lowrentyieldmakessense(honest!) Posted March 5, 2009 Share Posted March 5, 2009 Very well, GOMR, and thank you for asking.I hope that you too are enjoying good health and life in general. I think we both have a good idea of the severity of what's coming, though perhaps not of its exact nature. All I feel that I can do is inform those willing to listen, and look after my loved ones as best I can. maybe the effort needs to be increased http://www.firstprinciplesjournal.com/arti...b&type=cttf And if you want to hold on to your wealth, assume the dollar is going to collapse. The euro is under terrific strain right now, and so the dollar may continue its artificial rally in the near term, but in light of the accelerating demands of the predatory sector (that is, the government) on the shrinking productive sector, the dollar’s bust has to come. The printing press will be the regime’s only way out. If this crisis doesn’t do it, the looming entitlement disaster will finish off the dollar. How else are $70 trillion in entitlement liabilities going to be paid for? Floating a few more bonds?Things could get very bad indeed. If we are to have any chance of beating back these unprecedented incursions of the state, supporters of the free market need to know their position cold. Here are two reading lists I’ve assembled for that purpose (1, 2). I wrote my just-released book Meltdown for the same reason: to educate Americans about the causes of the crisis, to be sure, but also to give supporters of the free market the ammunition they need to make their case effectively. Even that may prove not to be enough. We may have to be consoled with the knowledge that at least we fought with all our strength. And fight we must, as Ludwig von Mises urged: “No one can find a safe way out for himself if society is sweeping toward destruction. Therefore, everyone, in his own interests, must thrust himself vigorously into the intellectual battle. None can stand aside with unconcern; the interest of everyone hangs on the result.” Quote Link to comment Share on other sites More sharing options...
Shao Kahn Posted March 5, 2009 Share Posted March 5, 2009 Yes, government is broke and the state will fail. The question is, when? Anything has to be better than the current set-up and I could do with something to put me on my toes and give me a laugh... Quote Link to comment Share on other sites More sharing options...
Mr. Gruff Posted March 5, 2009 Share Posted March 5, 2009 Brown trousers time. Let me just check a few things, so I'm getting the right picture. QE is replacing money which is disappearing thanks to the miracle of fractional reserve banking working in reverse. If they print too much, then it's inflationary, if it's right we will have stability now and inflation later, unless the same amount is also removed from the economy, or if it's not enough we will have deflation, with possibly inflation later. Interest rates down to 0.5% means that firstly there is less incentive to save, therefore banks can't lend out. Rates are dropped to encourage borrowing, but there's noone lending. So, why put the two together? My guess is that they don't have a ******ing clue what they are doing. Money is disappearing as savings are withdrawn, leading to reduced lending. Money is then pumped in by the BoE. So who is winning? My guess is that the banks are going to have to raise interest rates regardless of the BoE decision, and will have to pay more than base rate for savings. Have a look at what Northern Rock did after nationalisation to see the ideal way out. Now they're screwed because of political pressure. Sorry to ramble, I'm feeling oddly philosophical about the whole thing and I have no idea what's going to happen. Quote Link to comment Share on other sites More sharing options...
Sir Sidney Ruff-Diamond Posted March 5, 2009 Share Posted March 5, 2009 Ed Balls on Sky News, in full smug git mode....."It's very complicated, the public won't understand it, they just have to accept that we're doing the right thing, we know what needs to be done" Ed Balls is permanently in smug git mode. Did he really actually say that? Quote Link to comment Share on other sites More sharing options...
Injin Posted March 5, 2009 Share Posted March 5, 2009 Brown trousers time.Let me just check a few things, so I'm getting the right picture. QE is replacing money which is disappearing thanks to the miracle of fractional reserve banking working in reverse. If they print too much, then it's inflationary, if it's right we will have stability now and inflation later, unless the same amount is also removed from the economy, or if it's not enough we will have deflation, with possibly inflation later. Interest rates down to 0.5% means that firstly there is less incentive to save, therefore banks can't lend out. Rates are dropped to encourage borrowing, but there's noone lending. So, why put the two together? My guess is that they don't have a ******ing clue what they are doing. Money is disappearing as savings are withdrawn, leading to reduced lending. Money is then pumped in by the BoE. So who is winning? My guess is that the banks are going to have to raise interest rates regardless of the BoE decision, and will have to pay more than base rate for savings. Have a look at what Northern Rock did after nationalisation to see the ideal way out. Now they're screwed because of political pressure. Sorry to ramble, I'm feeling oddly philosophical about the whole thing and I have no idea what's going to happen. Fractional reserve banking means promising the same pound tohundreds of people. Printing the pounds when the banks are revelaed as fraudsters is inflationary. That's about it. Tune in next month, when we'll be showing you how to buy your weekly shopping with milk bottles full of diesel, the family silver and back issues of razzle. Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted March 5, 2009 Share Posted March 5, 2009 Ed Balls on Sky News, in full smug git mode....."It's very complicated, the public won't understand it, they just have to accept that we're doing the right thing, we know what needs to be done" When Ed is being carried to the gallows in 5 years time, the executioner will answer his frightened, quizzical looks with "It's very complicated, you won't understand it, you just have to accept that we're doing the right thing, we know what needs to be done". Quote Link to comment Share on other sites More sharing options...
A.steve Posted March 5, 2009 Share Posted March 5, 2009 QE is replacing money which is disappearing thanks to the miracle of fractional reserve banking working in reverse. On the contrary, I see it as facilitating fractional reserve banking to 'work in reverse' - i.e. for the fraction in reserve to increase. Those who say that it will make more money available to businesses/investors hope that banks want to keep their balance sheets as large as they are at the moment... They might, but I'm not convinced. Quote Link to comment Share on other sites More sharing options...
cht Posted March 5, 2009 Share Posted March 5, 2009 Nah, they'll just print your name on 'em and you'll need ID to spend them. Mr Patel across the road isn't very fussy when it comes to rules and stuff. He's got a family to feed. Come to think of it, I also know a garage which is happy to do dodgy MOTs, some electronic retailers that don't ask questions and a friend who is a sole trader and a wide boy to boot. Won't work. Quote Link to comment Share on other sites More sharing options...
the-sign-jacker Posted March 5, 2009 Share Posted March 5, 2009 might be worth looking into silver Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted March 5, 2009 Share Posted March 5, 2009 They are printing money for the banks. I doubt much of it will every reach the people. Quote Link to comment Share on other sites More sharing options...
Injin Posted March 5, 2009 Share Posted March 5, 2009 (edited) They are printing money for the banks. I doubt much of it will every reach the people. I will, once it's been through all the heads of crime families, the army and everyone else who has to be paid so that the bankers don't get killed in their sleep. Pensioners and others will throw a few rocks, maybe vote against a party. Fat tony will make you wake up as a motorway pillar. No contest. Edited March 5, 2009 by Injin Quote Link to comment Share on other sites More sharing options...
Timm Posted March 5, 2009 Share Posted March 5, 2009 Fractional reserve banking means promising the same pound tohundreds of people. Printing the pounds when the banks are revelaed as fraudsters is inflationary. That's about it. But they are not actually providing the notes are they? This is another type of money, neither coin nor credit. It is perhaps, "NewMoney". Quote Link to comment Share on other sites More sharing options...
the-sign-jacker Posted March 5, 2009 Share Posted March 5, 2009 They are printing money for the banks. I doubt much of it will every reach the people. re: your sig. it angers me that he claims NO ONE COULD HAVE SEEN THIS COMING. Quote Link to comment Share on other sites More sharing options...
billybong Posted March 5, 2009 Share Posted March 5, 2009 Ed Balls on Sky News, in full smug git mode....."It's very complicated, the public won't understand it, they just have to accept that we're doing the right thing, we know what needs to be done" Even when it's obvious they haven't a clue how to do the job they're paid for they still come out with the same old twisted guff. Quote Link to comment Share on other sites More sharing options...
'Bart' Posted March 5, 2009 Share Posted March 5, 2009 This would take the form of a cheque/voucher that could not be banked, it could only be used to buy things as a way of stimulating the economy. Could you use it to buy some gold* I wonder? What larks that would be. * Or silver. Quote Link to comment Share on other sites More sharing options...
InternationalRockSuperstar Posted March 5, 2009 Share Posted March 5, 2009 If they keep this up (and they will) houses won't be bought.They'll be "break in and keep if you can." Buckingham Palace here I come! Quote Link to comment Share on other sites More sharing options...
ParticleMan Posted March 5, 2009 Share Posted March 5, 2009 (edited) Printing the pounds when the banks are revelaed as fraudsters is inflationary. Except they're not printing pounds so much as just taking them directly, from pension funds (watch the mid- and long-dated end of the curve over the next few weeks to see what I mean). Prepare for another round of "surprise" shortfalls, and the associated wailing and gnashing of teeth this will mean to corporate bottom lines. 100% correct, guaranteed** ** limited offer, restrictions apply Edited March 5, 2009 by ParticleMan Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted March 5, 2009 Share Posted March 5, 2009 (edited) Mr Patel across the road isn't very fussy when it comes to rules and stuff. He's got a family to feed. Come to think of it, I also know a garage which is happy to do dodgy MOTs, some electronic retailers that don't ask questions and a friend who is a sole trader and a wide boy to boot. Won't work. Probably the wrong place for this discussion, but... I would imagine any such voucher would need to be presented at a bank by a retailer, where it will be credited to a bank account. The vouchers will have an expiry date - 6 to 12 months or so, and will be invalid after this point. The sudden surge in Mr Patel's income when he presents all the vouchers he swapped for cash may trigger a HMRC investigation. Wouldn't take much investigation to ask someone where they spent their voucher... his risk. In any case, he will liable for tax on the extra profits resulting from the banked vouchers so he'd better hope his returns on voucher exchange will be better than profits he makes on selling stuff. Edited March 5, 2009 by redalert Quote Link to comment Share on other sites More sharing options...
Injin Posted March 5, 2009 Share Posted March 5, 2009 Except they're not printing pounds so much as just taking them directly, from pension funds (watch the mid- and long-dated curve over the next few weeks to see what I mean).Prepare for another round of "surprise" shortfalls, and the associated wailing and gnashing of teeth this will mean to corporate bottom lines. 100% correct, guaranteed** ** limited offer, restrictions apply http://www.youtube.com/watch?v=_AJ0SkbPxAk A scene from the near future. Quote Link to comment Share on other sites More sharing options...
the-sign-jacker Posted March 5, 2009 Share Posted March 5, 2009 Except they're not printing pounds so much as just taking them directly, from pension funds (watch the mid- and long-dated curve over the next few weeks to see what I mean).Prepare for another round of "surprise" shortfalls, and the associated wailing and gnashing of teeth this will mean to corporate bottom lines. 100% correct, guaranteed** ** limited offer, restrictions apply well, suprise would be a strong word Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted March 5, 2009 Share Posted March 5, 2009 Could you use it to buy some gold* I wonder? What larks that would be. If you could find someone who would swap them for gold, I'm sure you could. If the scheme goes ahead, PM me when you find this person (the one swapping vouchers for gold) - you can post it here as long as you give me a 1 day head start Quote Link to comment Share on other sites More sharing options...
Injin Posted March 5, 2009 Share Posted March 5, 2009 Probably the wrong place for this discussion, but...I would imagine any such voucher would need to be presented at a bank by a retailer, where it will be credited to a bank account. The vouchers will have an expiry date - 6 to 12 months or so, and will be invalid after this point. The sudden surge in Mr Patel's income when he presents all the vouchers he swapped for cash may trigger a HMRC investigation. Wouldn't take much investigation to ask someone where they spent their voucher... his risk. In any case, he will liable for tax on the extra profits resulting from the banked vouchers so he'd better hope his returns on voucher exchange will be better than profits he makes on selling stuff. I'm sure the Prince of Nigeria will find a way around that little problem. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted March 5, 2009 Share Posted March 5, 2009 Ed Balls is permanently in smug git mode. Did he really actually say that? Yes. He babbled on for a few minutes, but that was the gist of it. Quote Link to comment Share on other sites More sharing options...
Shao Kahn Posted March 5, 2009 Share Posted March 5, 2009 I'm sure the Prince of Nigeria will find a way around that little problem. So, when is your state collapse scenario going to happen, and will it be fast and bloody, or slow and grinding? What form will it all take? Quote Link to comment Share on other sites More sharing options...
InternationalRockSuperstar Posted March 5, 2009 Share Posted March 5, 2009 mama said there'd be days like this: Quote Link to comment Share on other sites More sharing options...
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