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Denniger Says Us Is Heading Towards A $2Tr Deficit This Year

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http://market-ticker.org/akcs-www?post=179448

This is ugly....

1/31/2006 25,645,896,285.90

1/31/2007 27,336,683,880.94

1/31/2008 8,835,629,723.80

1/30/2009 -67,799,617,875.20

1/29/2010 -32,713,679,545.20

1/31/2011 105,835,837,302.30

Oops.

This is the January actual operating deficits in terms of debt increase or decrease by Treasury.

Just looking back to 2006 there's a real problem here. January is normally a good month for the deficit because the last estimated payment is due; ergo, we should have lower deficit numbers.

The bad news is that if this trend continues we're going to blow the $1.7 trillion numbers from last calendar year with some authority. As I pointed out in my annual Ticker, we are on a path toward a $2 trillion deficit this calendar year, and I have no expectation, and neither should you, that we'll get away with that.

This much is certain: The government has been lying about intentions on deficits forever. We have now run three years consecutively where we have said we'll stabilize and then start dropping the deficit, and instead we have gone the other direction. The argument for short-term stimulus must have a "use-by" date, and yet we simply refuse to stamp a date on it, instead saying "we'll do it until employment returns."

What if employment does not come back because the deficit spending and government mandates are causing continued unemployment by forcing input cost ramps that squeeze producers?

That's something you should contemplate carefully, because if this is anything close to accurate then we're going to go right down the toilet while screaming but it will get better - I promise!

The time to learn from our mistakes and stop the insanity is quickly running out

Yeah but it's $2tr towards US GDP, I mean what can be wrong with that? If they didn't borrow all this money US GDP might collapse imagine the shock and horror of one massive ponzi scam being revealed.

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http://market-ticker.org/akcs-www?post=179448

Yeah but it's $2tr towards US GDP, I mean what can be wrong with that? If they didn't borrow all this money US GDP might collapse imagine the shock and horror of one massive ponzi scam being revealed.

And according to that disgusting tw@ Ed Balls it's the way to go to get growth. Sorry, but I hate him almost as much as I hate Brown.

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And according to that disgusting tw@ Ed Balls it's the way to go to get growth. Sorry, but I hate him almost as much as I hate Brown.

Funnily enough Balls has a face I could repeatedly hit again and again with a baseball bat.

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More QE printing, more devaluing of the dollar, more global inflation.

More support of the DJIA? More money into commodities? Should we all be putting all our savings in shares and metals? Or will China crash and burn first... or not at all...

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And according to that disgusting tw@ Ed Balls it's the way to go to get growth. Sorry, but I hate him almost as much as I hate Brown.

how can you hate him, hes a politician doing his job, shouldnt you waste your emotion on something a bit more productive

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how can you hate him, hes a politician doing his job, shouldnt you waste your emotion on something a bit more productive

you're right of course, but I can't help it. he appears on the news and spoils my day.

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More QE printing, more devaluing of the dollar, more global inflation.

More support of the DJIA? More money into commodities? Should we all be putting all our savings in shares and metals? Or will China crash and burn first... or not at all...

This isnt about the US jobs market yet,its about the chinese one.The FED isnt printing to aid recovery in the US in normal terms.The exercise is for one reason only.To inflate commods,flood China with dollars until they break them to float the currency.The higher commods go,the less advantage China has over the US in manufacturing ie wages become a smaller part of the total cost of goods.The FED is saying to China,you have the inflation and see what you do with it.

Will it flood back to the US?Will it break the dollar peg?.So yep the FED wont stop until employment grows.Its saying to China,start spending those dollars here with our companies or we will flood you.Its a gamble.Countries in the middle will suffer.For that reason i only see tension growing along with conflicts.BAE Systems could be about the safest bet for your money at the moment,and with a 5.2% divi to boot,,all my opinion of course.

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Will it flood back to the US?Will it break the dollar peg?.So yep the FED wont stop until employment grows.Its saying to China,start spending those dollars here with our companies or we will flood you.

China is spending them... on Africa and central Asia hoovering up rights resources everywhere and buttering up dictator's to access their resources. Bob of Zimbabwe for instance has a nice pad in HK, bought by money from China.

BAE Systems could be about the safest bet for your money at the moment,and with a 5.2% divi to boot,,all my opinion of course.

I prefer Norinco tbh, Chinese military spending is only going to go one way!

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Yawn, and Denninger will be saying very much the same thing this time next year, when it £2.5tr (or whatever) I'll we will still by moaning about it on here, because house prices have nudged down by 1 or 2 %. blink.gif

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Yawn, and Denninger will be saying very much the same thing this time next year, when it £2.5tr (or whatever) I'll we will still by moaning about it on here, because house prices have nudged down by 1 or 2 %. blink.gif

Yep, the US is going to carry on printing to try and stop the Chinese pegging the dollar... and the Chinese are going to carry on pegging the dollar.... The result will be higher and higher commodities, the global economy going into melt-down, recessions, unemployment, trade barriers and possibly war.

Just a question of whether the global markets tank before continuing on upwards.

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Yep, the US is going to carry on printing to try and stop the Chinese pegging the dollar... and the Chinese are going to carry on pegging the dollar.... The result will be higher and higher commodities, the global economy going into melt-down, recessions, unemployment, trade barriers and possibly war.

Just a question of whether the global markets tank before continuing on upwards.

Nobody seems to care though but us. Who is listening to Denninger besides his little band of fanatics on Ticker? He is like a voice crying in the wilderness. Basically a blogger, a virtual nobody.

I'm starting to get a bit weary of it all. I was brought up during the 60/70's when there were real financial crises. I can dimly recall huddled in front of the TV, and being informed by Harold Wilson that our pound was being devalued and it was a serious moment. I've worked through power cuts and three day weeks. I can remember Dennis Healey having to turn round at the airport prior to the IMF being called in. In another thread I can recall Nixon coming off the gold standard while we were on family holiday, causing a minor crisis for my father.

I don't know if the world is sleep walking to disaster or not, but only us seem to care. Its almost as if nothing really matters any more? The problems seem a even greater now, but don't seem that way. I suspect the sheeple instead are twittering, facebooking or watching "Big Fat Gypsy Wedding." Indeed its thats the topic trending on Twitter right now. Not the US $2TR deficit. ohmy.gif

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I don't know if the world is sleep walking to disaster or not, but only us seem to care. Its almost as if nothing really matters any more? The problems seem a even greater now, but don't seem that way. I suspect the sheeple instead are twittering, facebooking or watching "Big Fat Gypsy Wedding." Indeed its thats the topic trending on Twitter right now. Not the US $2TR deficit. ohmy.gif

England maybe, but over in Asia the common man is up in arms about this stuff. The CEO of HK has been attacked numerous times (not properly whenever people see him on the street they use inflatable fruit to beat him).

Turn this to your advantage maybe, in that I know and you know there will be a big event in the future, therefore be ready. While the rest are reeling from the initial blow it will hurt the prepared less and emerge much stronger than now.

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Turn this to your advantage maybe, in that I know and you know there will be a big event in the future, therefore be ready. While the rest are reeling from the initial blow it will hurt the prepared less and emerge much stronger than now.

I've now doubt Ken, that when "it" happens it will of course be "unexpected." laugh.gif

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Nobody seems to care though but us. Who is listening to Denninger besides his little band of fanatics on Ticker? He is like a voice crying in the wilderness. Basically a blogger, a virtual nobody.

I'm starting to get a bit weary of it all. I was brought up during the 60/70's when there were real financial crises. I can dimly recall huddled in front of the TV, and being informed by Harold Wilson that our pound was being devalued and it was a serious moment. I've worked through power cuts and three day weeks. I can remember Dennis Healey having to turn round at the airport prior to the IMF being called in. In another thread I can recall Nixon coming off the gold standard while we were on family holiday, causing a minor crisis for my father.

I don't know if the world is sleep walking to disaster or not, but only us seem to care. Its almost as if nothing really matters any more? The problems seem a even greater now, but don't seem that way. I suspect the sheeple instead are twittering, facebooking or watching "Big Fat Gypsy Wedding." Indeed its thats the topic trending on Twitter right now. Not the US $2TR deficit. ohmy.gif

I remember power cuts, using candles and getting excited when I found a bread shop that still had some loaves for sale.

Yes, I think you are right that it is just us and a few thousand others on various blogs around the World. Everybody else either appears to be unaware or have just decided to join in on the madness. I keep reading about people stating that the stockmarkets are hugely over-valued and will soon crash... but they keep on investing because everyone else is... and they are, so far, reaping in the benefits...

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England maybe, but over in Asia the common man is up in arms about this stuff. The CEO of HK has been attacked numerous times (not properly whenever people see him on the street they use inflatable fruit to beat him)

It worries me that they just happen to have inflatable fruit about their person- do they all carry it in expectation of meeting him- or is the carrying of inflatable fruit just de rigueur for the trendy asian about town these days? :unsure:

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And according to that disgusting tw@ Ed Balls it's the way to go to get growth. Sorry, but I hate him almost as much as I hate Brown.

Exactly!

Lets be honest, in a consumer led economy like ours, GDP is a measure of debt, not the 'economy' as Balls calls it.

Thats how it masked the chronic imbalances in our economy over the last ten years.

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It worries me that they just happen to have inflatable fruit about their person- do they all carry it in expectation of meeting him- or is the carrying of inflatable fruit just de rigueur for the trendy asian about town these days? :unsure:

How big are these fruit?

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I don't know if the world is sleep walking to disaster or not, but only us seem to care.

Interesting comment. I get the feeling that the sleepwalking is going to end when a lot of people question what money actually is and coming to the conclusion that it is just a promise being broken.

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I remember power cuts, using candles and getting excited when I found a bread shop that still had some loaves for sale.

Yes, I think you are right that it is just us and a few thousand others on various blogs around the World. Everybody else either appears to be unaware or have just decided to join in on the madness. I keep reading about people stating that the stockmarkets are hugely over-valued and will soon crash... but they keep on investing because everyone else is... and they are, so far, reaping in the benefits...

As long as they have the timing correct in one sense they would be mad not too.... Trouble is no one knows at what point it will implode.

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Nobody seems to care though but us. Who is listening to Denninger besides his little band of fanatics on Ticker? He is like a voice crying in the wilderness. Basically a blogger, a virtual nobody.

I'm starting to get a bit weary of it all. I was brought up during the 60/70's when there were real financial crises. I can dimly recall huddled in front of the TV, and being informed by Harold Wilson that our pound was being devalued and it was a serious moment. I've worked through power cuts and three day weeks. I can remember Dennis Healey having to turn round at the airport prior to the IMF being called in. In another thread I can recall Nixon coming off the gold standard while we were on family holiday, causing a minor crisis for my father.

I don't know if the world is sleep walking to disaster or not, but only us seem to care. Its almost as if nothing really matters any more? The problems seem a even greater now, but don't seem that way. I suspect the sheeple instead are twittering, facebooking or watching "Big Fat Gypsy Wedding." Indeed its thats the topic trending on Twitter right now. Not the US $2TR deficit. ohmy.gif

Well said....To be a bit fairer to Denninger though, he has been on a few MSM news shows (if only for a few minutes at a time which is hardly enough for him to really explain the issues) and is quoted on some of the more popular blogs. He can be a bit too libertarian for my tastes though - he's obsessed with any attempts to control gun use and he actually supports doing away with drivers licences (except for commercial transport). Imagine the Wild West world we'd be living in if people like him had their way.

Back to your point about nobody else really caring, I was at a dinner a few months ago when the Wikileaks thing was big in the news. The people around me were all buying the US media line that Assange was a creepy traitor who should be stopped at all costs. One guy in particular, an educated psychiatrist, was aware that the gov't is corrupt, the banks are all thieves, and the whole system is rotten, but his view was that you have to tolerate a certain level of corruption and that it's not realistic to eliminate it. He was born and raised in the 3rd world where they really know how to be corrupt so he sees what's going on in the US as not nearly as bad. He's quite happy for Wall St. to get away with robbing us all as long as he still has a good job and his credit cards still work when the bill comes to pay for dinner - he wasn't willing to risk blowing up the financial system in the hopes of rebuilding something healthier, because as he saw it his life was just fine and why should he stress about about some crooked billionaires? There's a certain logic to his thinking, but I came away a bit disheartened because I'd have preferred if he took this position out of ignorance rather than convenience. There's no hope if everybody is content to ignore the truth of what's out there as long as their little lives go on uninterrupted. So it's going to take a mighty "interruption" to wake them up. I only hope that it happens soon enough so that the people won't have forgotten who's really to blame.

Edited by frugalboy

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Nobody seems to care though but us. Who is listening to Denninger besides his little band of fanatics on Ticker? He is like a voice crying in the wilderness. Basically a blogger, a virtual nobody.

I'm starting to get a bit weary of it all. I was brought up during the 60/70's when there were real financial crises. I can dimly recall huddled in front of the TV, and being informed by Harold Wilson that our pound was being devalued and it was a serious moment. I've worked through power cuts and three day weeks. I can remember Dennis Healey having to turn round at the airport prior to the IMF being called in. In another thread I can recall Nixon coming off the gold standard while we were on family holiday, causing a minor crisis for my father.

I don't know if the world is sleep walking to disaster or not, but only us seem to care. Its almost as if nothing really matters any more? The problems seem a even greater now, but don't seem that way. I suspect the sheeple instead are twittering, facebooking or watching "Big Fat Gypsy Wedding." Indeed its thats the topic trending on Twitter right now. Not the US $2TR deficit. ohmy.gif

People do care, right across the world, not the masses, not yet, but when the thumb screws turn people will wake up.

roll on journalism 2.0

Edited by Scott Sando

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I don't know if the world is sleep walking to disaster or not, but only us seem to care. Its almost as if nothing really matters any more? The problems seem a even greater now, but don't seem that way. I suspect the sheeple instead are twittering, facebooking or watching "Big Fat Gypsy Wedding." Indeed its thats the topic trending on Twitter right now. Not the US $2TR deficit. ohmy.gif

As a kid I remember the news making a big thing of our balance of payments figures every month. Do they even mention it now?

Perhaps the powers that be have realized that it's easier to manage the public than it is to manage the economy?

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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