Financial topics

[Reality Check]

The Fed must keep rates low if the Treasury is going to be required to maintain its current level of borrowing from them.As long as banking institutions can borrow essentially free or at least really cheap money the stock market will keep rising until it has no more reason to.

The thing is that interest rates are going up. So they are not able to do what they must do to prevent SHTF. The question is just when do people realize the Fed has lost control of interest rates. Also, as interest rates go up, the velocity of money will go up, which will make inflation. These are interesting times for sure.

Just to point out. The interest rate for banks borrowing from the FED, and the interest rate for small businesses, and the average person borrowing from the banks, have lost all connection since 2008.

The reason for the jobless recover is precisely because of this printing of money for the benefit of banks and the super rich, but not small businesses, that we are having a jobless recovery.

The interest rates that are going up are not yet the discount rate that the FED charges Banks. So that gravy train continues, at least for now.

So at the moment you are both right.

[Higgenbotham]

Another point with regard to interest rates. Lately the big money people have been talking about the stock market in terms of what they think it can return on average over the next 10 years. Why are they doing this? None have said so explicitly, but I think I know why. They are eyeing the rate on the 10 year US government note and see that it is up to 3.0%. Some of them may think the 10 year return on bonds and stocks is getting close to being a tossup. The largest hedge fund in the world, Bridgewater, said not too long ago that they are projecting the 10 year return on stocks to be 4%, 2% from appreciation and 2% from dividend (other big money people are more optimistic). That was when the market was about 4% below current levels, so if Bridgewater still thinks that, their 4% projection has become 3.5% (compounded). With the 10 year note approaching that level, a 3.5% rate on the 10 year note could provide some competition for stocks, which is the level Vince has been projecting for awhile.

[aedens]

A guy in UK had his tax return sent back to him.

In answer to the question: Do you have anyone dependent on you replied:

2.1 million illegal immigrants,
1.1 million crack-heads
4.4 million unemployable scroungers
900,000 criminals in 85 prisons
650 idiots in Parliament and the whole of the European Commission

His response was deemed unacceptable.

In response, he asked "Who did I miss out?"

[aedens]

Rates will rise as ordinary inter tribal wars continue. Need we site the repressionary monetary regime and the relegated
barbarians grunting compromise from the the paper cult wars as recorded in the analog archives.

[at99sy]

This inevitably leads to a conversation about equality, I have a sign on my wall with the word equality written on it within a circle and the "no" slash mark on it and the phrase "The most terrifying word EVER!" below it. By the end of the discussion they all understand why.

This is very politically incorrect. Aren't you afraid of being fired?

John

lol I have never been accused of being PC. I am certainly an outlier as a public school teacher. I do measure my words in certain company, yet am rarely challenged by other faculty as I tend to politely shred their nonsensical indoctrination attempts. I have had to call a few to task for teaching completely inaccurate versions of history or their convenient omissions of certain facts to paint a pretty picture about certain events.

Diplomacy is a skill I have had to learn, and I use it like a dagger at times.

cheers

sy

[at99sy]

The Fed must keep rates low if the Treasury is going to be required to maintain its current level of borrowing from them.As long as banking institutions can borrow essentially free or at least really cheap money the stock market will keep rising until it has no more reason to.

The thing is that interest rates are going up. So they are not able to do what they must do to prevent SHTF. The question is just when do people realize the Fed has lost control of interest rates. Also, as interest rates go up, the velocity of money will go up, which will make inflation. These are interesting times for sure.

Just to point out. The interest rate for banks borrowing from the FED, and the interest rate for small businesses, and the average person borrowing from the banks, have lost all connection since 2008.

The reason for the jobless recover is precisely because of this printing of money for the benefit of banks and the super rich, but not small businesses, that we are having a jobless recovery.

The interest rates that are going up are not yet the discount rate that the FED charges Banks. So that gravy train continues, at least for now.

So at the moment you are both right.

A question I have had for some time now is; since the Treasury (taxpayers) has multiple trillions of $ in debt to the Fed, A)can the treasury default on what is owed to the fed and leave all international debt intact to maintain our global standing as a credit risk? B) what can the Fed do to actually collect on the debt in a crisis?

Right now I see the inflating stock market as the last act of the Fed/Obama administration to keep the train on the tracks. If it starts to fall again there will be nothing the media/O-train can do to spin this as a good economy. Housing is a joke. single family starts are way of historic highs, multi-family starts improved but only due to the fact that Americans are not buying right now except at deflated prices. My wife is starting her new job next week at a company that is doubling in size over the next 12 months (from 600 contractors -1200 nationwide and adding 60 people to the local branch office.) They do foreclosure inspections, closeups, and rehabs. They are expecting a huge increase in volume for several years to come.

Interest rates at the discount window go up very much and the market will not have the free money pumping it up and it will deflate. Treasury bonds go up and the hope is that non-Fed entities will buy the government debt. The environment is under too great an internal stress to survive much more. Something will break soon. I believe it will be a social movement that will cause it to go down. But we will see. 2014 should be "interesting" as the curse goes.


cheers

sy

[gerald]

tinfoil hat going mainstream?

Financial adviser and Forbes contributor David John Marotta -------------

"Wall Street Adviser: Get Guns and Ammo for the Collapse"

http://www.newsmax.com/US/dollar-collap ... /id/543907

----------------------------------------------------------------

and a growing divide?

"Liberal Commercial Talk Radio Disappears in NY, LA, SF in 2014"

http://www.truthrevolt.org/news/liberal ... la-sf-2014

[at99sy]

and a growing divide?

"Liberal Commercial Talk Radio Disappears in NY, LA, SF in 2014"

http://www.truthrevolt.org/news/liberal ... la-sf-2014

Many of my friends and colleagues(even the lefties) are coming to the conclusion that every elected politician should be voted out.
Many I talk to are going to (like myself) vote against all incumbents regardless of party affiliation. I think I am becoming a
Libertarian Anarchist.

cheers
sy

[vincecate]

A question I have had for some time now is; since the Treasury (taxpayers) has multiple trillions of $ in debt to the Fed, A)can the treasury default on what is owed to the fed and leave all international debt intact to maintain our global standing as a credit risk?

It would not change anything really. Right now the Fed sends its profits to the Treasury. So when the Treasury pays interest to the Fed, it really gets it back right away. If they defaulted on it, or the Fed forgave those bonds, it would not really change anything. They will never be paid off with tax dollars. At best they are paid off by selling another bond. The Fed has to keep buying or things fall apart, so probably they are selling the new bond to the Fed to pay off the old bond at the Fed. It is all very silly really. They are bankrupt and just pretending things are ok.

[aedens]

and a growing divide?

"Liberal Commercial Talk Radio Disappears in NY, LA, SF in 2014"

http://www.truthrevolt.org/news/liberal ... la-sf-2014

Many of my friends and colleagues(even the lefties) are coming to the conclusion that every elected politician should be voted out.
Many I talk to are going to (like myself) vote against all incumbents regardless of party affiliation. I think I am becoming a
Libertarian Anarchist.

cheers
sy

Little l for libertarian. Local's supply resources to the State government who in turn are as incompetant as Detroit as is Lansing having a thumb in there mouth and up the you know what also. Once it gets to the federal level the disconnnects are immense. Just as the mafia wars with the clan culture "babtist and bootleggers we touched on" wars we know of course the Federal has had proscibed duties. The current focus of lie to Congres is unaceptable and I agree all should be discharged. The rub is how do we maintain the balances we must have in the branches. What I suggest is Republicanism was a vitue of both parties and we trace very accurately here the strains and deception is policy in a virulant world of napoleanic law to common law practises. If we focus the differences of this aspect it clarifies the breech of duty of our Current senate who i do suggest and note over the decades. I agree the left will be very unhappy with the yoke they have chosen since core resposibilites have a cost basis. The last survey I seen was that over 6.5 million have lost the level of aceptable contractual benefits and how does this stopmedical bankruptsys which is the core thesis from even there own practises we linked here on the mindset from 1993. If anyone proposes in the last couple of years is the issue they are decieved and as we noted the seal in there forehead is in all probability unable to be removed. I do not abandone hope and also the taxpayers deserve what they have sown. Red and Bue are the problem and that did not start point blank this decade. As noted before 130 highly trained medical providers just got eliminated locally in this first salvo to the culture wars again in this encylical process of deceptions at all costs from the State level and above. It must stop since as we are not many more bones can be picked clean now as they move to yet another sector.

In the parable of the sower, Saint Luke has left us these words of the Lord about the "good soil": "These are the ones who when they hear the word, hold it fast in an honest and good heart, and bear fruit with patient endurance"

As we are warned and known here very well - In our country (the former U.S.S.R.) the lie has become not just a moral category,
but a pillar of the State. Aleksandr Solzhenitsyn

The Economist says to expect the annual Edelman Trust Barometer in January to show that Americans’ trust in business continues to recover from post-financial crisis lows, while trust in government remains far lower.

The govenment is a moral category as Ozymandias was wise. In the mid seventys we scoffed as we seen it becoming more like them, and today
it cannot be denied or defended.