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Deutsche Bank: "People Are Talking About Helicopter Money And Debt Cancellation Being The End Game"
If Deutsche Bank's Jim Reid is right, what just took place overnight from the PBOC is just a pleasant start and an enjoyable dress rehearsal of what is about to take place. Where it ends is precisely where we have said it would ever since QE1 was announced in March 2009.
I had a few meetings yesterday and one of the biggest surprises I had was that for the first time in a long time people were talking about helicopter money and debt cancellation being the end game. This was a major theme of our 2013 long-term study but one that we've struggled to get much traction with over the last year. Perhaps there's an increasing weariness that more QE globally whilst inevitable, is a blunt growth tool and that stopping it will be extremely difficult (let alone reversing it) without a positive growth shock. Maybe Japan's move this week in delaying the further sales tax increase and the economy's adverse reaction to the first increase reminds the market how difficult it might be to actually pay the bills with real money. As we said earlier this week it could be that the last few days marks the first steps towards monetization. Anyway, this is not something for today or tomorrow but the fact that different clients brought it up independently of each other makes me think that's its starting to get into people's thoughts.
Indeed it is, as we warned last September in "Bernanke's Helicopter Is Warming Up" and yet everyone will be shocked, shocked, when the playbook that was clearly revealed by Ben Bernanke himself in 2002 is finally implemented:
... A broad-based tax cut, for example, accommodated by a program of open-market purchases to alleviate any tendency for interest rates to increase, would almost certainly be an effective stimulant to consumption and hence to prices. Even if households decided not to increase consumption but instead re-balanced their portfolios by using their extra cash to acquire real and financial assets, the resulting increase in asset values would lower the cost of capital and improve the balance sheet positions of potential borrowers. A money-financed tax cut is essentially equivalent to Milton Friedman's famous "helicopter drop" of money
- Ben Bernanke, Deflation: Making Sure "It" Doesn't Happen Here, November 21, 2002
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"Where is all this hate coming from?"
They earn it!
They Earn it the old fashioned way... by living with complainers and perfectionists... or by watching MSM News. being Ironic here...
"There has never been more access to knowledge. There has never been greater freedom of communication. Where is all this hate coming from?"
More than hate (of which there is some, though not particularly more than I see on BI or Yahoo, for example), what I see on this site is gallows humor. This is, after all, a site based around the bearish perspective.
As to access to knowledge and freedom of communication, there has been a strong cost associated with both of these: propaganda. There is knowledge out there to be gained, yes, and there are means of rapid communication, but there are now so many lies flooding all communication channels that finding real "knowledge" (which is to say accurate knowledge) is challenging to say the least.
The short answer to your question is that the anger you see on this site is from people who don't like liars, and particularly don't like professional liars who are compensated for their lies. Don't confuse anger and hate, though. Keep in mind the difference. There will always be haters, who are fairly useless, but there are mountain of fantastic insights that have entered the world from the tongues of angry writers.
Hatred of murder, theft, corruption, graft, ignorance and lies comes naturally to honest men. Says quite a bit about you, dunnit?
Yeah, US Code Title 18, Racketeering, RICO Violations.
- Merry-Go-Round Aluminum
- Gold & Silver Price Fixing
- ISDA Fix
- LIBOR Fixing
- Sub-Prime Mortgages
- Sub-Prime Mortgages Ninja Foreclosures
- HFT Stock Trading
- Algo Trading
- Front Running Trading
- Inside Info Trading
- Financial Disclosure Omissions, maybe GAAP Rules Omissions, maybe off Balance Sheet Transaction, Shell Companies, Off-Shore Headquarters for Tax Avoidance, Off Shore Revenues
- Relationships between FED & Banks, or Banks & Investors, or Corporations & Investors
But I Probably omitted much Techniques or Tools.
Well George W. Bush said:
- We are in a Global War on Terror
- We have Domestic Threats
- We must Take away Individual Rights to fight the Terror
- MSM Transmitted this Fear of Attacks in USA to the US People as the Tools of Government
- He had no Plan for the End of War, in fact we inherited Endless Domestic Threats, DHS, TSA, Death Lists, Rendition, Torture, and Endless War from G.W.B.
And Movies & Media reflect the state of permanent war.
What is the Question about this?
Guns, God, Grace, Gold, Grain Liquor, and Grandma
Sorry I'm so hateful, I promise to force a smile if I can borrow your K-Y.
Kant:
When you reach our Nirvana, I'll give you a recipe:
A third of a bottle you put soap powder, you put two thirds gasoline, rattles as well.
Put a piece of cloth, rattles again, sets fire to the cloth and throw far.
Know how to call it?
Molotov Cocktail!
hehe.
If you hand out more money the 0.1% will simply increase the rent for everything and eventually soak up all the handout. So it all ends up in the pockets of the 0.1% again,
Exactly. Which is why a trickle up solution will work.
Whereas trickle down does not.
See my post below.
YeeeeeeeHaaaaaaaa. They're going up my FAFSA.
sounds to me like wishful fairy tale. People and herds get delusional during periods of extreme stress. To allow debt forgiveness is both un-capitalistic and simply economic suicide.
Just becoz you hear alot of it doesn't make it the end game or the final outcome. Hell, mom's always talk about Beckham and how they want to get in his pants, BUT DO THEY?
"people were talking about helicopter money and debt cancellation being the end game. "
Wow! It's Like "Let's Make a Deal" with Monty Hall, or is it Monty Python?
If everyone's broke then what difference would it make? It will probably happen just for the fact that those that stayed out of debt will need to be punished.
We need a completely new system not one based on continually fucking each other. Of course to do that we need to remove some 'problems' from the planet.
But if we aren't continually fucking each other how will we remain distracted?
We wait for the Robot Sex Dolls?
Hang in there, the wait is almost over.
http://www.dailymail.co.uk/news/article-2841273/The-hyper-real-robots-replace-receptionists-pop-stars-sex-dolls-Unnervingly-human-androids-coming-future-near-you.html
Everybody think about that for a second. How will the "bills" (which is debt) be repaid with "real money" (which is debt).
Indeed.
its not until defaults happen in fixed & people don't get their principal back that they'll realize that yield chase they were seeking was not worth the risk for 5+% in junk they were gunning after. unfortunately, thats what its looking like its gonna take for rates to pop because there will be a tidal wave of sell orders when people freak out at the sight of the principal being erased.
Debt cancellation? I don't think so. Which debt? Who would decide? What qualifies? Treasuries, pensions, mortgages, car payments, school loans, credit cards, bonds,,,?
But, on the other hand, there are way more debts and various promises that most certainly won't be paid or delivered. Any debt is someone else's asset, and you can bet that person will fight tooth and nail to keep the asset.
Many realize that there will be defaults and unmet promises, but no one has an answer except delay and pretend. Eventually, and it could be a long time from now, there will be defaults.
study senior vs junior and secured vs. unsecured
+1 T-NUTZ
Tell me, will that debt cancelation be equitable?
Moral hazard is a bitch.
portfolio insurance and counterparty redux
Back in the reality, the debt can’t be canceled unless we go along with a massive euthanization program to send the non-producers back to Jesus.
I'm not sure who the dirty neggar was but I offer a clear, concise example of the free market system.
“The abandonment of residents of St. Rita's Nursing Home in Louisiana's St. Bernard Parish was cited as an example of what can happen to the elderly during a disaster. The 35 old folks "left to die" as Katrina approached was "the most disgraceful" episode in all the tragedies on the Gulf Coast, said Sen. Gordon Smith, R-Ore., chairman of the Special Committee on Aging.”
Should I get into lots of debt now? If so will the Government cancel it?
Please advise before I buy a mansion and fleet of cars.
It won't be your debt that they are cancelling. You are a slave and the money changers like it that way.
Of course the Fed will cancel the US govt debt it holds. It's the only answer when interest rates start to go up and the US govt can't afford the debt payments. Other holders of US govt debt wouldn't volunteer.
Future creditors to the US govt would not want debt denominated in rapidly depreciating dollars, but in other rapidly appreciating currencies.
Interest collected by the FED on the US Treasuries it holds is returned to the US Treasury.
So long as the FED holds the Treasuries it purchased via QE, the interest on them costs the US Treasury nothing.
itstippy- I'm glad you pointed that out, because I was just about to. Thanks. It needed to be said. That is the one thing that could drag this game out for a long time.
debt forgiveness for piigs and moar helicopter drops for wall street is a given
"Let us never tolerate outrageous conspiracy theories..." - A Nobel Peace Prize loser
''Free money and debt cancellation are the endgame'.....yea anyone actually believing that is a mook.
When the Fed prints money and buys TBonds it is effectively cancelled, so there's nothing hypothetical about it. They don't officially cancel so Treasury still taxes America and pays the Fed! Now, that's curious, isn't it? I suppose needing to pay the bogus interest to the Fed is still a minor constraint on Treasury activities, but shit, they just borrow more to pretend to pay the Fed, so maybe it would be a mercy to make the cancellation fully official. And, shhhh, don't tell Obama, or he'll just eliminate the debt ceiling and no longer need Congress for a damn thing. Oh wait, CONGRESS already eliminated the debt ceiling! Why do we even pay those 535 fools, and their tens of thousands of staffers, they're not DOING anything.
I just don't believe that it can be done. If they try a system of forgiveness it will end up with huge fraud.
It cuts at the very heart of our system to say that we're going to give away free money or wipe the slate clean. This will unleash moral hazard like never before, people will all be expecting the next debt forgiveness so they'll just run up more debts than the last time.
I don't see this as being the end game, it's too complicated to put in place and that doesn't even address the legal authority to do any of it.
print the money to buy all outstanding US treasuries and then stop QE - better than endless QE, but still evil. all the personal and biz debt to banks will never be forgiven.
I can't believe some ZH-ers have witnessed what has gone on and comment that debt can't be forgiven. The FSA is a large army let's say it is the 47% that don't pay Federal Income tax. QE has taken care of the .1% and you might argue that it helped the top 10%. That leaves 43% of people going to work each day and paying for stuff and losing year after year after year. At some point they are going to get pissed off. But what if the politicians ask these suckers if they would agree to pay 10% more in taxes "temporarily" if their debt was forgiven or some other scheme where these people sell their sould and the debt is forgiven. Who's going to vote against it?
WORTHLESS.. this will only prolong the BS
The FED BANK system is dieing of FIAT Siphilis !!
its a vile system of control and it has to be destroyed along with its management
They have already taken everything from me... except my shotgun. If you want it come and get it.
Use it to shoot down the copter...
My esteemed colleagues, I wonder why ZH still posts those articles about nothing happening.
The Moneychangers control perfectly now the supply of money (in direct opposition to actual wealth) and will do anything they want with what is basically data in their owned and operated computers.
There`s not a sliver of truth or worth in anything they publish about their maneouvering, as Hayabusa rightly remarked its not about so-called money but exclusively about power.
Everything else is smoke and mirrors, lies destinied either for sheeple or for some more-or-less awakened folks to lose their time with byzantine, and ultimately senseless calculations and hopes.
In the end the only thing that will prevail will be the simple equation;
How many soldiers will want to die for banksters , and how many normal people are ready to die to destroy them?
In my humble opinion, nothing else matters.
When they drafted young men to fight and die in WW1, these young men didn't have a choice then. Many knew it was a stupid war over something stupid. The opposition to the war was quickly silenced and we only know of a few prominent and outspoken critics today. The bankers wanted WW1 and WW2. Who are the bankers? The bankers were and still are a few elite (primarily Jewish) families that have ruled and contolled politics including war efforts for a couple centuries now.
So, do you think that knowing this already will keep future young men and women from being drafted again and again and again to fight another bankers war?
Unless you can trade your sons and daughters lives for gold and silver, you will lose them.
By the time, the gunfire starts there will be no gold or silver to buy and the value will be much higher than it is today.
Gold and silver is life insurance in many more ways than this.
One need not entertain the notion that this is a matter of 'wants' when in fact it happens to be a matter of mathematics. Systematized endemic corruption in Economics proper will eventually bring the entire system of economics into disrepute and an end game that all closed systems eventually find themselves in when fairness and equity are denied to
participants. Irrationality all of a sudden switches to that which is rational
for market participants and they migrate out of corrupt markets entirely.
There are certain falsehoods operating in the current world market that serve to limit the true capacity of possible market achievement. The first is that the system is on sound fundamentals once again. Nothing has changed since 2008, and everything has gotten worse market fundamental wise. The second falsehood is that it is trending towards getting better. Clearly, every town and city in America has 'for lease' signs dotting the entire North American continent which does not bode well for any prediction of improvement in underlying fundamentals. The underlying fundamentals are actually bringing the system down and the Banksters are actually losing ground and money hand over fist. They have inflated their own worth to the same point and beyond what Richard Fuld did to Lehamn Bros before they crashed. Only time is significant in terms of that last variable determinant we should bother focusing on. When the system implodes the people in that system automatically implode along with that system. The masses will act as a group and individuate into various groupings when the system finally blows. Individuality will cease to be a predictor of outcome and groups will rage like they are throughout Mexico right now. This is why Marx
saw the final battle with capitalism as being an obvious conclusion of multitudes of people pitted against a ruling elite that could not stand up to the shear numbers of the multitudes. In brief, the 99% vs. 1% dialectic argument.
Aariel:
We waited a Putin "made in Usa."
hehe.
Helicopter money so we can go an piss that up the wall to and be right back in a few years to do it all over again.
or ...
Debt cancellation where people with little to no debt can send a bill to their favorite central banker claiming for the debt they never racked up.
The former is more of the same, choose the latter and you wiped out the only economic mechanism because 100% of the population just became irresponsible financially because it pays to do so and repeat the process ad infinitum -->> goes to hyperinflation with people spending anything and everything who needs savings anymore.
Hell who needs economics anymore, just give it to me and not paying it back okay!
You couldn't write a more funnier script
How much gold or silver do these young Lambo and Bentley driving fucks from China have in their possession?
Judging by their spending habits, I would say they don't collect anything of value.
Their lavish and obscene lifestyles are reminiscent of the Roaring Twenties. They buit some cool cars then as well that were driven around by the hoy polloi of that time.
We all know what came next and I am 100% certain that the same will happen again.
Why?
Because human nature is human nature. We breathe, we eat, we drink, we sleep, we shit, we piss and we fuck around. We fight, we store, we try to get ahead and we progress a little over the course of millenia.
As far as financial planning goes or the aspiration to create a better world, we sure talk alot but in the end our human nature trumps all talk.
Gold is still on sale!
As long as we're allowed and able to convert paper into metals, we get a deal.
Walküre:
My children are in the fourth year Civil Engineering in Santos-SP-Brazil.
The newest works as an intern at the Port of Santos.
He has a Chinese boss.
The Chinese leader made my son's expertise in the US, when he returned to China gave evidence, was not accepted to work at Chinese ports.
Course to no avail in the US.
Listen well I'm passing this information is a serious thing.
Quality control in China is also earned when the guy back.
hehe.
Silly hedgers, its already cancelled...... this article is like a light comming on for me.... If the fed has bought all of those treasuries, can never sell them, and only can roll them.... That my friends is cancellation. put a negative interest rate on them, and they are gone in a few thousand years.... Easy. In the mean time roll out a new fiat currency called the Obolabuck TM(pending), and its all fixed..... The US just needs QE 4 to buy up the rest of the debt....
Is “debt cancellation… the end game”?
Of course it is. There are several factors most people overlook regarding governmental debt. For example, when governments issue debt instruments, they automatically create the necessity to impose taxes sometime in the future to redeem that debt.
And, guess what? It is impossible to impose or collect such taxes practically or constitutionally.
One, a major constitutional principle is the right of consent, which mandates that no tax can be imposed but those that receive the consent of those taxed. Now, when one group of men, or a generation of tax/debt consumers, decide to borrow benefits/privileges from government, it constitutes an imposition of taxes on other groups of men, or following generations of tax payers. In such a case, it is impossible the intended taxpayers can give their consent to such taxes; especially if they are not even born when the tax was made necessary.
Further, regarding practical considerations, since governmental debt is a form of financial cannibalization, such debt must be paid BEFORE power passes from the taxing generation; for following generations will not tax themselves for the benefit of those who so badly used their children and grandchildren.
This financial cannibalization has been occurring for almost 150 years now, and, what did I write… taxes made necessary by such debt can neither be practically nor constitutionally imposed or collected. (Bad News… and Anatomy of a General Plunder, p1)
Again, of course it should be repudiated; nothing else approaches the ideal of justice.
But, HOW can we do it?
Perhaps we could employ a historically-proven method for the purpose. Americans have this power; but they REFUSE to use it.
There are three main reasons for this failure: one is that Americans have no knowledge of such power; the second, they’ve been herded into a kind of impotent stupor by medication and indoctrination; the third, that they aid, benefit or were complicit in such evil.
There’s a remedy for all three of these failures: 1) learn, and use, the law and procedures of redress (full article); 2) follow a health regimen that has REDUCED – not slowed – my biological age 50 years (it also un-does the damage done by medication and indoctrination); and, 3) see number one.
This health regimen has given me the coordination, health and physical condition of a professional athlete around the age of 20; I’m 70 years of age (for validation, video and webpage – each leads to the other).
Without the knowledge of historically-proven facts and methods I suggest, Americans would not know what to aim at, nor how to achieve it.
Marketing your own helicopter...huh ?
Hi Clown,
Not quite... I'm marketing the only historically-proven method by which to hold men accountable for what they have done. This is a conclusion I arrived at after reading 30,000 to 50,000 pages of original and un-sanitized law and history books in search of men and eras that advanced the cause of man.
Go ahead, have your lawyers and accountants review my findings; so far, they've passed every test.
A man would be a fool not to market such results.
With a nation that has squandered the future of its off-spring for the next hundred generations, what are you doing?
Paradoxically, the end game will just be a means to one of its components, which has not been mentionned yet, as far as I know.
Because it is a triangle : free money, debt forgiveness …and confiscation of the real wealth. Or, in more acceptable terms, the collectivization of wealth, which is one of the components of the equation, necessary to "keep things balanced".
And here lies the actual prize : gold, PM, ultimately real estate and everything that's not IOU. All other reasons are undiluted bull droppings.
And then *possession* and/or sale of such assets will be the indication that something is wrong with you.
...And then will come the (real) end, as they say. Slavery.
I own my house outright and paid cash for it in 09. I just paid 2015 property taxes. Looks to me like real estate is also an IOU and that I don't own it. I spent 2 years in property tax free Grand Cayman. Now that's a jurisdiction where real estate is like gold and is not taxed.
Damn. Read this earlier.
.
Helicopter money go straight to the banksters. The European "emperor" did it again:
http://failedevolution.blogspot.gr/2014/09/the-emperor-spoken-again.html
And this is the real reason:
"Banksters: ... if more money were going to the market, then they would lose much of their value and we would lose profits because we are the ones who print money! That's why we invented inflation, to keep governments in fear and directing money back to us through the so-called Quantitative Easing Policies. [...] When money start to spread in the society 'above acceptable limits', we create financial crises to take them back. We dictate governments to take measures and apply austerity policies directing money back to us. We keep money valuable to everyone and secure our profits."
http://failedevolution.blogspot.gr/2013/12/an-imaginary-dialogue-between...
cancellation of a system of fraud debt creation
could be a good thing, no? hmmm.
trouble in paradise?
Debt forgiveness is the only way to take the economy out of the crisis it is stuck with. Here is the plan:
1- Forgive y% of the debt of those making less than x$ p/a (y and x will have to be very carefully chosen). Make sure y and x are not constant, but y increases progressively as annual income gets smaller. Make sure you cap x at an appropriate level.
2-Bankrupt the banks that are insolvent after the jubilee, wipe out all shareholders
3-Jail the bankers engaged in fraud, and predatory lending
4-Collect all bankrupt banks under a big bank (Just like Sweden did in early 1990s)
5-Recapitalize this bank with as much capital as it needs, and get ownership
6-Make sure this big national bank and others operate under strict lending restrictions, make sure retail banking activity and investment banking activity are separated never to be combined again.
7-Keep the big bank until the government gets back all the money it invested to recapitalize the insolvent big bank.
8 - Break this big bank into much smaller banks and privatize
9- Make sure these small banks are not allowed to merge and form big banks so that the over lending process, fraud and TBTF does not start from the beginning.
Well I forgot, 0) Elect a government not owned by bankers!!!
Yeh...another guy had a similar plan to yours.... but he ended up having a problem in his bath tub with a nailgun.
using the Carlin meme suicided= jumped =nailguns = tubbed now get with the program of softer language b4 ya hurt someones feelwings
--------------------> Forward into the fucking void
Can't work. As long as the predators-that-be are in charge of the "justice system", plans are utterly and completely worthless, and will be subverted at every turn.
The only solution is to eliminate fiat and fractional reserve practices. With no way to "create money out of thin air", the system will automatically balance itself.
At no point did you mention fractional reserves. So in 10 years you'll be back again exactly where we are now.
Viva La Americans. The end game will be the destruction of cronism. Bankers will go back to being tools and not the end game. paying some 25 year old $10 Million a year to trade debt in a rigged game...is death! We need to jail or get rid of bankers! Money is a means not an ends. Wall Street treats money and ends!
“debt cancellation”
This country has been in debt since the very beginning.
Well, technically Jackson had the debt paid off for two years beginning Jan 8, 1835.
Yet another fine article about the 'end of days', or, at least, the 'end of markets.'
Every day four or five stories or more, brilliantly told, recounting similar events all with the same ending, sometimes charming, sometimes sarcastic. And all with the same message. (Pushing the outbreak of Cold War II and it's daily skirmishes below the fold.)
All these articles remind me of a waggish comment about the great Baroque composer, Antonio Vivaldi.
"Vivaldi did not write 500 concertos. He wrote the same concero 500 times."
Time to get into the paper recycling business.
All that debt can be made into toilet paper.
That's how to wipe out those trillions of dollars.
leaves are softer barring ofcourse the occaisional rash
oh and worth just as much too
Because the more savvy people at the realize the demographics, debt levels, and energy supplies will inevitably capacize the ship over (in the US is the early-mid 2020s if you look at the demographic tables and budget assumptions especially at local state levels; already too long for Japan and Europe)and better to have an orlderly process where contained destruction than that leads to another global war and opens Pandora's Box to a host of unpredictable outcomes including their own viability & wealth.
In every industrialized society in the world, we are devoting the lion's share of our resourcces to the most unproductive members of society (elderly) instead of children/youth. Additionally, we are not even keeping up with the physical requirements of current infrastructure let alone necessary future investments. Suicide by the society and stupidity on a grand scale but no one really wants to talk brass tacks about it.
My bet is that the debt jubiliation will play out quite differently from country to country but what it generally will be is the issue of the old vs everybody else. You see it already playing out in US politics.
Boomer-heavy audience on here always hates to hear this. Just like going to the gym during the middle of the day and seeing old people on the eclipitals watching Fox and ranting. Try having a reasonable conversation about this topic and they go nuts. Disagreeable bunch of selfish a-holes for the most part regardless of party affliation who have been disasterous since assuming political power in '92.
Fourth turning says the next generation will solve this in ways not pleasing to the greedy boomers. They really have no idea how miserable they've treated their children's children. But they will be the richest people in the graveyard.
Very true
You see more seniors packing heat in nursing homes and 'early bird' restaurants than ever before.
Just when is this end of days anyhoo I'm tired of marking days off on my calendar and then having to start all over agian
"it could be that the last few days marks the first steps towards monetization."
The western economies have accumulated such debt burdens, both public, private and corporate, that we know for fact that they can never be serviced, let alone paid off using real money, acquired by wealth creation in real ecnomic growth and real profits, real wages. NOPE! That horse left the barn. The Western world has jumped the shark of debt long ago, even now the authorities cry out for consumers to borrow and spend, for families to borrow and buy houses, to take dodgy Car loans, to borrow their kids education money, governments seek to borrow for everything, from employee benefits, to hand outs to politically connected corporations in local development schemes. Botton line everywhere is debt, debt and more debt. It's all about borrowing. It's all about "wealth effect" equity bubbles based on ZIRP.
Something wicked is brewing. In the west, the USA and UK lead the way, and the EU is still following. The USA is acting in the international arena with what seems like almost desperate hurry. Racing across the globe stoking conflicts and threatening more. Calling for military spending and saying war is on the table from Iran, Syria, Russia, Ukraine, the South China Sea and across all of the Middle East. The US is deperate for conflicts to grow and explode into wars. What intelligent watchers of US foreign policy are beginning to suggest is that a real, inevitable economic crisis, even collapse, along with social breakdown, is close at hand. The debt bubble has run it's course and collapse of western banking, government and private debt could explode the entire system. What all governments do when an economic collapse faces them, is to turn to war, war allows for government to use emergency powers, and force the public to accept any and all measures as patriotic necessities for the nations war effort.
That is why some people, me included, see America's rush to spread instability and war as a sign of economic collapse that the wars are meant to run cover for. There is little other reason to have politicians calling for war with a nuclear power in Russia. For others to demand Iran surrender now or face the attack of Israel. The whole show is going to blow up due to uncontrolled debts in the west and money printing which is failing to solve the problems. I see, bailouts of the big boys, I see free money handed out by one vehicle or another, and most of all I see war, and the full police state that comes with it. Government will dictate all then. Financial matters will be decided in Washington by governemnt, and all civil rights, and free market rules will be ended.
Jack, '
Your truth spoken has put my vision on the rack,
It is good to know that you have my back.
Every turn of the wheel brings my eyes out of the sockets,
As all the bankers have their hands in my pockets.
What to do, what to do about this stew?
Row, row your boat,
Merrily, merrily, merrily, life is but a dream.
+1 Jack. When you change money.....it changes EVERYTHING: morals, incentives, rule of law, perceptions, accountability, values, carelessness, creates indifference, reduces motivation, productivity, and security, dilutes collateral, crushes savers, loss of livlihoods (permanent), enhances and perpetuates state power over the individual - destroys personal and economic freedom. Certainly not an exhaustive list - but its a start. I wish Krugman could demonstate to me that I am wrong. peace man.
Good comments Jack. I mostly agree with your analysis, but despite all evidence to the contrary I try to stay optimistic. Miracles do happen.
http://news.yahoo.com/window-washer-survives-11-story-fall-california-19...
for a banker to admit the economy works from the bottom up and not the top down is like having to admit to your wife she is right after 3 hours of nagging.
money floats. it does not sink. it doesn't trickle down except in a stream of urine on top of your head. a wealthy middle class made everyone wealthy. these dumbasses thought they could bypass the middle class and put the fed and tax money directly into their pockets to make themselves richer. so now they are worried thier fortunes are in jeopardy because the middle class has no money! that's rich! lol!
a good start would be to exempt the first 50000 dollars of income for a family of 4.
"Even households decided not to increase consumption but instead re-balanced their portfolios by using their extra cash to acquire real and financial assets [...]"
Am I the only one here who is wondering how the fuck this false dichotomy of A or B only choices completely avoids reality. Most average americans, if faced with a situation where Fed Policy put extra cash in their pocket would surely use that cash to PAY DOWN DEBT (something that is perversely \ ironically detrimental to our fucked-in-the-head "market" system) and NEITHER to consume more, or "rebalance their portfolios". GTFO of here, Bernanke. Jesus.
Debt cancellation is when the slave traders buy you from the people who owe them money. Then you are property, and no longer have a credit rating. Instead you get a valuation, that can change at any time.
o that, that happened in the 1910's~ 30s when they founded the federal reserve owned by private investors.
What do you think they mean by "the full faith and credit of the United States?"
The United States is a Tax Farm.
A wealth farm
People produce the wealth (slaves), govt and banks through fraud and what they call "law" harvest the wealth and transfer it to the owners.
Why do you think Obama wants amnesty?
Meet your replacements, a more fertile flock of cattle, more willing to work for lower wages, easier to exploit, and o look since now you are a legalized illegal alien, we can tax you....
People are talking about debt.
Debt = money
... once people start talking about money and especially that money being worthless, the time to prepare has passed.
not a thing any bankster or central bankster could do then to persuade "people" otherwise
how much did you make today? was it worth it? how much is that still buying? money sucks, it doesn't buy much anymore.
when you see young Chinese students driving $500,000 cars and throwing money around, do you still bother working?
money is no object, it is worthless
don't sell yourselves too cheap
the parasitic class is laughing at you, working away to make ends meet and paying your bills
why bother? they steal, they accumulate
their lifestyles are a reflection of how they disregard you and yours and how they regard themselves
there are more guns than people in this country
what is everyone waiting for? an invitation?
<< Debt == Money for fools
<< Gold == Money
Oh sure when you consider giving money to the people you have to think about moral hazzard and all this hocus pocus making us toil and labor like ants. but for the banksters? Shit just print money and hand it to them.
Is the word "moral" still in the dictionary -- still in popular use? Does it convey anything to anyone? What exactly, if you think it's still in there?
I'm sorry, the moral hazard card was already played when we bailed out banks to the tune of 10's of Trillions of Dollars.
There is no legitimate moral argument anymore, that went out the window when the banks committed the crime of the century and became 2b2f 2b2j and 2 fucking rich to care.
These banks should of failed, and their paper assets and claims should have been shredded, because they were all based and funded on counterfeit credit.
+1 yup. And now they have all the cash in the world to buy up idle assets that nobody else can afford. Beautiful thing. "its a big club and we aint in it."
If this is to make any sense or have any positive impact at all, the "helicopter" money will be small business loans with easy terms that are given on a local level - That is, if restoring commerce is America is the goal. Giving easy term loans to individuals will just end in their paying all their bills, living well and then ending up with a huge bill, no job and bad credit. Govt giving each individual a check would help pay bills, but going to Walmart and making China's economy strong is not what I would want to see.
Whoever decided China should be given the lead role really should have their head examined. Investors in a casino type setting may be ~thrilled~ with new ventures but in the end, it's a killer of the Middle Class and all that we have come to know and live about living (hot showers, 3 meals and a warm bed).
A wise move would be to get the people out of positions that have been in them for a decade which this House of Cards was constructed. They leave a bad taste in everyone's mouths but the politicians ($$).
If you all want to see what I do, this is Dow quarterly log detrended.
It adjusts and is not a lock this far in advance, call it a flavor of what's to come.
I work with monthly and weekly to get closer, this is quarterly a broad brush.
http://i1129.photobucket.com/albums/m504/mtimothyj/Dow112114_zps9e6b3c25...
Well the collapse in consumption, gasoline and energy consumption, corporate tax receipts,
employment from labor force participation,
tells them they are in the end game, their tax base cannibalized.
Snake ate its own tail.
Hegemony is enforced, it has to be 100% or nothing.
To impose global fiat currency hegemony is global war, does someone have a death star or more
circling the planet?
And then they have putin tossing monkey wrenches in behind the Oz curtain.
The swiss base income proposition is quite telling they are in the last spiral down the toilet.
So they give everyone a base income and tax it, shut down conventional welfare, it may turn out
cheaper.
Incentivises marriage to double household income. Reignites household formation.
But ultimately the inflation takes them all lower than from where they started.
In US, it puts many into alternative min tax.
This base income in Switzerland is not even newsworthy. It's 100.000 lefties that signed a paper. That's enough for proposing a bill in Switzerland, so they proposed a bill. It'd only be news if Parliment actually approves it. BTW They had 1.000.000 signatures on minimum wage referendum and it lost with abou 30% "yes". It's just that this country has real democracy. You don't choose between "war, stimulus, gaymarriage" or "war, stimulus, no gaymarriage" but can propose anything with a decent popular movement. Sometimes those propositions are kooky.
After 6 years from the GFC and massive QEs, there is still this inertia in entertaining further tinkers of the economy.
The "as is" situation is already one of rigged markets with price discovery gone awry across paper markets. Any further tinkers are meant to protect/preserve the Predators.
The preys still crying and dancing around traps instead of realising that the situation is one of survival. Survival means you get out of all papers floating on a sea of fiat money anchored on debt. The preys still want to play in these desperate moves of the Preddators and continue to be smoked daily by the plethora of useless spins.
Dumb dreaming for the return of days of a real free market is GONE. Don't go for panacea and trust these crony oligarpolistic structures and be in physicals far away from their sight..
Look at markets thru the eyes of traders who have their skins in the games.
Now I realize why PMs are hated to much by money changers. Once you own PMs no interest can be extracted from them. They are God's chosen money.
I feel like a cheap whore when I go to work every day. There is no respect at all for the dollars I work for.
So if jubilee is coming, rack up as much debt as possible asap?
While they write off the debt they should also write off some useless politicians, bankers and economists.
Hah! It is their debt that will be cancelled, not ours.
I seem to have lost my way. Can somebody here point me in the direction of the tunnel? The one with the light at the other end of it.
Silvio Gesell.
Or
Here's the UK parliament debating money creation for the first time in 170 years:
https://www.youtube.com/watch?v=EBSlSUIT-KM&list=UU82By0y-2ZdjigNu5bWY4LQ
Good link.
Here's the UK parliament debating money creation for the first time in 170 years:
https://www.youtube.com/watch?v=EBSlSUIT-KM&list=UU82By0y-2ZdjigNu5bWY4LQ (by 16 minutes is clear that money is just created put of thin air and this is Dangerous)
Well nothing has been fixed, nothing can be fixed.
There is no growth, only debt. Just stretching the balloon to make it look bigger......
These people are believing in a perpetual motion machine if they think that QE in its various guises can create self sustaining growth.
Everything is unfixable.
The only solution is a major reset (they will never do it) or kicking the can in every which way, until the whole thing falls apart....and slow and painful reset evolves. Those with power and access will steal from the public as much as they can along the way....as they are now doing.
Talk about trickle-up stimulus. How about distributing seventeen, ten-gram gold coins to every person on the planet.
The Global Debt Facility TVM-LSM-666 contains 1,715,000 metric tonnes of gold.
Businesss providing services to the poor (such as clean water and basic health care) would suddenly become very popular and profitable.
https://s3.amazonaws.com/khudes/mboard3.pdf
This is not a hoax. The offer is very real. Many nations have already accepted the offer. The Network of Global Corporate Control is resisting the effort. They want the gold for themselves.
Stand up for justice. The purpose of the TVM-LSM-666 account is to benefit all of humanity (not just the well connected). Contact your government representative and demand distribution.
The only hits I get on "Global Debt Facility" or on "TVM-LSM-666" are paranoia sites. This some kind of fairy tale, like reptillians or ancient aliens?
You can spend hundreds of hours following the links embedded in the link in my post, and I encourage you to do so. There is much to learn, that is important to know.
Try these:
https://s3.amazonaws.com/khudes/BILATERAL.pdf
https://s3.amazonaws.com/khudes/Twitter11.8.14.pdf
Thank you for putting forth the effort.
You can follow current activity on this effort here:
https://twitter.com/KarenHudes
Richard Gage?
For all those ruskie trolls out there - i love you dearly and that is why I just created a twitter account you would like to follow
https://twitter.com/stopputinregime
Have a nice day! :)
"Debt cancellation" is a term which hides what would actually happen. I even know one nutter UK blogger who has long advocated "debt forgiveness" but he fails to mention who will do the forgiving.
Whether one of those terms is used or another one "Big Reset", we should not forget that every USD 1 billion of debt that's cancelled/forgiven or reset, is a USD 1 billion loss to a counterparty or more likely, multiple counterparties.
That counterparty may be any one or all of us with pension funds, bond/stock investments or savings accounts or any other financial investments.
The sheer magnitude of clearing the debt backlog is why it cannot be done without a very large distraction. That usually means war but could be some other manufactured crises.
Nevertheless. It will happen one way or another.
By hook or by crook or by guillotine.
The Fed has made a bed that's impossible to lie in...
http://www.globaldeflationnews.com/the-creature-from-jekyll-island-the-e...
by creating a bubble impossible to maintain...
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
I have no debt so this wont help me at all.
But do you have assets? If so you benefit.
"- Ben Bernanke, Deflation: Making Sure "It" Doesn't Happen Here, November 21, 2002"
Deflation is the irresistable force. After all of Bernanke's QE, we still haven't escaped deflation. If anything, the deflationary force is even stronger, as Bernanke blew the debt bubble bigger. Bernanke has run toward what he was trying to escape from.
While understanding your argument I have moved away from view. For a while I was one of the people concerned we would see the world tumble into a massive deflationary cycle as debts went unpaided and credit collapsed. Now I have come to think inflation is getting closer every day.
This would mean the "major deflationary period" is mostly behind us and it has not been disinflation as much as inflation being kept in check because of several factors, including where the money flowed, weak demand, dropping velocity of money, and the onetime benefit of lower interest rates.
Before you discount the possibility that we will move directly from where we are into stagflation then hyperinflation please consider that hyperinflation paves the way for governments and those in power to make a transition to a replacement currency and a reset of the whole system.
http://brucewilds.blogspot.com/2014/11/deflation-i-think-not.html
" A money-financed tax cut is essentially equivalent to Milton Friedman's famous "helicopter drop" of money "
But where is that money supposed to come from? Money is financed from debt.
The only real difference between QE and even more "unconventional" money financing is that, with QE, the terms on which the money is created "are flexible and sensitive to inflationary pressures", whereas in the case of a helicopter drop, the terms are more open, both can cause distortions within a market.
Lord Turner who had been one of two leading contenders to succeed Sir Mervyn King made comments in the past that might indicate what "still more innovative and unconventional" monetary policies might look like. The outgoing Financial Services Authority chief didn't spell it out, but in the past he has talked about the possibility of pure money financing of the deficit or the so-called "helicopter drop". More on this subject in the article below.
http://brucewilds.blogspot.com/2012/10/a-helicopter-drop-for-england.html
It might soon become apparent the economic efficiency of credit is beginning to collapse and the additional money poured into the system coupled with lower rates can no longer drive the economy forward. When this happens we are at the end game.
At some point the return on loaning money is simply not worth the risk! Why do you want to loan money if most likely you will never be repaid or repaid with something that is totally worthless? When this happens the only safe place to store wealth will be in "tangible assets" and the only lenders will be those who print the money that nobody wants.
The collapse of credit can pose major problems such as what we saw when many sellers were forced to demand payment up front before shipping goods in 2008. More on this subject below.
http://brucewilds.blogspot.com/2014/06/the-economic-efficiency-of-credit-can.html