubbles

https://www.youtube.com/watch?v=kYXA9XHFUCU

A Tribute to The Automatic Earth

https://www.youtube.com/watch?v=v-geWu-E9ys

Nicole Foss interviewed by Kunstler (MP3)...

http://media.libsyn.com/media/kunstlercast/KunstlerCast_215.mp3

Private interests control the world's money and they are doing for their own private benefit and the expense of everyone else.

All the bread and circus does is distract everyoen from this fundamental truth.

 

Sat, 02/23/2013 - 10:41 | Link to Comment DaveyJones
DaveyJones's picture

so that explains the picture's. Bonaparte's hand was always on his wallet

Sat, 02/23/2013 - 12:33 | Link to Comment Floodmaster
Floodmaster's picture

ZHr's should listen the first Nicole Foss video.

Thu, 03/07/2013 - 01:30 | Link to Comment All Risk No Reward
All Risk No Reward's picture

Yes, they should.  One caveat, Nicole is very confident in herself and she refers to past market tops that end up not being the market top.  ;-)

Her view is 100% right in the aggregate, IMHO, but the details are yet to be worked out - so don't necessarily take her short term prognostications as trading information (which she wouldn't recommend anyway).

She also doesn't expose the real reason why this whole criminal debt money Ponzi scheme is in play - the Human Predator Class reincarnated themselves as 5th grade math Debt Money Tyrant charlatans and they despise the common the person and enjoy destroying the common person and their futures.

This is a cold blooded, Art of War operation to seize control of the world and rule it in an authoritarian manner.

The collapse is engineered to bust people and empower the trillions they have in their front corporations so they can buy up the world with most people being none the wiser they were the victims of an asymmetrical warfare operation.

Classic Art of War at its best.

Sat, 02/23/2013 - 04:29 | Link to Comment ebworthen
ebworthen's picture

"Serious question: can anyone cite an example of money printing which did not end in devaluation or hyper-inflation?"

Monopoly, though I suppose the cost of the game has experienced inflation.  And, the iron has been replaced with a kitty cat becuase younger generations don't know what in the hell an iron is.

Sat, 02/23/2013 - 09:37 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Question: Can anyone cite an example of money printing which did not end in devaluation or hyper-inflation?

 

It's a method that enemies use to try to destroy the opponents currency.  Vicious enemies print up tons of the other guys currency and drop it from airplanes to create chaos and havoc in that country.  The allies and axis were busy doing this during world war II.  Now what does that make the Fed?

 

 

Sat, 02/23/2013 - 11:26 | Link to Comment SWCroaker
SWCroaker's picture

Re: Serious question: can anyone cite an example of money printing which did not end in devaluation or hyper-inflation?

I can only think of one instance.  In the days of Marco Polo, when the Silk Road was being opened, the Emperor of China gifted the distant rulers in the far west with (I'm working from memory here, so don't crucify me if the details are a bit off) something like two camels *loaded* with Chinese paper money.   The two western rulers (iirc it was something like a King/Pope combo at the time) looked upon the gift with great suspicion.   They hadn't invented paper money in the West at the time, and the bundles of script with runic markings on them looked like some sort of devil worshiping blasphemy.

So they burned all of it upon receipt.  The western world's first exposure to fiat, and our response was proper!  Some irony there...

As (dimly) recalled by me from Ralph T. Foster's Fiat Money.

Sat, 02/23/2013 - 13:09 | Link to Comment MrSteve
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Every inflation has ended in ruinous deflation, destroying the value in the currency. Revaluations of currency, as seen in Venezuela most recently, are way-stations on the road of devaluation and eventual currency replacement.

That's how you get things like "new pesos"; the old currency is "demonetized", an official term applied to currency when its declared worthless. For instance, Belgian franc notes were demonetized when the Euro was adopted as Belgium's new currency.

All currencies are fairly valued against each other via GOLD, the standard.

Sun, 02/24/2013 - 10:57 | Link to Comment PD Quig
PD Quig's picture

No, but remember: this time it's different.

Fri, 02/22/2013 - 21:48 | Link to Comment kaiserhoff
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Glad you pointed that out.  For a minute there, I thought I was having a senior moment, or maybe spent too much time with flaky gf's copy of clairvoyance for dummies.   Don't laugh.  She has firm young titties, and I'm a perv.  What's your point?

For those who don't like reruns, try this from the land of our great rant raconteur, knuckels.

http://www.youtube.com/watch?v=-19K9RT1m0I

 

Fri, 02/22/2013 - 21:06 | Link to Comment stinkhammer
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long meg whitman

Fri, 02/22/2013 - 21:15 | Link to Comment MiguelitoRaton
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If you are long Meg Whitman, you need glasses, how she could get you long is beyond me...

Sat, 02/23/2013 - 13:57 | Link to Comment tsx500
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hey it's all pink on the inside !

Fri, 02/22/2013 - 21:10 | Link to Comment ebworthen
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LOL!

"Rumpelstiltskin"

Yup, fake money, straw into "gold", and only for the bankers of course.

Fri, 02/22/2013 - 21:44 | Link to Comment krispkritter
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 "Have you heard of Ben-will-print-stim"?  

Fri, 02/22/2013 - 21:31 | Link to Comment flacon
flacon's picture

Wow yeah, I had forgotten that fable. Here is the plot for those who don't know:

 

 

Plot

 

In order to make himself appear more important, a miller lies to a king, telling him that his daughter can spin straw into gold. The king calls for the girl, shuts her in a tower room filled with straw and a spinning wheel, and demands that she spin the straw into gold by morning or he will cut off her head (other versions have the king threatening to lock her up in a dungeon forever). She has given up all hope when an imp-like creature appears in the room and spins the straw into gold for her in return for her necklace. When the king takes the girl on the next morning to a larger room filled with straw to repeat the feat, the imp spins in return for the girl's ring. On the third day, when the girl has been taken to an even larger room filled with straw and told by the king that he will marry her if she can fill this room with gold or kill her if she cannot, the girl has nothing left with which to pay the strange creature. He extracts from her a promise that her firstborn child will be given to him, and spins the room full of gold a final time.

 

The king keeps his promise to marry the miller's daughter, but when their first child is born, the imp returns to claim his payment: "Now give me what you promised." The now-queen offers him all the wealth she has if she may keep the child. The imp has no interest in her riches, but finally consents to give up his claim to the child if the queen is able to guess his name within three days. Her many guesses over the first two days fail, but before the final night, her messenger (though he does not know the significance of his mission) comes across the imp's remote mountain cottage and watches, unseen, as the imp hops about his fire and sings. In his song's lyrics, he reveals his name.

 

When the imp comes to the queen on the third day and she, after first feigning ignorance, then reveals his true name, Rumpelstiltskin. The imp loses his temper and his bargain. In the 1812 edition of the Brothers Grimm tales, Rumpelstiltskin then "ran away angrily, and never came back." The ending was revised in a final 1857 edition to a more gruesome ending wherein Rumpelstiltskin "in his rage drove his right foot so far into the ground that it sank in up to his waist; then in a passion he seized the left foot with both hands and tore himself in two." Other versions have Rumpelstiltskin driving his right foot so far into the ground that he creates a chasm and falls into it, never to be seen again. In the oral version originally collected by the brothers Grimm, Rumpelstiltskin flies out of the window on a cooking ladle (Heidi Anne Heiner).

 

Fri, 02/22/2013 - 21:17 | Link to Comment Poor Grogman
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Start with a welfare state
Print to meet entitlements and other stuff.
Inflation pushes up the price of everything the welfare recipients demand
Print more to meet the increased cost
Inflation drives up costs of government providing services
Print more to meet increased cost of services.
People and politicians become aware that this is somehow a "free lunch"
Print more and more and more and more until the currency system is destroyed.

Introduce new currency system and repeat...

Fri, 02/22/2013 - 22:33 | Link to Comment otto skorzeny
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except the new currency will be digital allowing EVERY transaction to be tracked and taxed and big biz records your buying habits

Sat, 02/23/2013 - 01:51 | Link to Comment Poor Grogman
Poor Grogman's picture

The PTB would like that, Unfortunately (for them) I don't think it will be possible.

I Can't see us going fully digital without functioning Internet everywhere.
It Might work in the future in the EU and USA but some form of cash would still be needed for Kids pocket money, phone calls, baby sitters, as well as those larger transactions such as the often mentioned (on these pages) hookers and coke, and don't forget the horses! I don't see the queen using digital money for her annual flutter on the races, but hey maybe I'm just old fashioned..

Anyhow if the PTB tried full digital they would be inviting everyone to use bit coin which is already running, so I just don't see it.

Fri, 02/22/2013 - 21:20 | Link to Comment A Lunatic
A Lunatic's picture

Dear Federal Reserve, I recently requested, via an earlier ZH post in December, a delivery of 1 pallet of freshly minted Ben Franklins, which I have not yet received. I do have a forklift available for unloading, and Saturday delivery is not required. Your immediate attention in this matter will be appreciated.

A Lunatic.

Fri, 02/22/2013 - 21:21 | Link to Comment lasvegaspersona
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paper money is required to buy paper gold....so get printing because we need more  of that!

Fri, 02/22/2013 - 21:24 | Link to Comment Atlantis Consigliore
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Meester, meet my seester she is in Hispania, and we cant get our money out,

so i put all my money in Pounds and it is devalued, run on pounds next to 1.35

I want to get out of Europe quieeekly, maybe go to Moscva and be a capitalist.

Si Si,  Berspanky,  sue sue.

hope you go broke. 

 

 

Fri, 02/22/2013 - 21:26 | Link to Comment Decolat
Decolat's picture

Hey, we've got a printer in our craft room... Tell me the difference. Threats of coercion don't count.

Fri, 02/22/2013 - 21:33 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Iran to Execute 4 Bankers on Fraud Charges
Iran's judiciary system recently worked through the biggest banking fraud case in the nation's history.
Comment

FOUND THIS ON BLACKLISTED NEWS....

Fri, 02/22/2013 - 21:36 | Link to Comment shinobi-7
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Could some of these "quantitative easings" be forwarded to my account? I pledge to spend the money wisely and quickly. Since I can't dig a hole in the street, there are other people doing that already, I will dig one in my garden proportional to the amount allotted. I am also ready to build a bridge above if it improves my bid as well as buy a Chevy Volt to cross it and to pull the lawn mower.

Fri, 02/22/2013 - 21:55 | Link to Comment ebworthen
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So I have yet to hear any of the MSM dolts compare the $85 Billion Sequester this year to the $85 Billion PER MONTH of FED Mortgage Backed Securities purchases to benefit the bankers.

 

Fri, 02/22/2013 - 22:23 | Link to Comment MiltonFriedmans...
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EB, I just had the same thought. Barry threatens to close air traffic control towers and throw a wrench into the air transportation system over a trifling 2% cut as he jets off to Palm Springs....UFR how ignorant the sheeple are. They truly deserve the shearing they are about to get.

Fri, 02/22/2013 - 23:06 | Link to Comment kicksroute66
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HA

Fri, 02/22/2013 - 23:57 | Link to Comment alfred b.
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    Well OK, now I get it!  At first, you call it money printing!  Then once the smart people realize what is happening, you change its name to 'Quantitive Easing', and then when even the sheeple class get wise to you, the next step will be to call it ' Financial Vitamin '....of course: it all makes sense now!!!

 

Sat, 02/23/2013 - 02:01 | Link to Comment Manipuflation
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LOL Tylers.  Please allow me pimp a bit here.  I have the utmost respect for how much work the Tylers put into adding content and managing the backside of a website. 

If anyone wants to publish written text, my e-mail is manipuflation@boatingaccidentnews.com.  Let me check it out.  I am not the police and I am not an expert on everything.(anything)

The site is only a week old so give me a little break.

http://www.boatingaccidentnews.com/

Sat, 02/23/2013 - 04:47 | Link to Comment Kirk2NCC1701
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Well, since one good re-post deserves another, here's one from another ZH blogger some days ago: 

   http://www.youtube.com/watch?v=7cvUszC8a0c

"Global Debt For Dummies" is a good prequel to Tyler's above clip.  Cheers, mates.  Who's paying?

Sat, 02/23/2013 - 08:35 | Link to Comment Waterfallsparkles
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Sometimes I wonder if the Fed is doing this to totally impoverish the American people.  Then swoop in and buy all of the assets.  Leaving us as Serfs on our own soil.

Sat, 02/23/2013 - 08:36 | Link to Comment Downtoolong
Downtoolong's picture

I think these guys out onioned the Onion with this one.  I can't believe how much that bankster character reminds me of Hank Paulson. He's got my voter for an Oscar.

Sat, 02/23/2013 - 09:39 | Link to Comment Bungalow
Bungalow's picture

But every junkies like a settin sun.

Sat, 02/23/2013 - 10:29 | Link to Comment Fix It Again Timmy
Fix It Again Timmy's picture

How to tell if your child will grow up to be a central banker:

http://www.youtube.com/watch?v=szwclmmKwLg

 

Sat, 02/23/2013 - 12:54 | Link to Comment NitneLiun
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Spanky Bernanke. That has a nice ring to it.

Sat, 02/23/2013 - 14:26 | Link to Comment World of Debt
World of Debt's picture

Funny music video about the world debt situation!!

 

https://www.youtube.com/watch?v=IrHiYxDbnMY

Sat, 02/23/2013 - 14:45 | Link to Comment alfbell
alfbell's picture

If you sell your gold right now and live in Calif it comes to 40% in taxes. The "Gold Solution" of Americans will be handled by TPTB with heavy taxation, which will dissuade any future trading and hoarding of gold. When you dig up some of your gold to exchange it for whatever the existing currency is, so that you can buy groceries and fuel, you'll probably wind up paying a 75% tax on it so it will have the same purchasing power as the existing currency. TPTB are ego-centric and evil, but not dumb.

Sat, 02/23/2013 - 14:53 | Link to Comment Herkimer Jerkimer
Herkimer Jerkimer's picture

'

'

'

This never gets old.

 

•J•
V-V

Sat, 02/23/2013 - 15:50 | Link to Comment pndr4495
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Their " European Debt Crisis " video is equally funny .  Their Auzzie acents seem to me to make the farce somewhat more credible .  It's a crime what the banking cabal has done not only to America but every other country .  When the common man wakes up and sees who to blame for his dismal condition , there will be problems .

Sun, 02/24/2013 - 05:44 | Link to Comment Super Broccoli
Super Broccoli's picture

"Dave, it's not gona work. I've just explained it to a bloke and he saw thru it straight away. He's not even in banking"

:-)

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