Financial topics

[Trevor]

Well, if France is downgraded, nobody over there is safe. It makes me wonder just how long Germany is going to be able to last.

[aedens]

As it is said Old, "when the king is off his ass nobody sleeps" It is this simple, people are acting as there own banks.

[aedens]

"The money the FED tossed into the pot over the last decade mostly wound up in the markets"
http://www.kingofbain.com/?utm_source=e ... ng_of_bain

Painfull topic given M2 contextual print - non movement, The thought was mitigate counterparty risk not solve AIG sins, and TALF was subsequently
the same thing to pay premuim's on the existing cantracts "can kick". MY point direct is remember what the market did when TARP was
looked at last time. Let me know Old "what yer thinkin" on glacial movement's of these programs? It was not a panacea for political
cover for CRA http://www.ffiec.gov/cra/
Another taxpayer STD appears: Allow us to recopy and repaste the key part: "legislation to bar institutional investors such as insurance companies from selling bonds." z/h http://generationaldynamics.com/forum/v ... 870#p11836
In Greece any fruitcake can get taxpayer money for any reason, and children are being dropped off in growing amounts to others of social regard.
The only thing the States have not done as the Germans have is coin meters for the Hookers and I kid you not.
chart P@rn:
http://research.stlouisfed.org/fred2/re ... =22&soid=1
http://research.stlouisfed.org/economy/us/
http://research.stlouisfed.org/fred2/categories/24
http://www.bls.gov/news.release/cpi.nr0.htm

[Higgenbotham]

http://www.gallup.com/poll/151904/ameri ... ember.aspx
http://www.gallup.com/poll/151958/Econo ... -High.aspx
http://www.gallup.com/poll/152009/Ameri ... cians.aspx

[vincecate]

FOMC changing people to become even more in favor of printing money. I bet there is over $1.5 trillion in new base money in 2012.

http://www.cnbc.com/id/45977098

[Trevor]

Seems like Bernanke's Great Experiment isn't going very well. Makes me wonder how long he's going to keep his job.

[aedens]

http://www.gallup.com/poll/151904/ameri ... ember.aspx
http://www.gallup.com/poll/151958/Econo ... -High.aspx
http://www.gallup.com/poll/152009/Ameri ... cians.aspx

“Comparison of the Two Economic Globalization Paradigm”
http://www.wrpe.org/WAPE/WAPE%20Papers% ... g_Dong.pdf
No comment needed to flyover States.
Redspan forwarded,
“The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit…The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.”

[Higgenbotham]

FOMC changing people to become even more in favor of printing money. I bet there is over $1.5 trillion in new base money in 2012.

http://www.cnbc.com/id/45977098

Taking out inventories, underlying GDP still looks weak to some Fed officials. Meanwhile, income growth has also been lagging, suggesting any spending gains from the holiday season likely came from savings. Fed officials generally see this as unsustainable.

Now it gets more interesting. VMT is still down with gas at $3 and the consumer is digging into savings to spend. And we know the Fed wants the consumer to spend. That is the name of the game - to force the consumer to spend so they can tax whatever gets bought.

QE3 by Fed a "sideshow" for US: Nobel laureate

SANTIAGO | Wed Jan 11, 2012 10:49am IST

SANTIAGO (Reuters) - A fresh bout of stimulus by the Federal Reserve would be largely a sideshow for the U.S. economy, with more important fiscal and regulatory issues out of the central bank's hands, economics Nobel laureate Thomas Sargent said.

http://in.reuters.com/article/2012/01/1 ... onomicNews

[aedens]

Dimon said Europe was the worst problem for the banking sector. "But the EU and euro are solid even if the states will have to be financially responsible and do all they can to develop common social policies," he said."

Business leaders are starting to brisle up. These bankers are smarter than the market Higg since it is not there money.
Note the geopolitical fruitcakes ecalations in this affair we posted as Quintus Fabius Maxim. The Leviathon is loose
and cannot be contained. Mere spectators, to the inane affairs of wisdom and humanity of the day we mentioned
pages back. I was having a focused conversation with my wife who had issue with a observation. It sumed to this.
"Man and person were not equivalent terms. A slave was not a person, but a thing; a person was a human being endowed with civil status."
We covered no man status already. When we slave to desire we are subject to consequences to a few. They will learn from
travail of lessons that cannot be tought. They consider trillions a solution as bricks into the tower of modern babel IMO.

It is no difference than this time reference:
Fri Jul 31, 2009 6:25 pm

“In the real world, banks extend credit, creating deposits in the process, and look for reserves later”.
We see who paid for that.
Their empirical conclusion was just the opposite: rather than fiat money being created first and credit money following with a lag, the sequence was reversed: credit money was created first, and fiat money was then created about a year later:

Having failed to understand the mechanism of money creation in a credit money world, and failed to understand how that mechanism goes into reverse during a financial crisis, neoclassical economics may end up doing what by accident what Marx failed to achieve by deliberate action, and bring capitalism to its knees.
Academic economics responded to these empirical challenges to its accepted theory in the time-honoured way: it ignored them.
Well, the so-called “mainstream” did—the school of thought known as “Neoclassical economics”. A rival school of thought, known as Post Keynesian economics, took these problems seriously, and developed a different theory of how money is created that is more consistent with the data.
The standard money multiplier model’s assumption that banks wait passively for deposits before starting to lend is false. Rather than bankers sitting back passively, waiting for depositors to give them excess reserves that they can then on-lend.

Interferes in actual production in a most dangerous manner since it is impossible to mark and measure moral hazard malinvestments from a premise of credit collapse with out marked to market seeking stabilization.
Basil Moore 1983, “Unpacking the post Keynesian black box: bank lending and the money supply”, Journal of Post Keynesian Economics 1983, Vol. 4 pp. 537-556; here Moore was quoting a Federal Reserve economist from a 1969 conference in which the endogeneity of the money supply was being debated.
Consumption of fixed capital
2005 1612.0 billion
2006 1623.9 billion
2007 1720.5 billion
2008 2032.3 billion
So, they print more and more will never be enough since there is no market signal to refer to.
is this true or false to date: http://generationaldynamics.com/forum/s ... ords=romer
This is in direct context to multiplier.
Romers work for the administration's theory of money multiplier was based on Fishers observations and it is in the forums from the 1930's.
viewtopic.php?f=14&t=2&p=3891&hilit=romer#p3891
How to generate severe stagflation in the years 2010 through 2019 right on que thanks Washington provided below.
The Macroeconomic Effects of Tax Changes: Estimates Based on a new Measure of Fiscal Shocks, by Christina D. and David H. Romer (March 2007). (Christina Romer now chairs the president's Council of Economic Advisors). This study found that the tax multiplier is 3, meaning that each dollar rise in taxes will reduce private spending by $3."
In the same vein: This is from Professor Fisher's book entitled 100% Money, revised edition
published by The Adelphi Company (1936)
There is a growing opinion among specialists in this field that the per capita money income is approximately equal to three times the per capita
money in circulation. Should this opinion be confirmed - that money and money income maintain an approximately constant ratio or even that this
would be true in the absence of great booms and depressions - we would reach the rather startling conclusion that to maintain the dollar as a
fixed fraction of per capita income would amount to the same thing as fixing the per capita supply of money and that the only statistics needed
by the Currency Commission would be those of population. We cannot, as yet, be sure that the two criteria - a fixed per capita quantity of money
and a dollar as a fixed fraction of the per capita income - are so nearly the same; but we can at least be sure that the per capita quantity plan
would not be a bad solution of the money problem. To note, this calculation exists.
We are right on target to what we already know. Also Fisher dies bankrupt and under his Family's dominion.
http://generationaldynamics.com/forum/v ... omer#p3608

[aedens]

We shall see soon Higg about our thoughts ago, to be clear we wished to be wrong.
A few pyrrhic victory's it will not matter anyway.
The consort, firing a Parthian shot, escaped into the mist.


http://www.zerohedge.com/news/two-third ... t-hit-mute