tag:blogger.com,1999:blog-8305505968390768234.post5678009160408657335..comments2023-08-10T11:39:24.714-04:00Comments on fdralloveragain: The Almighty Dead Dollarfdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-8305505968390768234.post-14165074546533307162009-01-19T19:45:00.000-05:002009-01-19T19:45:00.000-05:00"So deflation is the order of the future? OK so Wh..."So deflation is the order of the future? OK so Where does all the billions of dollars go that the Fed is printing and creating, surely that's inflationery?"<BR/><BR/>Hi,<BR/><BR/>Technically the Fed can't print a dime of currency. They can print new bank reserves. Commercial banks buy those reserves, currently priced WAY above the market rate for same term money, and then they try to lend them into the economy which creates circulating currency.<BR/><BR/>Right now banks can't lend, because the Fed is starving them by keeping their rates too high and the rules sane.<BR/><BR/>Once the Fed breaks our banking system, seizes our assets for pennies on the dollar, empties the Treasury, and leaves the US for dead in a chaotic depression, they might relax the noose.<BR/><BR/>Or maybe they won't, it all depends on what they have planned next.<BR/><BR/>If history is any teacher, the plan includes seemingly endless global warfare to generate maximum debt, at maximum interest rates, and to motivate millions if not billions of broken souls to keep working.<BR/><BR/>Unfortunately, congress is too dumb to realize what is happening and the executive has proven trivial to purchase.fdralloveragainhttps://www.blogger.com/profile/03488923148019117760noreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-39051284202783206882009-01-19T19:09:00.000-05:002009-01-19T19:09:00.000-05:00So deflation is the order of the future? OK so Whe...So deflation is the order of the future? OK so Where does all the billions of dollars go that the Fed is printing and creating, surely that's inflationery?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-5230207479435081342009-01-19T15:06:00.000-05:002009-01-19T15:06:00.000-05:00Hi,My point was that neither the Federal Reserve n...Hi,<BR/><BR/>My point was that neither the Federal Reserve nor the U.S. government has any constructive control whatsoever over the economy. So it is a false choice to wonder if they they will choose inflation or deflation. <BR/><BR/>Neither has a say.<BR/><BR/>It's like asking two leeches how they intend to practice medicine. They'll be happy to tell you, only because they sense an opportunity to better position themselves to suck blood.<BR/><BR/>The government obviously has some legitimate functions, but they are exclusively a consumer of resources, not a producer. So they simply cannot help. They can consume more wealth, which obviously makes things worse.<BR/><BR/>The Fed serves no purpose whatsoever, other than their fiduciary duty to siphon maximum wealth out of US citizen accounts and into their corporate shareholders' pockets.fdralloveragainhttps://www.blogger.com/profile/03488923148019117760noreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-7073953247927780112009-01-19T14:34:00.000-05:002009-01-19T14:34:00.000-05:00ok , i was hoping for a little more from you thoug...ok , i was hoping for a little more from you thoughAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-1580228849840214462009-01-19T13:09:00.000-05:002009-01-19T13:09:00.000-05:00"Deflation is a choice within the current monetary..."Deflation is a choice within the current monetary regime. It is a choice that our government has shown it will not make. There are serious long-term risks inherent in our dysfunctional monetary system, to be sure -- but deflation isn't one of them"<BR/><BR/>If only governments could "chose" unlimited property and rainbows and butterflys forever.<BR/><BR/>(I removed the very long comment, perhaps you could edit to a few paragraphs?)fdralloveragainhttps://www.blogger.com/profile/03488923148019117760noreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-8011719302465611952009-01-19T11:50:00.000-05:002009-01-19T11:50:00.000-05:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-10287251180130236362009-01-19T09:48:00.000-05:002009-01-19T09:48:00.000-05:00Wrong, friend, we are in fact heading into straigh...Wrong, friend, we are in fact heading into straight up no frills deflation.<BR/><BR/>End of story.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-59638802003302494102009-01-19T02:18:00.000-05:002009-01-19T02:18:00.000-05:00FDRI know you have been bearish on gold (paper val...FDR<BR/><BR/>I know you have been bearish on gold (paper value) as you are expecting a depression<BR/><BR/>However, we are not heading into a depression, we are headed to a very serious period of stagflation (which is an inflation induced depression)<BR/><BR/>Gold is still a bright spot :)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-24131939165067347062009-01-18T22:43:00.000-05:002009-01-18T22:43:00.000-05:00"but somehow we all know that downsizing the ..."but somehow we all know that downsizing the gov't will be a nonstarter and that is the ONLY solution."<BR/><BR/>Unfortunately we have a president who believes in big government & big spending. <BR/><BR/>We are so screwed.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-89772175892046238522009-01-18T14:23:00.000-05:002009-01-18T14:23:00.000-05:00Call my half glass empty but I just can't see how ...Call my half glass empty but I just can't see how we are going to survive California going bankrupt. How much money is obama going to lend to california just to survive?<BR/><BR/>And then the other 40 bankrupt states...<BR/><BR/>This bankrupcy begins Feb 1.<BR/><BR/>I am just having trouble understanding where all this money will come from.<BR/><BR/>Yeah, we will probably pull through just by cashing another IOU to our children, but somehow we all know that downsizing the gov't will be a nonstarter and that is the ONLY solution.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-4895117803720740732009-01-18T11:30:00.000-05:002009-01-18T11:30:00.000-05:00"The fed is printing but the commercial bank print..."The fed is printing but the commercial bank printers which are responsible for most of the "fake" money in circulation are not."<BR/><BR/>Exactly.<BR/><BR/>"Correct me if I am wrong but our economy is pretty much a giant ponzi scheme."<BR/><BR/>Our economy is a ponzi scheme when our currency is issued and exploited exclusively for the private profit of a small group of dominant men.<BR/><BR/>Fortunately, Article I Section 8 of our Constitution prevents that. <BR/><BR/>Unfortunately, congress hasn't read it.<BR/><BR/>JRB even said Article I established the Executive, during the last VP debate. Seriously, what kind of life long senator doesn't understand that the People come first in the US Constitution?fdralloveragainhttps://www.blogger.com/profile/03488923148019117760noreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-51926989259241564012009-01-18T09:41:00.000-05:002009-01-18T09:41:00.000-05:00"Correct me if I am wrong but our economy is prett..."Correct me if I am wrong but our economy is pretty much a giant ponzi scheme. If everyone wanted to get all of their money out of the system there would be bank runs, and actually it would be impossible to give all their money back." <BR/><BR/>You are correct chocolateMan. That's fractional reserve banking at it's finest.<BR/><BR/>http://en.wikipedia.org/wiki/Fractional-reserve_bankingAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-23245799867136736932009-01-18T08:08:00.000-05:002009-01-18T08:08:00.000-05:00My previous question was, "how is it possible that...My previous question was, "how is it possible that there is so much scarcity of money when the feds are printing money out of the thin air". I clearly see what is happening now. The fed is printing but the commercial bank printers which are responsible for most of the "fake" money in circulation are not. I see that the fed has injected perhaps on average about 200billion or more a month in the last few months. I now realize that commercial banks might inject as much as 2trillions or more a month. Our economy is essentially starving for $. Correct me if I am wrong but our economy is pretty much a giant ponzi scheme. If everyone wanted to get all of their money out of the system there would be bank runs, and actually it would be impossible to give all their money back. It just simply doesn't exist! Our ponzi scheme relies not on deposits but on loans that the general population makes. When people pay off their loans the money actually disappears. It sounds crazy but certainly I can see how it all makes sense.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-37535318819362749162009-01-18T07:41:00.000-05:002009-01-18T07:41:00.000-05:00Great post FDR. This is the best theory I've read ...Great post FDR. This is the best theory I've read on the deflation/hyperinflation argument.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-52562859791944400822009-01-18T04:21:00.000-05:002009-01-18T04:21:00.000-05:00FDR, I imagine a #1.5 scenario and your laying out...FDR, I imagine a #1.5 scenario and your laying out the polar opposites of the argument is greatly appreciated. This is the first time I have heard you evn mention to "I" word. Accordingly, any updates on rough estimates of the US equity indice averages, short term, medium and long? Is it time to flee US dollars and Treasuries and in what general timeframe? If so, any take on general plays such as debt [corporate, municipal, etc.] or equities (US or overseas) or is short and safe still the name of the game? Thank you.Anonymousnoreply@blogger.com