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Guest Post: Some Clear Thinking On 'The Debt'
Submitted by Simon Black of Sovereign Man blog,
If you haven't heard yet, the United States of America just hit $16 trillion in debt yesterday. On a gross, nominal basis, this makes the US, by far, the greatest debtor in the history of the world.
It took the United States government over 200 years to accumulate its first trillion dollars of debt. It took only 286 days to accumulate the most recent trillion dollars of debt. 200 years vs. 286 days. This portends two key points:
- Anyone who thinks that inflation doesn't exist is a complete idiot;
- To say that the trend is unsustainable is a massive understatement.
At an average interest rate of 2.130%, Uncle Sam will shuffle $340 billion out the door just in interest payments this year... and it's a number that's only going up. To put it in context, China owns so much US debt that the INTEREST INCOME they receive from the Treasury Department is nearly enough to fund their entire military budget.
It's rather disgusting when you think about it.
Yet when you look at the raw numbers, there is no sign of improvement anywhere on the horizon. Last year, the Treasury Department brought in about $2.3 trillion in tax revenue. They spent $2.9 trillion JUST on -mandatory- programs like Social Security and Medicare, plus the very sacrosanct defense budget.
In other words, the US government was $600 billion dollars in the hole before paying a dime of interest on the debt, or paying the light bill at the White House. In fact the government's own numbers reflect a budget deficit through the end of the decade, i.e. the debt level is only going to get higher. These are their own figures.
In the 19th century, the Ottoman Empire was facing a similar debt crisis. In just 11-years, the Ottoman central government went from spending 17% of its tax revenue on interest payments, to spending over 52% of its tax revenue on interest payments. Then came default. Eleven years. The US is at 15% right now. How long will it take for the interest burden to become unbearable?
History is full of examples of superpowers bucking under the weight of their debt. This is not the first time that it's happened, and it won't be the last.
Sovereign debt is a giant confidence game. Investors buy bonds on the belief that governments can (and will) pay. When that confidence is chipped away, the cost of capital becomes debilitating. And people tend to notice a $16 trillion debt burden.
This is banana republic stuff, plain and simple... and smart, thinking people ought to be planning on capital controls, wage and price controls, pension confiscation, and selective default. Because the next trillion will be here before you know it.
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lol....inflation is obscured by obsolescence. Nowadays, you pay cheap for various goods (e.g., vacuum cleaner) but the goods are cheap, defective and designed to fail. You buy more and more of the goods over time because of product failure. Its all about greed....nothing more. you can talk your heads off about debt, credit, debt ceilings, inflation, etc. The simplest solution is redirect society to NOT accept greed in any form.
And yes, there are ways to limit greed. But since most are greedy selfish bastards (yes, i include myself), the waste will continue until....
I have no problem with limiting personal wealth to 10 million or less, unless that money is directly invested in a productive activity. Why would you need more than 10 million in your bank account? Then maybe people and companies would compete based on principle and quality. Claw back all the billions that individuals are sitting on. Put it to good use.
Its all about greed. Always has been, and always will be. The responses to this comment will prove that out.
So Hanna yea tech is cheaper, duuh. You went. Long way just to verify my point, good for you! Racer fact is those people would have died from starvation If not for innovations in farming so who gives a shit about the percent of there income on food if there still alive? Unless your sad they don't have enough left over to buy an iPhone.
giving away over production to the poor and letting them breed like rabbits will end in mass starvation. the us taxpayer pays for the food given to third world countries. cant go on forever.....
Some clear thinking on the debt:
16 trillion national debt
16 trillion Social Security
83 trillion Medicare
21 trillion prescription drugs
07 trillion war
______________
143 trillion
BK, new "dawler" time. Bring in $1,000,000 old dollars and get 1 new "dawler".
uh bring in darlers, dollars, debtlars what ever, bring in your .... and make sure it is UNUSED toilet paper and I may give you a slice of bread if you are lucky and I have some old crusts left over that no-one wanted.....
By a very odd coincidence the national debt is just about the same as the accumulated wealth of the top 0.01%.
@stuck on zero
Prove it. Link???
If there are 160 million wage earners (just over half of the population), that is only $100,000 for every worker. Do we all feel like we got our money's worth for our personal slice o' debt?
here some stuff.
blah blah ...
..
" ..Last May, in a much-touted speech in Iowa, Romney used language that was literally inflammatory to describe America's federal borrowing. "A prairie fire of debt is sweeping across Iowa and our nation," he declared. "Every day we fail to act, that fire gets closer to the homes and children we love." Our collective debt is no ordinary problem: According to Mitt, it's going to burn our children alive.
And this is where we get to the hypocrisy at the heart of Mitt Romney. Everyone knows that he is fantastically rich, having scored great success, the legend goes, as a "turnaround specialist," a shrewd financial operator who revived moribund companies as a high-priced consultant for a storied Wall Street private equity firm. But what most voters don't know is the way Mitt Romney actually made his fortune: by borrowing vast sums of money that other people were forced to pay back. This is the plain, stark reality that has somehow eluded America's top political journalists for two consecutive presidential campaigns: Mitt Romney is one of the greatest and most irresponsible debt creators of all time. In the past few decades, in fact, Romney has piled more debt onto more unsuspecting companies, written more gigantic checks that other people have to cover, than perhaps all but a handful of people on planet Earth.
By making debt the centerpiece of his campaign, Romney was making a calculated bluff of historic dimensions – placing a massive all-in bet on the rank incompetence of the American press corps. The result has been a brilliant comedy: A man makes a $250 million fortune loading up companies with debt and then extracting million-dollar fees from those same companies, in exchange for the generous service of telling them who needs to be fired in order to finance the debt payments he saddled them with in the first place. That same man then runs for president riding an image of children roasting on flames of debt, choosing as his running mate perhaps the only politician in America more pompous and self-righteous on the subject of the evils of borrowed money than the candidate himself. If Romney pulls off this whopper, you'll have to tip your hat to him: No one in history has ever successfully run for president riding this big of a lie. It's almost enough to make you think he really is qualified for the White House.
Read more: http://www.rollingstone.com/politics/news/greed-and-debt-the-true-story-...
.
so, we have the fruition of the new american century
personified, irresistible, in our sights, and a family
man ! oh my, how sublimely compelling and pathologically
and analogically accurate.
.
debt is money for all intents as keen said. so why
all the pay back bitching? roll it over to the sovereign
mo fo. let them eat quality salmon, farm raised?, cat
food.
but seriously.
my therapist has been showing signs of weakness recently.
the authorities are looking closely at his practice
as he seems to have entrained with a number of the
characteristics of some, hhmmm., of his patients.
in short he is showing signs of independent thought
and displaying a threatening curiosity and requiring
a vigor of integrity that his licensing over seers
resent. i wish him well.
.
have you heard? the republican party platform is
doubling down on the pnac new american century. the
lovely what's her name and christy, governor of n.j.,'said so. a condy look alike sat next to mitt on his left
(that is frightening). or was it condi herself? no one
knows? (said nuttin'.) the media, why no one asked
who is the condi look alike to his left? beats me.
so, the neo cons who own and control o bo hussein have
a directing interest in the challenger, mitt-rand-ryan.
what a lovely family. a real family, not like your
family which has been destroyed by the reality of their
family money. (values). off shore kingdom of financial
arbitrage for profit.
but anyway, at least we will soon hear children's voices
singing from mars. oh happy day.
romni - condi war cummin' at yur way soon? who to kill
and attack next? so much money and so few children to
execute. morality has been delegated, like that word,
to a time and sensibility that has been rendered historic
and irrelevant to the money folks of today.
this is why we are essentially a doomed species.
and we don
t even have time to notice.
here here. hooray
ps.
christy said something about "truth telling". a time
of truth telling. can he and his kind pull themselves from their souffles long enough to find that truth
and then tell it? funny
and i think it was condi, the real condi from neo con hell herself, back for seconds at the pig slaughter,
with all due respect.
try explaining to the average joe how an LBO is financed and they will just stare at you with the eyes of the dead. tell them honey booboo is on tv tonight and they will act like they won the lottery.
everyone (mostly) that reads ZH knows we are dead shit and there will be fire to pay going forward but the 99.999999% of the population couldnt care less as long as they get some kind of gov check in the mail to cover the cable bill.
*"If Romney pulls off this whopper, you'll have to tip your hat to him: No one in history has ever successfully run for president riding this big of a lie."
i have to disagree with you. obama road the biggest lie in history to the whitehouse.
What the hell is honey booboo?
those were taibi's words above the link.
it is remarkable the ways and means to
the levers of governance at all levels and
especially the federal. it seems where decent,
potentially, people go to "sew socks that smell",
as damion's poor mother was reported to have
wound up or down.
( see "the exorcist", the movie , as satirized by
richard prior and the not ready for prime time
cast )
and realize that this entire neo con resurgence
and the preceding four years of federal governance
in the us could have been paid for with the stolen
money from and preceding 9/11 events and the crimes
therein covered. the rhetoric associated
with the elections and campaigns is approaching
inanity become pornography. i guess this means i
have become old, too old to live in any social setting?
so many accept entire cloths of bullshit as gospel
that it is not possible to communicate.
babel i guess?
Good stuff.
"this entire neo con resurgence"
But I encourage you to disassociate (any) ideology from store-variety debauchery.
i try but frequently fail, they are so
similar.
Self-interest, entitlement, ignorance on steroids.
Small minds hiding behind "ideology" because they find the most comfort there.
It is a social thing. It is shallow. It is false.
And in places of influence everything from their self-concept to their livelihood depend on a continuing illusion (delusion).
So blindman, do we all vote for Obama who,
As an American president, he bowed down to his waist, pandering to Islamic despots.
Praised and admired by statist tyrants including Chevez, Castro, and Putin.
Increased total US debt from 9 trillion to 16 trillion, enslaving your children in bone-crushing debtor’s hell for the rest of their lives. If he gets another term, his debt on our children will easily increase from 9 trillion to 22 trillion.
By executive fiat and bypassing congress, he arbitrarily gutted the Personal Responsibility and Work Opportunity Act of 1996, which required welfare recipients to either work or look for work. Now states can choose to waive the work requirements entirely, and many of them will. That IS the truth.
Instituted Taxmageddon—the largest automatic tax increase on investment and businesses in generations. According to the Congressional Budget Office, this would drain $607 billion out of the economy next year, pushing us back into recession.
Has grown the size of the U.S. federal government’s budget by 16.5% during just four years? The federal government’s spending is one-sixth bigger today than it was projected to be at this point four years ago. In just three years, Food Stamp Program, nearly doubled from $39.3 billion to $75.3. The Obama Administration has worked rapidly to expand the welfare state further. Over the next 10 years, welfare spending is projected to cost taxpayers $10.3 trillion.
Under Obama’s America, now 49.5% of Americans do not file tax returns. More than 70% of federal spending goes to dependence programs.
During the first three years of the Obama Administration, 106 new major federal regulations added more than $46 billion per year in new costs for Americans. This is almost four times the number—and more than five times the cost—of the major regulations issued by George W. Bush during his first three years.
Telling lies about Romney isn't going to get us out of Obama's terrible mess.
Best I can tell, blindman wasn't playing politics.
If you're paying attention, politics is dead.
As an added benefit, it will save you countless keystrokes.
roseanne barr or rocky anderson might make
good presidents at this time.
.
‘Missing’ woman unknowingly joins search for herself
By Ron Recinto |
http://news.yahoo.com/blogs/sideshow/missing-woman-unknowingly-joins-sea...
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http://www.voterocky.org/
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http://roseanneforpresident2012.org/
hannah
Nah ... look at it this way, just pick up a copy of the book of mormon, flip through it for an hour and then ponder the mindset of Romney. I guarantee you this guy is well and truly up to the challenge and then some.
Sorry, but you're all going to be fooked when this guys done.
i own a pair of magic underwear so i'm covered.
Who need special underware?
Here an American president (Obama) bows WAY down to a Saudi Muslim king, steward of Mecca, in a manner where Obama obviously states that America is subservient to Islam.
http://www.youtube.com/watch?v=9WlqW6UCeaY
Touching, isn't it?
Just pick up copy of the koran, flip through it for an hour, and then ponder the mindset of Obama. Review the philosophy of Karl Marx too if you really want to ponder the mindset of Obama. Not the Communist Manifesto, but the basic philosphy that writing is born from. It's Barak......... but go ahead and celebrate if that's what you love.
.."I feel bad even asking Patnode about Romney. Big and burly, with white hair and the thick forearms of a man who's stocked a shelf or two in his lifetime, he seems to belong to an era before things like leveraged debt even existed. For 38 years, Patnode worked for a company called KB Toys in Pittsfield. He was the longest-serving employee in the company's history, opening some of the firm's first mall stores, making some of its canniest product buys ("Tamagotchi pets," he says, beaming, "and Tech-Decks, too"), traveling all over the world to help build an empire that at its peak included 1,300 stores. "There were times when I worked seven days a week, 16 hours a day," he says. "I opened three stores in two months once."
Then in 2000, right before Romney gave up his ownership stake in Bain Capital, the firm targeted KB Toys. The debacle that followed serves as a prime example of the conflict between the old model of American business, built from the ground up with sweat and industry know-how, and the new globalist model, the Romney model, which uses leverage as a weapon of high-speed conquest.
In a typical private-equity fragging, Bain put up a mere $18 million to acquire KB Toys and got big banks to finance the remaining $302 million it needed. Less than a year and a half after the purchase, Bain decided to give itself a gift known as a "dividend recapitalization." The firm induced KB Toys to redeem $121 million in stock and take out more than $66 million in bank loans – $83 million of which went directly into the pockets of Bain's owners and investors, including Romney. "The dividend recap is like borrowing someone else's credit card to take out a cash advance, and then leaving them to pay it off," says Heather Slavkin Corzo, who monitors private equity takeovers as the senior legal policy adviser for the AFL-CIO.
Bain ended up earning a return of at least 370 percent on the deal, while KB Toys fell into bankruptcy, saddled with millions in debt. KB's former parent company, Big Lots, alleged in bankruptcy court that Bain's "unjustified" return on the dividend recap was actually "900 percent in a mere 16 months." Patnode, by contrast, was fired in December 2008, after almost four decades on the job. Like other employees, he didn't get a single day's severance." ... matt taibbi
...
Read more: http://www.rollingstone.com/politics/news/greed-and-debt-the-true-story-...
Oh, yea. Rolling Stone political articles. There's a fair and objective source. Bullshit from beginning to end.
Say it ain't so Joe - 8 Men Out
http://www.youtube.com/watch?v=KQveng3Wxz8
.
" ..In 2010, a year after the last round of Hertz layoffs, Carlyle teamed up with Bain to take $500 million out of another takeover target: the parent company of Dunkin' Donuts and Baskin-Robbins. Dunkin' had to take out a $1.25 billion loan to pay a dividend to its new private equity owners. So think of this the next time you go to Dunkin' Donuts for a cup of coffee: A small cup of joe costs about $1.69 in most outlets, which means that for years to come, Dunkin' Donuts will have to sell about 2,011,834 small coffees every month – about $3.4 million – just to meet the interest payments on the loan it took out to pay Bain and Carlyle their little one-time dividend. And that doesn't include the principal on the loan, or the additional millions in debt that Dunkin' has to pay every year to get out from under the $2.4 billion in debt it's now saddled with after having the privilege of being taken over – with borrowed money – by the firm that Romney built." mt
Read more: http://www.rollingstone.com/politics/news/greed-and-debt-the-true-story-...
.." But the way Romney most directly owes his success to the government is through the structure of the tax code. The entire business of leveraged buyouts wouldn't be possible without a provision in the federal code that allows companies like Bain to deduct the interest on the debt they use to acquire and loot their targets. This is the same universally beloved tax deduction you can use to write off your mortgage interest payments, so tampering with it is considered political suicide – it's been called the "third rail of tax reform." So the Romney who routinely rails against the national debt as some kind of child-killing "mortgage" is the same man who spent decades exploiting a tax deduction specifically designed for mortgage holders in order to bilk every dollar he could out of U.S. businesses before burning them to the ground. " mt ,,,
.
and there is much more ..
Read more: http://www.rollingstone.com/politics/news/greed-and-debt-the-true-story-...
Well, you're almost correct. The lies Obama told (and will one-up this time around) are just as over-the-top as Mitt. But don't worry, the mainstream media will hold these two lowest-of-the-low cretins up on pedistals as the best mankind has to offer.
How revolting can it get?
@ "How revolting can it get?"
how much time do you have?
Nowhere near enough!
Our continued payments are a digital illusion. When push comes to shove, we'll invent a conflict and renege.
winning
renege will not solve the broken production machine that the USA has become. To bring back work to the 99% it takes more than renege; it takes investment in US labour. No Oligarch loves that. They prefer slave labour at one tenth that cost and stacking their cash profit pile OUTSIDE th USA.
A system like that is destined to implode as rogue Oligarchs like those Russians parked in PArk LAne will be ideal aristocrats to lead to the scaffold when nations ask for their money back. Impunity game that has two edges to its blade. And that is an argument you don't win when you lose the Congress as your paid servants. That day has to come; its written in the blood of nations, and they always come back to their bible : the constitution, like prodigal sons after a binge that leaves them spent in dissipation.
Rome was not destroyed by more intelligent than themselves but by more robust and resilient; not all spent out in dissipation. You lose the link to your own people at your own oligarchical risk.
286 days is a record, but I am sure the politicians can beat it, they won't even have to try too hard.
The post is good and accurate in the sense that debt is out of control. He tries to put it into context, always a nobel thing to do when the numbers are so completely ridiculous. Hard to envision billions let alone trillions, and now we have 16 of them that we owe back to the same people that created them!
For me, the measurement of inflation is simple. Are prices going up or down for the products and services I need to use, need is loosely defined to include a car which one could argue isn't really necessary. Point is, inflation is really a function of the individuals situation to large extent. For example, I don't experience the inflation in college tuition but I do in healthcare. From my point of view, everyone is experiencing inflation right now - with few exceptions prices are increasing across the board. Just the potential of QE drives up prices.
Inflation, as measured by the Gubmint, is obviously wrong and pretty much meaningless. I've read some of the decision points as to whether a price increase in some item should be included or not. For example, car prices are generally not included because the function/value went up proportionately so the price didn't inflate! Thats only reasonable if the average and mean prices aren't affected (which they are in most cases). Regardless, its a somewhat complicated number to calculate even though its clear they are manipulating in their favor, month after month.
The debt is just another nail in the coffin of a corrupt and totally dysfunctional financial system, we'll see it crash and burn soon enough. We are walking on the edge of a razor blade with lots of winds hitting us from all directions: Europe, debt, media corruption, wall street corruption, wars, political corruption, increasing poverty, decreasing educational values, etc. - any and all of these things will destroy us ultimately. Corruption is the core problem that must be eliminated first otherwise any other solution will fail. This is the same situation in Europe and nobody is dealing with it there either, just like here in the US - and it continues to get worse everyday.
We're (the planet) rolling into a very dynamic next few months where its is very likely to get considerably worse then better. We can expect much more and worse financial mayheim, expanded wars in the middle east and a dramatic ramp up of financial institutions stealing customer funds (which is now not illegal) and walking away free and rich. Lots of wealth will be transferred over this period, absically as much of peoples retirement funds as they can get. This will happen by a combination of methods: devaluing the currency, outright theft like MFGlobal, crashing the market. They are the primary tools now, stealing has probably become the preferred tool - either outright or via a manufactured crash.
That $340 billion interest payment by next year will cross the $100 per every man, woman, and child each month. It takes several hundred dollars of income to cover $100 of taxes.
Most under 18 can't help work that off. Most over 65 can't help.
The 16% of working age people captured in U6 unemployment can't put a dent in it.
Even within the working population, most are in no position to cover any significant portion of the annual interest on the debt.
Even if, by some miracle, the interest could be covered by taxpayers next year, the principal would not be touched, leaving the same problem in place for the next year.
Our leaders are not even seriously talking of stemming the debt tide, let alone reversing it. On the contrary, most are making new promises hoping to get enough votes so they can be at the helm when the problem is even larger next year.
Once we comprehend the math and the politics, it is clear we need to be there for our families because the numbers will not allow our leaders to be there for them.
The financial system is like an elephant trying to balance on a quarter. Another 4 years of choomboy and that quarter will be a dime.
I sent yesterday's $16t link to a few people, including my mayor who sees no problem erecting an expensive city hall, b/c we have the money. He sent back that my email had been hacked, sending him spam. If you are on planet earth, and mars too, you will not escape the ravages of all of this debt. Even if you are set, what about your extended family? They'll be tapping at the door for some mullet.
Debt doesn't matter to politicans as long as they can keep spending. As long as Bernanke is Obama's chump the game continiues.
Everyone knows the day of reckoning is coming, their hoping it's not the next day after today.
The politicians, Bernanke and the Fed keep on playing hide and seek. Seek more debt and hide the existing debt.
"Everyone knows the day of reckoning is coming, their hoping it's not the next day after today."
'Fraid not. Most people don't have a clue. Ask the average joe or jane on the street how much the national debt is or how big the budget debt is and you almost always get the response: "I dunno". But on the bright side, if you ask them who won last seasons American idol you get the correct answer 90% of the time.
"Bernanke and the Fed keep on playing hide and seek."
If all you have is a hammer, every problem is a nail. Perhaps I should slightly rephrase: If all you have is a printing press...
IS this adjusted for inflation?
I love points 1. and points 2.
Those have been on my mind for at least three years, if not four.
This will collapse, how do I know this? I have a decent 401k built up, lots, but the thing is, I wasn't supposed to have money , no ma'am , i z bone po. Dats right, eaten craw dads and what not...I ze Neva supposed to have money. So when I gets the money, something's wrong. Just ain't right.
U.T.
Many think that because Mitt is very wealthy... he will naturally become a pawn of the financial elites. Soetero was comparatively poor and is among the worst of the corrupted politicians... The Bushes were also corrupt, but actually part of the cabal... Clinton appears to be borderline. JFK had more loot than anyone, tried to displace the elitists taking over and was murdered for it. IS Mitt a tri-lateralist or Bildeburger? If not, he deserves the benefir of the doubt... Barry? No doubt left at all...
how the fuck do you think mitt's in the position he's in today?
Mitt Bilderberger?
He attended the last meeting.
Public domain informaton for shit's sake
They are the same ...Decide if you want your fucking fast or slow.."
Do I get to choose a condom?
Do I get to choose a condom?
Most people view inflation as prices rising. This is not necessarily true. Inflation is just more money flooding the system. That money can seem like economic growth, or inflation masking as economic growth. Ahem like the housing bubble, and debt fueled consumption that went bust in 2007-08. It also depends on the market's perception of a particular currency. US dollar is considered safe haven for many investors, so when investors get scarred, they run like wildabeest from the perceived lion of a threat from somewhere else. The current debt crisis is associated with not only government spending, but also declined economy means less tax revenues, but government spending still grows, even though it always been growing even in the boom times. Even dumber politicians launching stimulus programs during a time of declined tax revenues. Federal government refuses the shrink, even touting Keynesian economic theory. So the government borrows more, which means investor money goes to percieved safety of funding government, instead of actual production. Inflation would be much more apparent when those investors start to doubt the US dollar as a strong currency, or a safe currency. Situation in Europe has actually benefitted the US dollar. The US is suffering from inflation, just look at oil, and other commodities. We suffered a deflationary collapse from inflationary origins of housing market. Another words, deflation's inflationary origins. There is inflation indeed, but it's simply not hyperinflation, at least not yet. Investors are very sensative to outright inflationary programs like quantitative easing. Commodities spikes, including stocks. Interest rates on bonds are very low, to continue spending, borrowing, with rates so low, with very little room to go lower is a recipe for bond bubble. Why in earth would somebody lend for 0.25% interest rate, which is much lower than official inflation numbers? Talk about capital destruction.
18 staggering and depressing charts under Obama you don't want to see.
http://www.businessinsider.com/18-staggering-charts-on-the-rise-of-government-dependence-2012-2?op=1
No future for you.....http://www.youtube.com/watch?v=yInsMNJ4fcM&feature=youtube_gdata_player
16T is nothing, especially after we blow up the next unwilling participant of the Ponz, up in smoke...
Other countries should have full confidence that we will kill them if they don't go along....
Pay for our debt ...or we kill everyone....
In other words if I'm willing to kill you and I owe you money, ahhh..you lose ....
Is this why onions that cost 23 cents a pound twenty years ago, cost $2.75 at SooperWalmart yesterday?
Benny Bernanke and the Fed follies can just keep printing and sucking up debt to keep the politicians happy.
Instead of calling themseleves the Federal Reserve they should call themselves then Central Counterfeiters because that's what their doing.
Guess you need a PhD from Harvard or Princeton to avoid doing prison time. Bernanke, Dudley and Yellen all would look good in shackles and wearing an orange jump suit.
Make that: orange pimp suit.
Anyone who thinks that inflation doesn't exist is a complete idiot;
*************
Then shouldn't you show us all the inflation?
Here's the inflation (increase in credit and money)
http://research.stlouisfed.org/fred2/series/BASE
And here it sits-
http://research.stlouisfed.org/fred2/series/WRESBAL
Here's the great credit expansion-
http://bit.ly/RoFz84
And here is how inflationary all of it has been-
http://research.stlouisfed.org/fred2/series/M2V
Printing money and stuffing it in banks is inflation-but until if ever-that money starts to circulate i wouldn't be pounding the drums about raging inflation-unless someone can show it happening-and how about the losses that are being covered up ie: level 3 etc.
Marked to market how much deflation lies hidden?
Unless of course you would believe the banker cartel as being above hiding losses--if so-maybe the deflationists are wrong-but i don't see much proof in this post other than someone's theory-
That's because the banks don't invest in the real economy. They invest it into treasuries, and loan to corporations who don't need the money. If you need the money, you don't get the money. It's a phenonom that Mises predicted. Even Donald Trump validates it. Remember Bernanke said that banks generally wouldn't invest into risk assets versus safety that is US treasuries. So what you have is inflation in government spending, and debt. High bond prices. That government spending directly effects things that government spends it's money on like education, healthcare (medicare), etc which are going up higher. Inflation is not general price rises in a economy like Bernanke says. Inflation doesn't spill over to the whole economy evenly, creating "general prices to rise". It's a symptom that can happen, but doesn't "HAVE" to happen, but look at the things that are rising in prices. They have to be inflation. When a bank borrows from Bernanke to buy Treasuries, increasing bond prices, that's inflation. . Inflation can mask as economic growth, like the housing bubble which was basically expansion of credit and yes the housing market today is being inflated even today, just not very high to the satisfaction of the central planners. A form of inflation. Printing money is inflation itself. Don't matter if the money doesn't circulate in the general economy. The point of the Bernanke's monetary policy anyways isn't to necessarily just to create inflation, his policy is about his banks making profits risk free, and you do that by avoiding risk assets generally. Even if there is risk assets to buy up, you minimize the risk by borrowing ultra cheap money ie stock market. So bond rates are low, bond prices high, a product of inflation, smells of a bubble. You say there is no inflation based on Federal Reserve charts? Heh....Not logical enough for you? Depreciation is another form of inflation, when investors, and general people lose faith in currency, they abandon it, have less demand for it, and price things higher on the perception that money is worth less. If take a simplistic view to inflation, you don't account a dynamic complex economy at all period. If Bernanke is trying to create inflation with monetary policy, and at the same time trying to safe profit taking for the banks, he just shot himself in the foot. So what's next another QE? Imagine the price of oil then when oil right now is 96 dollars a barrel, but no inflation at all.....
Same in Brazil. Banks exist to serve the Government and Business Startups must fund themselves
So bond rates are low, bond prices high, a product of inflation, smells of a bubble
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Clueless--please "show" me some data--otherwise your theocracy is nothing more than a waste of space-
So you are saying that bond prices are not high? If so, you are not worth debating at all. If you can answer that one simple question, because you seem to indicate you don't believe bond prices are high, because you don't acknowledge it. You quote me on it, but offer no evidence to counter it, much less acknowledge it. Must be a deflationist temple cult thing.
So you are saying that bond prices are not high?
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No-i'm not saying that at all-if you understood anything about what you posted-you would know you have it assbackwards about "high" bond prices reflecting inflation-
When rates were at 20+% in the 1980/81 and bond prices were at their lowest-by your logic we were in deflation-
High bond prices reflect a flight to safety "demand"-a flight into money equivalents ie: cash-and that sure as hell is not a sign of inflation
Who cares how much it is? It's not going to get paid back. Put a fork in it guys, it's done. All the moaning and gnashing of teeth, pfft...waste of emotions. You think we have a chance? MAYBE if everyone turns into complacent little batteries to power the ride to perdition, just shut up and take it for decades, and hope we make it. Just so bankers don't get a haircut... FUCK 'EM! Oh hell yeah, we'll shoulder the burdens of Europe too? Why not? It's our financial WMD's that did the whole world in. It could be the smallest thing that brings it all down, it's that fragile. Some dummy is going to pull that crucial Jenga block. I'm just a waiting...
History does have a knack of turning on a dime, and often at a time when you least expect it. Stay vigilant and be prepared. Listen to this guy, he obviously has seen this phenomena many times before.
http://jessescrossroadscafe.blogspot.com/2012/08/chris-hedges-tinder-of-revolutionary.html
+1 on the Jenga Block analogy.
There are many educated (lettered!) economists who have never manufactured a widget of any kind, ran a business, been responsible for making payroll, who insist that the inflation scenario is nothing to whinny about and that the schemes concocted by the Federal Reserve are worthy of inscription on stone tablets... the finger of God himself no less.
What kind of job are they going to have in the World of the Future... where Gresham's Law forces a great rebalancing of e-paper and real metal?
Economists live under the Rule of Ceteris Paribus but forget to mention it
Richard Duncan warns how the global economy is poised to enter a New Great Depression unless certain steps are taken to avert it
Every new trillion ads fuel to the precious metals fire! I trade CFD's and profit from it!
http://capital3x.com/think-tank/charts-and-analysis-30-aug-2012-its-a-du...
Capital3x launches its trade copier/mirror trading. This is the big thing in forex and futures trading.
5 minutes ago
Chinese Premier Wen Jiabao said Thursday that the impact of the global economic crisis is worsening, and called during a visit by German Chancellor Angela Merkel for closer cooperation to revive growth. (AP)
Yes perhaps China could close down LDK and other deadbeat Solar Panel producers making -65% ROS and start using REAL ECONOMICS to run businesses so they don't GO Japanese
I moved to Thailand 30 years ago, but Thailand is following the same stupid path the US and Europe have followed.
I remember looking at a Dallas Real Estate Company Henry S Miller years back, it was simply a tax shield for the senior partners whose earnings were greater than the revenue of the firm itself by use of interesting tax writeoffs in various partnerships. That seems to be the model of the US Government - it is a tax shield for LBO groups which have hollowed out the US public space and enriched themselves by parking liabilities onto the Community Chest in a giant game of Monopoly.
The fact that this Nomenklatura and Kleptocracy is represented by names like Robert Rubin who was able to pull the levers from both sides - Politics and Banking - although he has a mediocre intellect did not deter Hank Paulson from following in his footsteps. There is really no differejncve between the US system and Putin's Russia with his Siloviki running Gazprom and the Inner State. In fact the similarities between the US and Russia today make you wonder if Yeltsin was simply used by Jeffrey Sachs and Co to make Russia a template for the transformation of the USA much as London and Big Bang was conceived in 1986 to destroy Glass-Steagall, and the British Privatisation of Electricity Utilities was an invitation for US corporations like Texas Utilities and Indian Electric to dive in and learn the tricks before letting Enron loose on US utility pricing - once the US utilities had learned their lessons they sold out of the UK to German and French and Spanish utility monopolies
...it would be wrong to say ''I think this goes here'', and I am referring to this link http://www.theblaze.com/stories/former-marine-detained-for-ominous-facebook-posts-speaks-out-for-the-first-time-it-made-me-scared-for-my-country/# ...and I say that because, this Zero Hedge article defines the prophetic mark of the beast ...and the link definitely goes here.
http://www.youtube.com/watch?v=Sj-huXq_ts8&feature=player_embedded
We are not in Kansas, America, not now ...bitchez. We are in the corrupt Fed Fiat Derivative Matrix, Fight Club. http://www.youtube.com/watch?v=xnkwhHOjv-4&feature=related The time of Jacobs Trouble, as it were a woman sticken with the pain of deliverance, fighting the false claim of dominion from the mouth of the beast, the beast sealed in agreement with abortion. http://www.timesofisrael.com/the-most-fateful-decision-of-all-iran-israel-air-strike-nuclear/
Who can stand fast upon the Place of the Skull (and Bone Heads) and open the Book in Jerusalem, marked by the beast, slaughtered as a beast, and still be risen in agreement with perfect love and mercy?
http://marketdailynews.com/2012/08/28/into-the-meat-grinder-a-market-meltdown-the-likes-of-which-weve-never-seen-is-upon-us/
Just add more zeros. America isn't even close to racking a quadrillion dollar debt. Yet.
Feel better?
the US should be negotiating debt-forgiveness and threaten to default. that is an actionable strategy.