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Jim Grant: We’re In An Era Of "Central Bank Worship"
By Henry Bonner of Sprott Global
Jim Grant: We’re in an Era of ‘Central Bank Worship’
Jim Grant is the publisher and editor of Grant’s Interest Rate Observer, a bi-monthly newsletter that he founded in 1983, around the time when bonds were considered some of the worst investments – when they yielded 13 to 15 percent.
Rick Rule, Chairman of Sprott US Holdings Inc., often quotes Jim Grant’s description of government bonds as ‘return-free risk.’ (Rick sees US Treasuries as the ‘anti-gold’).
Mr. Grant took my questions on interest rates and the bond market – including Bill Gross’ recent departure from PIMCO – via phone from his Manhattan office.
Mr. Grant, you argue that companies whose share prices are rising should be becoming more efficient – hence driving down the costs of consumer goods and services.
The Fed is succeeding in keeping both stock market prices and consumer goods prices moving higher – which look like contradictory goals. Do you think this situation is sustainable going forward?
Many years ago, falling prices were a sign of improved efficiency and expanding wealth, and of widening consumer choice. Thanks to the spread of electricity and other such wonders in the final quarter of the 19th century, prices dwindled year by year at a rate of 1.5% to 2% per year. People didn’t call it deflation – they called it progress. Similarly, in the 1920’s there were advances in production techniques. The prices didn’t decline and didn’t rise. They were stable. Looking back on the 20’s from the vantage point of the 30’s, many people wondered why prices had not fallen. They concluded that it was because the central banks were emitting too much credit, and that credit had served to inflate asset values. It had also pushed the world into a very imbalanced credit and monetary situation towards the close of the 20’s.
Fast forward many generations and here we are today with a world-wide labor market linked through digital technology. We are the beneficiaries of Moore’s law. Nearly every day we see new, wonderful, labor-enhancing machinery coming into the workplace – including new software. And yet, prices don’t fall. They tend to rise, albeit by 1% or 2% per year. Central banks seem to want more than that. You do wonder – I wonder – what would be wrong with what Wall Mart calls ‘everyday low and lower prices.’ People seem to rather relish that – certainly when shopping on the weekends. Central banks want no part of it. So, I see that as a contradiction. What central banking policy has done is to inflate consumer prices that, if the laws of supply and demand were properly functioning, would have tended to fall. At the same time, central bank policy has tended to inflate the prices of stocks, bonds, and income-producing real-estate. Why it is that these immense emissions of new credit by the central banks have not been inflationary? Well, it seems to me that they have been inflationary, because prices are rising not falling.
Do you think that the situation will continue going forward – rising consumer prices along with rising stock prices?
What I don’t know about the future, we don’t have the time to go into. I dare say that stock prices will not continue to rise uninterrupted at the same pace. That’s not a very interesting prediction, but the stock market is certainly a cyclical thing. Stock prices will pull back in the fullness of time, whether it starts 5 minutes, 5 months, or 5 years from now. I think it’s fair to observe that today’s ultra-low interest rates flatter stock market valuations. Stock prices are partly valued based on a discounted flow of dividend income. To the extent that the discount rate you use to value that stream of dividend income, which depends on interest rates, is artificially low, stock prices are artificially high. I think that the burden of proof is on anyone who would assert that we are in a new age of persistently and steadily rising stock prices.
On the subject of bond markets, you’ve said: “does it not seem incongruous to chase low-yielding fixed-income securities denominated in a currency that the central bank is vowing to inflate?” Why do you think that investors go into bonds despite the Fed’s intention to devalue them over time?
Well, I can’t explain it. I can try to piece together what might be driving people to do that, but, to me, it’s a mystery. One thing to bear in mind is that bond prices have been rising and yields have been falling since fall of 1981. That’s a long time and there’s something in financial markets that we might call ‘muscle memory.’ Long-running trends tend to gather force, just as a rock rolling down a hill tends to pick up speed. There’s something about the persistence and age of this bull market that leads more people to think that it will continue. That said, fixed-income investors are intelligent and reasoning people. That can’t be the entire explanation. I see that in Europe money market interest rates are trending below zero. You have to search long and hard over the globe to find government securities in developed countries yielding more than 2%. In Ireland, some short-term securities are yielding less than 0%. Why would people buy them? I simply don’t know – I can’t fathom it --, but they certainly are, hand over fist.
You’ve also said that Treasury investors may ‘repent at their leisure’ for buying US Securities, and that corporate investors will one day wish they had not invested so heavily in corporate bonds. Do you see a bear market coming imminently for bonds?
Yes – starting about 2002…
Henry, now, that’s meant to be a laugh line.
I have wholly been way out of step with the bond market for a long time, and everything that I say with regards to the future of interest rates deserves to be written in something like invisible ink. You know, in a work entitled ‘Security Analysis,’ a work about value investing written by Benjamin Graham and David Dodd, this approximate phrase appears: “bond selection is a negative art.” Well, what Graham and Dodd meant by that is that, because the buyer of a bond at par can do no better than getting his money back and earning some interest along the way, the prospect for gain is inherently limited. Risk ought to be at the front of the mind of the creditor. There are no 2 or 3-baggers in investment-grade bond investing. You have to be mindful of what can go wrong, and it seems that the world over, thanks to these policies by central banks, bond investors are not looking at risk, or feel they can’t afford to look at risk. Rather, they are grasping at the few straws of yield that remain and I think that posterity will look back at this with wonder.
“Think of it” – I’m now putting words in posterity’s mouth. “Think of it, people were buying as if the supply were limited. They were buying government securities, which yielded practically nothing. They were buying bonds denominated in currencies that the central banks explicitly vowed to depreciate. Why did they do that?”
So, I think posterity will ask that question. Certainly I am asking that question now, and I can’t come up with a really persuasive answer.
What would a bear market in bonds look like? Would it be accompanied by a bear market in the stocks?
Well, we have a pretty good historical record of what a bear market in bonds would look like. We had one in modern history, from 1946 to 1981. We had 25 years’ worth of persistently – if not steadily – rising interest rates, and falling bond prices. It began with only around a quarter of a percent on long-dates US Treasuries, and ended with about 15% on long-dated US Treasuries. That’s one historical beacon. I think that the difference today might be that the movement up in yield, and down in price, might be more violent than it was during the first ten years of the bear market beginning in about 1946. Then, it took about ten years for yields to advance even 100 basis points, if I remember correctly. One difference today is the nature of the bond market. It is increasingly illiquid and it is a market in which investors – many investors – have the right to enter a sales ticket, and to expect their money within a day. So I’m not sure what a bear market would look like, but I think that it would be characterized at first by a lot of people rushing through a very narrow gate. I think problems with illiquidity would surface in the corporate debt markets. One of the unintended consequences of the financial reforms that followed the sorrows of 2007 to 2009 is that dealers who used to hold a lot of corporate debt in inventories no longer do so. If interest rates began to rise and people wanted out, I think that the corporate debt market would encounter a lot of ‘air pockets’ and a lot of very discontinuous action to the downside.
Is it possible for the Fed to ‘lose control’ of the bond market and yields?
Absolutely, it could. The Fed does not control events for the most part. Events certainly will end up controlling the Fed. To answer your question – yeah. I think the Fed can and will lose control of the bond market.
So no matter how many bonds the Fed buys, it eventually won’t be enough to keep yields low?
Well, let’s try to imagine a case where the Fed proposed to buy every single bond in existence. To do that, it would undertake to print more money than we – even us hardened veterans of the QE era – could imagine. If the Fed undertook to print the money necessary to buy all the bonds on offer, it would spook at least the more thoughtful investors, who would see that the Fed would certainly be undertaking a truly radical program of inflation.
It seems like the Fed is doing almost exactly that today – and we’re still waiting to see the adverse effects.
Well, yes indeed. I think this is a time where people will look back on us and see it as a period of practically central bank worship. The central bankers – Draghi, Yellen, Bernanke – have become almost celebrities in America. People have invested unreasonable hopes in what these central banks can know, and what they can do. I think that, sooner or later, the investing public will become disillusioned of these ideas.
What are ‘safe haven assets’ if you believe that a bear market in bonds is inevitable?
Well, if we believe that financial markets are cyclical, then bear markets are inevitable -- just as bull markets are inevitable. I wish I could tell you when these will happen – I can’t. I think that the nature of a safe haven will depend on the type of bear market and the reason for that bear market. You can imagine a bear market in bonds where the reason was an unscripted burst of prosperity. Let’s say that the indestructible American economy, for whatever reason, got back its mojo, and the Fed seemed to be way behind the curve. Interest rates would go up for the wholesome reason that things were looking better. At that point, you could make a very good case for common stocks.
If the bond market sold off because of a sudden and unscripted loss of confidence in the currency, that would be a different matter altogether. I think that ‘safety’ is not inherent to any asset – rather, ‘safety’ is a function in large part of valuation. Towards the tail end of the great bond bear market of 1946 to 1981, people were fed up with fixed-income securities. They only seemed to go down in price –investors were always disappointed. They slapped various labels of scorn on the entire asset class. That was when people first called them ‘certificates of confiscation’ – and that was when they yielded 13%, 14%, or 15%. They certainly were not certificates of confiscation as events revealed. Today, when bonds yield a great deal less than 13, 14, or 15%, most investors regard them as intrinsically safe assets. Well, they are not intrinsically safe. They are popular – that’s a very different matter.
At Grant’s, we try to look for assets that are castoff, unpopular, out-of-favor, and value-laden. We have been looking at common stocks in, for example, Argentina and Russia. These are places that would appear to be inherently unsafe. We’ve of course been looking at gold and gold mining shares for a long time too. What gold, Argentina, and Russia have in common is that people are, by and large, going from them rather than towards them. If you asked the average person on the street whether securities relating to those three areas were safe or unsafe, I think that 99 out of 100 would say ‘unsafe.’ There is a great deal to be said for the ultimate safety that low valuations afford. That’s how we approach the situation. A little bit less exotically, we’ve been looking at business development companies generating attractive cash flows in this time of ‘yield famine.’ ‘Safety’ is a tricky and paradoxical concept. The safe assets are often the ones that people regard as hopelessly risky.
One more question – Bill Gross recently announced his departure from PIMCO. Is this a trivial event, or a sign of something more fundamental happening in the bond market?
I don’t know how to read it. Maybe after 40-odd years in the same place, Bill Gross deserved a change of scenery? I think he has enough money to retire – I dare say he could scrape by on a billion or so. He seems to want to continue to work – that’s laudable. Insofar as his exit having a deeper meaning, it may be to underscore the new illiquidity of the bond market. On news of his exit, a lot of different classes of fixed-income securities sold off, and I wouldn’t have expected Treasuries and mortgages to move the way they did. We at Grant’s think that the illiquidity of fixed-income securities might be one of the important themes of the coming autumn for the bond market.
By ‘illiquidity,’ you mean that investors are unable to buy and sell bonds easily?
It’s not difficult to buy them.
So it’s difficult to sell them.
Correct. What you want is a ‘greater optimist’ and it’s not clear that a ‘greater optimist’ will be available when you want to get out.
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Stale material -- Grant's been saying the same thing for 25 years. Time to retire.
Totally agree.
I love Jim Grant and he is right but I'd rather make money.
Fuck this guy, why is no one talking about what is driving the CB's to do this? Everyone signed onto Agenda 21, and not a single writer is even mentioning that this is the driving force behind all of this garbage.
I like JG.. the voice of reason in these last stages of CB control and stupidity.
..but I am not quite sure if he understands the order that will form out of the coming chaos.
He likely doesn't understand that the reason no one went to prison; is because the whole thing was done intentionally. This makes him not a prapagandist, but unknowingly a sophist.
I honestly would like to see the Tylers start digging into UNESCO, Common Core, UN Agenda 21, and ICLEI. It would clairfy a lot of the things going on. As this stuff progresses, the image of what is to come is starting to take shape, and it's not a pretty sight IMO.
P.S. junk away statist pieces of shit, if this plan goes through, you are first on the chopping block. It's almost a guarantee they will want to keep me around.
"By ‘illiquidity,’ you mean that investors are unable to buy and sell bonds easily?"
Ahahah! What a fucking idiot!
Who got the QE....and who's paying for it?
That's all you've got to know.
yup, keep it simple and quit overthinking the obvious...
by order, I am not thinking new centralized control.. more like hugely encrypted and universally distributed.
Not sure if junking a sarcastic and negative comment is the same as upvoting a serious comment, so I will refrain from either. But the first 5 comments from 4 members are the ONLY ones I see that have Jim Grant as the topic, and that woul be a PLUS in my mind.
From here on down, eveyone went off on their own tangent, 3 pages worth geez..... Here're my thoughts....
Flatline wages wouldn't be a problem IF The Fed had just let things fall where they were headed. Like if debts were extinguished, there'd be more $$ to spend even though the weekly paycheck stayed the same. If Milk, Butter, Peanut butter, Hellman's mayonaise and kellogg's Frosted Flakes didn't double in price, the current wage would be OK. And if the people could all refinance, instead of just the chosen few, then there'd be more money to spend despite stagnant paychecks.
Instead of having concern for wages, lets look at what the Fed's policies have done for the Working Man. And lets consider what Jim Grant has to say about Deflation and Progress, it makes sense because it would mean PROGRESS for the people who are actually the backbone of this (formerly) great country!
There is a derivative for that.
hey, wanna buy a derivitive for the lotto ticket I have not checked yet that has a notional of more than $1.000,000.00?
I will sell it to you for a lousy 500 bucks plus fees of about a grand.
AND.. I won't even bother checking it for value within the year before it expires unless I know it is a winner.
..such a deal.
NidStyles,
What do you understand, and what message are you trying to get too, by Agenda-21?
Who's behind Agenda-21?
Then, what do understand about Neo-Liberal policies?
And Right-Libertarianism policies?
Its true, he, and so many others that urge caution, and have been for quite a while, have been wrong. But as it can be assumed they, like a stopped clock, will be right twice a day. I fear when Grant's assumptions become "right" they will be very right.
Ok, this is a serious question for Zero Hedge commentors.
I bought my house in 1998 for $75,000 at 7.5%. My payment with escrow runs about $725. Currently we owe less than $40k.
I'm thinking of refinancing to 4%, pulling out $60k, and making payments on $100k at about $625.
My policy is that I make one and a half months payments with the extra going to principal.
We want to prepay funerals and tile the house, and I want to take about $20k to buy gold/silver.
Is this something we should do?
Seriously...looking for feedback.
Jesus Christ, you've been paying for sixteen years and you still owe fifty percent of the principal?
You're hooped.
Pay off the loan.
I bought my 1/2 acre- house on the golf course in 1983 for 140K..
I have re-fi ’d it a half dozen times but the last 15 year deal is almost over..
If I was younger, I would do it again..
But I am not and I want the banks to go F themselves.
Hey Jamie, how’s that little chlamydia mouth problem working out?
btw.. my first mort was at 10.5 pct.. whoa..
..my suggestion is that if you are young enough, go for all the gusto a 4 pct or so fixed rate loan will get you.
Being out of debt for the last 15+ years, my answer would be biased.
My wife and I aren't planning to buy a house till we can pay cash for it. We may have to rent and save for 10 or 15 years, buy I'd much rather do that than give a dime to the bankster scum that run this world.
Well if you rent, all you're doing is giving money to your Landlord, who in turn likely must pay "the bankster scum that run this world".
I'd go ahead and buy.
a) g'kar, I feel for your planet that was unduly attacked by Lightwave on a Video Toaster.
b) kids.. go for the mortgages under 5 points.. it will F the banksters in the long run.
At least I'm not giving a dime of interest to the bankers by not having a mortgage, can you say the same? By the way, you better hope and pray that you don't lose your job because you can lose your down payment and everything you put into your house if you get foreclosed on.
"Seriously...looking for feedback."
Well, since you're "serious"
Do the math- What it costs for:
Purchase
Compound interest
Property Taxes
Maintenance
Inflexibility to move to more "profitable" markets
Dead-beat neighbors and tenants
Etc, etc, etc.
Need I say more?
Do the math.
Refinancing to a lower interest rate definitely makes sense. Buying some gold and silver also will probably pay off. The only thing I question is that based on the 4% interest rate, you're presumably getting a 30 year loan. Rather than paying off extra principal each month, why not get a 15 year loan at a lower interest rate and just pay the minimum amount? Maybe your income isn't reliable and you want the option of not paying extra principal?
Didn't think of that, thank you. I'd still be paying 1.5 of the principal each month. My income is pretty reliable.
If you get a 15 year loan for the same amount, the minimum payment would be higher. So if your income is steady I would get the shortest loan term whose payments you can afford (probably 15 year), and not pay any extra principal. You would be paying more principal as a consequence of the shorter loan term, but get a lower interest rate in return. You probably already knew that but not sure.
I checked rates at Union Bank, and they will only do 25% or higher LTV on re-fi's with cash out. So presumably your house is worth at least $133K. That means your house has appreciated over 75% since you purchased it for $75K in 1998.
However, 1998 was a bottom in r.e. prices, and at least around here, housing peaked around March of this year, after rising about 50% since late 2011. And prices are dropping in another area we're looking at out of state. So I would be conservative in how much money you pull out in the re-fi. Maybe skip the pre-paid funeral expense and save the money yourself?
pay the fucker off. if you need to get at your equity get in place a heloc. don't use it unless you absolultly need to. as far as gold goes, ha, now you are no different than a margin buyer, and that is always a nogo. i can totally relate, as i have a strict rule to pay as i go and any loan has to have a guaranteed return of 20 percent gross before sales and admin; so as to say no different than a sound business. now if you are going to be a gold shill and buy enough to resell and start a blog to pump and dump, have at it, but it is a crowded space, but plenty of suckers to sell to....
you are at the payment cycle that most is going to principle and accelerate the payment as it will retire the fucker faster than recouping refi rip off fees. plus you are refiing and feeding jamie, the enemy of all common men and women. be true to all zhers and avoid feeding the banksters payroll...
If you store your money in the bank you're also feeding the banksters. They basically use (in aggregrate, multiples of) customer deposits in making loans. And since you don't seem to be an enthuastic backer of storing your savings in precious metals, what do you propose?
Fuck that. Get a zero cost HELOC for the remaining balance and close your mortage. (refinanicing will cost you $3-5k right?). Take the immediate savings of 3-5k and buy your asset of choice (PMs in my case). If you can get your HELOC at a good rate and time period and your overall monthly costs go down, use the difference to buy PMs on a frequency. Do not incur more debt in this system....even to buy PMs. Be in a position that you can take care of all debt if needed (only use the system for small amounts of debt that can be easily paid off or the type that can be discharged...).
Good luck!
You forgot the closing costs of the loan. Closing costs is the only thing banks live for now. They shift the loan to Gov. loan holders Fannie and Freddie. Loan costs are not cheap now
It is a myth that money can be made on a residential property. A residential property is like toilet paper - money down the toilet, but at least the wipe was more comfortable than a handful of leaves. So: get rid of the debt, and accept the remaining costs - maintenance, rates and taxes, water and lights, etc - as the price you are willing to pay to wipe your ass with tissue and not leaves.
Well said, 2nd Law. You live in a house. If it doesn't make sense as a lifestyle choice, then it doesn't make sense. Let the shiny heads chase a shrinking dollar.
In many cases the total cost to own will be less than the total cost to rent.
Saving money is sort of the same as making money.
The extra cost of my modest home was worth it VS trying to raise a family in a one bedroom efficiency apartment.
I am sure the total cost I have paid to buy the place has been less than what rent would have been.
The worst investment I know of is food - pay all that money for it and it turns to shit every damn time.
So when I analyze housing - in the same way I analyze food - it looks like a pretty good investment. (LOL)
How old are you?
If you are say 50 years old a 30 year amortization is finished at 80 years of age.
You want the amortization to match your anticipated retirement age with your plan; so, if you are say 35, the 30 year makes sense.
Other than that your plan makes alot of sense.
Think long and hard about the prepaid funeral expenses, and what you really want to happen with the money you've worked a lifetime to accumulate. You may decide that being buried in an extremely expensive ornate wooden box with a leak-proof vault is not all that important to you, or thousands of dollars of flowers. The funeral industry will try to talk you into these things. If that's what you want, fine, go with it. Just be sure to set things up how YOU want them, because there's no going back after you're gone.
My dear father was very clear about what he wanted to happen. He was cremated (cheaply) and his ashes sprinkled on his beloved tomato garden. He referred to his own ashes as "bone meal" - a comic to the end. However . . .
The Old Man left me (executor) with a stash of cash - actual currency - in a small safe. The probate folks had no idea it existed - he didn't consider it any of their business. He also gave me short, clear instructions on what to do with it.
All the out-of-town kids & grandkids got their entire travel and hotel accommodations paid for. There was a nice extended family gathering at the reception room in the local hotel: catered food, open bar, all paid for. In all I tapped the Old Man's cash horde for about $20K. The rest remains in the safe for Mom's use in case of emergency, or to cover her final expenses when the time comes. It's sitting there in Mom's basement, unknown to anyone but me & Mrs. Tippy. Mom doesn't even know about it. It doesn't show up on any financial records, and never will.
Sure the Old Man lost interest payments on his stash of cash. On the other hand, it was and is out of reach of the vultures in the medical, government, old age, and death industries.
nice post-thanks for that. your dad was smarter than mine. mom has the fortune and my brother is executor and thinks like you. it will be fair and everybody can piss it away except me and my brother doin something along the lines you mention. a hunting trip to dads favorite spot in montana. some might call that pissing it away, ha.
I'm going for the cheap bake-off and into the back yard with my beloved pooch.
Wifey, on the other hand, has a grander send off in mind, more along the line of King Cheops.
"I'm not going to be tomato fertilizer with that mangy dog! One way or another, your going first."
Oh well, can't always agree one everything...
your entire family is very lucky to have you there as the honest person. i'm in a similar position myself, having watched as both my parents families tried to screw each other over inheritence, that real wasn't very much. i can almost understand trying to steal millions, but a few thousand $?
and when it all goes down, i'm going to be doing the same thing, having to pay for my bros'a and the six kids to come and pay respect and then divy up what's left (having the power of attorney and could easily all keep it to myself).
ZH is a support group for me, occasionally seeing that there are people that aren't all about themselves, and live up to responsibility, even in given the opportunity to screw everyone.
thanks, itstippy.
One of the Shuttle astronauts told this to a group of Middle School kids on career day, "The best way to have control over your life, is to stay debt free"
Last Friday, I told that to a High School career research class and added: "Credit is like fire, be very careful..."
Starve the banks, pay no interest. Starve the gubmints, reduce or pay no taxes.
15 year loan. OK.
How much equity would be left?
Pissing away 2/3 of the $60,000? : Not Good.
When the equity is gone, the debt remains. You can't eat a tile floor. And the funerals? Only 1 of you will enjoy it......
Most zerohedge readers seem desperate to be superior, ignore all of them.
Most have no idea how the banks make money from your house purchase. They certainly aren't making it off the interest. Inflation has decimated the value of your monthly payment over the past 26 years. At 7.5% you should have re-fied whenever rates went down, but no matter.
If you have something you want to do with the money, re-fi and pull some cash out. And if you can hide your money, die in debt. You owe the system nothing, buy $50k of gold and silver, $20k isn't enough.
You know the system is so poisoned, that it can't be saved -and those in the financial markets deserve to suffer most greivously. I would not be trying to balance my books for judgement day.
But make sure you live in the right place. There is no security living in the wrong 'hood.
Have you studied an amortization schedule? There's more money to be made in interest at 7.5% than the amount financed. That's why he still owes so much...
https://www.drcalculator.com/mortgage/
7.5% is nuts. Hopefully the 4% is from a bank that will not rape you on fees. I assume that you are financing $60k because banks generally will not finance amounts less that $50k.You might want to look into a home equity line of credit. Here is what I did:
I paid off my home about 8 years ago using a home equity loan and personal savings. My original loan back in 2002 was for 30 years at 6%. Rates were quickly dropping at the time and I refinanced at maybe 5% for 15 years for a $250 fee. Shortly thereafter I took out a home equity loan and told that bank my plan, which was to pay off my original loan with the home equity loan. Because of this they allowed me to borrow 90% of my home's value at like 3.25%. Once I had that, I paid off my original loan with a check from the equity line and then applied my life savings to the home equity loan, leaving only about 15% of my original loan amount on that line of credit. So instead of paying 5% on a large mortgage, I was paying 3.25% on a fraction of that. I was then able to pay that off in about a year since I no longer had a mortgage. Then instead of having a savings account, I had a home equity line of credit for 90% of the value of my house in case I needed it. Since I did not have a mortgage payment, I was quickly able to save up a nest egg without ever having to tap my home equity line again. My house is paid for and I have saved about the equivalent value of my house in cash. I am contemplating on what to do with the fiat.
Tired of having no money, and you want to use the house as an ATM machine because you can't foresee ever getting anymore large chunks of cash, eh. A mature borrower that can delay gratification and stick with their nose to the grindstone will get out from under the indentured servitude that the slimebucket Banksters engineered for them much quicker than you. Bite the bullet, OldPhart, and sell the house outright
for whatever profit you can get. Don't waste your money on gold & silver and rent a place where you can possibly find a better paying job. Forget the prepaid funerals and just opt for incineration with a cardboard box and no service instead. If you run out of money in the long run the state will pay for the funeral in Potter's Field. I suspect that some dude cuts the lawn on Potter's Field every week and if you are lucky they might put you under a shade tree. Practically, you will rot at the same rate whereever you decide to take a dirt nap. Gold & silver will not make you sleep better at night when you realize that the markets a fixed and you are losing money on the initial investment. Land is a better buy than gold n' silver any day of the week.
30 years of declining bond yields.
30 years and $700 Trillion Derivitives sold to hedge rising bond yields..... to whom?
Please explain who is this stoopider...
Clever buzz word decription of the 21st century police state they've been trying to create.
You mean stale like "Gold is a rock and refuge during currency debasement"?
Would something new and fanciful - however impertinent and just plain wrong - satisfy you?
I think this is a time where people will look back on us and see it as a period of practically central bank worship. – Jim Grant
Perhaps, but I think this is a time where people will look back on us and see it as a period when the average man began to understand America’s banking and monetary system, precipitating the revolution that Henry Ford, Sr., foresaw if ever such were the case.
Our monetary system is a paper money tyranny and a threat to everything the people hold dear. Americans are alarmed at their loss of jobs, at their lack of opportunity, at the threat of perpetual war, of open borders and wealth redistribution, of the deficit, taxes, student loans, the cost of food and fuel and health care and an education.
The money-changers, instead of giving the people what they want, i.e., a stable medium of exchange and property rights, have destroyed the purchasing power of the dollar, and thus property, through inflation. In the process they have reduced the standard of living for 90% of Americans. They have stolen peoples savings through ZIRP compounded by inflation, they have distorted the returns on investments by inflating the money supply, they have deliberately manipulated the housing market and through fraud destroyed the home equity of millions of homeowners resulting in foreclosures for others.
The bankers, by accommodating massive deficit spending for the Government, further eroded the dollar while transferring the difference from the people who earned the money to the Government and the banks. Now, the richest nation on Earth is insolvent with a debt that is unsustainable and an economy in chaos – all the result of the Fed’s monopolistic debt-monetizing monetary system.
Worst of all, the Fed has destroyed the sovereignty of not just the U.S. but entire nations and their peoples to enrich the bankers through perpetual war as they force all peoples down an international road to world socialism via wealth redistribution and the purposeful destruction of their economies. At the end of the road is a World Government that the bankers will control through their power and wealth.
What the people really want is their country back. The good news is, they will take it back by demanding to keep the fruits of their labor. They will do that by dethroning "the international banking elite and their control over the money supply"... if Putin doesn't beat them to it.
Well said, JR.
JR,
You wrote: they will take it back by demanding to keep the fruits of their labor.
Who are they?
First: The best ‘They’ had have been destroyed, such as free press and labor organizations.
Second: Guess what? America is tapped out. Our Credit Limit has been reached and we are facing a predicament. THERE ARE NO SOLUTIONS BUT DEATH.
Then, you wrote: if Putin doesn't beat them to it.
Putin has nothing to do with Americans decline. Putin is trying to protect Russia’s resources from US corporatocracy. Putin wants their resource’s profit to stay in Russia.
“How many brain dead do we have to have on ZH today?” — Tall Tom
http://www.zerohedge.com/news/2014-09-26/your-new-normal-life-pictures#comment-5262138
“They” would certainly include the 200 people who spent $1200 each, 175 in the first 24-hour period, to buy the milling instrument that will manufacture the needed part for the AR-15 frame without a serial number in the privacy of their homes.
And it is human capital, the human spirit, not money or credit that is the ultimate source of a nation’s wealth.
George Gilder, who compared the lack of progress in assets that promise a future stream of income in oil “rich” Saudi Arabia in 1985 to the progress made in relatively barrens islands like Japan, Great Britain, Hong Kong and Taiwan, wrote that "the most prosperous countries—from Phoenicia to Venice, from England to Japan, from Hong Kong to Singapore—have been domains rich not in ‘natural resources’ but in human freedom and rights to property.”
“Rich” in money, as America is finding out, does not mean wealthy.
If America’s economy is to be re-established, Americans once again must have a “correct understanding of what wealth really is and what it is not.”
At this time, it is the U.S. Congress that denies its citizens representation and freedom. These hurdles must be swept away and the Americans who do it are the Americans who refuse to be slaves, who will take no direction from masters who have sold them out to the bankers, to globalization and to world socialism.
http://www.washingtontimes.com/news/2014/oct/3/ghost-gunner-creates-ar-15-bodies-with-no-serial-n/#ixzz3FIWdX56f
JR,
C’mon!.... 200 people?
How about by US having the largest army; and by US having the biggest Gestapo (homeland security) with 1.6 billion hollow-tip bullets, that are illegal in war, and 2,717 of ‘Mine Resistant’ tanks.
Propaganda and scale. Get those two on your side; then, you have a revolution.
By the way, drove by the White House last night and can't tell how many cops and dogs around it.
Meanwhile, in Georgetown, I did NOT see a single cop.
Keep in mind these are not guns, Escrava, these are the machines that make the guns. And, furthermore, the price is going up to $1300 as the company gears up for the avalanche of demand.
Only a short while ago, this company produced a one-shot plastic handgun, and everybody said, Ha ha, what could you do with that thing? So now, we’re talking a 30-round clip and 30 shots in the blink of an eye.
Pretty good stuff there for the most part. I would have left out Putin though. Question: Who exactly is "they"? I would like to meet "they" and ask they a few questions because probably they are assholes too.
We don't need a country for that matter. What good does it do us? The country is fucking us up the ass with no lube because of central banking. Remember when you voted for Janet Yellen?
The really big question is: Is Putin one of them?
by definition, as a billionaire, he is one of them. putin is just another one of them imo. he has a very noble front. nationalist, something very lacking on this side of the pond. as the pendalum swings russia will be a destination as usa will be rebuilding from the ruins...comments from the bullseye think tank!
I agree, dissolve the nation into 1000's of city-states competing for prosperity. Also, it's much easier to control politicians when they are local. You can just hop in the car and drive over to thier residence, then pop them in the nose if you are angry over their policies. Or, you can vote with your feet by moving to another, better run city-state a few miles away.
"A government big enough to give you everything you want, is a government big enough to take away everything that you have." -Jefferson
Well said JR - and extra points for including good news at the end. :-)
What happens when most Americans are living off the fruits of someone else's labour... the banksters, the MIC, bureaucrats, politicians, pensioners, welfare recipients, students, lawyers, accountants, invaders... do you still expect a revolution to overthrow their main profit paradigm?
TrulyStupid,
Great question.
But I am in the impression that no one understood your question correctly.
Wonder how?
Look at your arrows.
JR Like your analysis but think it's optimistic... "They will do that by dethroning "the international banking elite and their control over the money supply". I doubt that's going to happen, ever. I hope I'm wrong.
well - i grew up watching all the anti-nazi/commie stuff and it couldn't happen here. it did. it is over. now it is time to take care of
yourself and close ones. and - it is still 1,000x better than most other places, it is just a shame what we did, we had such opportunity.
and seriously - the slums that detroit and phillie and others have become for the black people, during the 60's and 70's they were starting to enjoy some decent way of life, with home and education. now - it's just a slide back.
what a shame. and there IS an agenda. i work at a bank in new york, or support teams are almost 80% h1b visas from india. and not a black or hispanic in sight anywhere. and not because they couldn't supply labor, or do a good job.
"What the people really want is their country back. The good news is, they will take it back by demanding to keep the fruits of their labor. They will do that by dethroning "the international banking elite and their control over the money supply"
I'd be proud to be your cellmate in Stalag 666.
Maybe...
But we'll have to wait until football season is over.
99% of Americans don't know who Jim Grant is. 99% don't know what a bond does. 99% have never held a gold coin, much less owned one. 99% of this nation are fucking morons who couldn't find their way out of a closet with the door open. I'd trust Jim Grant over 100% of the yo-yo's inhabiting this country any day. Or any country, for that matter.
I like his use of the word 'incongruous'
it's been a while since I last saw someone use that word, aptly.
Nancy Pelosi, that fool incongruous.
v. cleva
The misuse of incongruous, to me, is inscrutable.
18 After these things I saw another angel coming down from heaven, having great authority, and the earth was illuminated with his glory. 2 And he cried mightily[a] with a loud voice, saying, “Babylon the great is fallen, is fallen, and has become a dwelling place of demons, a prison for every foul spirit, and a cage for every unclean and hated bird! 3 For all the nations have drunk of the wine of the wrath of her fornication, the kings of the earth have committed fornication with her, and the merchants of the earth have become rich through the abundance of her luxury.”
4 And I heard another voice from heaven saying, “Come out of her, my people, lest you share in her sins, and lest you receive of her plagues. 5 For her sins have reached[b] to heaven, and God has remembered her iniquities. 6 Render to her just as she rendered to you,[c] and repay her double according to her works; in the cup which she has mixed, mix double for her. 7 In the measure that she glorified herself and lived luxuriously, in the same measure give her torment and sorrow; for she says in her heart, ‘I sit as queen, and am no widow, and will not see sorrow.’ 8 Therefore her plagues will come in one day—death and mourning and famine. And she will be utterly burned with fire, for strong is the Lord God who judges[d] her.
The World Mourns Babylon’s Fall9 “The kings of the earth who committed fornication and lived luxuriously with her will weep and lament for her, when they see the smoke of her burning, 10 standing at a distance for fear of her torment, saying, ‘Alas, alas, that great city Babylon, that mighty city! For in one hour your judgment has come.’
11 “And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore: 12 merchandise of gold and silver, precious stones and pearls, fine linen and purple, silk and scarlet, every kind of citron wood, every kind of object of ivory, every kind of object of most precious wood, bronze, iron, and marble; 13 and cinnamon and incense, fragrant oil and frankincense, wine and oil, fine flour and wheat, cattle and sheep, horses and chariots, and bodies and souls of men. 14 The fruit that your soul longed for has gone from you, and all the things which are rich and splendid have gone from you,[e] and you shall find them no more at all. 15 The merchants of these things, who became rich by her, will stand at a distance for fear of her torment, weeping and wailing, 16 and saying, ‘Alas, alas, that great city that was clothed in fine linen, purple, and scarlet, and adorned with gold and precious stones and pearls! 17 For in one hour such great riches came to nothing.’ Every shipmaster, all who travel by ship, sailors, and as many as trade on the sea, stood at a distance 18 and cried out when they saw the smoke of her burning, saying, ‘What is like this great city?’
19 “They threw dust on their heads and cried out, weeping and wailing, and saying, ‘Alas, alas, that great city, in which all who had ships on the sea became rich by her wealth! For in one hour she is made desolate.’
20 “Rejoice over her, O heaven, and you holy apostles[f] and prophets, for God has avenged you on her!”
Finality of Babylon’s Fall21 Then a mighty angel took up a stone like a great millstone and threw it into the sea, saying, “Thus with violence the great city Babylon shall be thrown down, and shall not be found anymore. 22 The sound of harpists, musicians, flutists, and trumpeters shall not be heard in you anymore. No craftsman of any craft shall be found in you anymore, and the sound of a millstone shall not be heard in you anymore. 23 The light of a lamp shall not shine in you anymore, and the voice of bridegroom and bride shall not be heard in you anymore. For your merchants were the great men of the earth, for by your sorcery all the nations were deceived. 24 And in her was found the blood of prophets and saints, and of all who were slain on the earth.”
REVELATION 18
The hand of the LORD was against the city with a very great destruction; and He smote the men of the city, both small and great, and they had hemorrhoids in their secret parts. – 1 Samuel 5:9 21st Century King James Version
Then said they, “What shall be the trespass offering which we shall return to him?” They answered, “Five golden hemorrhoids and five golden mice, according to the number of the lords of the Philistines; for one plague was on you all and on your lords. Therefore ye shall make images of your hemorrhoids and images of your mice that mar the land, and ye shall give glory unto the God of Israel. Perhaps he will lighten his hand from you and from your gods and from your land. – 1 Samuel 6:4-5 21st Century King James Version
Long Preparation H.
Gee, why is it that you lie about the Bible? Hmmm....
"No results found.No valid results were found for your search. Try refining your search using the form above.
To find out more about refining searches and using the search form effectively, visit the frequently-asked questions page."
Tosser.
Yep, hemorrhoids. You have to use the Hebrew parallel version: דוד מלאך האל בהיר בוקר
Interesting, first time I've seen that script on these pages.
You're new here, or old,
whichever...
I do not believe this to be a religion based website.
Truth has no "religion".
Truth is truth.
It just so happens that TRUTH was revealed by GOD's own son, Jesus Christ.
stop posting this rubbish, it makes you look like a ranting brainwashed moron form the 1800s
And as America has rejected and reviled the Son Of God, so has He turned His Face from that nation which He built and blessed.
Ebola? It's only the beginning of the horrors that await us.
biblical or not, the recycle bin is full of rotting carbon ready to be put on the garden for a "new" crop...
"I do not believe this to be a religion based website."
The title to this article says it all. Doesn't it?
Authoritarian Banking is a cult just like any other.
This is to say that all cults are built upon the superstition that something can come from nothing.
Belief systems require superstition, not fact. This is why they are based on "belief" instead of understanding.
Therefore, the belief in Authoritarian Banking requires worship instead of acknowledgement of fact.
So the gods left Zion on earth,
And haven't been back,
To visit Him.
India and China never did like him...
They stack for absent gods.
Hmmmm... that reminds me of the colors of a flag... and a song.
It went something like:
"Therefore her plagues will come in one day—death and mourning and famine. And she will be utterly burned with fire, for strong is the Lord God who judges her."
Are we talking about New York here, or is it the City of London? They are both whores.
I think 'fornication' is a fine thing!
That's what stood out for me too! And where I stopped reading...
When I read this, I am reminded of the Cambodian peasantry's genocide against their "bourgeouise", which after all, simply means "city dwellers".
What is it about agriculture, that makes everyone who earns their living tilling the soil, wish to see everyone that lives in a city, die a painful, suffering death?
"What gold, Argentina, and Russia have in common is that people are, by and large, going from them rather than towards them."
If this ass does not want gold then I will take any he has that seems to be pissing him off. Russian women are great in bed. They anger fuck you. I'm not sure about Argentina but they must have some gold too. And probably some pretty hot women to boot. Mostly I am concerned about the gold.
If gold is so worthless, then I will take it all. I will only charge a nominal disposal fee because it is such a hazardous material.
relax, man, Grant is totally pro-gold. His only popint is to say gold as an opportunity is enhanced because of current, temporal unpopularity
Me relax? Dude, this guy is a fucking salesman. Let me tell you something, after 15 years in the AU and AG markets...it is about physical holdings. He is talking about ETF bullshit. How many flowery motherfuckers have we heard over the years talking the digits up? If you want to get into bed with this guy then go right ahead. To each their own.
To simplify what bond markets really are, they are debt markets and rely on more debt in order to grow. My gold has no debt and I don't need some bloviating asswipe chearleading shill telling me anything that I did not already know. In 2008, assholes like Grant said gold was going to the moon and look how many times gold was in backwardation. At that point you could not even find any bullion gold to buy for a while there.
In a way, the manipulating market makers are doing us a favor by artificially depressing gold prices through ETF's. It makes the physical metal more affordable to buy and especially so on credit cards that you may or may not pay off. The game is pretty obvious by now.
Aaron gathered up the Israelites' golden earrings, constructed a "molten calf" and "they" that demanded "gods" declared: "These [be] thy gods, O Israel, which brought thee up out of the land of Egypt." The plurality of gods depicted or honoured on the ear-rings became a united image of a calf, fashioned by Aaron with a "graving tool", an e pluribus unum... Now... who here is bullish on gold. I like to eat mine.
Like most humans who ever lived:
Looking for love in all the wrong places:
https://www.youtube.com/watch?v=FAyDmJvjxbg
He might have been mad about Aaron's caving to public opinion there, but if you really want to make him mad, try currencies of fine linen with embedded purple, silk, and scarlet hairs. Throw in a few satanic mottos, logos, and assorted blasphemies and you'll have something that people would REALLY kill for.
Macchendra - If I was Moses I would have thrown Aaron out of the encampment. You have 800,000+ people and then animals to feed out in the desert. If you centralize all your gold into one giant calf you only get to trade it with nomadic merchents or a city-state ONCE. That means the people die of starvation.
Today, as in other cycles the wealth has been centralized, a new golden calf has been built. What can only follow is economic misery for the masses, disease from multiple people sharing the same dwelling and war between oligarchs for a shrinking pie. When elephants dance, ants get trampled.
In the end rulers need a populous or there power shrinks. The global populous is checking out and as it continues for however many years so will the power of this current world order. It certainly looks messy for the next several years before any kind of reorganization based on the masses wishes can take place.
You're talking about a guy who took 40 years to get out of the Negev Desert.
He may have been a whiz at parting the Red Sea but Moses truly sucked at finding north.
Any 10 year old Boy Scout can tell you to align your right side to the rising sun and start walking.
Moses was definitely missing a few stone tablets.
but the stock market is certainly a cyclical thing
Dudes clueless about how the markets have been taken over since the last "cycle." The banks are moving the money offshore before the collapse takes place. Markets are financial terrorism software applications of central bankers.
It must be the word worship in this article's lead line which has attracted all these primitive morons to speak up. Denegrating this site with this crap is as bad as this last guy.
That's just the gay agenda talking, pal. But seriously, seems popular by votes. I was going strictly for humor and irony and was wildly voted down.
did you learn something?
Same here. Red arrows cost nothing and are part of the ZH experience. Your reply in Hebrew was priceless in my book.
If we are to be burdened by a central bank, the Fed, this is the man who should be running the institution.
Again...not to make a total idiot sound like a total phucking idiot (which Jim Grant is) but if you can't begin your discussion of "interest rates" without talking about the difference between elastic and inelastic demand then just STFU.
Dude, your posts define the term idiot.
Elastic and inelastic demand is an exercise in mental masturbation . . . unless you have massive amounts of longitudinal survey data. Got .gov?
all in all, a gold pump subliminally...not falling for it(ie sprout and bonner). got gold?
Grant has made no secret he is a fan of gold.
We have moved from the era of the banker, to the era of the Central Banker, which have both been as futile as each other, creating money from nothing to blow vast bubbles.
The banker era saw a house of cards of financial assets built on the shaky foundations of sub-prime.
This came tumbling down in 2008.
The bankers also created a ten times global GDP derivatives market that netts to zero (yes nothing again).
Although it netts to zero that does not mean it is not dangerous. If any counter party collapses this house of cards becomes very unstable.
Bankers blow bubbles out of nothing, be that Central Bankers or otherwise.
A real economy involves real products and services that the financial sector just tries to skim money out of.
Why the East is rising and the West is falling.
Does Grant memorize all his little euphimisms or is he really THAT smart?
smarter than me, but thats what i call overthink...
Any Man who pays Homage to Henry Hazlitt, really is that Smart.....
Steady diet of nothing. Look behind curtain number three.
http://youtu.be/FBN2Z3yTKPo
I am just your ordinary stupid shithead these days, and be that as it may, I just don't give a shit these days. It's beer time all of the time anymore.
Here is what I have read:
No matter where you live, I'll bet that there have been hundreds of condos built in the center of your town recently. Over the last ten years there has been a 'planning revolution' across the US. Your commercial, industrial, and multi-residential land was rezoned to 'mixed use.' Nearly everything that got approvals for development was designed the same way: ground floor retail with two stories of residential above. Mixed use. Very hard to finance for construction, and very hard to manage since it has to have a high density of people in order to justify the retail. A lot of it is empty and most of the ground floor retail is empty too. High bankruptcy rate.
So what? Most of your towns provided funding and/or infrastructure development for these private projects. They used Redevelopment Agency funds. Your money. Specifically, your property taxes. Notice how there's very little money in your General Funds now, and most of that is going to pay Police and Fire? Your street lights are off, your parks are shaggy, your roads are pot-holed, your hospitals are closing. The money that should be used for these things is diverted into the Redevelopment Agency. It's the only agency in government that can float a bond without a vote of the people. And they did that, and now you're paying off those bonds for the next 45 years with your property taxes. Did you know that? And by the way, even if Redevelopment is ended, as in California, they still have to pay off existing debt--for 30 to 45 years.
So, what does this have to do with Agenda 21?
Redevelopment is a tool used to further the Agenda 21 vision of remaking America's cities. With redevelopment, cities have the right to take property by eminent domain---against the will of the property owner, and give it or sell it to a private developer. By declaring an area of town 'blighted' (and in some cities over 90% of the city area has been declared blighted) the property taxes in that area can be diverted away from the General Fund. This constriction of available funds is impoverishing the cities, forcing them to offer less and less services, and reducing your standard of living. They'll be telling you that it's better, however, since they've put in nice street lights and colored paving. The money gets redirected into the Redevelopment Agency and handed out to favored developers building low income housing and mixed use. Smart Growth. Cities have had thousands of condos built in the redevelopment areas and are telling you that you are terrible for wanting your own yard, for wanting privacy, for not wanting to be dictated to by a Condo Homeowner's Association Board, for being anti-social, for not going along to get along, for not moving into a cramped apartment downtown where they can use your property taxes for paying off that huge bond debt. But it's not working, and you don't want to move in there. So they have to make you. Read on.
Human habitation, as it is referred to now, is restricted to lands within the Urban Growth Boundaries of the city. Only certain building designs are permitted. Rural property is more and more restricted in what uses can be on it. Although counties say that they support agricultural uses, eating locally produced food, farmer's markets, etc, in fact there are so many regulations restricting water and land use (there are scenic corridors, inland rural corridors, baylands corridors, area plans, specific plans, redevelopment plans, huge fees, fines) that farmers are losing their lands altogether. County roads are not being paved. The push is for people to get off of the land, become more dependent, come into the cities. To get out of the suburbs and into the cities. Out of their private homes and into condos. Out of their private cars and onto their bikes.
Bikes. What does that have to do with it? I like to ride my bike and so do you. So what? Bicycle advocacy groups are very powerful now. Advocacy. A fancy word for lobbying, influencing, and maybe strong-arming the public and politicians. What's the conection with bike groups? National groups such as Complete Streets, Thunderhead Alliance, and others, have training programs teaching their members how to pressure for redevelopment, and training candidates for office. It's not just about bike lanes, it's about remaking cities and rural areas to the 'sustainable model'. High density urban development without parking for cars is the goal. This means that whole towns need to be demolished and rebuilt in the image of sustainable development. Bike groups are being used as the 'shock troops' for this plan.
What plan? We're losing our homes since this recession/depression began, and many of us could never afford those homes to begin with. We got cheap money, used whatever we had to squeak into those homes, and now some of us lost them. We were lured, indebted, and sunk. Whole neighborhoods are empty in some places. Some are being bulldozed. Cities cannot afford to extend services outside of their core areas. Slowly, people will not be able to afford single family homes. Will not be able to afford private cars. Will be more dependent. More restricted. More easily watched and monitored.
This plan is a whole life plan. It involves the educational system, the energy market, the transportation system, the governmental system, the health care system, food production, and more. The plan is to restrict your choices, limit your funds, narrow your freedoms, and take away your voice. One of the ways is by using the Delphi Technique to 'manufacture consensus.' Another is to infiltrate community groups or actually start neighborhood associations with hand-picked 'leaders'. Another is to groom and train future candidates for local offices. Another is to sponsor non-governmental groups that go into schools and train children. Another is to offer federal and private grants and funding for city programs that further the agenda. Another is to educate a new generation of land use planners to require New Urbanism. Another is to convert factories to other uses, introduce energy measures that penalize manufacturing, and set energy consumption goals to pre-1985 levels. Another is to allow unregulated immigration in order to lower standards of living and drain local resources.
All of this sounds unbelievable until you have had direct experience with it. You probably have, but unless you resisted it you won't know it's happening. That's why we'd like you to read our blog 'The Way We See It' (click here). Go to the section in the blog (look on the right side under Categories) called Our Story. You'll get a look at how two unsuspecting people fell into a snake pit and survived to tell about it.
- See more at: http://www.democratsagainstunagenda21.com/#sthash.lSL7wm9B.dpuf
+100
Hunger Games
yup...it's posts like that that keep me coming.
Excellent. Agenda-21 is a nasty, nasty thing.
Orwellian word memes like "Sustainability" were manufactured to create a mantra for a post-prosperity society to kick farmers and people off their land, the source of real wealth, for the NWO.
Using propaganda to make people want a 200 s.ft. apartment in a high rise stack building is ludicrous, but it has begun. The Entrepeneurs leading the way for "tiny houses" and apartments are being portrayed as the new Henry Fords of modern living.
When a city bars wells and septic systems around the city they are halting the spread of housing and forcing it to go more vertical. This increases urbanization, density, higher prices for housing, and higher tax revenue for the city and more control. This is creating City States -- like NYC, Chicago, LA, Seattle.
There is an undeclared war against the suburbs and rural folks.
I'd much rather listen to JR than to Grant.
Old Fart, Yeah do it!
What Mr Grant is overlooking or simply cannot say due to his stature is:
Counterfeit is not money. Therefore stealing cannot be banking. A is A.
What the article consistently identifies as a 2% rise in prices can also be said to be a loss of purchasing power by that same amount.
But that power to purchase is not lost. It is simply gained by the beneficiaries of counterfeiting.
As for the Bond dilemma, ZH has explained this very well and as far as I know either they are the originators of this identification or at least the first proliferators of this knowledge:
The identification of the falling rates is the demand for high quality collateral as evidenced in the overnight reverse repurchase agreements market, or shadow banking. One can search this site regarding ON RRPs and learn about this somewhat complex subject. The demand for high quality collateral is evidenced at the end of every quarter and well reported by ZH where ON RRPs are at record levels. Contrary to some ZH readers commentary, the ON RRP does not take low quality collateral off the books of banks but instead it adds high quality collateral to the banks.
http://newmonetarism.blogspot.com/2014/08/the-on-rrp-facility-and-post-liftoff.html
The House always wins.
Not so fast. Thanks for the link. I read it. It was written before this last record breaking quarter end ON RRP where it was exhibited that there is such a shortage of high quality collateral that all those who desparately need it to don their best apparel for the regulators did so at o.oo%. This is to say that the demand for collateral is so dire that there is little to stop the ON RRP from going negative and this would most likely brake the mechanism's purpose to strongarm rates and "lift off."
The House always wins when it assembles the odds in its favor (and there are willing walk-ins). This "House" will lose because it is indirectly assembling the odds against itself. Leverage is a bitch when it is called.
The world needs more men like your dad. Great story and idea; just please hide that stash somewhere else now, lol!
CB's few even know to ask what they do. Here on ZH we have jaundice eyes. the rest eyes wide shut. wars are financed with CB's printing, international mega banks are backstopped by CB's, globalization is enabled, puppet elected leaders with out a vision and no allegiance to the countries they head are installed, corruption flows from the fake money they provide. QE went to the powerful banks, we the people got the bill.
Americans (those that are left) your days are over. the whole immigration and off shoring policies of both our political parties have diluted you power at the voting booth. Standards of living and jobs are lost. Freedom is lost. Americans you are living with your enemies, they dispise you, the smarter ones fear you.
It's better to be feared than loved....
Our CB's have were never intended to be here for the common man. They consolidated their power 100 years ago and have been doing so ever since.
It has been a long range plan to debase the dollar, and while doing so, rape, pillage, plunder and steal everything in sight from U.S. citizens, and have us literally finance them...their wars...their corporations...their low or nonexistent tax rates... their eternal cycles of booms, from which they profit handsomely, and their busts, which they make even more by picking up hard assets for pennies on the dollar.
The central banks see themselves as "history makers," because their methods are tried and true... which is also why history has a tendency of repeating itself. They have controlled the presstituted media and politicians over the same period of time to herd the sheep.
But here at the pages of ZH, we have gotten an education about these things from the Tyler's, and the educated posters who have shared their knowledge and wisdom over the years. Particularly, JR., No Debt,TIS, Akak, HH, CD, Fonz, DCRB and countless others who have shared here.
Thanks all of you for my eye opening education here!
Silly
another church i'll never attend
Central bankers are thieves and work for the Red Shield gang.
Ah yes, it is just another case of worshipping an idol as any god will do as long as it distracts them from the only true God:
Psalms 96:5 For all the gods of the peoples are idols; But Jehovah made the heavens.
I agree with NidStyles in this statement:
"I honestly would like to see the Tylers start digging into UNESCO, Common Core, UN Agenda 21, and ICLEI. It would clairfy a lot of the things going on. As this stuff progresses, the image of what is to come is starting to take shape, and it's not a pretty sight IMO."
The image that is taking shape is called the "beast":
Revelation 13:1-6 And he stood upon the sand of the sea. And I saw a beast coming up out of the sea, having ten horns, and seven heads, and on his horns ten diadems, and upon his heads names of blasphemy. (2) And the beast which I saw was like unto a leopard, and his feet were as the feet of a bear, and his mouth as the mouth of a lion: and the dragon gave him his power, and his throne, and great authority. (3) And I saw one of his heads as though it had been smitten unto death; and his death-stroke was healed: and the whole earth wondered after the beast; (4) and they worshipped the dragon, because he gave his authority unto the beast; and they worshipped the beast, saying, Who is like unto the beast? And who is able to war with him? (5) and there was given to him a mouth speaking great things and blasphemies; and there was given to him authority to continue forty and two months. (6) And he opened his mouth for blasphemies against God, to blaspheme his name, and his tabernacle, even them that dwell in the heaven.
This 42 month period is only about 4 1/2 years away so please take time to prepare in your heart not to fall for thier lies:
Revelation 20:4-6 And I saw thrones, and they sat upon them, and judgment was given unto them: and I saw the souls of them that had been beheaded for the testimony of Jesus, and for the word of God, and such as worshipped not the beast, neither his image, and received not the mark upon their forehead and upon their hand; and they lived, and reigned with Christ a thousand years. (5) The rest of the dead lived not until the thousand years should be finished. This is the first resurrection. (6) Blessed and holy is he that hath part in the first resurrection: over these the second death hath no power; but they shall be priests of God and of Christ, and shall reign with him a thousand years.
The recent drum beats and flames of war have distracted many people from focusing on the economy. The markets are extended beyond beyond, all this comes at a time when the IMF is calling for more QE. It seems this might be a good time to review the reasons this is economically unsound and a bad idea while markets are setting new record highs and economies continue to struggle.
The policies of the last six years have yet to produce the desired and expected results promised. As a consolation many economist, bankers, and those who have benefited greatly tell us we would be in far worse shape if we had not taken this course. Now it seems Central Banks and the IMF are clueless on how to proceed and a policy going forward. More on the lack of a clear path in the article below.
http://brucewilds.blogspot.com/2014/09/central-banks-and-imf-clueless-on...
AdvancingTime
I much doubt they are clueless. I think they are, rather, exceptionally prescient and singing the right tune (things are getting better [for us]) to their audience (media and government) while raking in their profits hand-over-fist. The clueless are those who are being swindled in the meantime , who probably will remain clueless so the swindle will go on and on, with government approval because government is part of the free-shit army.
They have a clear path.
Keep doing the only thing they can do. Do what they're doing until people finally repudiate the dollar and use their own medium of exchange.
Chances are they will manufacture a 'crisis', a war or maybe a pandemic to cover the collapse of debt created 'money' to start a 'new' cash free 'credits' system.
Total control from cradle to grave.
It's exactly what I would do if I was a psychopathic control freak.
Complain?
Boop. Shut off your money. Instant outlaw. Look for people dumpster diving for food and round them up. Most would turn themselves in for re-education.
That's my happy face doom scenario.
I have a much grimmer one too but it's too depressing for a nice Sunday. The nice part about that one is that you'll never be jobless...ever.
This god (the Federal Reserve) is a thief.
And thieves do not give, they take.
And I don’t call taking away the miracle of the American system and destroying the future for Americans giving them something that they want.
You are mistaken about what Americans want and what the money-changers have provided; they have provided a hell on earth that’s coming to this country and, thankfully, Americans who have known freedom are not going to lie down and accept servitude.
How do I know? In order to bring the country to the edge of this political and economic abyss, the tyrants had to open America’s borders with carrots of welfare to get their voting “majority.” This “majority” will be the first to flee when the trouble begins.
how can the stock market grow and prices for goods grow when wages are flat or in decline. This makes absolutely zero sense. Sure the top 10 percent are earning more for what reason I have no idea. So where the hell is the money coming from other than lower interest rates and QE? This cannot be banks are profitting just as well or better than they were before the peak. Inflated equity prices are not the answer. This creates more problems.
The key question is whether stawk prices are rising faster than peanut butter, rice, and beans. I suspect they are presently increasing at more or less the same rate, with an increasing subsidy passing from the Fedcoats to those who dont own stawks but require food (via EBT/housing voucher/disability . . .). At some future point (which is coming as sure as X-mas), the government will no longer be able to afford all the transfer payments. . . unless they take more from the 1%ers. Times are interesting presently, but they are going to become tough.
Another key question is whether wages are rising along with inflation. Nope.
Pterodactylus is a genus of pterosaurs
Its not a bank, Jim.
Its not a bank, Jim.
Its not a bank, Jim.
i've wondered about this, in the 2008 crash, home owners took a double wammy, stock-market drop, and a housing devalueation.
now with the hft's, if your pretty much all in the stock-market, their going to pound 90% of co.'s very hard, and very fast, they know the true valueation.