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Can "SPECTRE" And Trillions In Free Money Finally Save The Global Economy?
It’s certainly no secret to anyone who frequents these pages that trillions in global QE have failed to engineer a robust worldwide economic recovery. Aggregate demand is still soft and global trade is stuck in what amounts to neutral.
But the world’s central planners have a penchant for Einsteinian insanity and despite the glaringly obvious fact that QE long ago began to succumb to the law of diminishing returns, most DM central banks are ready to enact still more stimulus and persist in ZIRP (and NIRP) in what might as well be perpetuity in a race to the bottom of the effective lower bound and the top of central bank balance sheet lunacy.
In his latest missive, Grant Williams takes a look at the dynamic described above and how “SPECTRE”, “The Special Executive for Continually Trying to Resuscitate the Economy” (an amusing take on the villainous cabal from the Bond films) has gone about trying to “fix” it for going on seven years now.
* * *
From Grant Williams
Ladies and gentlemen, I give you SPECTRE - The Special Executive for Continually Trying to Resuscitate the Economy.
This shady organization operates in plain sight but wholly above the law and, though the international flavour of its executive board is consistent with Fleming’s criminal franchise, the public face of SPECTRE shifts regularly.
In short, not the sort of people you’d choose to do business with.
Back in 2008, in the midst of a crisis of global proportions, Ernst Stavro Paulson and the enigmatic Dr.Yes brought SPECTRE out of the shadows and into the collective conscious of the world. They did so by seemingly offering a cunning solution to the fears that gripped mankind in the wake of the GFC—free money!
Since then, an ever-widening group of SPECTRE luminaries has worked tirelessly to increase their grip on the world and to achieve their stated aim of world domination resuscitating the global economy.
With Paulson & Dr. Yes now seemingly retired (presumably, the SPECTRE pension plan is both defined benefit and, at the very top levels, extremely generous), it has fallen to the organization’s #3, Emilio Dragho to take the reins—aided and abetted by the fearsome Rosie Outlook—and their lieutenants stationed in places as far-flung as London and Tokyo.
But can the modern-day SPECTRE achieve their aims or will they, like Fleming’s villainous cadre be foiled—not by 007, but rather a global economy that simply refuses to bend to their will and get off its knees?
[...]
Rather than focusing exclusively on ‘growth,’ there are a great many ways of measuring economic ‘health’ and those benchmarks are perhaps a better indication as to what lies ahead.
In the US, for example, the ground level data have been fairly poor.
Manufacturing ISM is barely above recession levels and, while non-manufacturing has been strong in recent months, the divergence between them is a worrying sign given their tight historical correlation.
[...]
It’s beneath the surface where the real disconnects between perception and reality lie and there is nobody better at not only identifying such misalignments, but putting them in the perspective they so desperately need than the brilliant Stephanie Pomboy of MacroMavens who this week has very kindly allowed me to share a few short excerpts from a recent piece she published.
It was Stephanie’s final chart which had me breathing into a brown paper bag like a dowager having an attack of the vapours. Pray silence for the inventory-to-sales ratio:
[...]
[Before] I move a little farther down the list of those economies supposed to do the heavy-lifting in the next couple of decades, a few more observations as to the real health of the US:
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So, by your logic, no QE would have been a better solution? Non-intervention in a business cycle downturn was the norm in the bad old days. How did that work out for us in 1929-1939?
There you go again, watching TV.
So the ZH ranter creed opposes fiat currency, the Federal Reserve, deficit spending and Keynesian economics. This would put us in a time machine leaving us at around 1900. How stable was the economy then? I recall reading about a lot of panics and bank failures in those good old times? These detested abominations have made our economy the biggest in the world and foreigners buy our government debt for tiny interest rates. Why can't we just abandon everything we know about economics and step back to what we did 100 years ago?
You're a complete lunatic. Troll somewhere else.
>>Why can't we just abandon everything we know about economics
That's funny, because anyone sane and with a grade school level comprehension of mathematics would say that's what we've done for the last 102 years.
It must really upset you to be told things by PhDs that go against common sense. Did you know that a marble and a cannonball fall at the same speed from a tower? Amazing, isn't it? Did you know that the correct pilot response to a stall is to point the nose of the plane down, putting it into a dive? Doesn't make any sense, does it? Did you know that splitting an atom releases a vast amount of energy. Most grade school kids don't know how to split an atom. Lots of things that go against common sense, like Keynesian economics turn out to be very useful.
No such thing as a free lunch and no such thing as free money. Someone always has to pay for it.
@realmoney2015: Absolutely. There's even a small book (free on line) written in 1904 titled "The Cost of Something For Nothing."
https://archive.org/details/cu31924030258689
After too much free money in the "economy", no one will have the need to suck cock for a living. Well, except maybe the homeless:
http://www.thepornster.net/video/475/homeless-blowjob-reality-porn
The problem with your derailed train of thought is that Keynesian economics are not being employed as deficit spending is the new normal response for economist in boom or bust so you are confused. Nose down to combat a stall would be akin to allowing bad banks making piss poor decisions to fail. If that doesn't make sense to you than you are the panicked pilot trying to pull up to gain air speed.
The problem with your thought is that it wishes to uninvent trains and go back to ox carts. In case you haven't noticed, the ranters here disavow ANY counter-cyclical government action. They are liquidationists who believe that a crash must run its course, no matter what the cost in lost economic output. The Great Depression would have lasted another decade if this policy had been followed. According to the ZH zanies, the MASSIVE deficit spending of WWII just magically ended the Depression - nothing Keynesian to see there, move along.
The insistence that the finances of a national government should be managed in the same manner as the finances of a family household is so incredibly stupid that it renders those who espouse it unreachable by logic. Pray that these people never get control of the US economy.
No one for a second believes in your centrally-planned Keynesian Klown baloney.
Take it to HuffPo if you want to get a pat on the back.
The Depression of 1920-1921. The post war spending had ended, and the USA market was in contraction. Instead of counterfiet money, the US Federal Government decreased its spending by nearly 50%, lowered tax rates across the board, and lowered the national debt by 1/3. The Federal Reserve did absolutely nothing. Within a years time, the economy had self-corrected. Within two years time, the unemployement rate was at 2.4%. This was in the age when unemployed meant exactly that, before State Economists redefined the word to bullshit massage statistics.
Contrast this to your depression of the 1930s where the US Federal Government endlessly intervened and spent on make-work projects that...wait for it.....LASTED OVER A DECADE. So asshole, I pose to you a question. Why shouldn't The State print trillions every year and pump that into the economy annually? What about monthly? What's good for the goose is good for the gander, right? It worked well for Wiemar, Zimbabwe, and dozens of western European states, right?
FUCK YOU. I spit on your ignorance.
Anger clouds the mind, Jack, but it feels so good you can't let go. Your assertion that depressions are immediately self-correcting is nonsense contradicted by economic history. The counter-cyclical policies implemented during and after the new deal ended panics and devastating crashes including the recession of 2008. Those are simple facts. Granted the Fed response rewarded the Wall Street criminals, but with Congress refusing to apply fiscal stimulus, that was the only tool available.
If you regard all economic theory and practice in advanced economies since the 1920s as a vast conspiracy, you are unpersuadeable by evidence. Hurling obscenities at a person attempting a dialog is a sign of a collapse of reason. Enjoy your rage; it's all you have.
Don't feed the Trolls...
If you're observing facts, then you are in fact wrong. Bank failures of the late 1800s were brief and relatively isolated. Find me a single bank failure that caused systemic depression the entire US economy for more than 2-3 years. You might find one. Now among each of those panics, find me one that wasn't born of fiat credit expansion. You won't.
Contrast these to the depressions/recessions in the each beginning at the tail end of the 1920s and 1960s respectively. Each had massive government intervention, particularly of the monetary variety. Both lasted at least a decade, more depending on whose numbers you use. Now look at the present. The USA is marching inexorably to its 8th year of recession/depression with no sign of improvement. All of this massive State intervention has accomplished what?
Money is not fuel. Money is a facsimille for barter. This is why money must be based in tangible reality. Creating money does not create goods and services. Do you fucking understand that? Bathing a nation in credit/debt causes malinvestment that will inevitably fail due to misapproriation! State spending only delays the inevitable. I have two very simple questions for you.
What happens when The State stops spending? What happens when The State spends indefinitely?
All you have to do is replay the 2008 crisis and remove Fed and fiscal policy intervention. The auto industry would have collapsed and unemployment would have skyrocketed. It would have been worse than 1929. The slow recovery from 2008 is largely attributable to congressional "conservatives" refusing to apply adequate fiscal stimulus.
If you think the monetary policy of ZIRP and QE was disastrous, please show me the inflation the ZH cultists have been predicting for the last five years.
No, I asked you first.
What happens what The State stops spending? What happens with The State never stops spending?
The state is always spending. You only get a Zimbabwe type outcome when the state's spending is unsustainable. We have run higher deficits before, notably in WWII, with no ill effect. Our deficit, as a fraction of GDP has been declining for the last few years. Stop obsessing with big deficit numbers that are big because our economy is big. It is the ability to sustain the deficit that is judged by bond buyers, and they are currently lining up to buy Treasuries at very low rates.
The state will never stop spending, but as long as its expenditures follow Keynesian guidlines (increase stimulus to get out of recessions and cut stimulus to control inflation) it will have a successful economic policy.
Yes, it always works until it doesn't. There is not one example in all of history where this scheme hasn't failed. In the meantime, we peasants get to enjoy stagflation, moral hazard, and rampant bubbles. It didn't work in the 1930s, it didn't work in the 1970s, it hasn't worked for the past 8 years...but dammit we just have to keep the faith and debase the currency further. Chant with me, aggregate demand, aggregate demand! Gosh, I feel so much richer now.
Hey Cunt, what's wrong with managing the $ of a country in the same manner as that of a family? I believe you need to look up the word PRUDENCE in a dictionary.
In other words why would a sovereign nation hand over the creation of money to a third party and then rent it in a never ending debt cycle? Gee that makes sense. Where is my Guillotine?
When a single family cuts back to balance their budget, it doesn't affect the economy. When every family cuts back, corporations, and the government cut back - all at the same time, it throws the economy into a downward economic spiral that can last many years (e.g., 1929). This is what you are advocating when you repudiate Keynsian economics: a world in which frequent, long-lasting economic depressions occur. It is like the Christian Scientist approach to medicine. Would you advocate that too?
So it's not worked this time around using QE and you've said it never worked by not doing something different last time. Seems like a Sesame street moment to go do someting else rather then continuing on that which clearly has not worked?
What are you suggesting as alternatives? Car sticks "No more bankers"? Placards down Wall Street? "Aliens no, Bankers no, Government no thanks" - Something bigger perhaps that hits'em real hard in the nags?
Inane comment. Recession of 1921. Fiscally restrained, debt liquidated, taxes lowered..economy corrects within 2 years. Depression of 1929. Massive State intervention, profligate spending...depressions continually gets more severe and does not end for the greater part of two decades.
If an economic activity is productive and efficient, it is self-sustaining. This is self-evident. By virtue of needing State spending to survive, an economic activity has declared itself unproductive. Continuing this artificial preservation is a misallocating of resources because it both diverts capital from other produtive uses and creates artificial barrier to entry for productive replacements. Proverbially speaking, its the economic equivalent of pounding a square peg into a circle shaped hole. It doesn't work!
WWII spending was definitely "profligate." Most of that stuff was scrapped a few years later. It was all made with billions of borrowed money. So why didn't America implode? We had huge deficits which ended the Depression and we had a booming economy thereafter. QED.
Everybody
Because everybody else was destroyed and they had to buy our shit. Duh. So it could work again if we can magically block all the navies and all the rockets and long range bombers in the world, not to mention the stealth subs and we don't nuke anyone else so that we have a destroyed world as a captive audience again. I'd say the odds on that are slim though.
"Keynesian economics turn out to be very useful"
Yep. As long as the target population has been successfully 'educated' to accept the various voodoo like concoctions of the bankster owned political hacks who've infested humanity.
... another self-professed PhD'uh that we can safely ignore.
@kant
Pedestrican logic like this forces me to come out of hibernation frm ZH.
The difference between the examples you highlight and "keynesian economics" is that the former is based on the observable natural laws of physics backed by empirical data. The latter ("leynesian economics) is based on the principles thought at the Hogwards Scchool of Magic and Wizardry. Nice try though.
So, by your logic, common sense is not a good guide to physics, but it is sufficient to understand the workings of macroeconomic policy? Keynes and many other economists since have patiently explained how an economic contraction becomes self-reinforcing, and how counter cyclical fiscal and monetary policy can halt and reverse the collapse. The record of Keynesian economics since WWII is excellent compared to the mismanagement that prevailed before. Those advocating "common sense" economics are playing with poison.
Err ... come again? How did I mkae that assertion? You came up with that conclusion yourself. Nice attempt at misdirection though.
The difference between physics (and the rest of the hard sciences) is that it observes, then proceeds to describe and define natural laws, like the flow of free electrons through a copper wire from a region of negative potential to a region of positive potential. See that's observable, it's repeatable.
Keynesian economics does the complete opposite. It proposes a model, then assumes it's applcable to every man, woman, and child. It prescibes, instead of describes human behavior, then uses the trappings of math and science to legitimize itself with its counterparts in the hard sciences.
You can't halt and/or reverse economic collapses, especially not with the morbid form of keynesianism you decribe. Printing money out of thin air doesn't create value, if it did then Zimbabwe would be the beacon of economic progress.
I wish you luck with that PhD from Hogwarts though.
"Printing money out of thin air doesn't create value"
In a growing economy, an insufficient money supply chokes off growth. That is why a central bank that can expand and contract the money supply can efficiently promote economic growth. Where is the Zimbabwe inflation, nihilist? Your fellow ranters have been predicting inflationary apocalypse for the last five years, and rates for government debt are still at record lows.
It looks like the QE science experiment has been run, but you just don't accept the results.
"Lots of things that go against common sense, like Keynesian economics turn out to be very useful."
MDB.....is that you?
Tallest Skil,
Thanks.
Unfortunately many here CAN NOT differentiate STATE SOCIALISM from STATE CAPITALISM.
Wonder why?
Because most posting here are state capitalist.
Anyway, both could care less about society, but one's self.
Reader beware.
You call most here "state capitalist" when you absolutely know that most here are libertarian. Still full of lies Escrava.
The tradition of anarchism/libertarianism is perfect equality (Adam Smith).
America libertarianism is even worse than state capitalism/tyranny. Private ownership that leads to a system of extremely domination and unaccounted control.
That, there’s no need to be reminded by anyone to anyone, because these realities are everywhere, if ones bother to look.
"Private ownership that leads to a system of extremely domination and unaccounted control."
So in order to guard against this hypothetical myth which has never occured in all of human history, the populace should consolidate all power to The State, which shall never have its reigns sought or held by evil. As we know, The State is uncorruptable and incapable of evil acts. You are a child.
Jack's Raging B...
The state BECAME an arm of the private power. American public power (politicians) and private power could care less about public opinion. In a democracy, state listen to the people. 1960’s was the most democratic time in America (civil right movement, anti-war movements, women’s equality) that lead to the most liberal president since WW-2: Richard Nixon.
Note: When public opinion becomes vocal, public power do listen. Try to find compromises. Nixon is a great example. However, private power could care less.
Anyway, I realized that even the liberals don’t understand and/or are aware about it.
Here’s an example:
The Carter Administration: Myth and Reality
Intellectuals come in two varieties, according to the trilateral analysis. The “technocratic and policy-oriented intellectuals” are to be admired for their unquestioning obedience to power and their services in social management, while the “value-oriented intellectuals” must be despised and feared for the serious challenge they pose to democratic government, by “unmasking and delegitimatization of established institutions.”
http://chomsky.info/priorities01/
Here is an "advanced tutorial"
https://www.youtube.com/watch?v=IZocpwWLsyE
Big Dan is the FED, Kantbelieveit, you are Pete.
Would you care to explain how having the FED control our money supply is good for you "Pete"?
One day in the life of a reader of Zero Hedge:
So, if it wasn’t for free money — America's exorbitant privilege (Charles de Gaulle) — how do you explain for American hegemony —envy of the world?
Was is it just an accident?
How about an advance tutorial in critical thinking and history?
" I'M MAD AS HELL, AND i'M NOT GONNA TAKE IT ANY MORE !!! "
"All Iknow is first you got to get MAD !!!"
https://www.youtube.com/watch?v=rGIY5Vyj4YM
The magnitude of economic interventions in 1928-1939 was astronomical and a first in US history. The cause was also a first. It was the first Federal Reserve led super credit bubble implosion.
The WWII expenditures dwarfed the earlier feeble counter-cyclical government spending and applied the necessary Keynesian stimulus to take us out of the Depression. But ZH ranters have no problem with the colossal deficits of WWII - because we were killing people. If deficit spending is directed at infrastructure, industrial development, or poverty reduction, it is the dreaded FREE MONEY. (Oh, the horror!)
Oh, the horror of borrowing "free money" at interest from the banksters.
"Keynesian economics" is the greatest oxymoron of the 20th century.
I have no idea how you make the claim that ZH is prowar or procounterfieting. Furthermore, why shouldn't the US Government toss a trillion dollars a week at building infrastructure? We are in the Second Great Depression, no? Clearly 80 billion a month from The FED for...8 years at this point is only failing because it isn't enough, right?
Check your premises, you beligerent ape.
"If deficit spending is directed at infrastructure, industrial development..."
You mean like Solyndra? Working great in Japan, right?
Manu rounds of QE. Remember it's been years. Banks and corporations should have been long gone by good old capitalism standards. Years of zero interest rates, suspension of mark to market...
That's after TARP, a 3 page demand loan of 900 billion, cash for crap, green energy loans, and numerous other backroom loans to keep multinationals afloat.
Throw in a healthcare industry written law to require insurance and jack up the rates.
What else did I miss?
Since you have NO IDEA WHAT FDR DID...you have no basis for understanding why allowing failure will save the system. FDIC protect the bank money. Allowing the criminal banks to implode and wipe out the equity to revamp them on better terms. GM should have been allowed to fail...those outragous pensions would have been reined in...instead you have the same criminals do the same thing. I didn't get a rescue...and I get PAID 0% for my money...the bank uses to gamble on stock and go to strip clubs.
QE is supposed to be an emergency response, not a way of life. Even as an emergency response, for the debt that was created, a direct stimulus of demand (aka helicopter money) would have accomplished more and with less moral hazard.
Give a central planner full control and no market, and he wouldn't know what to produce or how much. Oh, but you still want the market but just strong arm intervention ability? Translated that just means the power to steal or be paid to steal for others. Troll or not, your ideas are scum of the earth : old, ugly, and stupid.
LMFAO...
QE has been used for decades just it was hidden controlled under the surface by the banking fraternity.
2008, rocks off they lost control and QE was the manifestation of the hidden into the in your face because the hidden was no longer enough to keep the system they created functioning.
I have to laugh, if the system requires 150% money creation now for example no way the banks can make it on a 100% maximum cap. Hence Merv the Swerv before leaving the BOE relaxed the lending for banks to give Carney half a chance to not have to use QE. If not he would have had to.
Although the way the global economy is slowing it was only a matter of time.
$15 trillion in interest free loans would have done more good if used to pay off the debts of private citizens instead of giving that money to Wall St crooks. The idiots just can't grasp the concept that an economy based on consumer spending won't perform well if the consumers have no money to spend.
Wow, free money...you can tell TPTB studied the situation long into the night before coming up with this solution...
I could use about $38K. That would put me out of the hole the banks dug for me in the last crash, when I couldn't sell my house for a year and had to pay two mortgages. Just got my cc's to zero again this week. But the last crash still has lingering effects, and I hear that from other business owners. And just as i'm digging out, they have an encore planned. Dumb asses.
That reminds of another Spectre.
"Europe has not yet learned how to be multicultural. And I think we are going to be part of the throes of that transformation, which must take place."
-Barbara Spectre
https://www.youtube.com/watch?v=MFE0qAiofMQ
Why stop at denouncing fiat currency and monetary policy? Let's ban credit too. Islam opposes it, so it can't be such a bad idea. It's a moral outrage to give someone a free house to live in before he can pay for it, or a free car to drive after making a single small payment! We have got to restore integrity and virtue to our society!
You know what a moral outrage is? That the money supply can only be created by debt, with interest attached, to pay off a parasitic rentier class whose intellectual justification is provided for the useful idiots of the Keynesian Klown Kollege, where the only solution to the failures of central planning is "MOAR SOVIET."
What we're looking at is the monetary version of water toxicity where you can kill yourself drinking too much water. Pumping more and more money into the system will make us poorer until the world drowns of debt.......
Also using 'debt' to keep failed businesses (the banks) afloat creates more and larger problems in the future as they will inevitably fail. The policies are faux Keynesian as money/debt has been used to reward corruption, thievery and greed. Far removed from the simple deficit financing envisaged to smooth out economic cycles.
The bad debt if you use Keynes must be purged periodically just so you no longer service it with good money.
In Iceland we have a independent state owned Central bank. It has several tools to control the economy as central banks usually do, and one of those tools is issuing debt.
But when that is done it is to serve the economy, not to support some empire building ambitions or similar dreams some groups of insane bankers or other halfwits dream of pursuing.
$50,000 @ year for 50 years and I will sign up. COLA is mandatory however.
There is no Dr. No. There is only Dr. Yes who always supplies MOAR.
Lol got that right ... more ... more ... carry on, at some point we will all choke on it then there will be "no more".
Human corpses with all the "more" dripping from it but without life more or less makes no difference.
How rich does a society have to become before it provides "free money" to everyone? Do your children get "free money?" Do retirees get "free money?" Is an inheritance "free money?" Is a Lotto prize "free money?" The people who write off the mortgage interest on their McMansion while chastizing the single mother on food stamps, are they getting "free money?" There is nothing sacred or magical about money. It is just a tool we use to help run society.
We live in a post-scarcity world where there are so many goods that there is an excess, and there are not enough jobs to go around.
The fact that there are no jobs and yet there are mountains of food and other goods is proof that scarcity as a factor in organizing the world is a thing of the past. So we must endure the false scarcity of the oligarchs and their money to keep the old power system intact.
Not only post-scarcity, but post-employment,. Robots are about to take over lots of jobs. Cooking the burger, ringing up the burger (already there), driving the truck that delivers the beef, loading and unloading the truck, bla bla. Building houses, diagnosing disease, you name it. And lots more jobs are gonna get outsourced to places where they can be done for a fraction of the cost. And the real dirty jobs are going to illegals. Unemployment during the Great Depression was only 25%. So it's pretty much inevitable in our lifetime that we'll need a massive paradigm shift away from capitalism to figure out what to do with people in the post-employment world.
Good idea. Do away with all debt.
What would the world look like if no one was ever in hock to anyone else? The propaganda we have been taught says that the world couldn't exist without the Bankers and their Debt.
I don't think so.
Why stop with abolishing lending? We should halt stock sales too. After all, this is giving "free money" to people who haven't produced a damn thing. With no banking and no stock markets, our economy would boom. Subsistence farming and barter will work well for most folks, and those who can't feed themselves will just die and unburden society.
" Subsistence farming and barter will work well for most folks, and those who can't feed themselves will just die and unburden society."
hey, that's partially true. farming is being corporatised as it is. Parasites are feeding on honest farmers. remove credit, capital markets and bankers and the parasites will be removed. are you a parasite, Cunt?
There was a politician in Iceland not long ago who had this mantra "sheep without shepherd".
The basic ideology behind the mantra was that all things that could not be used as collateral for debt did actually not exist.
All natural resources, every mountain or valley, or anything that might possibly have value had to usable as collateral, and the best way to realize the worth would of course be privatization.
His party would have no problems supplying the shepherds. This was of course something that would be done with the best interests of the people of Iceland at heart. So people could better see how valuable things were in dollars and cents.
While mankind is gripped in the throws of overproduction, and deflation through devaluation, the central banks of the world want to sling MOAR shit on the fan.
That little turd burgler Bernanke set us up real nicely.
Is there overproduction of affordable housing? Is there overproduction of good health care? Is there overproduction of quality education? Is there overproduction of smooth highways and sturdy bridges? We could certainly spend some money on these things to good effect.
Why must we keep having this debate?
Affordable housing was bought -up by Black Rock/Stone after the subprime market collapsed.
You'ld identify as HARP. There's still tons of excess inventory from 2007-08 that is being held on bank balance sheets. (Japan MUCH)
The reason that rentals are expensive, is because lending after the GFC was only open to preferred borrowers{ prime lenders}. There weren't stipulations on how that money was circulated/lent.[ excess reserves]
The borrowers {prime lenders} gobbled up the best real-estate, knowing that NO ONE could meet lending criteria for purchases.
These { Prime Market} borrowers just rented inventory, knowing that ZIRP was on their side, and they had limited [ZERO]downside risk.
After all the R/E market was at the bottom and money was cheap. Just rent the inventory and destroy lives.
If you don't understand the banking system after my teaser... You never will.
Yen Cross,
Tanks for shedding some light on state capitalism.
Of which academia calls Efficient Market Hypothesis — that’s loaded with fraud and hypocrisy.
No comment/
Plus Acccounting rules changed so no down side for banks holding crap. Nothing resets. Banksters win.
You'll be all over this guy... https://www.youtube.com/watch?v=E8miyQaqP78
maybe you can explain it to us? MMT RULES!
Proponents of MMT are nothing more than shills for government money printers. They wrap it up in high-falutin' intelligentsia gobblydook, and declare QED at the bottom of their proof. They are the true snake oil salesmen, not Peter Shiff or Ron Paul.
There's a reason why MMT = Magic Money Tree theory.
There's a reason why the TBTP banks have begun hoarding physical. Get on board.
Imagine my delight when Bond pulled out the Sig Sauer P226 to protect his new French squeeze in the film Spectre. I picked one up for just shy of a grand two years ago, and love that magnum 357. It'll serve me well in the years & chaos to come!
I love on a 228.
Not even Ian Flemming could fix a Ponzi scheme once it implodes.
I will take the money and buy a nice suit and hookers and cocaine...then I can be like wall street,
Kantbelieveit must have went to that university in Missouri...lol..I have a suggestion for kantbelieveit....either you are a troll or one of those instigating types that want attention, but if u r for real then just keep believing what you believe and see where it gets you....u r not going to convince anyone here of your nonsense, you only make us stronger....MSNBC must have a website you can post on.....saying this with love and simple constructive criticism..
"you only make us stronger"
Why don't you just admit that NO EVIDENCE will change your mind. The Christian Science approach to managing a national economy, with zero government intervention, is so far detached from reality that only ZH cultists could support it.
Kant = Krugman
Paul, don't you have an article you should be writing for the NYT instead of trolling Zerohedge?
It is commonly called the GFC, Global Financial Crisis, but we should not forget that it was the mishandling by Wall Street that spread the contagion to the rest of the world. Without Wall Street's bad conduct, there would not have been much to spread.
Most of the articles are speculation of a bit of this or that and this one is no different.
The model is share equally $1B dollars between a number of people and you always find those with the means to do so the elites end up with it all. See the mechanism if they can suck up this liquidity too fast you get to the stall speed of modern economies much faster is all.THIS BIT NEVER CHANGES.
QE failed because the liquidity did not stay in the economy long enough and just trickled up to the top, hell it poured upwards but never down. So we are back to where we are in 2008 and if you see it we can never leave this position no matter how much QE is created. Helicopter money will be exactly the same, again the liquidity injected will vanish upwards once again.
Now if you want to move some of what the elites managed to take from all this manipulation up to you but it does save central banks trying to use QE all the bloody time. By the way this mechanism is called, wait for it, ... taxation.
In the grand scheme of Keynes if any player in the game has the ability to grab more than their fair share of the mechanism they what? ... Where we are now by reinvesting excess end up owning everything. It really is that simple whilst the other side of the coin to prop it all up is those with no excess borrowing more and more.
A few points ...
1.) From the late 20's to the 70's, 50 years we reached the first limit where they owned everything but little to no debt in the mechanism.
2.) Since then it has been debt fueled consumptive growth but again the same principle they owned everything again.
3.) 2008 maxed debt and has just resorted to QE and ZIRP to hold this unsutainable position because yet again they own it all.
CENTRAL BANKERS ARE IN LEAGUE WITH ELITES TO CREATE AN ECONOMIC MECHANISM WHEREBY SOME % MORE THEY ALWAYS GET RESULTING IN THE SAME BLOODY OUTCOME OF THEY OWN EVERYTHING.
Farcical really, those who are making the economic rules should be the ones kept furthest away become they are legislating for their own financial existence all the time.
PLUS 20!
1971 (Nixon) freed up the debt machines to go white hot, without consequence. That is, aside from creating a 90% of debt slaves...
Screw the globalization/global economy and "one world". What's that done for us lately? It's blown up in the greedy bankers' faces just like subprime slime and all their other schemes have.
Good analogy with 007... the NSA/CIA/FED/WS-TBTF Pax Americana cabal that does not take NO for an answer. The deep state in all its glory.
Licensed to kill the real economy and; irony of ironies; CAPITALISM.
When Kim Philpby is James Bond we have come the full circle!
Droogs,
I thought I would wait until the Kantbelieveit bitch slapping was finished.
Clearly, he must be the abashed and ashamed, barbaric and despaired Paul Krugman.
Krugman, the economically dwarfed, scant and wicked Rabbi of Keynesian foolishness, ignorance and unscrupulous idolatry. A man, not of letters, but of run-on, incoherent adjectives and a penchant for cat dander and desperate dribble, clothed with the witchery of fiction.
Could someone please stick a thermometer up his ass to make sure it reads 0 centigrade?
Enough purple digression.
Grant's SPECTRE is spot on.
We all should recall the surreal atmosphere of 2006 -2007, before the fall in 2008.
SPECTRE (the surly central banks) drew the public's well documented lack of attention away from the hideous orgy of massacre and outrage with zero interest rates, incredibly disappearing toxic mortgage backed securities, and the constant drone of the recovery mantra. The hypnotized masses do not remember and SPECTRE's chicanery never ended.
SPECTRE will not stop their pompous economic failures until they are all dead and Bond gets the girl called Linda.