The Dance of the Trillions to Shore up Banks, Bankers, and Gamblers

 

 

COMMENTS

 

New

 

Economic Cycles

 

Posted, Thursday, March 26, 2009 12:34 am

 

I just saw your article at Political Affairs:

http://www.politicalaffairs.net/article/articleview/8302/

In your opinion, will asset market extreme mispricing be well-deterred, if and when asset market real (inflation-adjusted) price histories are well-apparent to the people?

 (Assuming you say ‘yes’, I respectfully suggest publicizing these compelling histories.)

What I am talking about: for stocks and homes, see first chart here  “Real Dow & Real Homes & Personal Saving & Debt Burden” at http://homepage.mac.com/ttsmyf/RD_RJShomes_PSav.html

Ed

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Answer by R. T.

Of course, the more information, the better it is. However, many people think in nominal terms, not in real terms.

From your graph,  you can see that real values are likely to overshoot to the downside.

You can look at my rough draft of economic cycles at:

http://www.thenewamericanempire.com/cycles.htm

http://www.thenewamericanempire.com/tremblay=1083

 

New

 

The Supply of Money

 

Posted, Friday, March 27, 2009 4:43 pm

 

Real interest rates are already rising. Nominal rates are low. We have economic stagnation.

How can we accurately monitor REAL money supply in Canada and globally? I do not believe the "published" money supply data I have found.

Deflation is the enemy of debtors and the salvation of savers. Are we safe holding Canadian dollars?

Mark

Answer by R. T.

All currencies should depreciate as compare to real assets as central banks try desperately to reflate their economies. The euro and the euro zone will go through a rough time as the Fed depreciates the US dollar. As to the Canadian dollar, it is a petro-currency, to a large extent, and it will reflect the price of oil.

 

New

 

In Bangladesh

 

Posted, Friday, March 27, 2009 10:49 pm

 

I am using your article, “The Dance of the Trillions to Shore Up Banks, Bankers & Gamblers”, found in Political Affairs, in an article here in Bangladesh. It will be quoted extensively and entirely in Bangla ( Bengali ) in the leading Marxist monthly named Sanskriti. I shall mention details of your original article and your name. Our next issue of Sanskriti shall be published approximately after 3 weeks.

I hope you permit it.

Barkat

 

New

 

The Default on National Debts

 

Posted, Friday, March 27, 2009 2:29 pm

 

Thank you for the insightful article. I enjoy your refreshing, increasingly, hard to find truthfulness.

If I may, can I ask you to reply to these points?

What will the dance look like when the music stops playing as the buyers start to fade from the US treasury auctions?

[This I believe is the real threat we are about to see develop.]

When does military intervention replace financial intervention?

I believe it has already begun. No guns, navies, armies or air forces are needed for this new warfare.

If national debts are defaulted, do the creditors seize national assets?

Mark

Answer by R. T.:

When a government defaults on its international debts, there is no seizure of national assets, except maybe when they are outside the country itself. However, its currency collapses and its international credit rating is ruined for a long time.

Domestically, when a government has trouble selling its bonds, their prices fall and interest rates rise. This has the potential of creating economic stagnation with high inflation rates.

 

New

 

Zionists Operating in the Dark?

 

Posted, Sunday, March 29, 2009 9:16 am

 

Why is it that none of you pundents will make the connections between the dots. What's the religion of nearly all the big players in and out of government and the big banks, those getting the bailouts and those passing them out? And the religion of the mass of the mass media trying to soften the blow and sell it to the public, and the neo-cons that have lied us into our latest wars? The more the Zionists can operate in the dark, the easier their crimes.

John

 

New

 

The Fed is Privately Owned

 

Posted, Saturday, March 28, 2009 11:21 pm

 

Just a quick question, one economist* to another.

Has it occurred to you that: (1) the Fed is a privately owned bank; (2) there is a symbiotic relationship among the families which control the banks which own the Fed and the "Wall Street" firms which are populated with members of the same families; (3) all of these businesses and government organizations (and NGO's) are managed by those who are supposedly "the best and brightest"; and (4) that all of the above have a shared "world view" which is intrinsically inimical to those of us who are outside of their "extended families"?

In short, has it occurred to you that what is happening is intentional?

Bob

 

New

 

Interesting Side Bet

 

Posted, Saturday, March 28, 2009 9:41 pm

 

I have enjoyed your exposition on the Fed and its machinations. With respect, I think you missed on the more entertaining side bets which they are making:

http://www.federalreserve.gov/newsevents/press/orders/orders20090304a1.pdf

Of special interest is page 6 in this tour de force of smoke and mirrors. Here we find a prime example of the Three Card Monty which is their stock-in-trade.

If you would like to hear the thoughts of my friends and family on the outcome of our little 1913 to 2008 experiment with having a private, for profit bank renting America its currency base...try the attachment.

BTW...we have a simple definition for the word "money" here in our little towne:

What is “money?!”

Most people do not have the slightest clue what money really is.  They think that it is the dollar bills (“cash”) or the phony copper sandwich dime and quarter tokens which presently pass for coinage.  These are examples of what should be called “currency” and tokens. When you think of it, that’s a really wimpy word. It just means what we are currently using until something better comes along… sort of use by ignorant consensus… the kind of thinking which has been done on Wall Street for the last 30 years.

One day back in the 80’s after my radio show, the courageous Irwin Schiff (now a political prisoner) and I spent an afternoon discussing America the Ideal versus America the Real. His first dictum was based on the fact that no society can exist without commerce, and in order to have socio-economic commerce a system of money is necessary. He then posited that:

 “Money is something of value that can be used as a medium of exchange.”

By “thing” he meant such items as a ham sandwich, a goose, a golden egg, a Volvo, an idea (patent…intellectual property) or an hour of a person’s life (“Time is money” – Franklin… as in spend some time with me). Primarily, the thing must have intrinsic, tangible value. But what determines value? What Is value?

His definition of the origin of “value” was two fold. First, how much time, effort and ingenuity went into the mining, transporting and/or fabrication of the thing.  And, Second… “What’s it good for?” Can you eat it? Can you ride around in it? Does it shelter us while we sleep? That’s all there is to it. This principle of value derived from creative effort which leads to a utilitarian commodity of some sort is the sum total of what money is. That’s why our Constitution states in…

Article 1, Section 10 - Powers prohibited of States

“No state shall enter into any treaty, alliance, or confederation; grant Letters of marque and reprisal; coin money; emit bills of credit; make any thing but gold and silver coin a tender in payment of debts.”

Edward

 

 

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