This page has been archived and commenting is disabled.
Cue Hyperinflation In 5... 4... 3...
This pretty much says it all:
- BOE'S POSEN SAYS TIME FOR CENTRAL BANKS, INCLUDING BOE, TO BUY PRIVATE ASSETS
- POSEN SAYS BUYING PRIVATE-SECTOR ASSETS WOULD HELP ECONOMY
Buy. Real. Assets. Now
»
- 22849 reads
- Printer-friendly version
- Send to friend
- advertisements -
I knew my investment in Spiderman towels would pay off. Bill Gross eat your heart out.
I'm long Twilight Breaking Dawn Part II lunchboxes.
Ag. for 2014
++ whether Ag. means Silver or Agriculture.
To be shortly followed by the US Fed.
brownian motion being labile...
everything goes red with bearish vigah
Ben needs everyone (banks, treasury, pols & public) begging for QEx before he can go truly hogwild.
I'd say we are in a "wait for it, wait for it" situation.
...Don't fire till ya see the whites a' their pockets!
One word to describe this atrocity: PONZI
They are REALLY looking to start something...
...instigating global class warfare. It won't begin, progress or end well.
Let us not forget that the squid tenticles reached from Canada to the UK recently with the BOE appointment.
Why is anyone surprised??? After all they are doing God's work, without the burden of a bunch of commandments to stiffel the effort.
Quit the whining - this makes perfect sense to me. Why should Bernanke buy treasuries when rates are at all time lows? It makes far more sense to monetize other assets, particularly stocks and mortgage backed securities, in order to stimulate the economy.
"in order to simulate the economy."
FIFY
MDB sometimes presents a conundrum. Should I hit the down arrow because its bullshite, or the up arrow because its good trollery? The cynicism seems over the top today, so today I gave it a plus 1.
I hit the biggest of either. With MDB, it's not red or green, it's the amplitude that counts.
MOMO voting?
I'm liking it. And why not -- every other social metric varies from suspect to outright fucked.
I gave Bonearse a redddie...
Everybody is doing it.
Seriously?
Then so will I.
I don't want to be nobody !
don't give "Bonearse" a reddie....
give him some love.
ZH has Banzai, Limerick, star posters.....and MDB
Jes' get out the way & let the genneman DO his THANG.
MDB delivers his satire with the same insouciant elan of its comfortably clueless originators in academia, the MSM and "think tanks" (are those places where thought goes to drown?)...
He lays out the "official voice" of our times, suggesting "cake" for the masses menu...
Price discovery is so 1900s.
Hey, I'm liking my amplitude on this one. MDB may be the best straight man since Bud Abbott.
MDB is a program
I am beginning to wonder if this is simply posturing on their part to get the retail suckers to BUY ponzi stock, but in the end the CB's do nothing... (they KNOW once they begin such a suicidal move to buy "private" assets, hyperinflation follows close behind, thus my take this is pure bluff)
They get to push a button on a computer to create money and use it to buy shares in profitable businesses, real estate and such? Sweet, where do I sign up so I can do that too?
Posn and Bernanke not only need to justify why central banks buying commercial assets is "good" for an economy but also detail the Exit Plan and dates and what they think will happen to the value of said assets when they sell
if the BoE and Fed are to become mortgage and stock holders the onlòy reason is the retail banks cannot sell them on, there is no market for them
Posn and Bernanke are bankers bitches, Govt pooper scoopers, what a sham/shambles
The Fed's already got a decent sized mortgage portfolio and has been egging lenders on to make more low down payment mortgages.
They also claim to be making money (on their "investments").
...cuz monetization's worked so well thus far?
If at first you don't succeed, try, try, try again.
Like trying to stimulate a corpse.
It's legit only if it's been dead for less than 6 hours;)
Move to Egypt you can screw anything if it's still warm.. Hey, maybe Ben is really an Egyptian, I will have to watch him walk..
Hey, it worked for Frankenstein! Well, sorta. For a little while.
Or will they use the money to short gold?
Scotty
REMEMBER
Gold is back by nothing, Treasuries are back by the 'full faith and credit of the USG'...bet ya forgot that didn't ya..
Ya, nothing like worthless paper used to purchase worthless paper.
Hasn't worked all that well for the Bank of Japan
+100 Narnia. AMEN. What trolls like MDB don't get: Japan tried that already - several times - and if the Japanese can't pull out, being as prudent and disciplined as they are.....
9 times a "stimulus" over there....and counting....?
exactly
all the evidence to date, both in Japan and since 2008, is that central bank stimulus DOES NOT WORK
the BoE did not see it coming and have fixed nothing since. The entire worthless bunch of tea sippers at the BoE should be SACKED ..they're a bunch of useless inept toadies
But Nobel laureate economist Dr. Paul Krugman says that's because the stimulus is too small! Now bow down and worship at the Keynesian alter, slave!
If brute force doesn't work, apply more. Same applies to explosives and stimulus. Just keep doing it again and again, bigger and bigger, until you succeed.
Regardless of whether or not you are a troll, I have a question. If purchasing other assets and liquidity injections is beneficial to economies, then why can't every person in the world role up to the discount window, get some 0% loans, deposit those funds into the bond market for a short-temr basis, pick up the interest and stimulate themselves? I like stimulating myself.
because as you are well aware this "stumlating the economy" is nothing but windown dressing (lies) to cover the real game, bailing out bankrupt bankers and bankrupt politicians
Posn and Bernanke know about as much about the real economy as Daffy Duck knows about coal fired power stations
When you pull up to that discount window, the kid at the window is going to ask you if "you want fries with that?"
By late 1923, the Weimar Republic of Germany was issuing two-trillion Mark banknotes and postage stamps with a face value of fifty billion Mark. The highest value banknote issued by the Weimar government's Reichsbank had a face value of 100 trillion Mark (100,000,000,000,000; 100 million million).[10][11] At the height of the inflation, one US dollar was worth 4 trillion German marks. One of the firms printing these notes submitted an invoice for the work to the Reichsbank for 32,776,899,763,734,490,417.05 (3.28 × 1019, or 33 quintillion) Marks.[12]
Courtesy of Wikipedia
If it makes a perfect sense to you, you better check you senses. What is wrong with with a systems where ONE authority, decides what is "valuable" well EVERYTHING. This was not even possible under in the socialist east countries. They just created the price control and all of the goods disappeared.
If Bernanke, goes after the the valuable things, why not go after the food products. Buy a lot of them, and store everything. This will be the best use for the buck. I bet that after such, actually quite wise investment decision, there will be wide spread civil war.
Bernanke will go after, particular assets, "value" of which will tend to preserve the current, unsustainable, status of the corrupt and inefficient economic system. By the way, economic comes from economize ( do with least resources ), and it is totaly different from what this system has become. It is not ECONOMical it is WASTical.
epw...except the term 'trillion' was not in use... a million million was a millione as in the 'madness of milliones'...When Money Dies
I guess you did not get the memo. The NDAA allows the government to nationalize the farms, transport and supermarkets to ensure national security. They can control the price of food, and make sure everyone has an EBT.
The masses will be complacent (complicit?) and there will be no civil war, at least not in North America.
As for those poor countries that refuse to depeg their currencies, and lack the foresight to have food stamp programs, they will be screwed.
You are precluding a military coup and civil war between heavily armed factions. Why?
If there is a military coup, who is the other heavily armed faction that is going to fight them?
Please dont feed the trolls!
@M$B. LOL! That was sarcasm? Right?
"It makes far more sense to monetize other assets"
~~~
Might as well just cut to the chase then & get about 'monetizing' grandma's catfood...
Buy.Real.Assets.Now
Now if I'm reading this code correctly - B.R.A.N - I should be buying BRAN.
Buy BRAN now is this correct?
You must be new to cryptology. You always reverse the two middle characters of a four letter code. Therefore, you should buy a barn.
BoE, et al., are probably stockpiling bran because they're looking to release some massive shit soon.
The CB's seem to be able to shit on it's citizens on will these days. Not sure if BRAN is really needed.
I'll trade ya. How many can I get for my KISS lunchbox? Comes complete with 35 year old PB&J sammich. Only used once....the sammich, that is.
Who are they going to sell all this crap to that they are holding already??? Gee...that's easy...let's just buy more and that way we have even more crap to sell some day.
Paul Krugman believes aliens can save us.
For those that don't know. flacon is not joking, Paul Krugman really believes this. Presenting evidence from the idiot himself: http://krugman.blogs.nytimes.com/2012/01/09/germans-and-aliens/
Don't know why he's mocking the idea there. Aliens were a perfectly rational cure for what ails us in the not-too-distant past...
http://www.youtube.com/watch?v=jaED2ErdIv8
As much as it pains me to say it, he is right: it is not possible for every country to simultaneously run a positive current account. That is based on the expansionary austerity.
Personally, I am not convinced that a modestly contractionary austerity would not work, as long as the reduction in deficit spending outpaced the reduction in GDP.
False flag with aliens as the enemy in 5... 4... 3...
They'll just flush it down the toliet sometime in the near future due to the sheeples short attention span.
Go long toliet plungers.
I'll short the spiderman towels as every Spanish granny has one now... Too much quantative towelling at the moment. Go long the next generation silver surfer towels before the esm gets a whiff.
And by buy, they mean confiscate ?
And by confiscate, you mean steal?
Nothing like insolvents buying overvalued assets 2 try & sell back 2 other insolvents who don't have shit 2 begin with.
Deleverage Bitchz!
I think you're being too cynical. I think of this as the birth of a new Ponzi. Revelry as far as the eye can see!
All hail the new Ponzi.
HAIL!
Bernanke can pay the insolvents to buy back overvalued assets! Problem solved.
And by confiscate, you mean steal?
Does government know how to do anything else (other than kill)?
At the very least, it has a core competency to fill any void left by an expanding pie... and, when the pie gets eaten, to remain uneaten as long as possible. Must be nice.
"Bank of England policymaker Adam Posen will not seek a second term at the central bank and instead plans to step down in August to head a leading U.S. economic think tank, the Bank said on Friday."
So another academic that couldn't find his ass with both hands. What would the circus be without the clowns?
Economic advisor to the Messiah Obama campaign?
Lots of openings, I hear.
"Posen's other positions include being a member of the Council on Foreign Relations and the Trilateral Commission"
"His most cited and influential publications include the books Restoring Japan's Economic Growth (1998) and Inflation Targeting: Lessons from the International Experience (1999, co-authored with Ben Bernanke, Chairman of the Board of Governors of the Federal Reserve System in the US, et al)''
Hmmmmm.......
Me thinks this particular "asset" was bought a long time ago.
RAVIOLI, MAMA!! :D
And THAT is why we need to have a currency backed by gold, and nothing else. Fucking central planners thinking EVERY problem can be solved through bailing out their friends.
Silver would work too. :-)
Yep, 100 euro coins made out of 1 gram of silver will do!
you know... i wouldn't exactly throw 100€ per ounce coins out of bed either...
Nickles bitchez...
It wouldn't because silver is being consumed. Gold is the perfect money, almost no consumption and more rare. Why fight it?
Define "rare". There is about 5x as much gold on a per weight basis in above ground stockpiles as there is silver.
But ... but ... Lord Keynes assured us these "honorable gentlemen" were above such temptations. Oh my, don't tell me the whole wobbling edifice of modern economics is based on such a patently false premise as the moral incorruptibility of society's elite intellectuals and (small "d") democrats. Looks like we may have backed the wrong Lord.
Power corrupts, and absolute power corrupts absolutely. ~Lord Acton
Lord Keynes built of his theory around the Ricardian Labour theory of value, aka "a giant fallacy".
Also known as a giant fallic.
Lord Keynes was quite fond of the phallus, up his ass or in his mouth.
I believe Hayek said: "What's correct in the General Theory is not original ... and what's original is not correct." or words to that effect.
And as for the Labor Theory of Value ... I agree it's a massive and dangerous fallacy. Labor is just one cost input in the calculation of the total cost of manufacturing any good and that total cost only tells you what your absolute break-even selling price must be. But the utility and benefits of the good determine the price on the market that people are willing to pay. In other words: Subjective Valuation.
I have plenty of crap for them to buy. Payment in pms only.
Print money to buy your only unencombered asset - gold.
So...a $30,000 thingamajig?
Yes, and through the magic of imputation, it is WORTH $75,000 to the GDP.
"a nickle isn't worth a dime anymore"
~ Yogi Berra
I am rehypothecating your thingamajig. I will give you a fiat loan and use your thingamajig as collateral and so will my 12 banker friends (we are a coven of 13 you know) in my circle jerk ponzi as we hand it off to one another. Squeeeze the accounting value out of that thingamajig. We will become a mighty corporation. And while you actually hold it, its notional value will go up (because everyone will demand thingamajigs as collateral), and so will our borrowing power.
Rehypothecate REAL ASSETS NOW! Vaporize them later and do a disappearing act. Magic Bitchez.
Print more junk money and buy more insolvesnt debt is the answer? Come on when is someone with a brain gonna say enough is enough?
I think a lot of people with a brain are saying enough is enough. I'm waiting for those without souls (Obama, Romney, et al.) to say enough is enough...yea...I know...I'll be waiting a long time...
i think what you mean is when is some one who's in power, with a brain, and the courage to lose his life and anyone he cares about's life-gonna say "enough is enough"....
They won't.
The reason why hyperinflations traditionally keep going for as long as they do, is because the people in charge have a vested interest in keeping it going.
It's working so far isn't it?
Real assets, you mean Gold and Silver?
And pork and beans and beer,bandaids bullets and Bean (JIM). Keep a little small demoniation silver for the barter.
And nickels and pennies. The metal value of all physical coins and the ratios between copper, silver, and gold will be known by anyone trading goods for coinage. www.coinflation.com is a good place to calculate values.
However, Coinflation values are only based on current Comex market values ... which are currently suppressed and manipulated.
That's the world we live in, dude. If you want to claim that silver is really worth $100/t oz I will sell you my stock at that price and go buy some more at $30. Let me know.
Stoke the fires for widespread bank runs in the Eurozone
Stoke the fires for widespread bank runs in the USA.
Hell, just stoke the fires ...
Did someone say fire and hell?
There is always room for more bankers and politicians.
"We didn't start the fire..." (Billy Joel)
I've already don'e my bank run. Only enough money to pay bills in the credit union - the rest in cash and PMs and not in a bank.
edit: double tap.
Well look here this house is nice it used to have a million dollar view, but now its a billion dollar view adjusted for inflation
and by buy they mean print up so much money to "buy" real assests that the average guy making 60 grand a year might as well be making 5 dollars a day.
We're goin' third world! Yee Haw!
We are going to need bigger wheelbarrels.
20 foot shipping containers with wheels.
Hercules-hercules-herculees!
THE AERIAL DISSEMINATION OF LEAFLETS
http://www.psywarrior.com/K16.html
Oh the horror when clicking on that site! Just think of all the littering...just makes me want to cry. We need some libs to start a program like "adopt a highway" and call it adopt a psyops theatre, distribute orange bags and voila.
Why would they initiate high inflation like this? Do they know they don't have much time left?
I've got some old socks they can buy. Bullish?
Hold them. No counterparty risk with old socks.
As long as you didn't buy them on margin, you're sitting pretty.
Yes, but the washing machine might rehypothicate them and then they go poof!
When history is written it will be shown we entered hyper-inflation in food/necessaties in the mid-2000's, I am always amazed by the shrinkage of packages.
Its not just me then!
aluminum foil has become aluminum paper.
precious metals indeed.
Don't worry, all of those packages were in the pool, so shrinkage is normal.
that's what she said.
Like Doritos losing two ounces and going up to $4.59 a bag? WTF, all that Taco Bell licensing money should be good for a 1 lb bag for $3.
not a terribly difficult study to conduct... and i've seen it done. I wish I could pull up the link, but some prepper somewhere published pricing on a fairly large cross-sections of life sustaining products. It's been a fairly dramatic move. Your doritos example is par for the course.
Same thing here and pack shrinkage has gotten very noticable since the beginning of 2012.
In fact me and the wife did a comparative 'shop' in ASDA (Walmart) a few weeks ago. We'd found an old till receipt in a purse she doesn't use much from 2010, so we went round the shop with a calculator and added up what the same list would cost now. 42 items, mostly food and toiletries:
May 2010 = £64.76 (nine items on 'Rollback' or 'Buy 1 get 1 free' promotions, mostly on everyday items, saving £3.97)
May 2012 = £98.46 (three items attracting a discount, on 'buy occasionally' items, saving £0.81)
We also noted that at least 7 of the food items definitely used to come in larger packets. She works in a retail store as manager and some of what they sell is surplus supermarket stock approaching it's 'Best Before' date, so it's been warehoused for a while in most cases. Case in point; Tetley Tea Bags - box made about 2.5 yrs ago had 120 in it and cost £1.08. Same size box now has 100 in it and costs £1.59. She has both in stock at her place, currently. The customers get the dear ones and our prep supplies get the cheap ones!
I bought a Katadyn Silver water filter last year at REI for close to $255, this year I saw REI had it for over $300. I also notice organic brands are now not organic and selling for the same price.
Or Kraft advertising "NEW SIZE" on it's much smaller bottle of parmesan cheese.
My package seems to be shrinking almost daily, but I'd put it down to middle age.
Use it more often.
sugar daddy sites!, wonder if hyper-inflation hit them or is it a deflation item (more product to market)
<<deflation = girl on couch with scoliosis
<<inflation = girl on bed with champaggnee
I am always amazed by the shrinkage of packages.
And the INCREASE in the price, their may not be real high inflation in the traditional sense(over supply of currency), but everything you and I need to live has been on a tear.^^^^^^
Yup, the standard tactic seems to be that they reduce the contents of the packet, even if the pack size doesn't change, but keep the price the same. Then 4-6 weeks later, they put the price up by about the same percentage as they reduced the contents. Wait a while and repeat.
The really cynical ploy we've noticed is to do the above, then once sales start to fall off due to the higher price - bring out a 'limited time only' pack with 10% extra free. Which doesn't make up the loss in the amount of contents, usually, and still costs the new higher price!
Which "private assets" would those be? Do they mean private, worthless, toxic, bankster-cloned trash?
Well dammit I wish they'd say that :-)
responsible assets from responsible people is what Obama will say.
Hey Tyler,
If you want to feed the trolls... cite this video: The ‘American Dream’ Is a Myth: Joseph Stiglitz on ‘The Price of Inequality’
3....3......3.........3...............
John Williams of Shadow Stats says 2014 ........... I'd pay attention to what that very smart gentleman says
And Armstrong says it all falls apart 2015.75 here in the United States.
optimist.
Three years? lol...
There was some historian on BBC radio this morning who said much the same thing. He was, of course, rapidly cut off by the presenter. They didn't, however, stop him almost ranting for 2-3 minutes about the differences in economic morality between those who had kids during and immediately after WW-II and generally took the view that their kids should grow up in a better world than they'd had... and the economic morality of those kids themselves 20 years later!
Was quite an interesting radio segment, actually. Particularly the conjecture that the best thing Britain (and America, in the unlikely event that Germany wouldn't have won the war inside 15-18 months) could have done for Europe, from a 'peace in our time' point of view, was NOT to have gotten involved in WW-I, as beating the Germans did nothing to settle age-old animosities between the nations involved, but simply set the stage for WW-II.
Yup, and there goes Prechter's deflationary thesis....