tag:blogger.com,1999:blog-8305505968390768234.post8736001402193187030..comments2023-08-10T11:39:24.714-04:00Comments on fdralloveragain: Federal Reserve Failurefdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-8305505968390768234.post-36686115864287285832009-09-28T15:41:49.198-04:002009-09-28T15:41:49.198-04:00Do you see any difference in value down the road b...Do you see any difference in value down the road between a $1 coin (which I think is issued by the Treasury) and $1 Fed note?<br /><br />So a $50 gold coin might carry a low price but have a high value. Is that correct?<br /><br />You give me a lot to think about. Thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-21077763388136810142009-09-28T07:58:12.322-04:002009-09-28T07:58:12.322-04:00"Since BRIC economies like china etc continue..."Since BRIC economies like china etc continue to grow and outpace the rest of the world , would it not be wise to invest there so as to generate greater returns?"<br /><br />I think the central bank liquidity scam has become near-universal. I am sure there are deals to be had both BRIC and here, but in general I think you are running up the down escalator. <br /><br />It is possible that they are in a different scale cycle than we are, so a genuine buying opportunity could come sooner. One would probably would need more long term price data than is currently reliable to evaluate their markets. But if you have it, I'd love to see it.fdralloveragainhttps://www.blogger.com/profile/03488923148019117760noreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-37416375089103370832009-09-28T05:32:39.670-04:002009-09-28T05:32:39.670-04:00FDR is putting our money in BRIC markets an option...FDR is putting our money in BRIC markets an option instead of US treasuries? Since BRIC economies like china etc continue to grow and outpace the rest of the world , would it not be wise to invest there so as to generate greater returns? Or do you think that these BRIC economies will suffer greater than US and price deflation will destroy them too? Heard some of these BRIC based banks offer more than 6% returns over a longer term.Please guide.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-74836508541836823032009-09-27T23:03:17.609-04:002009-09-27T23:03:17.609-04:00"Try $50K.
FDR , Are you driving a 3speed, or..."Try $50K.<br />FDR , Are you driving a 3speed, or 4speed?"<br /><br />6<br /><br />I'm not kidding we're going to have 95% price deflation, but it'll take awhile (2025).fdralloveragainhttps://www.blogger.com/profile/03488923148019117760noreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-45628416440785090942009-09-27T22:53:12.249-04:002009-09-27T22:53:12.249-04:00FDR wrote: "Printing more cash to maintain &q...FDR wrote: "Printing more cash to maintain "price stability" is a game played by scoundrels, because stable prices means they've bought off all genuine production with freshly printed paper."<br /><br />Oh, I completely agree. But I'm not talking about maintaining stable *prices*, I'm talking about maintaining stable *wages* -- simply put, maintaining a constant amount of currency per individual. They're not the same thing at all.<br /><br />Regardless, the bottom line is that any entity which has the power to control the currency supply has the power to control the entire society that uses that currency supply. If you want freedom from that problem, you have to eliminate the use of a centrally-issued currency entirely.<br /><br />I guarantee that Congress will be no better about its use of that power than the Fed, despite the Constitutional mandate giving it that power.<br /><br /><br />As for the population, what matters with respect to that is the change in size of the population making use of the currency to exchange their labor with that of others. I expect that if a country is prosperous in real terms, the number of people who make use of its currency in that way will grow continuously (limited, of course, only by the size of the world's population).<br /><br />What exactly have you got in mind for dealing with the problem of significant unemployment as a result of continuously decreasing availability of currency? Companies don't cut people's wages usually, they cut headcount instead. And if prices are continuously decreasing as a result of the number of people who make use of the currency growing over time, individuals will spend as little as possible in order to make the money in their bank account buy as much as possible. The effects on the supply side, unemployment, etc., should be clear, because we're experiencing that very thing right now!!<br /><br />And that means you will have a *continuous* recession/depression as long as the number of people using your currency grows over time.<br /><br /><br />There may be some counterbalancing mechanism here, but I'm not sure what it is or how strong it would be. I'll have to give this some thought.kcbhttps://www.blogger.com/profile/16129427343119498596noreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-52588782631039618822009-09-27T22:23:56.818-04:002009-09-27T22:23:56.818-04:00Try $50K.
FDR , Are you driving a 3speed, or 4spe...Try $50K.<br /><br />FDR , Are you driving a 3speed, or 4speed?<br /><br />LOL, Just kiddingAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-7132294555436591852009-09-27T22:15:38.437-04:002009-09-27T22:15:38.437-04:00"So, in a couple years, if deflation shifts i..."So, in a couple years, if deflation shifts in to third gear, 400k is the new millionaire"<br /><br />Try $50K.fdralloveragainhttps://www.blogger.com/profile/03488923148019117760noreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-59894472640745867072009-09-27T22:04:37.134-04:002009-09-27T22:04:37.134-04:00So, in a couple years, if deflation shifts in to t...So, in a couple years, if deflation shifts in to third gear, 400k is the new millionaireAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-16359623812991133212009-09-27T22:03:44.416-04:002009-09-27T22:03:44.416-04:00"You want *wage* stability. Only then will th..."You want *wage* stability. Only then will there be no pressure, one way or the other, to save versus spend. Only then will the decision to save or to spend depend solely on the individual's situation and not some concern about what the currency is doing."<br /><br />A static, fully backed currency is always stable or better in buying power.<br /><br />Printing more cash to maintain "price stability" is a game played by scoundrels, because stable prices means they've bought off all genuine production with freshly printed paper. <br /><br />"Stability" is really the sneakiest form of inflation, because all prices will fall every time someone produces something. Of course counterfeiters want us to want to buy their new paper at the same (or better) rate we produce goods. <br /><br />That way, they print and the people work.fdralloveragainhttps://www.blogger.com/profile/03488923148019117760noreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-91967914308691243772009-09-27T21:56:38.051-04:002009-09-27T21:56:38.051-04:00"The second kind of price decrease is obvious..."The second kind of price decrease is obviously *not* good, because the increasing population"<br /><br />I think that trend is about to plunge too.fdralloveragainhttps://www.blogger.com/profile/03488923148019117760noreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-16758125735564332852009-09-27T21:55:18.920-04:002009-09-27T21:55:18.920-04:00"Simply,can you get your cash?"
Yes, an..."Simply,can you get your cash?"<br /><br />Yes, any Treasury you accidentally defund to a failed bank auto diverts to C of I.<br /><br />You can then set up another electronic bank account. Electronic Ts are redeemable in any bank you set up, but I think you have to have the account open for 6 months or so.fdralloveragainhttps://www.blogger.com/profile/03488923148019117760noreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-58892387788896775582009-09-27T19:49:52.969-04:002009-09-27T19:49:52.969-04:00With a static (unchanging in its total supply) cur...With a static (unchanging in its total supply) currency base, prices fall as a result of two major factors:<br /><br />1. Automation. This is essentially a labor multiplier. The greater it is used, the more stuff is made per man hour and the cheaper the stuff is per man hour. This drives the real cost, and thus the price, down.<br /><br />2. Population increase. The more people there are with a stable currency base, the fewer dollars there are per person to spend. The less an individual has to spend, the less he is willing to spend. This drives demand down and thus drives prices down until the demand rises again at the lower price. And obviously, wages *must* drop to accomodate this.<br /><br /><br />The first kind of price decrease is obviously good, because the real cost of goods drops as a result.<br /><br />The second kind of price decrease is obviously *not* good, because the increasing population and thus increasing scarcity of currency per person results in less economic activity, as wages are forcibly dropped in order to adjust them to the lowered availability of currency. Wages are typically forcibly dropped via umemployment increases.<br /><br />And so, I disagree with FDR on his assertion that a static currency base is the best kind of currency base to have. No, what you want is to maintain a currency base that is directly proportional to the population. You want *wage* stability. Only then will there be no pressure, one way or the other, to save versus spend. Only then will the decision to save or to spend depend solely on the individual's situation and not some concern about what the currency is doing.<br /><br />And only then will the decision to hire or fire depend solely on how well your specific business is doing, and not what the currency is doing.kcbhttps://www.blogger.com/profile/16129427343119498596noreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-48131667255565400022009-09-27T17:13:28.457-04:002009-09-27T17:13:28.457-04:00Hi FDR,
Brilliant piece.
If you purchase C of I ...Hi FDR,<br /><br />Brilliant piece.<br /><br />If you purchase C of I Treasury using transfer<br /><br />from your Wells Fargo account.<br /><br />Will this be safe as Wells Fargo collapses<br /><br />Simply,can you get your cash?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8305505968390768234.post-44243466743834987322009-09-27T16:19:13.259-04:002009-09-27T16:19:13.259-04:00Ok,
I love reading your posts! In 2007 you issued...Ok,<br /><br />I love reading your posts! In 2007 you issued the forecast to go short real estate, REITs, homebuilders, and financials...we would all be joking about this countries troubles had we gone in 80:1 leverage on the shorts;)<br /><br />Now, if the inflation is to occur, which sectors lead the trend?<br /><br />We can assume that the SAME EXACT culprits still have the troubled assets, but can we assume that the govt. will force them out in the open?<br /><br />Where do we short? Because, if inflation is to occur at the extent of your current forecast...there is ZERO long safe-haven other than cash.<br /><br />However, as investors, we do not wish to just increase buying power at the rate of deflation. I myself, have set a goal to become disgustingly wealthy by diligent studying of the markets and business cycles.<br /><br />So, where do we start? With the same exact companies that have already taken the hits?Busy Man Fitnesshttp://www.fitbusinessman.comnoreply@blogger.com