Monday, November 9, 2009

The ‘Q’ word again.

The Fed's Nemesis: Exter's $2 Quadrillion Of "Liquidity"

Another representation of what will likely become a prevalent topic in upcoming days: the Exter pyramid. When the system works, the various layers are in equilibrium. When the system is broken, like it is now, the Fed and all Central Banks try to refill the pyramid from the bottom-up with every single dollar they print. The current temporary calm is all Bernanke can hope to achieve before $2 quadrillion of liquidity collapses onto whatever truly tangible assets exist. They don't call it a pyramid scheme for nothing.

Posted by devo @ 12:25 PM (1399 views)
Please complete the required fields.



18 thoughts on “The ‘Q’ word again.

  • mountain goat says:

    I think this pyramid is interesting because it is informative about how safe the various assets and derivatives are. But gold bugs (I include myself) need to be aware that Exter was a central banker who worked at the federal reserve in the 1940s and 1950s. You can’t wipe away decades of fiat money just like that. The dollar now fulfills many of the functions reserved for gold when this pyramid was conceived. When it comes to paying back debt when your derivatives higher in the pyramid crash, most creditors today will want cash not little bars of gold.

    Reply
    Please complete the required fields.



  • Meanwhile watch gold hit $1300. AUD/USD races away right from the open. $$$$$$$$ lol

    Reply
    Please complete the required fields.



  • Reply
    Please complete the required fields.



  • The secret is in the open “timeline” and creative market orders. My little kid knows how to trade this simple profitable system. D’oh.

    The house price crash is in your own hands.

    Reply
    Please complete the required fields.



  • Can someone with a brain bigger than mine tell me what this means please?

    Reply
    Please complete the required fields.



  • 51ck-6-51x is clever. He’ll explain it.

    Reply
    Please complete the required fields.



  • I just have, but people here “think” that they are just too smart. Love it!

    That’s why people on here are not talking about “cap and trade.” D’oh!

    You think house prices are a problem? Oh boy!!!! Bless.

    Reply
    Please complete the required fields.



  • Crunchy – no you didn’t, you wrote some garbled gibberish as usual.

    Reply
    Please complete the required fields.



  • timmy

    Makes more sense than quantitative easing, but it’s just more direct. Honest!

    Do look up Cap and Trade if you would prefer to stop “beating about the bush” a new one for the repertoire of the sheeple.

    Looking forward to it. ; )

    Reply
    Please complete the required fields.



  • Time to take profit tech, for now.

    Reply
    Please complete the required fields.



  • Crunchy, are you called crunchy because your head is full of honeycomb?

    Reply
    Please complete the required fields.



  • tyrellcorporation says:

    Crunchy do you possess a random sentence generator?

    I’m totally bamboozled by your comments.

    Reply
    Please complete the required fields.



  • 12. tyrellcorporation

    I call it uncommon sense. Perhaps it comes easier to the uncommon man.

    Unfortunately even being part of a minority will not secure a just outcome. It will be a minority of the majority of that minority which make

    independent unbias choices with a clear mind that will not be manipulated. No I don’t T.

    Trading overnight. TTFN.

    Reply
    Please complete the required fields.



  • charlie brooker says:

    Last year scheme of us made analogies between the catastrophic state of the financial system and the cloud of volcanic gas, dust and ash that spewed out of Vesuvius to hanging over Pompeii.

    Any similarities between the shape of such volcanic clouds and the diagram above are purely coincidental, of course.

    Reply
    Please complete the required fields.



  • “It will be a minority of the majority of that minority which make independent unbias choices with a clear mind that will not be manipulated”… Could someone please throw that huge marble sink through the window so Crunchy can escape…

    Reply
    Please complete the required fields.



  • I think crunchy likes talking to himself. God knows why he has to involve teh rest of us though.

    Reply
    Please complete the required fields.



  • Crunchy has been on the caffine again……

    Reply
    Please complete the required fields.



  • “7. crunchy said…
    I just have, but people here “think” that they are just too smart. Love it!”
    Love that.

    Timmy, no explanation huh? i’ll try to trigger one with a flawed one: it’s basically saying everything is inflated with hot air credit, and they need to deflate but there are vain attempts to keep it all pumped up, and as they inevitably devalue, people will remove their wealth from these collapsing pieces of garbage and stick it in things that have genuine intrinsic value such as gold, and as there is so much wealth in the garbage higher up the upside down pyramid, when it all gets pushed into the gold at the bottom the price will go to space. As MG points out, that assumes the fiat is unable to replace gold.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>