tag:blogger.com,1999:blog-4102429195693595750.post5395203382526249056..comments2024-02-24T19:10:00.395+02:00Comments on Sudden Debt: 2012: Dollar At The End Of The WorldHellasioushttp://www.blogger.com/profile/03564511281240682625noreply@blogger.comBlogger49125tag:blogger.com,1999:blog-4102429195693595750.post-30305990289629280782010-11-14T12:18:17.688+02:002010-11-14T12:18:17.688+02:00Well, i've seen the movie back in the early su...Well, i've seen the movie back in the early summer of 2010! I deliberately decided to see the movie in order to find out whether it had to do or not with the current financial situation.<br />Given the fact that having insider information for dids of highranking officials in deutsch multinational firm i was curious to see if there were any correlations.<br />The movie was stunning in front of my eyes i ve been watsching a great part of the financial scenario these officials have been preparing since the midst of 2009!!<br />Fistly the financial damage of the 2008 was so huge that the whole system almost came to total disaster at once. Later on they aknowledged that there is simply nothing to be done in order to fix in the long term the situation and the only thing they could do is to gain time and at the same time getting prepared for the next day.<br />G20, G8 are fully aware that the financial collapse is imminent and it is just a matter of time to blow in a full scale crisis. The images from the movie of the tsunami from Japan sinking like a nutshell the luxurious vessel was also symbolic. The Japanese economy is at stake, their sovereign debt consumes more than 50% of their total revenues...a more appreciated yen, and a possible inflation that may erupt from the desperate and last arsenal that the FED had and used in order to stimulous the economy will do things even worse.<br />The images of people shopping in super markets and at the same time the earth beneath their feet was crucking and vanishing tells us one thing. Everything is going to happen really fast that anyone who is not aware of the situation and does not take any precaution measures for him and his beloved ones has few chances to survive. The pheonomenon we are going to face in a few months or yrs is called hyperinflation. Hyperinflation will erupt suddenly, lifetime economies of paper money will become toilet papers,and the price of goods will get to astronomical heights. People will starvate, chaos and anarchy will prevail for some time and at the same time the system will be illiminating sovereign debt through hyperinflation and through the destruction of people savings. Thus it will be able for the system to make a restart in the global economy after a 2-3 yrs of such a global catastrophy.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-60906807781477450512009-11-29T02:41:02.081+02:002009-11-29T02:41:02.081+02:00Hellasious,
I too always look for such contrary s...Hellasious,<br /><br />I too always look for such contrary signs. By the time the non-financial media makes mention of a trend it's in it's final stages and it's days are numbered. There's a TV show called "criminal minds" and in it one of the characters was checking up on his investment in gold which confirms your observation about the dollar.<br /><br />But beware because although it's likely that the trend's days are numbered it's often the case that you see a blow-off move when you see these media signals and that's exactly what were are seeing with gold and that's also what happened with equities to the downside when the stock market was often mentioned in TV dramas like CSI and House early this year.nodicehttps://www.blogger.com/profile/10064264987670233104noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-61919461813840063722009-11-29T02:05:48.190+02:002009-11-29T02:05:48.190+02:00Matt, a fair amount of my paper money, as you call...Matt, a fair amount of my paper money, as you call it, never transits by my bank account as my husband is in private practice, and it gets passed on to me to do our shopping with.<br />So... the banker has NOTHING to do with it.<br />Not all of us live in salaryland, Matt.<br />And your other comment about government solvency is negated by the fact that most people rather naturally (albeit falsely, I agree with you...) assume that if government borrows money it has to pay it back the way that you and I do, and that government has to balance its budget/bank account just the way individuals do.<br />Those are tedious and faulty assumptions, but they are a big part of popular ignorance, and WHAT PEOPLE THINK is a big big factor in the way they behave, and how our little problem is going to be solved.Debrahttps://www.blogger.com/profile/01510189619803992336noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-70742398699681517892009-11-28T16:36:25.443+02:002009-11-28T16:36:25.443+02:00H & Camabron,
The Treasury spends by creating ...H & Camabron,<br />The Treasury spends by creating new reserve balances, there is no "debt" created per se. The Govt payments themselves create the reserve balances that are in turn available to buy the Treasury Securities; the govt is never revenue constrained. There is no chance of insolvency with a sovereign/monopoly issuer of it's own currency.<br />In fact I have heard that Treasury is studying the elimination of Treasury securities and is going to use this years operations as proof that govt need not issue. They (Treasury and Fed) are on track to buy in as much govt debt as was issued this CY, a govt that buys in what it issues is like they never issued it in the first place. No net issuance this year and as far as I can tell, the only commodities that have increased in price over this time are chicken wings and gold, perhaps each bid up by the same sort of intellectual mentality. <br /><br />@Debra,<br /><br />As far as your paper money, it is more accurate to think of it technically as a "portable" form of a federal reserve balance. It is issued by the bank teller to you after your real reserve balance (bank account) is debited.Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-17381389646434150412009-11-25T19:15:01.390+02:002009-11-25T19:15:01.390+02:00Nice, Edwardo.
You are discovering a writer's ...Nice, Edwardo.<br />You are discovering a writer's vocation, right ?<br />So... why not come over to the Saloon, and.. indulge yourself a little ? ;-)<br />Although now that I think about it, you are probably already writing somewhere out there in blogoland. <br />BUT... are your writing SUMPTUOUS prose, Edwardo ?<br />That's the kind we want to sink our teeth into...Debrahttps://www.blogger.com/profile/01510189619803992336noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-10942373725494140952009-11-25T17:38:29.787+02:002009-11-25T17:38:29.787+02:00Haiku
Sumptuous suppers
And sedentary habits
Made...Haiku<br /><br />Sumptuous suppers<br />And sedentary habits<br />Made for a short lifeEdwardohttps://www.blogger.com/profile/03613197383283896190noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-87782572897267494162009-11-25T16:02:47.445+02:002009-11-25T16:02:47.445+02:00I think I am the only shrink qualified person read...I think I am the only shrink qualified person reading this blog, and I'm going to tell you the following story.<br />Last week I held up a10€ note in front of one of my friends (by the way, anonymous, I trust the German director of 2012 to know that the € is currently worth a great deal more than the $, which has its advantages for... investment, but NOT for export, as we all know).<br />I asked her what it was WORTH.<br />And she said... essentially that it was worth... the cost of the paper it was printed on.<br />It is important to keep this in mind at all times.<br />Many people (like Alexander Pope, a long time ago...) instinctively feel that fiat money is worthless, that it is a scam.<br />And these psychological reactions are very important to our "problem".<br />When you start thinking about fiat money, you realize the breathtaking abstraction involved in it.<br />What's so bad about that ? After all, that 10€ note is worth... just what the person on the other end receiving it is willing to give up in exchange for it. (And we hope that he still has enough trust to want to exchange it...)<br />That fiat note is every bit as... abstract as the words that we are exchanging on this blog.<br />Why not ?<br />The problem lies in the fact that... for a long time we have imagined that the note was referenced on something else, something... tangible, something absolute like.. gold.<br />And this realization is STILL in people's minds.<br />But... there is no reason for us to accept this...limitation. Accepting this limitation is nothing but... CONSENSUAL, after all...Debrahttps://www.blogger.com/profile/01510189619803992336noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-74995106094338381652009-11-25T04:16:55.627+02:002009-11-25T04:16:55.627+02:00Matt Franko, fiat money is created essentially thr...Matt Franko, fiat money is created essentially through debt, so how is demand supposed to increase under a heavier debt burden?camabronhttps://www.blogger.com/profile/10024146459457965038noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-75837312136846416142009-11-24T21:25:37.157+02:002009-11-24T21:25:37.157+02:00This comment has been removed by the author.camabronhttps://www.blogger.com/profile/10024146459457965038noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-70056091257440223082009-11-24T14:12:09.894+02:002009-11-24T14:12:09.894+02:00H, Thanks,
Output wont increase until demand incre...H, Thanks,<br />Output wont increase until demand increases. ie Power Cos wont generate unless they think they have customer demand,etc..It really doesnt matter what "money supply" does, the last 12 mos should serve as proof enough as these so called "money supply" amounts have gone straight up and output has collapsed and employent cratered.<br /><br />The govt is restricting demand by overtaxing and thereby running too small a fiscal deficit for the present circumstances, and has been doing so for years.<br /><br />We need a MAJOR tax cut/tax holiday to restore aggregate demand in the economy. Sadly it looks like the Obama Admin is starting to turn the other way.<br /><br />Also I would reiterate that the US issuing treasury securities is not a financing operation per se, the funds to buy the treasuries come from the deficit spending itself. Remember a sovereign issuer of a free floating non-convertable currency is never revenue constrained. The Treasury has traditionally sold the bonds to remove reserves from the banking system to support the interest rate policy, that may actually be changing in the future. For further reference see the link in my previous post.Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-89959927715929432152009-11-24T07:35:15.867+02:002009-11-24T07:35:15.867+02:00Dear Matt,
Do you actually believe that if we cre...Dear Matt,<br /><br />Do you actually believe that if we create more money (and in the age of fiat currency this means more debt), REAL economic activity will increase?<br /><br />That more homes, more kWh of electricity, tonnes of steel, bushels of wheat, etc. will be produced?<br /><br />Or that the price of such will merely go up?<br /><br />Yes, the lack of non-fiat money could and did affect the above (eg William Jennings Bryant's Cross Of Gold), but this is no longer the case.<br /><br />Regards,<br />H.Hellasioushttps://www.blogger.com/profile/03564511281240682625noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-88104275188530819822009-11-24T02:23:33.276+02:002009-11-24T02:23:33.276+02:00Hi,
I just came across your blog.
I'm afraid ...Hi,<br />I just came across your blog.<br /><br />I'm afraid I'm going to have to take exception to your tag line: "A SUSTAINABLE ECONOMY IS NOT POSSIBLE WITH UNSUSTAINABLE DEBT" if you imply that the US has issued too many treasury securities, which by the way is not borrowing for a sovereign issuer of it's own currency.<br /><br />Our Federal deficits have not been high enough to sustain output and employment and this has led to our under-performing economy.<br /><br />The Federal govt is the monopoly issuer of our money and they have not been issuing enough.<br /><br />I would invite you to read <a href="http://www.moslereconomics.com/mandatory-readings/soft-currency-economics/" rel="nofollow">this paper</a> at another blog that I read and comment on for perhaps a better perspective on the current situation.Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-63235720959868451852009-11-23T21:55:02.228+02:002009-11-23T21:55:02.228+02:00Thanks and sorry, as always, lots of typos- my bad...Thanks and sorry, as always, lots of typos- my bad.<br /><br />Would be an interesting PhD thesis...Thaihttps://www.blogger.com/profile/00700253024420397221noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-76061112393334420352009-11-23T20:57:18.851+02:002009-11-23T20:57:18.851+02:00I took that movie dialogue to mean that dollars we...I took that movie dialogue to mean that dollars were worth more than Euro. He couldnt afford the billion dollars, but could afford to come up with a billion in euro. ??Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-45417736158070282652009-11-23T19:43:43.738+02:002009-11-23T19:43:43.738+02:00Dear Thai,
I believe you mean "end of the wo...Dear Thai,<br /><br />I believe you mean "end of the world" theologies and credit cycles..<br /><br />No, I don't think there is a correlation other than the obvious one, i.e. when the economy sucks and people feel low they can become hooked by cooky theories in order to "explain", deflect or dull their pain.<br /><br />That is not to say peak oil is such a theory - it is fact. But PEAK OIL in screaming capitals can be used (and was so used) by any number of hucksters to peddle their wares.Hellasioushttps://www.blogger.com/profile/03564511281240682625noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-5452827715584668742009-11-23T19:13:12.270+02:002009-11-23T19:13:12.270+02:00The USD vs. what?
Currently the USD is the basis ...The USD vs. what?<br /><br />Currently the USD is the basis for the ever popular carry trade. If you believe that the global recession is over then the USD will continue to plummet until a challenger arrives...all in due time with fiat currency.<br /><br />What currency is better and why?<br /><br />-Please compare sovereign debt rations?<br />-Sovereign entitlements...i.e. SS & Medicare verses pension entitlements etc.<br />-Consumer debt ratios<br />-External debt ratios<br />-Bank capitalization ratios<br /><br />The USD already crash...120 to 75 in less than ten years...<br /><br />When the negative correlation between the USD and futures changes let me know.<br /><br />Until then don't be a sucker.<br /><br />The USD sucks but all other fiat currency swallow. China's currency will never float as all fiat currency sinks at varying rates.<br /><br />China's currency is as likely to plummet as rise...send me a 10K of your favorite Chinese company...<br /><br />Cheers!434AT3M3noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-21130190352353893652009-11-23T16:01:03.927+02:002009-11-23T16:01:03.927+02:00And by the way Hell, I asked once before and you n...And by the way Hell, I asked once before and you never replied one way or the other, but as you have finally admitted the truth- e.g. your "obsession with all things monetary is obviously well beyond redemption", and am posting on 2012, Ill ask again in case you have learned anything more since then: <br /><br />Do you know if there is there a historical correlation between end of the year theologies and credit cycles?<br /><br />I am reading on anti-peak oil blogs now they so a strong historical association with the obsession over energy supplies running out and credit cycles.<br /><br />I looked for a while but could could find anything.<br /><br />Wondering if you have learned anything new?Thaihttps://www.blogger.com/profile/00700253024420397221noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-86011967115142658822009-11-23T15:12:26.867+02:002009-11-23T15:12:26.867+02:00The word verification for this comment is "sc...The word verification for this comment is "scure", which seems appropriate, as I feel I need to illuminate my previous overly gnomic remark.<br /><br />Although I haven't been reading the comments here, and am in a sense making a snap judgment, it seems clear to me that <b>Debra </b> is an informed, thoughtful, and intelligent commenter. In choosing to focus attention on her assertion about the "Enlightenment" tie between France and the US, I might have said that I suspect that this is a much stronger feeling among French intellectuals and opinion leaders than it is in the American commentariat/power elite/MICFiC*, and while <i>l'homme dans la rue</i> has at least heard of it [the Enlightenment] in school, his American counterpart has not.<br /><br />The situation in which we find ourselves makes it clear how far we are from implementing the values of the Age of Enlightenment. Not all manifestations of this quest have disappeared, of course. I would argue that the public-minded search for liberty, equality, and siblinghood on blog comment threads - which we ourselves are participating in, even as we speak [or exchange written information asynchronously, to be literal about it] - would qualify as an attempt to throw the Light of Reason on our predicament.<br /><br />On the other hand, we have the skillful development of propaganda/advertising/public relations/repressive desublimation (in Marcuse's phrase), along with the truly frightening perfection of the technology of detection and destruction. Only the recalcitrant nature of the various subject populations across the globe - their stubborn refusal to do what they are told, even in the face of bribes and deadly force - stands in the way of the final victory of the Machine. It is not the values of the Enlightenment that our little brown brothers cling to, however - rather, it is Pashtunwali or the local equivalent. May the Force be with them.<br /><br />Speaking of movies as the literalizers of metaphor and allegory, I see <i>It's a Wonderful Life</i> as a prophetic vision of what has happened to the American spirit in the time since that movie was made. We are now in Pottersville, not Bedford Falls. A change of heart by George Bailey is not going to get us back to where we liked to think we were. Will there be a mass uprising, analogous to the spontaneous eruption of the people's justice which is imagined in the "final scene" at http://tinyurl.com/25yzc7 ?<br /><br />Maybe Mike Huckabee will be the guy leading the torch-carrying crowd. Who knows if it's good or bad?<br /><br /><br /><br /><br /><b>*M</b> ilitary<br /><b>I</b> ndustrial<br /><b>C</b> ongressional<br /><b>Fi</b> nancial<br /><b>C</b> orporate Media Complex - <br /><br />a conspiracy to use, abuse, and confuse the people, to "milk, shear, and slaughter the sheeple", metaphorically speaking - <i>except the <b>slaughter</b> is literal.</i>mistah charley, ph.d.http://tinyurl.com/56pa5lnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-32832892638417752282009-11-23T05:24:57.873+02:002009-11-23T05:24:57.873+02:00France and the U.S. have a special relationship wh...<i>France and the U.S. have a special relationship which is the result of the fact that the U.S. is the ultimate Enlightenment experiment, and the Enlightenment is of French origin. I have said this before, and I still believe it.</i><br /><br />With regard to experiments aiming in the general direction of Enlightenment, no doubt Gandhi was thinking of that in particular when he was asked for his view of Western civilization, and replied, "I think it would be a good idea."<br /><br />As Irving Berlin put it in his song, may the Creative Forces of the Universe stand beside us, and guide us, through the Night with the Light from Above (metaphorically speaking).mistah charley, ph.d.http://tinyurl.com/y9bwgepnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-75422292412451650152009-11-22T23:32:59.251+02:002009-11-22T23:32:59.251+02:00When the president of the EU council (.BE) and and...When the president of the EU council (.BE) and and foreign policy chief (.UK) were chosen (note "chosen", not elected), Sarkozy said something of the likes: "one is from an important country the other from a medium one". We these kinds of attitudes and words, one can imagine where the EU might end if push comes to shove (though French arrogance, exposed in the expression above, is despised all over Western Europe, as far as I can see).<br /><br />Anyway, and this is to Hell: From your wording I would bet that you a reading too much of Ambrose Evans-Pritchard (AEP). While he is a worthwhile read, note that he has a big axe to grind (and his boss - the Telegraph is strongly Europhobic). Be sure that you get your info from other sources also.<br /><br />Anyway, currently Greece is known to be funding itself on very short bonds (AEP raised this issue again) and that might backfire en masse. But, if the ECB is indirectly paying this, then maybe they are safe on that front, who knows?Tiagohttps://www.blogger.com/profile/09130634176057923895noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-12061926640497174012009-11-22T23:15:55.713+02:002009-11-22T23:15:55.713+02:00Reason for the movie's Euro-centrism: the dire...Reason for the movie's Euro-centrism: the director is German :)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-71375911516417332802009-11-22T16:45:03.894+02:002009-11-22T16:45:03.894+02:00He,, I hoped you clicked on my third link.
Just i...He,, I hoped you clicked on my third link.<br /><br />Just in case you did not, <a href="http://www.theonion.com/content/video/in_the_know_should_the_government" rel="nofollow">here it is again</a><br /><br />Agreed ;-)<br /><br />Be wellThaihttps://www.blogger.com/profile/00700253024420397221noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-47539302301492779222009-11-22T16:28:53.161+02:002009-11-22T16:28:53.161+02:00Take a look at the following great piece by Greyhe...Take a look at the following great piece by Greyheron:<br /><br />http://you-buy-the-high-i-sell-the-low.blogspot.com/2009/11/running-just-to-stand-still.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-8401315436464341402009-11-22T14:46:48.660+02:002009-11-22T14:46:48.660+02:00Well, in certain European countries the tax trend ...Well, in certain European countries the tax trend is quite the contrary at the moment - taxation to the hilt, and paying no mind to the en masse emigration (some of them will never come back).<br /><br />As for the larger picture, we here seem to agree that the dam is compromised and / or the reactor leaking in many places, even if some talking heads out there claim 'worst part of recession is over' etc, funny. <br />G. Celente (or was it somebody else?) said that we are now in that weird half second between first demolition charges going off and the structure collapsing into a pile of rubble. What makes it more likely is people getting more educated and involved, no longer willing to accept lies and halftruths for answers.HomoSarcasticusnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-31134003301171541942009-11-22T12:59:58.089+02:002009-11-22T12:59:58.089+02:00"Typically these times turn out to be turning..."Typically these times turn out to be turning points for the USD".<br />Typically ? Since... WHEN ?<br />Since the U.S. has been empire in the world.<br />But... the U.S. is NO LONGER empire in the world. <br />The U.S. is declining as fast as that water is rising around the Himalyas in the cute little preview Hell showed us in his post.<br />Thanks for the black hole stuff, Thai.<br />But I must say...<br />When you think about the fact that Texas had/has panels to determine the future dangerousness of any single death penalty convict, and that our world leaders are giving the go ahead on chiantific experiments that nobody has a clue about... it is all rather... contradictory, isn't it ???Debrahttps://www.blogger.com/profile/01510189619803992336noreply@blogger.com