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Interesting Observation From Ron Paul

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I watched parts of Bernankes presentation but the contradiction in it's core message did not register with me until I read this comment from Ron Paul;

Quantitative easing (QE) and effectively zero interest rates have created paper prosperity, but now the Fed must continuously assure Wall Street that the QE spigot will not be turned off. Otherwise even the illusion of recovery will disappear. So Bernanke made every effort to emphasize that the economy was not doing well enough to end QE, while lauding the success of Fed policies in improving the economy.

http://www.zerohedge.com/news/2013-07-23/ron-paul-bernankes-farewell-tour

It's a classic double bind scenario- if the policy is ever deemed a success it must stop, which would then cause it to fail. :lol: There seems no way out of this. QE forever is the only way to go. :blink:

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I watched parts of Bernankes presentation but the contradiction in it's core message did not register with me until I read this comment from Ron Paul;

http://www.zerohedge.com/news/2013-07-23/ron-paul-bernankes-farewell-tour

It's a classic double bind scenario- if the policy is ever deemed a success it must stop, which would then cause it to fail. :lol: There seems no way out of this. QE forever is the only way to go. :blink:

Classic schiff interview here where he makes similar obs.

http://radio.goldseek.com/nuggets.php

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Classic schiff interview here where he makes similar obs.

http://radio.goldseek.com/nuggets.php

It is inevitable. Printing never works because of such inherent contradictions . In fact printing begins when interest rates are kept lower than inflation and not allowed to work to establish the required equilibrium. The only way 'out' becomes printing and that is a spiral .

There is a chance for certain individual fiat issuers to escape ( for example if the market is dumb enough to maintain its confidence in a particular fiat's value whilst it prints, then that dust issuer could exchange the printed crap for hard currency or physical assets such as gold , oil , or productive capacity) however the whole world system will still need to absorb the extra paper at some point and this can only occur by increasing output at a time of reducing money supply ( yeah right that'll happen)

There is no escape and no pain free solution . Either debtors go bust or creditors have their assets removed. No other way out, no alternative at all .

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There is no escape and no pain free solution . Either debtors go bust or creditors have their assets removed. No other way out, no alternative at all .

Indeed - but there will always be winners and losers in the process and those currently running the show are making sure that the people already at the top of the pyramid get to be the winners and the general public are very much the losers.

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There is a chance for certain individual fiat issuers to escape ( for example if the market is dumb enough to maintain its confidence in a particular fiat's value whilst it prints, then that dust issuer could exchange the printed crap for hard currency or physical assets such as gold , oil , or productive capacity)

Switzerland anyone?

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All recessions eventually come to an end. The 1930's depression and the "long slump" of the 1870's eventually ended. There comes a point where capital equipment wears out and must be replaced, and inventory has been wound down to virtually nothing and needs to be increased.

So given that all recessions end so this one will also end. And that's the time to sterilise QE and raise interest rates.

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The problem is that QE poisons the real economy by distorting asset prices.

This is now recession without end.

Only "crisis" is the way now.

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All recessions eventually come to an end. The 1930's depression and the "long slump" of the 1870's eventually ended. There comes a point where capital equipment wears out and must be replaced, and inventory has been wound down to virtually nothing and needs to be increased.

So given that all recessions end so this one will also end. And that's the time to sterilise QE and raise interest rates.

The statistical presumption behind this argument is false. History is a succession of failed civilisations and fallen empires, why should industrial civilisation be any different?

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Seeing as economies are supposed to be going global there's no reason (or entitlement) for any single country to come out of recession or go into growth.

It depends what each individual country has to offer and in the UK's case these days that's mainly crooked banking.

No doubt at some point in the future the UK will statistically boom again (emphasis on statistically) whilst hiding average standards of living continuing to fall along with increasing debt and having to live in smaller and smaller houses plus ever more people in any household having to work more to survive and having to travel greater and greater distances to find work etc.

It'll be growth in name only.

Edited by billybong

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Did see a chart a few days ago (wish I could find it now) which showed how each surge in the stock markets was being bought on margin.

Made me think how Bernanke, who is such a big student of the Great Crash, by trying to avoid history, will end up repeating it, on an altogether much larger scale.

Who was it who said "you can't buck the market?"

Really don't know how they are going to end tapering now.

Edited by aSecureTenant

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  • 238 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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