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Financial Terrorists On The Road - Krugman And Rogoff Peddling Toxic Advice
Submitted by David Stockman va Contra Corner blog,
Here are a couple of reasons why Keynesian economists are truly a menace in today’s bubble ridden and debt-impaled world. It seems that both Harvard’s Kenneth Rogoff and Princeton’s Paul Krugman are on the global advice circuit, peddling what amounts to sheer snake oil to desperate politicians and policy-makers who have already buried themselves - so far to no avail - in unprecedented waves of fiscal and monetary “stimulus”.
But never mind. The professors have a three part solution, and its more, more……and moar! To make room for more monetary stimulus after six-years at the zero bound, therefore, Professor Rogoff has a truly juvenile solution. Namely, to abolish cash. That’s right, this Harvard windbag proposes to confiscate your kids’ piggy bank and any green stuff that may be left in your wallet.
Meanwhile, Krugman has made a quick circuit through Tokyo, where he apparently was instrumental in convincing Japan’s prime minister to cancel the next installment of the consumption tax increase—a move that was utterly necessary in order to stem the nation’s massive flow of red ink. But why not spend a few more years adding to Japan’s staggering debt burden, which is already at 230% of GDP and rising inexorably in a nation that is fast becoming the world’s foremost retirement colony? After all, Professor Rogoff has now perfected a scheme which will allow central banks to monetize all the debt that even the most profligate government can possibly issue.
So start with Professor Rogoff ‘s incredible assault on the peoples’ cash and coins—a necessary prelude to even more fantastic rates of central bank monetary expansion. Here is exactly what he recently advocated at a “prestigious” international policy forum:
“Harvard economist Kenneth Rogoff even argues in the daily paper FAZ that cash currency should be banned altogether. Central banks could impose negative interest rates more easily that way, he explained. Tax evaders and criminals would also find life more difficult. From this perspective, banknotes and coins appear superfluous, he said at a presentation at the IFO institute in Munich. Measures to spur the economy could be implemented more easily that way.”
In short, central banks would like to escalate their devastating war on savers by driving interest rates even deeper into negative nominal and real territory. But they are now stymied for two reasons.
In the case of their preferred route of driving “real” interest rates more deeply into negative returns by cranking up consumer inflation, they are blocked by economic reality. Households are still buried in debt and can no longer borrow, spend and ratchet-up their balance sheet leverage ratios as they did in the 40 years preceding the 2008 financial crisis. Likewise, a deflationary global economy—–drowning in the excess industrial capacity and malinvestments that have been generated by nearly two decades of worldwide financial repression—– keeps a tight lid on the price of consumer goods. So the tried and true route of inflating governments out of their debt obligations has been precluded.
At the same time, interest rates are already at the zero bound in nominal rate terms, meaning that only significantly negative nominal rates can further reduce the burden of public debt. However, even central bankers are smart enough to realize that if the monetary and fiscal authorities of the state go too far in imposing negative rates on bank deposits or in threatening to “bail-in” depositors, they could incite a run on the bank. Yes, in this age of awesome technology in which people fuel-up at Starbucks by waving their smart phones at the cashier, our Keynesian masters are now worried about erupting stacks of fresh Ben Franklin’s.
And well they should be. Behind all the gee whiz technology of electronic payment systems there is still “deposit money”. That is, there are digital credits somewhere in the system at banks and money funds against which electronic payments are deducted.
Stated differently, here we are a century after paper checks drastically reduced the need for hand-to-hand money, and a half-century after the rise of credit cards nearly finished the jobs. Yet Keynesian central bankers are worried about bulging billfolds and safes and deposit boxes filled to the brim with greenbacks.
Well, charge 4% for the privilege of storing deposit money at a regulated bank or money fund, for example, and the demand for hand-to-hand money will indeed soar. In that context, cash would be the peoples’ last resort against the arbitrary confiscation of their wealth by the financial authorities of the state. Odd as it may sound, in a world where Keynesian money printers have literally gone berserk squashing honest price discovery in the market for money deposits and debt, crisp greenbacks may be the last barrier against central bank destruction of liquid savers.
So, yes, in the year 2014 we have a Harvard professor running around trying to do Franklin Roosevelt one better. FDR took the people’s gold in 1933. Now Professor Rogoff wants their cash—–the last refuge where citizens can anonymously safeguard their wealth from the depredations of the state.
The entire Rogoff plan, therefore, contains an ominous warning. The leading lights of the Keynesian mafia realize that the massive debt that their policies have created around the world can only be managed by a permanent regime of financial repression and enslavement of savers. Yet if carried far enough, the latter would result in growing flight from “deposit money” that the state can control to “hand-to-hand money” that would circulate and function outside its dictates.
And that gets us to Professor Krugman’s regrettable trip to Japan. They very last thing that the mad men of Abenomics need is another spurious Keynesian justification for even more deficit spending.
Honda, 59, an academic who’s known Abe, 60, for three decades and serves as an economic adviser to the prime minister, had opposed the April move and was telling him to delay the next one. Enter Krugman, the Nobel laureate who had been writing columns on why a postponement was needed. ‘That nailed Abe’s decision — Krugman was Krugman, he was so powerful’ Honda said… ‘I call it a historic meeting.’ It was in a limousine ride from the Imperial Hotel — the property near the emperor’s palace… that Honda told Krugman, 61, what was at stake for the meeting. The economist… had the chance to help convince the prime minister that he had to put off the 2015 increase.”
Let’s see. Since its original financial crisis in 1989, Japan has made deficit spending a way of life. During the last 10 years, for example, its budget has been in deficit continuously and has averaged new borrowings of nearly 7% of GDP annually.
All of these giant deficits, however, surely did not “stimulate” Japan’s GDP in the slightest. In fact, its nominal GDP today is the same as it was two decades ago.
Accordingly, Japan is now in a debt trap: year upon year of giant fiscal deficits in the face of a static nominal GDP have caused its government leverage ratio to soar. Relative to national income, it’s public debt is now 7X bigger than in was in 1980, and is 2X greater than any other DM nation.
Indeed, since the mid-1990s Japan’s general government revenues have been stuck in the range of 45 trillion yen annually while it spending for highways and bridges to nowhere and support of an aging population has steadily climbed toward 100 trillion yen annually. Consequently, until its recent increase in consumption tax from 5% to 8%, it was actually collecting in taxes only 50 cents on every dollar spent.
So of course it needed to implement at least this token revenue raising gesture. Even then, the April consumption tax increase that Krugman remonstrated against will only raise about 4 trillion yen on an annual basis, leaving a fiscal gap which has which festered for more than two decades now largely in tact.
Yes, the April’s consumption tax increase did take money out of consumers pockets and the second installment from 8% to 10% would have extracted even more. Once upon a time that was called paying your bills; and, in light of the fiscal lunacy portrayed in the graph above, it would have been hailed as a long overdue step toward fiscal sanity.
But government everywhere in the world have lost their fiscal bearings; Japan is only the leading edge case. Having postponed the second installment of its long over-due consumption tax increase until 2017, Japan is now entering the Keynesian end game.
For all practical purposes, it has chosen to permanently finance more than half of its government budget by borrowing, and then to monetize 100% of the incremental annual debt. That will surely lead to a thundering crash of the yen and the destruction of what remains of Japan’s once vaunted savers. It will mean that the world first national retirement colony will spend its days in fiscal crisis and economic penury.
Some day it will be said that on this archipelago lies the work of financial mad men and terrorists. If the survivors could mount a plaque, they would list Professor Rogoff and Krugman on the very top.
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The collapse will happen during their lifetime, and the advice is so over the top insane even the barely educated know it's wrong.
I would not want to be Krugman at a time when the empire provides no protection and the masses are rioting because their bank accounts are giving 404 errors and the EBT cards are out of service.
Krugman is like an unwanted enema.
Second thought. I once thought Jennifer Aniston should be the "Beano" spokes-girl. I've reconsidered. It should be Krugman. Spokes-girl
So if the new solution is to ban paper money and charge negative interest of 4% for keeping your digital currency safe...
What will stop people from buying gold or silver and bartering?
Oh right... ban gold and silver and jewelry and anything with a shelf life over 60 days
What a fucking joke
Tax code adjustments. So the key is get out while the getting is good.
I commented many months ago that the "big picture" is that they're locking the exits. They can't make this stuff work if there's an escape. So shortly after the move to ban cash, there will be daily transaction limits (think Cyprus) and changes in the tax code to prevent monetary migration. Before they're done, you'll need permission to make large purchases -- so if you get the idea of stuffing you savings into cars or some other durable asset, they'll prevent it.
You look at what has happened in Argentina and you can see the same early stages in the US.
My bet is when it comes down to it, they may just bite the bullet and do the bail-in with depositor funds in an over-the-weekend event. Sure, there will be hell to pay, but doing that is much, much easier than eliminated cash, and it's something that can be done in the span of a few days, and they put all the laws in place with Dodd-Frank, so nothing new needs to be done. To ban cash and implement currency controls would take a lot more effort. Dodd-Frank tipped their hand. It's a lot easier to implement currency controls after you've grabbed 50% of the savings in the entire country than before, you just make the equity given to depositors completely illiquid. I'm sure there'll be transaction limits for the following couple years after the move as well, just to keep freaked out people from escaping.
All of this is on the path of financial implosion and hyperinflation. You sit down an look at the history of Weimar or Argentina and it's the exact same shit.
The Japanese are an honest and polite people without firearms so a bail-in may actually temporarily work there.
They are also the largest holders of their own bonds so some kind of haircut is going to be required there as well unless they go straight into hyperinflation or nothing has been solved. One thing is certain... TPTB and the Japanese financial elite will find a way to make a killing off of whatever remedy they come up with while the little guy gets eviscerated.
When the result of this is witnessed in Europe and the States and the rest of the world all the good little monkeys are going to go nuts and bring the global financial system down in a massive stampede to the exits. Therefore it will have to be part of a globally co-ordinated plan.
What do these zio-economists from academic fantasy Rogoff, Krugman, Mishkin, Bernanke, Siegel all have in common?
There is no need for cash, credit cards, etc. The banksters only need RFID ID'd workers...
True sociopaths never give up.
Fore!
Krugman should travel to the Caliphate and lecture them on the merits of central banking.
Yep, as stated earlier... Comes the collapse...
Krugman needs to stay away from mobs and lamp-posts.
When will Harvard, Princeton and similar universities get tired of these economic Vaudville types giving stupid advice on the strength of school names?
"...cash currency should be ended entirely..."
I just knew that one was coming. Kill precious metals, kill currency, track and tax every fucking penny.
The Central Bankers and their Bankster masters can't stand the competition from the mob and drug dealers.
SEIGAL ! That arsewhole shows up at every new market top.
This is why I hold silver.
Fuck Rogoff, do it asshole. Ban Cash,
Make my silver double in value overnight.
I don't need to "buy" much, just what I can't grow, raise or make here. Energy other than firewood comes to mind.
It's good to be a farmer now, make it better.
So, yeah, make my energy cheaper in silver.
Hell yeah.
Hyper~Stagflation. Demand for fiatskis will be non-existant.
Prices will go parabolic, and growth will collapse as suppply lines shut down.
Hyper-Stagflation would mean that we break down very, very fast. As people quickly became unable to afford food, they wiouldd start breaking all sorts of laws. Theft, robbery, rioting, dealing in foods not approved by the government. The absurdity of that last one tells you just how absurd the current system is, because it's not really a joke.
"My bet is when it comes down to it, they may just bite the bullet and do the bail-in with depositor funds in an over-the-weekend event."
There's already a joint FDIC and BoE paper talking about how bailouts are off the table and bail-ins are the preferred methods of fucking us plebes. Unless something has changed, I think your "may just bite the bullet" is a "probably will just bite the bullet."
Cash is nothing more than a convenient, universally accepted medium of exchange in a complex barter system as was gold and silver. The difference being that gold and silver are true commodities having an accepted value due to the mining/refining required to produce them. Fiat cash is a virtually worthless piece of cheap to print paper.
Ban cash and we return to a pure barter system of commodities. Those who posess gold/silver will find them to soon find universal use as money again in untraceable transactions. Those without had better learn how to raise corn, chickens, beef, etc. or their lives will be short.
And, the government will find it almost impossible to tax their cash cows under a system with no cash and in which most refuse to play the digital game.
Cash is valuable because it is backed by debt and the legal tender laws. Think about it, you can legally pay off "all debts, public and private" with it, meaning that if you offer to pay a debt in cash, and the creditor says "no, I want wampum instead," you can pretty much make that debt null and void. How many people do you know who have debt? Every single one of them will take your FRNs because of this, whether it is you offering to pay a debt, or it is you trying to buy a pound of ground beef. Add to this system that more debt must be created to keep it going, and this system is truly insidious. It is coercive, caustic and unsustainable.
Does it make sense to transfer my PMs to my small company and have the company handle the growth and any issues with sales?
I really don't get what they think the no cash thing will solve. Sure, they could confiscate a few billion in real cash with this, but most peoples money on exists digitally. And most people have far more electronic debt than paper money. All this would do is drive more of the economy underground. "If you fix my refrigerator, I will give you two ounces of silver" or even 'since you can fix my car, and I know how to paint a house' etc. I do this now anytime I need a car repair I can't do myself. Go to a small independent repair shop, and when I ask the price, tell them I will pay them in cash. The price is always lower. If they ban cash, it will just be PMs, a bottle of jack Daniels, or food. People will always find ways to work around their bullshit.
They're operating in a economic world where record gold demand results in lower prices, so it easy to see how they'd believe this would solve their problems.
The fundamental issue is, they think the economic problems are temporary, transitory events that have nothing to do with them making mistakes or that prove their monetary theories are bogus. They don't make mistakes and their theory is correct by decree, therefore the problem is elsewhere -- the people just aren't using their money correctly, and for their own good, we the government will take it and use it right for them.
If you think the problem is just temporary, then is easy to see why they'd believe this would "fix" it.
The craziest thing is, what they're describing is literally what triggers hyperinflation -- a massive rush to dump money because it devalues -- and they're solution to preventing it is to simply prevent anyone from moving the money into another store of value. But if they do that, then they don't get the economic stimulus they want. They are literally holding this up as a solution when the entire premise of it consists of two completely contradictory goals: stimulate spending by having savings wither away with negative interest rates, thus inducing people to pull money out of their accounts, but they have to prevent people from moving to alternate monetary stores, so they need to keep people from being able to pull money out of their accounts!
Close. I think TPTB were hoping for inflation great enough to cover interest and bonehead errors, but it has not consistently since the are significantly reduced costs by off shore production and some clever technology. Bottom line US bankers and politics are painted into a corner. They need to either really inflate and kick this can one more time, or collapse the whole show ( turn out the lights). People moving to cash is like those hanging off the back end of the Titanic. Meanwhile Jaime Dimon and his like are sitting in lifeboats with warm coats and a flask of whiskey in the pocket. Krugman is like that guy telling the captain "turn on the last boiler. Get into New York a day early, hey AJ what a way to end your career, with a bang".
Ya I get that. What you say makes sense(as in it explains how they think, which makes very little sense). I guess when you spend your whole life in an ivory tower like that, it's impossible to wrap your mind around the idea that creating currency out of thin air to stimulate doesn't work, when all your life you've been telling people to do just that. It would be like undoing your entire life's work. Quite amusing to see him on TV one time trying to argue with stockman. Stockman took him to the woodshed, even though the moderators typically favor krugman. You will know the end is near when people like stockman and schiff are no longer invited on TV anymore, and it's just people like krugman extorting people to spend! Soend! Spend!
STOP GUESSING, YOUR GUESS IS WRONG!
STOP EXCULPATING THEM FROM THEIR DEEDS. THEY ARE NOT STUPID OR IGNORANT, THEY KNOW WHAT THEY ARE DOING, AND SHOULD BE HELD RESPONSIBLE FOR THAT!
These fucks are academics who have never seen the real world.
My mechanic knows I'll pay him in cash, cna pre-cooks the invoice to avoid taxes -- it's all listed as labor, no tax in GA.
I can pay in food or booze as well. Silver too.
Who runs bartertown is where we're going. These academics will starve.
I hope you're wrong about the 'who runs barter town ' part, but who knows. I don't think it nessecarily has to be that bad. It could actually be good, so long as you aren't in or too close to a large city when ever 'it' happens. We are clearly more divided than we have ever been, and if this collapse results in decentralization, as people like Gary north have argued, the country would wind up being several separate countries. Speaking of barter town, it would be interesting to watch places like the north east try to feed themselves. ... Who runs barter town, indeed....
STOP EXCULPATING THEM OF THEIR DEEDS. THEY ARE NOT STUPID OR IGNORANT, THEY KNOW WHAT THEY ARE DOING, AND SHOULD BE HELD RESPONSIBLE FOR THAT!
Groundskeeper_Carl said:
"People will always find ways to work around their bullshit."
The citizens of USSR spent decades running black markets to work around a failed Communist system.
Since when did "Freddie" Krugman get UPGRADED to an unwanted enema?
That fucking douche bag fuck should be rounded up with the rest of the fucking bnksters and imprisoned for life..
Freddie baby, even you realise that the Austrian theory and von Mises are infinitely a superior viewpoint, yet you promote the Fabian Keyesian approch knowing the end game this will produce
You fucking maggot
...should be rounded up with the rest of the fucking banksters and hanged by the neck from lamp posts (fixed it)
Time to shut down the Ivy leagues. Unfortunately too many inbreds have been brainwashed.
in related news, the swiss gold initiative was soundly defeated today. guess I gave too much credit to the sleeping swiss.
http://www.swissinfo.ch/eng/voters-roundly-reject-swiss-gold-initiative/41139376
Welcome to the Communist system.......there are no more nations
http://newworldorderg20.wordpress.com/2014/11/14/1945-british-national-archives-document-reveals-prime-minister-clement-attlee-desire-for-new-world-order-with-russia-u-k-and-u-s/
http://www.youtube.com/watch?v=yuBe93FMiJc
http://newworldorderg20.wordpress.com/2014/11/08/globalist-john-d-rockefeller-iv-gets-his-own-school-of-policy-and-politics-at-wvu/
http://newworldorderg20.wordpress.com/2014/11/03/globalist-connections-u-n-s-michael-moller-it-russia-is-one-the-very-important-countries-in-practically-everything-that-we-do/
http://newworldorderg20.wordpress.com/2014/11/28/communist-wto-blocks-consumers-from-knowing-where-thier-meat-comes-from/
http://newworldorderg20.wordpress.com/the-g20-are-collaberators-in-the-new-world-order/
However the "Communist system" is a part of the Zionist system.
An American, not US subject.
Does anyone listen to Krugman these days?
Has Krugman taken a look at what moar has done to Japan?
And even moar in Japan will only drive the stake in deeper.
The entire Western world has gone delusional and Baghdad Bob at the same time.
Just governments and central banks.
The man is clearly a socialist shill, but because he spews his shit so publically, he's go-to backup for every insane decision being made at high levels. We hear the term of "useful idiot" from time to time, and ol' Kruggie is the useful idiot.
Plus, most people hear something like PHD Nobel prize winning economist and automatically assume he knows what he is talking about. And he speaks over most people's heads, and since they don't want to sound like they are stupid by asking what the fuck he is talking about it, they just accept it. That's what I loved about Ron Paul, he was very plain spoken, and succinct. But out comes krugman with his 'piled higher and deeper' , using big words, and since people like him are given far more air time, his opinion is taken as fact. And I disagree with what you said about not wanting to be krugman when this comes unglued. (I wouldn't want to be him anytime, since I have both a brain and a conscience, but I digress...). Those who are smart enough to know the damage krugman has caused and want revenge are also probably smart enough to stay inside rather braving the herds of rioting pavement apes just to get some revenge on the likes of krugman. And to most of the rest of the brainless masses have no idea who he is.
"Plus, most people hear something like PHD Nobel prize winning economist and automatically assume he knows what he is talking about."
Yup, just like all those scholars that demanded that the Earth was flat.
Hyperinflation in credentials that allow one to say the most ridiculous and historically provable nonsense and still have the masses believe it is underway.
Eventually, the rubber hits the road and these shills will be shown the door.
The people, as always, will be the number one loser of this BS.
The Nobel Prize will be the other but in a different way, as it has lost more and more credibily over time. At this point, it might as well be a dog and pony banana republic fashion show to decide who gets the $1M. What a farce for not only Economics but also Peace. What's next? Someone uses duct tape in a cold fusion experiment and receives the Prize in Physics?
I agree. Whenever I hear 'Nobel peace prize winner' or 'Nobel prize winming_______' I role my eyes and ignore it. If mr 'wedding day drone strike' can win a fucking PEACE prize while fighting in moar wars even than bush, and mr 'moar debt will fix that' krugman can win one for economics, that says all I need to hear about the credibility of that shit. (None)
Proof positive that anyone with the right connections can "win" a Nobel Prize.
How is Krugman different from toilet paper?
Toilet paper is useful for removing shit. Krugman is "useful" for applying shit.
An American, not US subject.
They obviously aren't allowed to own guns in japan...
Bob Hope and Bing Crosby in Road to Zimbabwe
Financial Ebola.
I could say much, but then this a little out of date, but still accurate, Webpage says it all:
http://thezog.wordpress.com/who-controls-the-group-of-thirty/
An American, not US subject.
"Follow the money. Trace the Zionists."
I think that when this all shakes out, those with 'money' will not necessarily be the ones with "money". If the fiat collapses than the wealth must be held otherwise for it to remain wealth. Follow the assets, not the "money".
cash currency should be banned altogether
WTF? That would give government far more control over its populace. Governments will know how you spend every cent. If they don't like your opinions, you will lose all your money. A more effective tool for fascism is hard to imagine.
Imagine a scenario where they announce that Ebola or some like virus is spread by the use of money, dosent even need to be true, just needs to be placed in the human conscience. Of course, it would be more affective if it were true. Not saying thats how it will happen, but if it were my job, thats how I would accomplish the goal.
Did you see anything about the tainted heroine epidemic in the past year? Taint a few bills with Ebola and hand them out. Same thing.
Krugman will be one of those people that end up in hiding like Saddam Hussein
Krugman will be found hiding in Bernankes "SPIDER HOLE".
Actually, Krugman is a "return" able dualy.
Watch the airports. Dualies are probably the reason for:
http://www.tsa.gov/tsa-precheck-application-program
An American, not US subject.
"Return" = flee
I don't know what good going to isreal would do for any of them. If the US collapses, so does Europe, and there went isreals supply of free money and weapons. Without our constant support and military interventions in the Middle East, isreal will be quickly overrun by the hordes of hajjis who hate them. Sure, they could (and very well may) fry the entire Middle East with their nuclear weapons , but that's suicide for them too, and those (like krugman) who only care for self preservation will not find that place to their liking.
No matter what "experts" say, as long as fiscal lawyers keep coming up with new ways to evade taxes for HNWI's and multinationals, deficit problems are not going anywhere.
This means that Western democracy is a hoax and that peoples have no chance whatsoever of achieving peaceful change at the ballot box. As Chris Hedges recently wrote, in the absence of professional revolutionaries the West is doomed to tyranny.
In a recent article, Mike Whitney documents that Strauss-Kahn was axed just as I said at the time, because he was out of step with the ruling elite.
Read Whitney’s article here:
http://www.counterpunch.org/2014/11/25/trotsky-at-the-imf/
http://www.paulcraigroberts.org/2014/11/25/dominique-strauss-kahns-conce...
You're not gonna believe this.
I was gardening today and I saw some green shoots. Swear to God.
Then an article about Krugman
Unreal. Go long.
Money for nothing and your Politicians for free.
Nailed It!!!
Damn Kleptocracy, Fiscal Free For All starting with G.W. Bush, backed by Fascist Patriot Act, NDAA, and Torture, Kidnapping, and Rendition to Foreign Prisons.
Nothing to see here, move along!!
And then there is President Obama, nice guy, probably has gay friends, will drink a beer with you... but he set new records in Spending with Congressional Continuing Resolutions expanding the Fiscal exponential spending on social programs on a base of Defense Spending... we are still double DoD spending from year 2000.
On the road again, Krug can't wait to get his shit back on the road again
Signing books, dinner speeches, making friends, Krug can't wait to get his shit back on the road again.
One of the finest actors to have never won an Oscar for his performance to date.
He has brought a whole new meaning to the word Captured.
Please send krugman home. In a box.
Show and tell ...
The URL in my bio.
It's a weapon.
i love how the track record of these degenerates is never considered for one second.
By 2005 or so, it will become clear that the Internet's impact on the economy has been no greater than the fax machine's.
-Paul Krugman
if you listen to one breath from a cocksucker that incompetent you deserve what you get.
I wish when bernanke and his defenders/enablers like krugman had gone on about how 'no one could have seen this coming blah blah blah' they had someone, during an interview, play one of the numerous youtube videos of Ron Paul speaking before congress saying EXACTLY what was coming, in nearly every respect(I say nearly only because his timing was off by about a year, close enough in my book ). Then they could play a couple peter schiff clips for him, and maybe a couple of the guys from Cato who said pretty much what RP said several years prior to 08. Point out their record, and ask them why weren't they listened to, since clearly SOMEONE saw this coming. And also ask why, since they were right before, and you were dead wrong, are none of you paying any attention to what they say now? That would be accountability right there. But, you never see that. Ever.
yeah and you never will, instead you will have the establishment shills dish out the "clocks right twice a day" line to discredit anyone who tries to warn people.
the fact the sheep cant remember anything past what happened on the last episode of xfactor, nor does their attention span outside of what happened on the last episode of xfactor or whatever other corporate mind control they are entranced by is also what enables these degenerates to maintain the air of legitimacy and authority as the vast majority of the populace does not have the knowledge to verify each claim or the motivation to get that knowledge..
They need to get back on the boats wot brought them here.
What the hell are these people talking about? And why is anybody listening? It doesn't matter what they say, or who says what to oppose them. None of it makes any difference, when the rules are changed at will to suit whatever purpose the elites pursue at the moment.
Keynesian? Austrian? Free-Market? Might as well debate how many angels can dance on the head of a pin. It's all openly rigged abstract bullshit by now. The only thing that's real is the fist. And the fist doesn't care what the rules are or what you call it.
These people are all whistling past the graveyard.
Idea's are more important, without idea's they dont need force to rule us because any dictate is followed without question.
It has always been a battle of idea's.
Calm down, they just wanna Cypress you a bit.
"We cypressed some folks"
Sorry, I couldn't resist...
Austerity is a term that recently has been given all kinds of negative connotations because it is often painful. Economic growth tends to mask a multitude of problems, in economics austerity refers to cutting spending often by lowering and reducing the amount of benefits and public services. Austerity policies are often used by governments to try to reduce their deficit spending.
Spending cutbacks are sometimes coupled with increases in taxes in an effort to demonstrate long-term fiscal solvency to creditors. It is easy to point your finger at measures taken to reduce runaway or wasted spending and blame them for creating a reduced spending spiral but that is unfair. If a government spends and runs its business in an austere way the issue of when to start cutting or tightening should never surface. More on how Austerity has been given a bum rap in the article below..
http://brucewilds.blogspot.com/2013/04/austerity-is-being-given-bum-rap.html
There has to be a historical doppelganger from the Nazi years for guys like Rogoff, Druber, Krugman, the Bernak and Yellen.
Hit the history books.
People get all caught up with the jack boots, parades and book burnings from Hitler's Germany, but that regime (and this one) could never actually perfect their tyranny without well meaning academic-cum party technocrats in the courts, the justice departments, and the economic and health regimes.
It's going to take another 20 years of catastrophe to look back and member that exactly these kinds of characters were in fact the very gangsters that killed with impunity akin to Goebbels, Hess and the Reichsleiter.
Obamacare, QE, Patriot Acts.
It might be a golden age for a very small handful of people, but those same fools paid a heavy price in the end - as did everyone else.
And for anyone genuinely scared of cash confiscation, just remember that worldwide criminal organizations do not deal in cash whatsoever. They do exactly what they want with guns, gold and drugs. Its the international triangle of currency, no different than slaves, molasses and textiles that the British EMpire was built on.
If (when) these 5-star buffoons kill the $100 note as international tender for all our skulduggery, that will be the day China officially dismantles America's financial preeminence.
I used to think that the inner Democratic Party would actually get away with the pure poison they are injecting into America's veins, but too many true believers in that party are getting their guts used as grease on the Democrats tank treads.
How many master degreed homeless does a revolution take?
Not a rhetorical question anymore.
http://www.ft.com/cms/s/0/7df68668-7019-11e4-bc6a-00144feabdc0.html
While abundantly accommodative policy has boosted the price of risk assets, the rising tide of asset prices has not lifted all boats. Rather, capital market pricing has disconnected from economic fundamentals. Are we to assume that fundamentals will catch up? Or should prudent investors start pruning risk from their portfolios?
The Federal Reserve implemented extraordinary measures as a crisis management tool, yet now seems to lack conviction on when to normalise rates. Zero rates were supposed to end when unemployment dropped below the 6.5 per cent “trigger”; that “trigger” became a “threshold” and that “threshold” vanished into the policy ether even as unemployment continued to improve.
Unwilling to declare victory and withdraw, it seems the Fed has forgotten the proper role of interest rates: to ensure that scarce resources are put to their best use.
Artificially low rates mean that improperly qualified borrowers obtain loans and then bid resources away from those who might employ them more productively. Along the way leverage accumulates, increasing financial risk and market volatility. One does not have to look far to see signs of building financial excess.
Issuance of covenant-lite loans has dramatically expanded, share repurchases have become a key driver of stock valuations and short maturity interest rates remain in negative real territory. These imbalances have elicited mostly yawns from Fed officialdom. Why raise rates, goes the thinking, with prices tame and labour still slack?
Alas, low inflation does not immunise the economy from financial deleveragings and economic downturns, as the 2008 housing meltdown demonstrated. A central bank that ignores credit market excesses, preferring to believe it can dial up or down whatever level of wage growth or unemployment it considers optimal, is one that does not understand its limitations.
If growth were a simple problem of credit and demand management, we would not be having this discussion. If wealth followed in the wake of money printing, Venezuela and Zimbabwe would be members of the G20. Or consider the eurozone, one central bank but 18 countries – some with Great Depression unemployment levels and others with full employment. This disparity of performance cannot be explained by interest rate policy. Rather, it is attributable to relative competitiveness between states.
In a global economy, nations offering consumers what they want at prices they are willing to pay capture their fair share of global demand. Those that deploy their productive resources inefficiently experience disappointing wage growth and high unemployment.
In the US, continued wage stagnation and low labour force participation suggest the Fed’s policies cannot be effective without a more competitive domestic economy.
The Fed’s reluctance to pull the plug on zero interest rates is understandable. Since low rates have enabled activities that would not survive a rate rise, a renormalisation will be painful. Rising rates will price out marginal borrowers. Default rates in corporate and high yield loans will rise, pushing risk premiums wider. Higher capital costs will damp asset prices. So why do it?
Because “kicking the can” means the inevitable deleveraging will be more painful. Sustainable growth comes from improvements to work process and product. Merely adding leverage to a business does not improve its efficiency; higher home prices do not increase the wages of those in the home.
The Fed can multiply the quantity of funds, but that increase does not add to the nation’s capital stock, enhance the skill of its labour or expand its access to natural resources. The game of pretend ultimately has to end. For investors, the question that matters is when and how.
When the end game comes, leverage will be forced out of the system and asset prices will fall. If the Fed is willing to recognise that ultimately its policies cannot dictate economic realities, rate rises should begin soon, presumably in 2015.
A path of proactive, controlled deleveraging means the pain will come sooner, but the severity will be relatively muted. If the Fed fails to remove the punchbowl, the belated deleveraging will come anyway catalysed by the capital markets, which will not be pretty.
In 1945, at the time of the Nuremberg trials, the charges of, a) Crimes against Peace, b) War Crimes and c) Crimes against Humanity were brought against the remaining 22 Nazi criminals. This was not the first trial for war crimes - history of this kind of trial dates back to 1474 - but it was the very first ever in history to bring charges of Crimes against Peace and Crimes against humanity at a court of law.
I suspect that when the whole debt enabled system collapses, there will be a similar reckoning to bring to trial those who were instrumental in perpetuating this absurd delusion that gave the private central bank of the global reserve currency, the squids behind then, their clients and their political servants license to commit thefts and frauds worldwide at a scale never seen before. Just like Nuremberg, they will have to create new decrees and define these heinous crimes to prosecute them. Perhaps something like, FINANCIAL TERRORISM, CRIMINAL DECEPTION, OUTRIGHT THEFT, COLLUSION, PROPAGANDA, PONZI SCHEMES and whatever else they can throw at them. Just like the Nazis, these idiots like Krugman really believe they can swan around the globe, be lauded by their peers and have nothing happen to them after causing the biggest downfall in human history in the values and living standards of whole nations who trusted their bullshit.
And again, just like the Nazis, Krugman has expounded on his economic reductionist theories for war too, espousing wars as engines for growth while at the same time spreading lies about Russia's "sabre rattling" over Ukraine and fearmongering about China if its economic prosperity comes to an end. A pretty typical behaviour for people of his ilk to incite fear and hate to foment wars between nations. These propagandist idiots like Joseph Goebbels and Paul Krugman will never understand the horror and disgust they incite among ordinary decent people until the noose is around their necks. I have no doubt that what they are doing today is a crime against humanity.
I'm amazed that people don't pay more attention to you posts w YHC-FTSE
I think you're highly intelligent and offer fantastic insight. Some people have a hard time with Asian cultures I guess.
Asian cultures are more normal not as financially peverted as the West.
kkrugman can't even get the weather to help out, al gore's major hurricanes going to multiply like katrina due to AGW...per his statements in 2005. so wrong but krugman was depending on all those broken windows that would stimulate the econ..
"The mellow 2014 Atlantic hurricane season ends Sunday (Nov. 30), marking another year without major hurricanes hitting the Eastern United States.
It has been a record-breaking nine years since a Category 3 hurricane (or stronger) made landfall along U.S. coastlines. The last was Hurricane Wilma in 2005 (Sandy was not a hurricane when it hit the northeast in 2012). The United States has never recorded a nine-year period without a hurricane touching its shores. The prior record for the longest stretch, from 1861 to 1868, was set during the Civil War, according to Colorado State University climatologists.
But in the eastern Pacific Ocean, tropical storm activity was busier than it has been over the past 20 years. Fourteen hurricanes and six tropical storms formed since May 15, including Hurricane Amanda, a Category 4 storm and the strongest May hurricane ever recorded in the East Pacific. [A History of Destruction: 8 Great Hurricanes]"
We can hope such a reckoning takes place. This reminds me of a story I've mentioned here before, about how the British suppressed the Thuggee in India. In a nutshell, they made lower-level Thugs provide testimony and information about methods, parties they had killed, and higher-level Thugs so that they could put together the big picture and take out the leadership. They successfully crushed a criminal enterprise that had lasted 600 years prior.
Imagine working up the financial food chain after the collapse and getting both the full story of manipulations and the leadership that ordered them, it would be a glorious moment for justice.
The analogy is apt but unlikely that any will heed. The tradesmen and travelers beset by the thuggee were considered valuable by the brittish admin structure. Unlike the situation of our time. Now the game is to be rewarded and work denigrated and punished. The glorious moment of justice would be when these disconnected policymakers set out on that treacherous road with a thug certain to be in their party and the thuggee at that pleasant copse of mid journey rest.
Don't set your expectations to high - that's never going to happen.
It would need an organized group of highly intelligent people to take over without big problems (such as a civil war), and with a plan for the future that doesn't involve anything of which you want the old cadres to be put on trial for, and then the new leaders would need to be unified in doing trials instead of attempting to assimilate the old enemies (such as Obama did with Hillary) or simply sweeping all previous things under the rug.
Never say never.
Okay to call it a six sigma event instead?
After WWII we hunted the Nazis' for what they did to the Jews. With 90% of the 1%'ers being Jews it will be a complete reversal - Will we say 'shit, that Hitler feller was right all along?'
Too much?
No, "we" will not.
Go crawl back under your rock, and take your loathsome world view with you.
The interesting innovation of Nuremberg was that the defendants were charged with breaking laws that did not exist prior to the trials.
F-A-N-T-A-S-T-C!
To both the pieces of shit continuing to peddle their wears...
When Bastille Day comes this song will be playing in your honor and given your patrician bearing your head(s) will be some of the first sitting on a pole with all the other Legislators you shoveled your “shit” to with hip boots on that bought it!
I hear a lot about people selling snake oil these days, does it have any magical healing properties
They're evil, not stupid.
Krugman the shaman of Sham-wow-nomics. I think I have to rogoff. My cash is made of lead, come and get it Krugee and Rogee
Maybe after they eliminate cash, they'll also require an electronic implant in the hand or forehead with your life's history on it, and you won't be able to buy or sell anything with the mark. Sounds far fetched eh?
I said Goldman Sachs was way worse than ebola and I certainly agree with Stockman about Krugman and Rogoff. From what I've seen directly with people from Harvard is that they are working with the CFR in an effort to control the world through banking FRAUD. What they are preaching has very little to do with economics. They are financial terrorists that use their terror like weapons and certainly do as much damage as if they used weapons, to conquer the world. They need to be arrested and thrown into jails because their NWO war is just about to go tits up. Although I don't really know I think Stockman has a damn good idea of the hell that we are facing because of places like Harvard. Princeton, Yale and the University of Pennsylvania. They could have done things right. Instead they all failed and are taking the rest of us with them.
Kenneth Rogoff even argues in the daily paper FAZ that cash currency should be banned altogether
And how is the CIA going to be funded? Send that guy to a rendition camp and find out who's paying him.
Following instructions to aid the Globalist agenda.
They can't ban cash until they have crushed all small businesses. They need everyone to work for either the state or the big corporations. Once they have that, they can tax and steal it all, it will all be on cards, phones and bank accounts. But if people choose to barter their labour, they'll fail.
Hence the fear of bitcoin.
I noticed that they are also trying to squeeze eBay with taxation on all trades. eBay was a perfect vehicle to evolve into barter -a global swap-shop. (There's another free idea) maybe they've seen that threat.
I live in Japan, my sons 11, hes very Japanese never lived outside
He caught a bit of an Abe trade (small stock ) that doubled from very low price (pure luck)..
He made 40,000 yen (so 400 USD) ,, Strangly I am not joking he noticed not sure the yen weakening or pricies rising for the bits he buys and he asked to cash it out and buy gold.. which he did today..
I was thinking that if 10y old can see the yens going to shit... maybe its headed for some real trouble soon..
In the US that would put you on a terrorist watch list.
This post is a piece of junk. Inflation has never been precluded since 1933....
No economic theory will work when every available dollar is spent on a war machine and a police surveillance state.
Follow any economic theory you want, and the US will still implode in bankruptcy.
The US likes to compare itself to Rome, but it is more like Sparta. And like Sparta, it will leave nothing behind.
re post :1 trillion in new debt in 8 weeks:
"The Daily Treasury Statement that was released Wednesday afternoon as Americans were preparing to celebrate Thanksgiving revealed that the U.S. Treasury has been forced to issue $1,040,965,000,000 in new debt since fiscal 2015 started just eight weeks ago in order to raise the money to pay off Treasury securities that were maturing and to cover new deficit spending by the government.
During those eight weeks, Treasury took in $341,591,000,000 in revenues. That was a record for the period between Oct. 1 and Nov. 25. But that record $341,591,000,000 in revenues was not enough to finance ongoing government spending let alone pay off old debt that matured."
USA cannot pay off our debt without new debt issued,(monitization) plus taxes are not even covering current spending...the weakness in oil prices & baltic dry index is like the fat lady singing,small wars on going - which could explode into major actions- social unrest (ferguson as example)..all adds up to change is coming,
central banks looking to buy gold or get it back under national control, russia china india outright buying it.
so should I buy gold? ask kkrugman or rogoff ..they will tell you never you would become a criminal in the world they want. but have CB's who keep gold as an asset, well thats normal.
a slave in this system can have no wealth, only debt, he owes all he has to the state, banks, international corps -otherwise he is a criminal hiding illegal wealth.
I choose crime.
like it or not new highs on tomorrow....... (I said tomorrow, so if someone reads this post in the future it will still be accurate...) markets going parabolic now, see how far she goes before the pop at the top, and then the second dark age commences.
like it or not new highs on tomorrow....... (I said tomorrow, so if someone reads this post in the future it will still be accurate...) markets going parabolic now, see how far she goes before the pop at the top, and then the second dark age commences.
Got no time for the economists now, like the politicians or most of the mercenary class in governments.
For 100 fucking years the populations listened to them amd their class, their great ideas and LOOK WHERE THE FUCK THE WORLD IS ECONOMICALLY. Systemic financial rape of populations using QE good oh.
1.)If Krugman and his economic predecessors were so right why we in so much fucking shit economically today?
2.)If the politcal policies led by Obama and all his predecessors were so right why does society feel like a hell hole?
3.)If the political and economic gurus are so bloody right why has to all intents and purposes most free democratic societies now lurched towards the totalitarian state to keep it all going?
THEY ARE BIG QUESTIONS ... NONE OF THE CULPRITS CAN OR WILL EVER ANSWER
Now watch the distraction of reality TV and X factor get notched up to drown those questions out. The only example that has been shown is that Krugman and all his predecessors WERE NEVER RIGHT IN THE PAST kind of implies based on being wrong previously WRONG TODAY.
Keynesians di lock us into a detrimental vicious cycle of having to inflate forever, increasing the value such that debts can never be paid and all the fucking consequences for populations to maintain that. This inflation is not natural, it is money creation by central and big banks so they get to have all this freshly created value while the populations get saddled with the debt.
No population actually gets this freshly created value do they Krugman, the banks get it, first on the balance sheet through leverage, then loan it to a person who takes on the debt to obtain it and secondly pays interest on it too as more freshly created value. As for banning cash how will a person with a poor credit rating survive except through the barrel of a gun.
If anything in the last 3 months I get that feeling again the last time was just prior to 2008 they are clutching at straws because I am starting to see deflation seeping into everything once more. CReate a trillion, pump the economy and it lasts as long as the trillion takes to lose its power in stabilising a failed system to then repeat it again with an even greater value that you may as well not have bothered the first time round.
What a joke.
Bolshevik Traveling Circus.
Well, there's bitcoin too, which is all electronic. I'm guessing electronic transfers could be more closely controlled, but true wealth is always realized by the 'stuff' you can own with the fiat. The key is that true wealth can not be measured in dollars, but rather in acres, ounces, and maybe rounds and rate of fire.
Follow the retards off the cliff.
Sky News in the UK have recently run two film garbages about organised experiments in one northern city where shopkeepers/bars/cafes etc banned the use of cash for one day. Only debit cards allowed. Sky failed to say who was behind this experiment but it was obviously some government-funded outfit wanting to test the water.
Any attempts to abolish cash should be vigorously resisted. Spend a few minutes thinking about the level of totalitarian state control over your life that would give the government and its armies of apparatachiks. Your account could be blocked for some misdemeanour or you get a knock at the door from the Inland Revenue asking how you are spending more than your declared income etc. Then of course other agencies of the state would be authorised to take money from your bank account to pay whatever it was they wanted you to pay. Perhaps a parking ticket or local taxes etc.
Banning cash would be a huge step towards in-your-face totalitarian government. But it will take the masses a long time to spot that.
Plus --
Since over 50% of people that can vote have NO CASH IN THE BANK anyway -
They do not / will not give a flying fuck about the government confiscation of other people's deposits.
If they said - all balances over $250K will be 90% confiscated - it would only impact a few % of people - and if they claim they will be using the money to
Pay off student loans
Fund more free shit welfare programs
Increase SS payments
Lower Medicare premiums
Pay a higher % of Obamacare premiums
75% of voters would think it was a good idea.
We are fucked.
It is repoted that the swiss reject the gold vote:
http://snbchf.com/gold/swiss-gold-referendum-latest-news/
Jew and Jewier.
Neither a judgement nor slur, only a fact.
Quick!
Break more windows!
So all you geniuses on this site tell me something. Japan situation has deteriated for more than 20 years. So what would you do? Realistically not all your build your end of world gardens. What would you do given the facts on the ground? You are the Japanese PM and these are your people. You actually care about your country. It is easy to blow up a building now tell me how you would fix it. None of this its all over, buy gold, balance the budget etc. What would you do to at least try to save your country?
The basic formula for prosperity is very simple: "peace, easy taxes, and a tolerable administration of justice," as Smith put it. In other words, allow the market economy to function, and restrict the state to its one and only proper role: security (i.e. maintaining law and order at home and defending against foreign aggression).
In short, eliminate all state functions which do not relate to security. The state should have no role whatsoever in economic affairs, except to impose taxes for the purpose of funding the security apparatus, which should be as minimal as possible.
No infrastructure? Roads, airports, bridges etc...
You're mistakenly assuming that only the state can provide those goods.
On the contrary, private enterprise can provide them, the same as it provides anything else: from food to clothing to Ipads.
The history of the development of societies and human iteraction totally disagree with your assessment. If you are going against human nature you have better have a locked down case. You don't.
Really? A couple of minutes on Google easily dispels that baseless assertion. There are more instances of privately-developed bridges and roads than you can shake a stick at. And, yes, there are even privately-funded airports.
Most services in Aus are privatised and work relatively well, soon we wont need the Gov at all.
Be careful what you wish for, Krugman, you might get it.
Hopefully everyone can see where these insane proposals lead (built upon previous insane fiat proposals). Right?
So, let's see how this goes...
The predators-DBA-banksters will steal 4% per year from me for any fiat funds on deposit in their criminal organizations (banks).
The predators-DBA-government will steal 10% per year from me by purposely driving down the value of the currency my savings are denominated in (yen, pesos, dollars, whatever).
So what will I do (pretending I'm "one of the masses" here)?
Answer: Same as people in India have long done, and same as people in China are increasingly doing... abandon fiat, save physical gold and silver. The purchasing power of those elements will be retained.
Result: The governments will ban savings in at least gold, and perhaps silver if people "hoard" silver once gold is illegal.
Result: People switch to saving platinum, palladium, rhodium.
Result: The predators-DBA-governments also make saving in these precious metals illegal, because "this new practice has driving up prices of these important metals so high that we can no longer afford to put them in catalytic converters".
Result: People switch to saving nickel, copper, aluminum... pretty much any real physical good. This could go a long way, actually, to the point where every household begins to look like a microscopic commodity warehouse. People could save quartz, glass, ceramics, pretty much any real, physical good that does not corrode with age.
When the predators-that-be attack this practice, people might calls this "the war against durability" or "the war against value", or even more to the point, "the war against independence or individualism or responsibility or prudence".
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The final result: What the predators-that-be are doing is completely clear. Everything they say is nothing more than "bogus cover story" for what has always been their only concern... enslavement of every productive individual on planet earth.
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If humans manage to survive at all (doubtful, at least on planet earth), future historians should call this "the Krugman age of insanity"... with my apologies to his competition.