Financial topics

[aedens]

One very strong empire crumbled, and suddenly chaos was in motion. The dark ages followed. Reason why empire falls is not important. How it looks when it falls is interesting.

I think it is important to note that Rome debased their currency. As long as the currency is strong and the government issues it then the government is rich and powerful. The US fall must be accompanied by the currency becoming worthless. Anything less and the US government is still rich, since they can print as much as they want. So to me the idea of deflation and the US government getting weak just can't go together. One of these is wrong. I am confident it is the deflation idea that is wrong.

I don't understand why you cannot see our currency becoming worthless AND our becoming weaker. To me, they would go hand in hand.

define value: www.duckduckgo.com/?q=tafta

[aedens]

http://www.zerohedge.com/news/2013-03-2 ... ecord-high

IT Lives https://duckduckgo.com/?q=inflation+targeting

http://finviz.com/search.ashx?t=c&p=COPPER

https://www.youtube.com/watch?v=eabefjsJsAQ

[John]

The Generational Dynamics web site was attacked by hackers
on Friday and crashed. The site will be brought back up
over the weekend with limited functionality and content.
All content will be available again in a few days.

No data was lost from the Generational Dynamics forum.

I may have lost some e-mail messages sent to me on Friday.
Please consider re-sending any messages that you sent between
11 am and 7 pm ET.

RSS for the forum will be unavailable for a few days.

If you have any problems, please let me know. As before, I apologize
for any inconvenience.

[vincecate]

I think it is important to note that Rome debased their currency. As long as the currency is strong and the government issues it then the government is rich and powerful. The US fall must be accompanied by the currency becoming worthless. Anything less and the US government is still rich, since they can print as much as they want. So to me the idea of deflation and the US government getting weak just can't go together. One of these is wrong. I am confident it is the deflation idea that is wrong.

I don't understand why you cannot see our currency becoming worthless AND our becoming weaker. To me, they would go hand in hand.

I do see the US dollar becoming worthless and the US becoming weaker. I agree they go hand in hand. But that is inflation or hyperinflation. In deflation the currency gets stronger. This idea of deflation seems incompatible with a collapse in government power.

[gerald]

The Generational Dynamics web site was attacked by hackers
on Friday and crashed. The site will be brought back up
over the weekend with limited functionality and content.
All content will be available again in a few days.

No data was lost from the Generational Dynamics forum.

I may have lost some e-mail messages sent to me on Friday.
Please consider re-sending any messages that you sent between
11 am and 7 pm ET.

RSS for the forum will be unavailable for a few days.

If you have any problems, please let me know. As before, I apologize
for any inconvenience.

gee - you must be rocking someone's boat

[gerald]

And this will do what for the European banks?

http://www.zerohedge.com/news/2013-03-2 ... ntemplated

"Cyprus is considering a levy of about 25 percent on bank deposits over 100,000 euros ($130,000) in the island's largest local lender, Bank of Cyprus, Finance Minister Michael Sarris said on Saturday"


"But at least the bulk of the population will be spared. The problem is what Russia will do, when the ball is in its court following a vote to impair its citizens which may or may not come, as all political leaders in Russia have made it very clear this is an outright political provocation by Europe targeting purely Russian wealth.

What is also sure, is that any bulk investments in Europe, be they held by Russian, Chinese, or any other oligarchs, will now scramble to get out, knowing quite well their cash is not only no longer welcome in the Eurozone, but most likely will be used to fund bailouts of assorted insolvent European nations. Such as all of them. This could be a very big problem because according to JPMorgan, the share of large or uninsured deposits is about half of total deposits in Euroarea banking system including the peripheral countries.

Should a stealthy "uninsured" depositor run in Europe take place following this weekend, and up to half the funding of European banks go poof - that which until recently was generously provided by the same uberwealthy who are now the target of persecution seemingly everywhere - not all the ELA, LTRO, SMP, OMT, and any other acronym free ECB money in the world will be able to hold the Eurozone together."

Nice -- looks like a chain of events was not thought out by someone.

[gerald]

And this will do what for the European banks?

http://www.zerohedge.com/news/2013-03-2 ... ntemplated

"Cyprus is considering a levy of about 25 percent on bank deposits over 100,000 euros ($130,000) in the island's largest local lender, Bank of Cyprus, Finance Minister Michael Sarris said on Saturday"


"But at least the bulk of the population will be spared. The problem is what Russia will do, when the ball is in its court following a vote to impair its citizens which may or may not come, as all political leaders in Russia have made it very clear this is an outright political provocation by Europe targeting purely Russian wealth.

What is also sure, is that any bulk investments in Europe, be they held by Russian, Chinese, or any other oligarchs, will now scramble to get out, knowing quite well their cash is not only no longer welcome in the Eurozone, but most likely will be used to fund bailouts of assorted insolvent European nations. Such as all of them. This could be a very big problem because according to JPMorgan, the share of large or uninsured deposits is about half of total deposits in Euroarea banking system including the peripheral countries.

Should a stealthy "uninsured" depositor run in Europe take place following this weekend, and up to half the funding of European banks go poof - that which until recently was generously provided by the same uberwealthy who are now the target of persecution seemingly everywhere - not all the ELA, LTRO, SMP, OMT, and any other acronym free ECB money in the world will be able to hold the Eurozone together."

Nice -- looks like a chain of events was not thought out by someone.

http://www.zerohedge.com/news/2013-03-2 ... crashing-e

"This week’s events had made “a mockery” of EU treaties, he added. “It suggests that in Europe not all people are equal under the law.”

"So far, global financial market reaction to the Cyprus crisis has been subdued. But Mr Orphanides warned that would change. “I don’t think that the full extent of the shattering of the trust that we have seen in this case . . . has been seen fully yet."

[Higgenbotham]

During a period of decline, before the arrival of a dark age proper, the processes of disintegration, disorganisation and discohesion, which have already occurred in reality, begin filtering through into perceptions. As perceptions catch up with the reality, people comment on their problems at length and many of them may deplore the direction in which they see things moving.

The situation the US finds itself in is that the US potentially collapsed in 2008 but it was not a done deal. Generally, it was believed that the US had not potentially collapsed and it was believed that weak and inappropriate counter measures could be taken to get over the perceived little speed bump on the road to greater progress. In 2008, had the perception been more in line with reality, it would have been understood that a potential collapse had occurred and the correct counter measures would have been taken; for example, the rule of law would have been applied and criminals would have gone to prison. Since the correct counter measures were not taken, the collapse has gone from being a potential collapse to being a real, irreversible collapse. The real, irreversible collapse will become a dark age when perceptions line up with reality, which is inevitable because the collapse has become irreversible.

[Higgenbotham]

Federal Reserve Chairman Ben S. Bernanke said he doesn’t see himself as the only person qualified to lead the U.S. central bank in the years ahead, adding that he has briefly discussed his future plans with President Barack Obama.

“I have spoken to the president a bit but I really don’t have any information for you at this juncture,” Bernanke, 59, said in response to a question at a press conference today at the Fed headquarters in Washington. “I don’t think I’m the only person in the world who can manage the exit” from the central bank’s record stimulus.

Bernanke’s second term as Fed chairman expires in January 2014. He said at a Dec. 12 news conference that he was “very much engaged in the difficult issues that we’re discussing‘‘ and that he had ‘‘not been spending time thinking about’’ his future.

‘‘One of the things that I hoped to accomplish and was not entirely successful at’’ was ‘‘to try to depersonalize to some extent monetary policy,’’ Bernanke added today.

http://www.bloomberg.com/news/2013-03-2 ... -exit.html

It doesn't take a genius to figure out what's going on here, but here's a sample translation in my own words:

I don't know how to get out of this mess that I created, but maybe somebody else can figure it out. In the meantime, my personal plan is to get the fuck out of dodge as quickly as I can, and to make every attempt to distance myself from being personally responsible for the irreversible mess I have created. To that end, I will be extremely focused on short term solutions that will keep this pile of shit afloat while I plot my exit.

[aedens]

Was reading Carl's thought on what we are seeing since the Vanilla "the regular smart people like us" are being economically murdered.
It is their intelligence that helps them make the money that they then proceed to lose to the "street smart" speculators at the top of
the food chain. With what we have been seeing from the top and bottom I have always thought about the middle class to avoid problems
with value and vision. It will not matter since across the spectrum trust has been decimated and now shattered. Since we all wish to know
what is over the next hill I can see the last final consolidation upcoming and for many it is here. One more push is my anticipation and we
trade our money here so we have no axe to grind but our own inside. I assume maybe around 1610 soon if luckey and many bailing around
1600. As for Ben he can hug his 1983 thesis since it was assured to be from greenspan on the extent of the damage to be unleashed.
As we read on the Senate floor testamony in 2005. They knew this was going to be calamity and justice was not forwarded to the People
of the Letter, or the Book. Emptor, since they truly are wolves bearing sheep garments you elected. We are over 2/3 there and they are
warned from better than I what it is going to be. We have read about the writing on the wall and the miracle of the production of
the simple pencil and still they wish to take more from us. Health care needed to be fixed but twenty more hidden taxes will just
assure more off shoring to offset cost is all we will see.