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Spot The Difference: Money Printing, Then And Now
It's different this time.. and just remember Draghi's perspective - hyperinflation hasn't happened yet, so what's the harm?
h/t @macroymercados
The global central bank balance sheet is even more concerning.
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As to the hyperinflation question,
Draghi's answer is simple: we have now thrown the kitchen sink at the deflation problem and there has been no inflation (he conveniently forgets to mention that the world is now caught in a vicious spiral in which every single central bank is printing money just to export deflation to its peers, with more and more printing necessary each year just to stay in one place). In other words, just because hyperinflation hasn't materialized so far, it never will.
Or, as Bernanke would say: "Hyperinflation is contained."
As for Draghi's comment at the end, one can respond just as snydely: for the people who say printing money will create growth, yes "when" please. And for those who say that money printing will lead to economic improvement, "tell me, within what?"
As for Draghi's "statute of limitations" comment, he may be right, but one thing is also becoming clearly obvious: as central banks are poised to monetize a record amount of debt this year, 7 years into the "recovery", and as the amount of eligible collateral dwindles to a point where the functioning of the entire market is becoming impaired (see the TBAC's complaints from the summer of 2013), the moment of "hyperinflationary containment" is coming to an end.
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Not that I expect a different result, but was the German Mark the World's Reserve Currency?
No, and it's not really printing until the treaury does it. Treasury coins money, the Fed merely borrows.
The mountain of debt continyooouth. To the moon, Alice!
The hyperinflation will be transitory.
Bernank bought Janet a hockey stick for Kwanza this yaer, the future is certain...
Hyperinflation of the USD will only happen after World War 3 is lost. Basically, during/after the climax of the Crisis of 2020.
One was of the Wiemar Republic, the other of FRED.
See graphs are easy.
It's the multiple choice questions that are challenging.
I fucking hate FRED.
Five famous lies:
1) The check's in the mail.
2) I won't get you pregnant.
3) I won't come in your mouth.
4) I'm only gonna put the tip in.
5) The U.S is the greatest nation in the world. The rest of the world needs us. It can't happen here.
'Publicus' has downarrowed us all.
I'm hurt, you know.
I mean, a 29 cent cheesburger at McDonald's costs $1.19, and is less than half the diameter (and tastes like absolute shit), and a 69 cent pound of hamburger is closing in on $4.00, and in Europe they sell gasoline by the fucking LITER (and they pay, what, $1.75 a liter, or over $7.00 a gallon)... (not so much now, perhaps, but STILL!).
The 'mysterious red-arrowing non-respondent' is really a comedy of errors, I suppose.
Gee. I was wondering... Since we DO have a 'global war on terror' (or, 'GWOT'); and since this is ABSOLUTELY world wide (this WAR); and since the 'terrrorrorrists' seem to be WINNING this war; and since 'Publicus' has declared that 'hyperinflation' can only happen AFTER this loss (of A WORLD WAR):
Should I wait to hear the announcement from George the Younger that the 'mission' has been 'accomplished' before I scrounge the wheelbarrow that I can use to take all that 'money' to the store to buy a loaf of bread?
I'm BUTTHURT, 'Publicus'. REALLY. OF COURSE you're right!
<SARC>
Well, I got ANOTHER 'reddie'. Whoever did it doesn't have the balls to reply...
I should remember what the GWOT is really all about. I am SO misled; and the popular vote has finally swayed me.
PRINT YOUR FIAT CURRENCY, you happy bastards! MOAR WOAR!
AMERICA! FUCK YEAH! Coming to save the motherfucking day!
https://www.youtube.com/watch?v=tX5ZRE26YWM
I know... you want my soul...
https://www.youtube.com/watch?v=VH_DkBI9Qsk
WEIMAR USA. A FORMER 'republic', as well.
They need to pass a law that all NFL footballs should be equipped with the same type of monitors that luxury cars come with (A'LA the 'Tire Pressure Monitoring System'). That way, all the fans can be re-assured that the rules are equally followed.
Funny and true, Russia had low borrowing rates shortly after their hyperinflation.
"The hyperinflation will be transitory."
That's really reassuring to know.
I'll be sure to remember to pass this knowledge on to the people that I pass by every day (who live under the freeway overpasses). You know, I still tell them that everything will get better for them, and that their 'negative situation' may be simply a 'TRANSITION' for them.
But it wil create job's, https://upload.wikimedia.org/wikipedia/commons/0/0e/Inflaci%C3%B3_utan_1...
/s
The term "coins money" has no relevance to today.
And QE is not borrowing. Borrowing has a term limit. There is no real term limit for QE as there is for a repo.
On a positive note....
the article names draghi but the chart compaires to the FED so America will hyperinflate before Europe and that will give us a bit more time to buy assets before the euro hyperinflates a year later ;)
Too bad for you gold is expensive in euros.
http://www.zerohedge.com/news/2015-01-23/what-gold-does-currency-crisis-...
You would be correct if the world wasn't on the petrodollar. What "worked" for the US will be a huge failure for the EU as it was for Japan. The US won't hyperinflate until the rest of the world wises up and stops using USD as the reserve currency.
You don't have clue what you are talking about. QE has nothing to do with these issues. The Fed creates both assets AND liabilities, a debit and a credit. They can't simply ignore the debt. The treasury can and will.
That trillion dollar coin everyone thinks is just a bad joke, is still very much in play.
Krugman's now talking about a whole bag full of 'em.
You know, the Mae West Quantity Theory of Everything
If some is good
And a whole lot more is better
The way the fuck too much is just about right!
and all we're really sure of is one hell of a bumpy ride.
"Why don't you come up and see me sometime?" (Janet Yellen)
SHIT, I'm wrong!
I guess Mae West said it, didn't she?
No it isn't.
Those who own US Bonds are on the other side of that balance sheet.
If Krugman mints 18 of those coins, then the Bonds they represent become worthless.
Which means that the Bond market will instantly price in the fact that the USA is printing funny money to magickally make things go away, and you get your high interest rates.
Default, Austerity, Collapse, Printing, QE - it all ends the same.
Thank you! Finally someone who knows the difference between Money (Legal Tender) and Bankster Credit/Debt.
For those of you who still haven't figured it out, here's a hint:
The richest amongst us have exactly the same amount of 'money' in their deposit accounts as the poorest amongst have in theirs $0.00.
credit/debt-money vs debt free money
someone pls explain to me how credit money hyperinflates
Well the inflationist will tell you that because of credit/debt that can't be covered, more money has to printed, thus hyperinflation.
But my argument is that the new money created just disappears to cover old debts and interest, thus it never really circulates in the general economy. Thus I argue deflation.
Just today I was talking to a co worker that was bitching about inflation. While I agreed that wages have been stagnant, I reminded that co worker that she just boasted about all the 10 for $10 deals she got at Krogers as well as the lower gas prices she is enjoying.
Whether inflation or deflation, it means a lower standard of living for us serfs and many just don't get that. The real inflation that is going on right now is government, its regulation and taxes. That also lowers your choices (freedoms) and standard of living.
We use credit as money, credit will not be hyperinflating........
for every dollar borrowed into existence there is an equal and corresponding amount of debt created
call me when the gov prints debt-free money......fwiw, I think they will at some point in time..
Debt-Free means No Obligations to pay any debts.
All government debt that will never be repaid amounts to debt free money.
No this is utterly false logic.
There are a fixed amount of assets in the world. Money lays claims to those assets. If you create more money you are creating more claims for the same assets.
What you've written here is meandering and nonsensical. By virtue of having a debt and interest paid with new money, that money is now in circulation. It's velocity may be momentarily low, but it exists. Even if the owner of the repayed debt does not purchase assets and allows it to sit with an institution (bank, etc.), that insitution is most certainly going to use it to purchase assets. We've been seeing nothing but this for all of banking history. Thus, that new money is going to enter the market in all instances outside of physical cash being stuffed under the mattress (unlikely).
This process is inherently inflationatary no matter what definition (Austrian, Keynesian, Neo-Keynesian) is used. Never in history have wages kept pace with inflation. Ever. This always hurts the vast majority of people within any society. Wages have never kept pace with deflation either, which is a net benefit to all persons with money (money, not credit/debt). On a nominal basis, all food, rent, energy, medical, commodity, asset prices have gone up every year. The current oil prices in no way reflect any market reality as they are not sustainable and not intended to be sustained. The Saudis are open about this. To use gas prices as an example of overall currency deflation is either foolish or disingenuine.
Hyperinflation takes place with base money NOT credit money. Otherwise there would be no need for wheelbarrows. Trust is gone and everyone demands cash...easy.
The USA has already created sufficient currency (and currency promises) to have hyperinflation. Once those dollars are printed and spent proces will soar. Remember, prices change at the margins. It does not require much to get it started. Once it does start the Fed will be forced to respond by sending out banknotes.
It won't last long. Everyone (who counts and can count) will be expectint it this time. It could last nano seconds....maybe a few months...should be fun if you are prepared.
Yes, inflation is a monetary process, hyperinflation is a psychological event.
Your quote is equal to saying that currency is backed with faith.
That said, without the physical manifestation of currency or coin then there will be no inflation. (If there is, it will completely be a contrived event complete with political solution at the ready.)
The minted coin in circulation today is the same percentage of credit as it has always been: approximately 3% (in COIN). Curreny on the other hand is very difficult to get numbers on. If anyone has any information on this it would be greatly appreciated.
Please explain how 3.9-Trillion in total legal tender is going to create hyperinflation when there is 10-Trillion in deposit accounts without a fucking penny in them. How does that work?
@Oscar Mayer: This has been explained in great detail by John Williams at Shadowstats. Remember the US Dollar is the worlds reserve currency which means all SWIFT transactions in the world are in the dollar. There's easily $10 or $12 Trillion of them floating around between all the countries in the world. And lets not even bring up T-Bonds. If other countries start to lose faith in the dollar (psychological event) they're going to sell those dollars. If no one wants to buy them then guess which country has to accept since it's their currency? That's the U.S. and even $1 Trillion of this could be enough to really get the ball rollin'.
The other problem is freakin' China and Russia have now setup their own SWIFT type of system to bypass the dollar. Oh I can already tell this is gonna' end good.. T=You want to know what's going on? Well the Titanic is steering hard right now to try and avoid that d*mn iceberg. Count it with me everyone, 59, 58, 57, 56...
You are kidding yourself if you think credit money can't cause hyperinflation. I cannot think of one soverign debt default that did not cause hyper inflation. That was all credit money. And the inflation started long before the default happened. Credit money is just another way of printing. I do not believe there is a mechanism for extingishing money in our current system, not matter where it comes from. I believe credit money, created out of nothing and countered by a debt asset, returns in total to bank balance sheets, even on debt payment. No one's deposts are loaned out anymore and that money does not have to be returned. QE is a prime example. All those mortgages created out of thin air were then bought by the fed. The money that was created from nothing to make those mortgage loans ended up 100% on bank balance sheets. And that is just the accounting trick we can see.
both are Viagra charts but this time is different right?
VIAGRA SIDE EFFECTS:
http://www.webmd.com/drugs/2/drug-7417-297/viagra-oral/sildenafil-oral/d...
'Money-printing' side effects include the desire to throw oneself off of a building, or the desire to commit suicide by nailgun (THEY like to call it 'suicidal ideation'). It's like taking PROZAC (or ANY so-called 'SSRI', like 'heroin' or methamphetamines. WHAT A RUSH on the way up, though!).
The last printed note I looked at said: Federal Reserve Note. If they didn't print it where did it come from?
it came from somebodys DEBT..........our monetary system is a DEBT-BASED monetary system.........
we do not use debt-free money/currency
er, no.
Global Reserve Currency was only required after the advent of Atomic bombs.
agreed. there's a lot of corners to stuff the $US into. But then, if other nations start rejecting and ejecting that currency from their lands.... no more corners
<<Not that I expect a different result, but was the German Mark the World's Reserve Currency?>>
Of course not. This was the first fiat era that was able to - and where the population was fucking STUPID enough to - establish a "world reserve currency". God willing it will be the ONLY era where the fiat-using sheep were this dumb.
Burn in hell, filthy Bretton Woods banking vermin. I'm glad you're all dead, because you were worse than the bankers even today. Those who set it up of course knew that eventually this would happen, but it was really the ONLY way they could gradually wean the sheep off gold. Stupid sheep proceeded to trust their betters, and taught their kids to trust this goddamn scam, and now, 3 generations later, people have forgotten that gold is the only money that can ever sustainably function as an agreed global standard. This is also why such a significant majority of the population trusts banksters.
"World reserve currency" functions via central banks. A WRC is part of the zionist central banking scam, and must never be allowed again. Banksters will always attempt a WRC though - see the fucking moronic bleats for the SDR as another world reserve, and the equally stupid, "Well, can't get rid of USD because what other currency can take over?" Of course, any currency will do, if it's another stupidly unsustainable worldwide scam you want. Any currency that becomes "world reserve" is guaranteed to be the next bankster world conquest scam.
Anyone supporting or proposing a WRC is either a lying thieving banker, or a goddamn sheep. Either way they should never be entrusted with money.
The result is equally predictable. When the last "Weimar" stage happens, which shouldn't be long now, it will take down the whole world that is still dumb enough to use or be pegged to the so-called "world reserve". This has never been a mystery. The only question is When, and that will be answered soon enough.
World Reserve Currency - Global Reserve Currency - is a scam pure and simple. It will go same way every other scam does.
BURN THE CENTRAL BANKS. HANG THE CENTRAL BANKSTERS. FUCK ANY AND ALL ATTEMPTS AT ANOTHER WORLD RESERVE CURRENCY.
The bankers got W.Wilson to have the Lusitania sunk to get the US into WW I
"Let us never tolerate wild conspiracy theories about the events..." of WWI...
http://archive.archaeology.org/0901/trenches/lusitania.html
Oh.
Shit, do you mean to say that the Lusitania was carrying armaments to Britian; and therefore was a prime LEGAL target of the Germans?
SAY. wait a minute. Didn't Woodrow Wilson sign the 'Federal Reserve Act of 1913' in to law, as well?
Wilson had nothing to do with the loading of armaments on the Lusitania either directly OR indirectly (?). SURE, he wanted to join the Great War To End All Wars as a favor to the interests that stood to gain the most (and also funded and bought his presidency), and signed some agreements with the so-called 'Allied Powers' to give 'humanitarian aid', and shit like that... it wasn't like Wilson and Colonel House and W.R. Hearst actually dressed up as stevedores (longshoremen) and loaded the arms on the ship...
PLAUSIBLE DENIABILITY was a newer term, just invented back then, you know.
"BURN THE CENTRAL BANKS. HANG THE CENTRAL BANKSTERS. FUCK ANY AND ALL ATTEMPTS AT ANOTHER WORLD RESERVE CURRENCY."
Jesus Christ, Renfield!
Well, I still think you're still holding back.
Why don't you just tell everyone how you REALLY feel?
'Wasn't the German Mark the world's reserve currency?'
HOLY FUCK! Yeah, and Martin Luther King was the first black man to walk on the fucking MOON! Who's in charge of the formal education of these people? President Dwayne Elizondo Mountain Dew Herbert Camacho, porn star and five-time ultimate smackdown wrestling champion?
No the British Pound was. Britain avoided most of the really evil shite. Yes, there were the Jarrow marchers, but this was mostly a Union sponsored publicity stunt.
I think it must have been the Roman cistersus. Or denarius, abouth the same size and weght of the US dime today. At least for the Roman world at the time. Also one of the more wodely accepted coins of its day was the silver thaler, that had maria theresa thaler's portrait on it.
No it wasn't. That's the reason Weimar will look positively tame compared to what is on the way for the US.
No not just the U.S. but the whole shibang, with sovereign bonds crapping out and derivatives dragging down anything left standing and confiscation of savings as banks implode. The rich will have successfully retreated with their wealth and power and will then float their rescue plan when the chaos reaches that certain fever pitch. SDRs anyone for the return of food and money to the market place? Sign here, all you have to give up is national sovereignty and the citizenry will now become bank chattel but that fact will be in the fine print.
I have many rolls of Deutchmarks, that I saved while traveling abroad in 1999. ;-)
Exactly.
Until we are no longer able to export our dollar inflation, the fed will more or less get away with this. Who knows when we lose reserve currency status, but when that happens, you better have physical or you can stand in the bread lines with the rest of the serfs.
Until we're not the reserve currency, the FED will get away with this crap. But when China gets tired of our BS and quits the dollar, we'll feel it plenty. Better get physical.
No, and neither is the Euro/NDM (New Deutsche Mark).
Pregnant pauses.
Its different this time!
Then BTFD like a good wood should
I have to say, your username and picture are, without question, the best on the site.
Phenomenal.
It's the new new new economy. Until it's not.
it is....It is me....last time it was some other fools
Yes, but we're better because we wear blue uniforms instead of brown uniforms and we have a big O instead of the National Socialist Workers Party symbol. You see it will work this time. Dear Leader is in charge and he reads teleprompters well...
</s>
I wants my E B T...
Yo! Dats be mah ObiePhone!
running after Kaiser waving baseball bat
Gimme dat backs oh you gets to play dah gowld n' yo ass lost foeveah in mah next boatin' akctsident, honkey assed mothafuckah!
You be pretty jive for a cracker.
Who da fucks you be callin a crakah? Gets yo God damned ass back heah, bitch!
You runs pretty good for a white boy.
Where yo crib be at?
(A black Dude really asked that to an old gf of mine. Bothered her that she couldn't parse it into English;)
Lots of white girls have fallen prey to this line:
"I'm gonna smooth up in ya'. Hell yeah! I gonna get up in yo' guts..."
Anne Dunham liked it, I guess. (TELL ME you know this is the mama of "Obama")
This "global financial system" we all endure today was known by it's creators to be a ponzi scheme designed to usurp the wealth of the world from the start.
It has been enormously successful in doing so.
draghi will do what every italian needs to do to keep their job and appear relevant
"whatever it takes"
or in spanish
https://www.youtube.com/watch?v=bJjlA2ncXr8
It used to be ironic Tyler. I even laughed over the first few " boom bust" cycles... The situation isn't laughable any more.
Thank "Sum God" I was able to see the light 15 years ago.
I laugh when I see the old .gov over population scare movies.who can afford to raise a family? Someone please disconnect me from the Matrix.
Just start a small sweatshop and once they turn 5 you can put them to work!
And once you’ve got 6, it real becomes a profitable business!
And at age 5 you don’t need to enroll them into Obamacare so there’s you’re competitive edge!
For example:
HOW DO YOU THINK STEVE JOBS BUILD HIS COMPANY???
OR DO YOU REALLY BELIEVE THOSE SMALL SCREWS ON YOU IPHONE WHERE MOUNTED BY ADULTS?!?!?
HELL NO!!! CRAFTMANSHIP BY BABY HANDS!!
lmfao. You're on the roll Sudden Debt.
Are you sure you're not confusing Microsoft with Apple?
Sounds like heaven if it was your own families little sweatshop with everyone mucking in to achieve mutual goals :-) An education for the kids instead of a dumbification......
They're not comparable.
On the one hand you have a country printing huge amounts of money to pay off reparations after a costly war, in more or less, normal economic conditions.....resulting in hyperinflation.
On the other hand, you have a Fed printing money in the wake of a balance sheet recession and massive private savings so the money never actually enters the real economy. Hence the world has 11 countries with negative bond yields.
But, yes, by all means continue predicting that hyperinflation is just a heartbeat away.
Not saying, any of this works or is advisable, but hyperinflation is highly unlikely to show up.
You can't have hyperinflation in general without hyperinflation in wages...in what universe does anybody think that wages are going to suddenly explode? Even if commodities double in price...do you really think our owners are going to suddenly double our wages? Fuck no. They will tell us to do more with less. Combine households. Sell the second car. Get a third job. Go back to college.
The internet + globalism = depressed wages forever.
The only hope for the average working stiff in the rest of the 21st century is if the cost of living plummets from innovation in energy, agriculture, etc. The 20th century saw huge wage gains, this century will not, for the reasons you stated.
society speaking, we are going to elysium model.
When the garbage doesn't get collected the garbage man gets a raise.
That is exactly the way it worked in the Weimar.
Govt. workers could go on strike to get more from the next print run directly from the government.
Private citizens and pensioners could not force their demands on the pols.
The only ones in the private sector who profited were the ones who owned productive assets and had debts that were paid off with the depreciated currency.
And Hitler.
You need to watch "The Greatest Story Never Told". You might learn a thing or two about WW2, Germany and Hitler.
It's being blocked for many countries on youtube but you can visit their website ( www.tgsnt.tv )
Or do a search on torrent sites. There's a HD quality version of the 6 DVD documentary.
Anyone who wants to hear the non-jewish version of WW2, needs to watch this amazing documentary.
If you refuse to watch it, it's because you would rather remain in denial and ignore the truth.
When I was an apprentice in the mill @ 18yrs old there was never any bog roll in the gents, so after numerous complaints I began to take my morning constitutional in the directors toilet upstairs.
A week later my gaffer said "you're in trouble they want you upstairs" so off we went. Two directors were sat in the office and sat me down and asked my why I was coming up into the office toilets from the shopfloor? I stared them both in the eye and asked them if they wiped their arses on "The Sun"? They thanked me and sent me back to work.
Couldn't get in our toilets downstairs for piles and piles of bog roll for the next 2yrs!!!!! Fuck em!!!
With time more and more countries will start trading in their own currencies. This will lead to much lesser demand for USD and bringing slowly (at the beginning) the price down. Since US imports almost everything, the price for imported goods will slowly start increasing regardless of what the real wages in the US are doing. The worst scenario would be if the real wages in the US are not increasing when the inflation comes. This will lead to a stagflation and colapse of the country. The better scenario which could be overcome with time is wages also increase with high inflation.
Imports are already going up. Anyone who believes there is no inflation believes the .gov figures which are lies. Even at Walmart prices keep going up. The only thing that has gone down is oil and that won't last long. Inflation doesn't have to be hyper to cause pain to the average person. The Davos goons won't notice any inflation but I will.
What happens whèn that giant condom holding all those trillions gèts a leak?
That would actually be a good thing, it would likely mean that economy is working like it should.
At this point you, the Fed can handle this problem. Basically, like Volcker who finally raised rates after 15 years of imprudence by the fed govt and Fed.
Just raise rates, pay on reserves held at the Fed, raise reserve requirements, reverse repos, etc. This can be done.
Alas, this day is likely never going to come. Because of current economic conditions which seem unlikely to subside, the Fed will continue to maintain or actually increase the level of its balance sheet in the misguided attempt of boosting the economy. Of course, all this will do is make the rich richer, raise asset prices, further putting a squeeze on the middle class, and distorting markets.
The only hope for Labor in this century, and there isn't much of one...
Is we need a repeal of most income tax along with corporate income taxes, and a rework of how social security is funded. Tax only wealth and consumption.
In the 20th century, Ford or GE needed an army of well paid employees to make their profits.
Zuckerberg needs about 2,500 people and 5 years to create a company worth, what, 6 times what Ford is now worth.
In other words, conditions of the 20th century incentivized work, this century will only ever incentivize consumption. Thus,we need to do as little as possible to disincentive work this century.
Sorry for my rambling.
Silver Bullet. Though I'm relatively new ZH commentor I've read for ages and have always read and respected your knowledge. How long do you think they can delay hyperinflation? I can see that if all the QE just buys stocks and equities and props up bank reserves it is a slower drip feed of currency into the real world, but still a very real increase, just slower. There has also, surely, got to be a time when prices in anything non physical become too good to be true so people cash out and get into something real, again inflating the supply.
I understand what you mean, drop a medicine ball in the bath at home it will make a mess, drop one into the pacific not so much.
When is your estimate for proper tits up in the UK or US? I'd perversely like to be around when it happens, because I've paid for it and want to see some fuckers dancing!
We'll, that's largely a political question, hyperinflation that is.
As some of the other commenters have stated, hyperinflation ebbs along and then it explodes rapidly. That in and of itself makes it all but impossible to predict when exactly that will happen. Add in the fact that QE has never truly been done before and you enter the unknown unknown.
I know many others on here would vehemently disagree with me (and I respect that opinion) I don't think it's going to come about in the foreseeable future. I just don't.
QE is strange. It can be useful when banks are in crisis mode to stimulate the rest of the economy. However, each successive dollar or Pound, or now Euro, goes more and more to holders of capital...it makes them more and more richer while doing less and less for the real economy. However as bank reserves explode, people as a whole save, the money sort of leaks out of the economy from an inflation perspective.
So, I guess I'll answer your question this way. I think the status quo can last for a long time...a long....long...time.
QE for the rich and EBT for the poor....
I really don't think it's an economics question. It's a political question. How long will the peoples of the world just tacitly sit back and accept shittier and shittier lives? I don't have a clue.
Tomorrow, Greece may finally pull the ripcord and find out what's through the looking glass.
I'm unpopular and ignored all over the place, I judge that as positive because the truth hurts, so I know I'm barking up the correct tree. If I post some shite dross on facebook (I'm there to annoyingly wake them up) I get 20 likes, post some seriously pertinent and important stuff and you are ignored with palpable silence!!! It's great :-)
I think you are right in that the financial side of QE can be algorythmically spread very thinly around worldwide assets. My gut feeling however, based on how fucking abjectly incapable of thought 95% of the population are, is that like you say it would only take a mildly popular common sense idea/fashion and the people will just follow eachother, so anything could happen.
The thing that saddens me the most about the times we now live is that when I look at the youth I know they would kill me without thought if that became the order of the day. When I read "The Mystery of Banking" I was astounded at how clued up the public were from late 1700's to about the time the TV arrived.
Greece need to go for all our sakes IMHO. The Scottish football fans got their just desserts when the English gave them "You're British Till You Die". Lets hope someone makes a successful breakout sometime soon.
Thanks for the kind words, as well. If you've been reading ZH for awhile you are, no doubt, aware that I'm generally unpopular on here. Cheers.
hyper inflate slowly over long period then suddenly violently.
Its like a back room orgasm, a lot of sweat and pumping, a huge float on a rubber boat huddled in whispers and dirty talk and then pop goes the weasel.
Like the song says : plaisirs d'amour... long purgatory when you fall, especially if you're an addict.
And these guys ARE addicts.
I hope they live up to the saying where they end up : Hell is a hot place but the company is very interesting. Thieves of a feather have a lot to tell each other : When we were kings of it all!
What happened to the RATE INCREASES once employment hit the 6% range. No one brings that up anymore. However, I guess the RESPECTED SNB haa set precedence for CB dishonesty. Maintaining the peg 3 days before they drop it. Why would anyone trust them anymore. This action alone should move everyone to Gold.
The world is in the midst of the most dangerous game of musical chairs ever played, Switzerland has just taken a seat, and irrespective of what they say publicly, the anxiety level amongst the other participants has risen sharply.
Buckle up.
HEIL OBAMA.
THE FREE SHIT ARMY SHALL NOT BE DENIED.
If they'd only been a soldier in Phil's gang ;-(
I gotta Question
What happened to the DIRE STRAITS of the STATES?. It seemed backed in 09 that 1/4 of the States were deeply in the RED. What changed that? Not even California speaks of their multi billion dollar deficit anymore.
Was it WallStreet through the FED buying all the distressed properties so property tax could be paid? Was it the return of the DJIA to new extreme highs thus enhancing the State's retirement funds? Was it Fracking
It cant be income tax as so mnay are not participating and those that have jobs pay less. Sure some people maintained their income levels but by and large most lost out.
You would think as Obama stated that the Shadow of Crisis has left
The pay out was called Obamacare...
ever watched the junkie before and during the fix?
this is the fix
next comes the withdrawal and the scratching of imaginary ants from the arms and the desparate and frantic search for the next fix
addiction, whether because of drugs or debt is still that
addiction changes everyone associated with it to co-dependants on the addict
central banks are not the fix we are looking for
Here's Mario's reaction:
http://mcgonnigle.files.wordpress.com/2007/08/snidely1.jpg
Japan 1st.
They're going to have to wipe out all those government debts.
What is the Y-axis for the Weimar graph? Is this a log scale for prices and the money supply? It should be if you want plot what happened during the German hyperinflation. Looks more like we're at about the point where the Germans were in 1917.
Tyler you are my hero.I loooove these charts
The Weimar Republic lacked the capacity to produce much of anything so too much money resulted in inflation. There is no lack of capacity to produce here. There is a lack of demand however. Resources are horribly misallocated. In other words there is potential demand but demand is lacking for what is currently being marketed. Since no recession has been allowed for many years, this situation gets worse with every stimulus. Mainstream economists believe one number causes another but that is not true. A lot of money doesn't create inflation. It is the incentives which cause inflation and incentives cannot be measured wihh money. Expect a horrible depression but don't expect inflation.
Common Sense Ecpnomics http://quillian.net/blog/
What is happening i that we are seeing inflation in form of debt not in the traditional form of massive dollar presence everywhere. demand is low because of massive taxation. Once agaon the problem is the fiat paper currency backed only by more debt.
Listen. The consumer is not up to the task of defeating deflation in any country. There are too many businesses to serve too few customers. Money velocity is way way down. The banks are fucking seeing the abyss and clinging to a thin line to keep from falling in. They know all this shit is going over but are helpless and dangerous too. Why do you think all the countries have maintained their peg to the dollar? Now the swiss basically are pegging their currency too. Soon it will be all countries and the dollar will not be just the reserve currency but the only currency OK? See that is why needs to happen to keep the shitstorm outside and they will sacrifice your pitiful useless commsumerist lives to .make it happen.
Wow, someone here who gets it. Those thinking the dollar is going to lose reserve currency status are just wishful thinking. The dollar will become the only currency at some point in the not too distant future. The U.S. has engaged in how much money printing in the last 6 years and yet the dollar is streaking higher now because it's the cleanest shirt and it will get to the point that it's the only one. That's the goal anyway.
not so fast.... US money printing is only part of the "your grandma and my grandma, sitting round the fire"
the US has stopped QE (though not of course shadow QE, which nobody even knows about yet) but Bank of China, Bank of Japan and now the ECB are busy sterlilizing American QE with the corrollary of race to debase.
The US is "only" 30% of global GDP, so boxing way above its weight v the people heavy and export heavy countries: Europe and Japan are devaluing their currencies to outcompete the US is global trade - displacing it as a swing producer because the RoW is scared shitless of the US military taking over and dominating scarce resources like the drug trade in Asia and South America or the oil fields in the Middle East.
rock n roll is here to stay, but it aint just played in the USA
just saying.
Russia, China et al seem to differ on your high opinion of the dollar. Will it go higher? Most likely in the short term as many have said it would as in any corrupt scheme all the shit comes home to roost... to the central bank of the central banks, only it has a large enough market engage in trades of this size. The USofA is the offshore haven to the entire world, and all that ill gotten fiat currency is seeking 'safe harbor', but how much longer will that last? Remember that history shows us the same pattern every time.... get all the idiots on the rug, then pull it out from under them.... to use the ole evil magician story, all these banks and traders think they will play the game and get out in time... they think that way every time.... but only those 'in the know' have learned to exit and let the fools concern themselves with what scraps are left over.... then the wave arrives and carries them under with the rest of the sheeple... they were allowed to think highly of themselves, when they were but sheeple themselves... same gameplan everytime.
I agree we're on a horrible path, but it seems to be a small problem with this particular comparison: the chart of the left shows jumps in the wholesale price index, the chart on the right shows jumps in monetary base. In the 1920s Weimar, the monetary base expansion wasn't lumpy, just a parabolic curve.
Why did they want our taxes all these years when they could have just printed money?
It gives the system a perceived legitimacy.
20 billion dollars a bum of bread comming soon.
You could buy a square city block in Hamburg for 1 gold coin in Germany during the Weimar hyperinflation.
But, what would be the point? If you rented out the houses, the day after rent was paid the money would be worthless.
The Weimar inflation was the result of printed money reaching the real economy this does not happen with QE.
BUT
It goes to the banksters and the 0.1% who blow asset bubbles, one day they are going to pop.
The biggest asset bubles in history bursting could be worse than Weimar inflation.
Wait and see.
You do have a point. So far, that money (if I may call it that) either gets plowed into securities (market bubble) or is held for the banks by the Federal Reserve and gains risk-free interest. Is it not true that if rates get to the point where the banks find it more profitable to loan those funds with their current 10% reserve requirement, it WILL be in the "real" economy - - and at a 9:1 ratio?
Can someone explain the process to buy gold at the best price possible? Thank you <3
If it were comparing prices to prices or monetary base to monetary base that's one thing, but this graph comparison is not doing that at all.