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QBAMCO: "Authorities Must Answer To The True Power - The Marketplace"
Submitted by Paul Brodsky of QB Asset Management,
That Pesky Marketplace - A Political Fable
The Fed Chairman tells the President that his administration must work with Congress to cut spending or else the Fed will begin reducing its balance sheet.
The President thanks him for his years of service. The Chairman, concerned with his legacy of having been too accommodative, hints to the public about tapering the Fed’s asset purchases. The dollar rallies and asset prices fall.
Perturbed, the President then publicly thanks the Fed Chairman for his years of service. The Fed Chairman escalates, publicly setting a time frame when he’ll begin tapering. The markets fall even more dramatically. The President, fearful that the Fed’s actions could destroy his legacy, quickly names a replacement for the Chairman, one that reliably plays ball. The markets rally. Through the optics of the capital markets, the President successfully perpetuates the temporary appearance of a healthy economy.
The Fed Chairman returns to the private sector with dignity, his legacy defined by providing abundant credit when necessary and then trying to set a course back to normalcy. Yet the Fed never diverges from its accommodative posture; its zero interest rate policy remains in force and quantitative easing INCREASES to record levels. The capital markets rally further as the real economy continues to contract. Washington and Wall Street are happy while real output and employment continue to fall.
A crisis “no one could have foreseen” occurs. Financial markets plunge. Banks inform the Fed their loan books are deteriorating. The Fed triples QE and yet employment rolls continue to drop. The Fed informs Congress and the President that the monetary system must be reset. The public grows angry that, just like in 2008, banks and the government gained funding through newly created money but it, the public, did not. (Civil unrest?). The State Department concurs with the Fed; foreign exporters to the U.S. no longer want US dollars in exchange and the system must be changed. At the urging of the President, Congress directs the Fed to devalue the Dollar to gold, and to reset a fixed exchange rate.
Few still dispute that the capital markets are priced at the pleasure of elected and appointed authorities. The spectacle called “economy” should continue as-is, predictably reflexive, until it is in the interest of authorities to change its rules (not as predictable yet still entirely rational and quite in the American tradition). On and on it goes until it no longer can.
Moral: When the financial markets no longer reflect the human condition, authorities must answer to true power – the marketplace.
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Bernanke might be playing the taper card as a way to pretend he "was" going to wind down the program and bring us back to a reset, near perfect, economy but he never got the chance? His legacy protected. We may never know, but we do.
Long live the mkt place.
Long protests in dirt poor countries (that includes you America).
What is this "marketplace" of which you speak?
All that exist are mega-corps, guvs and tax slaves. And a few crazy people, of course. I think those people use to talk about "markets."
The marketplace consists primarily of the authorities themselves, and secondarily, the people of WalMart......
Eventually the market WILL win the day.
http://schiffblog.blogspot.ca/
That scenario sounds quite plausible.
If one examines WHAT scenario benefits the "owners" of the Fed the most then extrapolate from the possibilites maximum control and power, one knows the path that has ALREADY been set for the Grand Supercycle conclusion. One outcome that can be ruled out now is that the sheeple will not be sheared.
and one more thing......the true power is NOT the market place...
the bernank is a wall street and dc whore. he will never have his dignity. the rest is plausible.
Of course buzzsaw, I was referring to the financial meltdown.
+1 not a dig at you. we made similar comments at the same time.
Fuck Barry and Ben
"publicly setting a time frame when he’ll begin tapering."
Thresholds not triggers.
The 12 Laws of Karma
http://www.youtube.com/watch?v=7ZX8QSdJ9go (5:43)
I should live so long.
A monetary reset cannot be avoided. They all know it, just don't want it to happen on their watch.
The folly of the central planners is to think they are more powerful than the markets.
They are the 800 pound gorilla. They have big hairy kleptocratic balls but tiny pee pee.
Kleptos they are, for EVERYTHING that government has is stolen from the economy. And then there's the detrimental effect of government mandated ponzi schemes creating illusionary temporary benefit as the ponzies expand and tremendous pain upon implosion. Ponzies are illegal...unless they're run by the government. Counterfeiting is illegal...unless done by the government. Theft is illegal...unless done by the government.The only good news is that when the world monetary ponzi implodes, the US government will shrink massively.
The other piece of good news is that the few that act ahead of fiat collapse may benefit tremendously from the largest, swiftest transfer of wealth ever.
come on Paul, you or any affiliated organization never gave money to any political party? Just another divide et impera "divide and conquer" message. Get real and study history while enjoying the rental income of your 5000 condos in NYC.
However, most importantly offer solutions to todays problems and act accordingly, personally. Just saying!
Rats
Ha ha! I LOL'd on your post. I don't blame anyone for their opinions. But just for sake of argument, he does put his $$ where his mouth is.
That is probably pretty close to how it will go down with one caveat. When the reset does come it will be much more violent than a little civil unrest. The majority of the nation is now in the camp where they make little or no contribution and they take far more than they put in. The civil unrest is more than likely to erupt into another bloody civil war.
STFP=Sell The F*cking Pop began yesterday.............
dont discount a greek style capitulation by the masses................when the majority of citizens are on the govt teet for medical, housing, food, employment, etc..........they will fall in line when they are told how "terrible" things could be if they dont accept the govt mandate...................little by lttle the masses will be broken down......each time they will be told how bad things could get if they dont comply with further restrictions......and this continues a downward spiral until they are completely broken.....................people always fear the unknown more.................
the Govt meddlers have no control over the trade winds or 1,000's of businesses decisions ...the parasitical meddlers waffle in generalised terms as they have no grasp of biusiness or any business ...but they need to justify their perches set high above society so they take everyones name in vein in academic language (empty fluff) while they suck juice from the rising tides and suck even more as it sinks
pure scum for 2,000 years, your time is soon up/over
Well Black rifles are starting to come down in price and be more available. Methods and equipment for covert carry of rifles are gettting more popular. People who have to work multiple part time jobs are for the most part not friends of the Administration these days and I've found quite a few who listen attentively when you talk about the care and feeding of the inexpensive war surplus rifles especilally the Mosin Nagant 7.62 X 54R variations. "Reach out, reach out and touch someone."
A marketplace is the space! ;D
not soon enuf for these M-F'ers
true power :
In a bottum up construct its the market place that defines who wins who loses, provided the private monopoly and state distortions can be avoided. Democracy and market dynamics go hand in hand. The state is there as neutral arbitrator and defines and enforces "general good" while market forces arbitrate on private good.
In a top down system, by definition the state and oligarchies have the power to control prices and regulate supply and demand as player not as arbitrator; until they, the statists and oligarchs, crony fascista friends, fall out amongst themselves as the fight at the top gets too intense and the number of places available decreases; aka for power and politics not ostensibly for economic reasons. We are in a command economy with market forces only applicable to non strategic sectors.
Today the demise of markets under oligarchy rule, without fair regulation to defend general good over last thirty years, have led us to the second alternative; a dangerous situation, as once you enter this realm you don't know when you'll leave it.
Animal farm country above ahead.
George Packer explains how we got there: http://www.alternet.org/news-amp-politics/how-american-society-unravelle...
How American Society Unravelled After Greedy Elites Robbed the Country Blind
"a political choice on the part of Congress and President Bill Clinton to deregulate Wall Street so thoroughly that nothing stood between the big banks and the destruction of the economy [16]....It is no wonder that more and more Americans believe the game is rigged. ...Once the social contract is shredded, once the deal is off, only suckers still play by the rules."
The True Power in this world is violence and the threat thereof. Period. Markets are great and all, but they need a protective cocoon of violence to allow them to function, whether that cocoon is a legitimate government or a Mafia protection racket.