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The Chart Showing What Runaway QE Looks Like
This is Sweden.
This is Krugman on Sweden.
Where does this gut dislike for low rates come from? At some level it has to reflect an instinctive identification with the interests of wealthy creditors as opposed to usually poorer debtors. But it’s also driven, I believe, by the desire of many monetary officials to pose as serious, tough-minded people — and to demonstrate how tough they are by inflicting pain.
Whatever their motives, sadomonetarists have already done a lot of damage. In Sweden they have extracted defeat from the jaws of victory, turning an economic success story into a tale of stagnation and deflation as far as the eye can see.
And they could do much more damage in the future. Financial markets have been fairly calm lately — no big banking crises, no imminent threats of euro breakup. But it would be wrong and dangerous to assume that recovery is assured: bad policies could all too easily undermine our still-sluggish economic progress. So when serious-sounding men in dark suits tell you that it’s time to stop all this easy money and raise rates, beware: Look at what such people have done to Sweden.
And here comes the low rates: this is Sweden on negative interest rates.
And this is what runaway QE looks like - presenting Sweden's 5th QE in 2015 alone.
Well, Krugman got his wish.
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Jews always get their wish.
The Keynesians will continue to claim that central banks need to print more. Perhaps it is not a coincidence that the majority of of Keynesians seem to be of a particular religious persuasion.
Facts never matter to zealots.
Here's a fact: There is no empirical evidence that money-printing (aka QE or Quantitative Easing) is beneficial to an economy in the long run.
Here's another fact: There is no evidence in all of recorded human history to show that money-printing is benefical to an economy.
Here's the final fact for today: When the facts do not support the predetermined outcome, the facts will be ignored or changed.
Also empirically, 100% of fiat regimes fail. Fags.
"Here's another fact: There is no evidence in all of recorded human history to show that money-printing is benefical to an economy"
Why don't they just print the damn money already!! Print 50 trillion or 1000 trillion. I mean, if a little is good, isn't ALOT better?? Make everyone a millionaire, and Utopia HERE WE COME!! No one will have to work, and everything will be free and easy, right?? Hell, why stop at a million, make everyone a billionaire, like Warren Buffet is. Then everyone can live like Warren.
I like that, make everyone part of the 100%'s it is way better than being a 1%'r
Wealth can only happen in the presence of inequality. Let's say God came to earth and gave everyone $1 billion. Then the farmers would not have to work, and the grocers would not need to show up. Pretty soon, everyone is both rich and starving at the same time.
In the end everyone dies and nothing matters.
FGB
If everyone had a $Billion, you'd have Weimar/Zimbabwe and a cup of coffee would cost $20,000 or $50,000 or more. The number of zeroes after a whole number denomination do not determine value. So print until you run out of ink - bu no one will be any richer or poorer. Increasing the amount of currency in a system will help no one.
Everyone gets a Trillion dollar coin.
Final fact: Krugman is full of shit.
I'm Jewish and I have yet to receive my check. What you talking about?
How the Ashkenazi Jews Conquered the West => http://wp.me/p4OZ4v-2mp
we are all jewish now.
https://en.wikipedia.org/wiki/We_are_all_Keynesians_now
khibukim,
milton
"I'm Jewish and I have yet to receive my check. What you talking about?"
Don't take it personally. There's an ugly undercurrent of anti-semitism among some of the posters on Zerohedge. I'd like to believe that when they're railing against the Jews they're just painting the entire religion with a broad brush because of the incredibly high preponderance of Jews in control of the world's banks, despite their numbers being a small percentage of Jews in total. It's like some people railing against the Masons when they really mean level 30+ Masons, knowing full well that the vast majority of Masons are just regular guys networking and schmoozing for their own personal advantage. Personally, I'd rather they just refer to them as banksters or whatever other negative title they prefer, and not attack the entire religion. After all, Jamie Dimon is NOT Jewish (although the contigent I refer to will be quick to "inform" me that he married a Jew). I'll also be "schooled" about how it's not just the bankers and that Israel is the root of all evil. All the while my "educators" will deny that the USSA is the world's largest terrorist organization killing scores of innocents in drone attacks and shrugging them off as collateral damage. I still read their posts as I try to stay abreast of the current Zeitgeist, but I try to let the comments I find objectionable just roll off: being a Libertarian I figure everyone is entitled to his/her opinion and who am I to say otherwise?
DISCLOSURE: I am neither Jewish nor a Mason. I loathe the psychopaths controlling/manipulating our markets, our country, and the world in general as much as the next guy. If I had any solutions I'd gladly share them...
there's an ugly undercurrent of anti-globalism among some of the posters on zerohedge, also.
frankly, it's pretty disgusting.
unseemly.
as though non-globalism is somehow enshrined in fantasticalness.
get real.
name a single non-globalist who either
- built an enormous pyramid or sphynx
- sent a rocket to the moon
- created the internet
give globalists a break.
Fan of Rockefeller, are we? Hey I do understand where you are coming from, and i would support globalism if it were not in the hands of those debauched elitists that are pushing for control rather than freedom. Any globlist agenda that I support has to guarantee freedom first, and right to life second, and has to be uber democratic, that means all ministers have to be directly elected abd easily removed by the people.
I'm in your camp. I might find myself bashing jews, from time to time, but I know that the vast majority of jews wear the same shoes as I and are walking the same road.
And one of the first jews I ever met had numbers tattooed on his arm. His son was my best man.
"...the vast majority of Masons are just regular guys networking and schmoozing..."
And sitting in the "temple" (or someplace) drinking beer. You forgot the beer. If they didn't wear those funny hats with the fly swishers dangling from them, you wouldn't be able to tell them apart from the American Legion guys or the VFW guys.
Jewish, eh? Well, I am a Scot by heritage. I never had a credit card nor a loan in my long life. I'm not waiting for my check. And even though the FED is stealing the interest on my savings, I'm still a saver. I don't know and wouldn't condone any other way. Savers made the country great and prosperous. I'm proud as Hell when someone calls me cheap. If the FED wants me to contribute to the consumer economy, they'd better raise interest rates, because I don't ever spend the principle. Sometimes I spend part of the interest, IF I see a deal I cannot refuse. I haven't spent anything since ZIRP. I just keep making lower and lower offers. If one gets close to being accepted, I lower my offer again, because I like the security of money more than I like the risk of assets.
In my many years in business I always made money regardless the ethnicity of those with whom I dealt. And I made sure the next guy made money too. That's the secret of business. Add value to the marketplace, and always leave a little room for the next guy to earn enough to make him happy too. Follow that rule, and he'll listen the next time you call him with a deal.
The Jews are OK in my book. I made a lot of money with and for quite a few Jewish guys over the years. The Italians are sharp traders too. But not everyone is OK.
It's all the coke addicts who have fucked things up so bad, thieving, lying, scheming and scamming. They think they're god on lightning-wings. But they all end up dead or broke, or dead and broke, long before their time because the marketplace chews them up and spits them out like so much chew. Spittle, that's how dope addicts end up. Spittle.
Way back in the day, I bounced at a local tavern. The owner was also proud of his Scottish heritage of "cheapness". He once said to me "a Scotsman is like two Jews"
Copper wire was invented by two Jews fighting over a penny.
And before you hatefest me, that joke was told by a guy with a numbered tattoo on his arm.
Mr. Pearlstein, RIP. Your son, Mike, is still a friend.
Come on, it's Krugman, does anyone really listen to that blow-hard anymore?
"Well, Krugman got his wish."
Beware of crony-socialists bearing gifts ;-)
Danes get really pissed when you mistake them and theirs for Sweden.
Nice one, the Swedes must have bought the Copenhagen mermaid like the Yanks bought London Bridge. Got to spend that QE on something eh?
https://en.wikipedia.org/wiki/London_Bridge_(Lake_Havasu_City)
Been there, done that, got the tee shirt.
Yeah... and in the US we sell bridges. Brooklyn, Golden Gate... you name it and you can find someone to sell it to you.
Out of the central banks that have implemented ZIRP, has any of them ever suceeded at returning to a normal positive nonzero rate? That is to say, are there any empirical examples of ZIRP ending with anything other than NIRP or more ZIRP?
Funny you should ask!
As in ha ha.
Well they have gotten off of 1% rates. Never ends well, though.
Amazes me how nobody believes the ABCT.
Firstly, that statue is in Copenhagen Denmark... 2nd ly Kr4ugman is a cwunt and should be punched in the face when anyone sees him on the street.
So I have to ask. What if anything will stop QE? I know some will say when people lose faith in fiat, but hasn't that already happened?
No Way Out....
like a heroin addict ...if this feels good, more must be better
hello tomorrow
Here's to sadomonetaristizationalizing!
I really wish someone would just put Krugman's fucking head on a pike.
I skipped Krugman's comments.
(1) It's not whether to like or dislike low rates. It's the sinking feeling that rates can never go up much before economic collapse.
(2) I actually think Keynes would scratch his head over a $439B federal deficit (2.4% of GDP) six years into a "recovery."
What would he scratch over a $164 trillion debt?
I am sure we are very far from anything Keynes would recognise as working.
They took an idea that basically was steal from the future to level out the present and changed it to everlasting welfare for the banksters...
I'm thinking that Keynes would think extreme debt in a capitalist nation was just fine and dandy since the function of Keynesian Economics seems to be to destroy freedom. Keynesian economics must inevitably lead to globalism... which I find objectionable.
Interesting piece/summary of Keynesian economics and the personal philosophy of JM Keynes from which his economic theories sprang can be found here:
http://www.tkc.com/resources/resources-pages/keynes.html
As a Christian, I find Keynes and his teachings to be anathema. I summarily reject both the man's lifestyle and his teachings. Economically, I am an Austrian. It is the only economic theory that I believe both works, and makes sense.
I would love to be locked in a room with Kruggs, Bernanke, Blankfein, Buffet, Soros, and Dimon.
I'm just wondering if I'd go absolutely wacko and kill them all in seconds, or try to savor killing each of them slowly. I know my first move would be shoving those cuff links right in Jamie's eyes.
Is there something wrong with me for having that fantasy?
No, you are okay.
Kill them by duct tape.
They all look like hairy bastards after all.
Tape them up head to toe, and a week later, tear it off a piece at a time.
Repeat every fucking week.
For life.
Thats kinda like what they did to us, the economy, money, and the planet.
Nope, the only wrong part is that you would have to be in a room with those pieces of shit.
That is horribly sick. Me I just have a list of folks I'd like to have strapped to a chair.
....I just want to ask them some questions...that's all.
If I were you I'd start buying a lot of lotion...
you'd want that skin nice and tender.
While they're in the pit, a hose would be recommended to ensue compliance with the lotion demand.
Once everything is nice and flabbily soft, that's when the duct tape (ducktape) comes out.
QE the American way:
http://www.dtcc.com/charts/daily-total-us-treasury-trade-fails
Frankly some rate rises might be nice. I'd love to see bankers providing loans to businesses for a change because it made money more so than betting on stocks.
I mean really...can they put the money into something that earns a dollar for a change.
In the last three months we purchased four forklifts, five 20' flatbeds, and seven Agg Haulers. Average interest is near .5%.
Forklift and flatbeds haul steel to our retail steel outlets. Agg Haulers bring rock and sand from our mines to our ready mix operations. I think the total loan was in the neighborhood of $1.5 million (not sure because I'm at home). Last year we acquired an expansion by buying out competitors that gave us four new markets. Interest on that was an average of 2%, total loan was in the neighborhood of $6 million.
In August we purchased a couple vehicles from Ford, 0% interest, total value about $100k.
In the meantime, I refuse to put any money into the market until it's crashed at least three times and Congress starts talking about reactivating Glass Stegal. So far, I haven't seen an actual market crash. Just blips.
Glass-Steagall - the bear trap in the banker's cookie jar.
Here is an ariticle about NIRP and cashless society Sweden.
http://www.businessinsider.com/sweden-cashless-society-negative-interest...
I'm a minor VIP at our bank. It's the same as what my employer uses and I'm the corporate controller. So far this week I've deposited over $1.5 million.
I refinanced our house (we seriously needed some renovation and improvements). I went to the bank and told them I was about to launch on big buys at Home Depot and Lowe's and needed to have my debit card expanded (I keep credit cards extremely limited, I don't do credit). I was immediately given $10k per day spend on the credit side of the debit card, and $5k per day on the debit side. (You have to talk to your bankers. Treat them like a bakery, you're planning to buy a thousand donuts from them...there's not a corner bakery that could provide a thousand donuts without pre-notice.)
In the midst of this, I pulled $50k out of my account in cash...because home renovation. (Which was done for about $20k, and I got to tell what all we had done as I pulled out currency...again, letting them know three days in advance, that I was going to pull $10k or more in cash. Banks are like donut shops, you have to let them know if you're going to do something unusual). Not one transaction was questioned, no FBI form was submitted, and the only question I got was what color was the paint.
The secret is to not embarrass your bank by asking to pull out more cash than they can manage unexpectedly. They manage cash as inventory, and have internal rules and formulas on how much to have at hand on any given day. They appreciate being told that you plan a large withdrawal on a certain date and to prepare for it.
This is good to know, contrasted to articles about businesses being steamrolled for cash deposits, such as this, but then again, there may have been much more to the story.
I would expect that the FBI forms were submitted as their business requires, but they did not have to ask you any questions as you gave them all the information they would need for the forms without asking.
Agree about them being donut shops. I use the term utilities, but same thing. I just want them paid like utilities rather than treated like gods, and paid enough to buy being a god..
edit
And the Federal Reserve does a much larger QE4 in March 2016 according to Jim Rickards.
Link?
According to Jim Willie the FED is doing stealth QE to the tune of $1 trillion monthly right now.
Welcome to Sweden, the rape capital of Europe
https://www.youtube.com/watch?v=3KSJY0c8QWw&feature=youtu.be
The wages of white liberalism and much more besides. Sweden will be warmer in the decades to come, aside from possible global warming, on account of all the fires burning in its cities on a regular basis. The white liberal solution will be more of the same until such time as they are removed from power completely.
Why the hell is Krugman not known as "cowbell" already? If ever there was a guy who deserved that nickname, it's him.
The US stock market has become a gov't-sponsored, not-for-profit, rentier-socialist trust/annuity for the top 0.001-1% to 10% and hedge and pension funds.
A bear market cannot occur hereafter (10% decline for the SPX that persists for months) or else the hopelessly levered carry trade blows up and the system collapses.
It's that simple.
The bottom 90%+ are now neo-feudal serfs/peasants with no capital wealth and eventually no SS, Medicare, Medicaid, pensions, and retiree medical benefits.
We are expected to just shut up, go away, and die like rotten cabbages in the Creten sunshine.
Or a dessicated corpse on the side of a desert dirt road.
Krugman is the stereotypical definition of a self-superior, self-important, Jewish imperial ministerial intellectual who would be harmless were it not for the fact that he affirms the values, machinations, and license to steal of his fellow tribal bankster oligarchs who are now a huge net cost to the rest of the society.
Same as it ever was (Egypt, Babylon, Assyria, Khazaria, and Europe).
i wonder what krugman is going to do once shit hits the fan........................maybe he could take after OJ Simpson and write a book called "if i crashed the economy of the greatest empire on earth here is how i did it"
I want to see him fleeing an angry mobin a white chevy only to be pulled out and hung over a random bridge. LA riot style.
I guarantee you when that day comes Krugman will pretend it's not his fault and this should all be blamed on free markets.
Anyway I think he'll be lynched. When you are that full of shit people don't like to wait for courts, prefer to leave you swangin.
Krugman is a head up an ass. So it is evil to want a return for a risky loan? BS, Paul.
His view is that of the CBs who create money at will. Sure, easy for them to 'lower rates'. In the real world Paul, with real people lending, the view is different than the one you perpetually have...with your head where it is...and all.
Who trades the new fiat money for actual goods or services first?
I'm sure the economy will coming roaring back into good health with NIRP/QE!
With "thinking" on this par it is amazing that Krugman is a high school graduate much less a Nobel laureat professor.
If currency has no price then it has no value.
Acting 'tough' has nothing to do with anything.
If currency has no value then we have to explain why some get so much more than others.
But the real problem becomes one of production.
Why would producers trade their effort and skill for something of no value? Why continue to produce? Production is not an irreducible primary, but a deliberate act in response to incentives that Krugman dismisses as "tough talk".
When the city starves from foregone production it will not seem like talk at all. Currency of value is the only reason there is food there.