Better yet, maybe Dimon is reminding people that it’s President Obama that’s in fact supporting him? Even after recent criticism of the bank CEO, President Obama called Dimon “one of the smartest bankers we’ve got” during an interview on The View in May, according to Politico.
Whatever the reason behind the cufflinks, one thing that’s for certain is that both Jamie Dimon and JPMorgan Chase have plenty of close ties with Washington.
Higgenbotham wrote:
I'm beginning to realize that this is going to end in violence. There's just no other way - this country is broken and can't be fixed.
Mish keeps being amazed that the central bankers keep printing more money. I don't think they can really stop printing money. There is no way taxes can be raised enough to fund the fat governments of the world and there is not enough savings for them to borrow. Where else is the money really going to come from to fund these huge deficits, if not from printing?
It seems the markets think Romney will be able to fix things. I don't think so, even if he does win. The cuts it would take just have too many people who will line up against them.
One thing that has amazed me about hyperinflation though is that many countries have had it without much violence. The money can fall apart, the economy a total disaster, salaries can't even buy regular food, and yet crime only goes up a bit. Many people who were normal middle class people suddenly living off rice, and yet they plant a garden, get a side job, and stoically struggle through. But "entitlements" may have spoiled Americans into thinking they are owed a decent living to such an extent that violence is more likely than in a normal hyperinflation. There have been riots in the US for much smaller things than this would be. If government were not able to pay poor people enough for them to buy regular food the US would probably get riots.
Last edited by vincecate on Sat Jun 16, 2012 10:30 am, edited 1 time in total.
You both make some points I'm trying to add together. Those people who stoically struggle through the inflation are the Artists (Silents). By my observation Artists are very good at stoically struggling through anything and pretending it's OK. By trying to create inflation now, Bernanke is putting a square peg in a round hole with the Nomads (Xers) where the Silents would normally be. The Xers will not stoically struggle through but will probably get frustrated and explode. What comes to my mind now is the guy who shot Giffords in Arizona, or the guy who told me the other day, when discussing high food costs, "People aren't going to take this much longer." Also, unlike Mish, I'm not surprised they have printed more money but what surprises me is how long the Xers have kept the lid on their anger.
While the periphery breaks down rather slowly at first, the capital cities of the hegemon should collapse suddenly and violently.
vincecate wrote:
One thing that has amazed me about hyperinflation though is that many countries have had it without much violence.
That's because hyperinflation occurs during Awakening or Unraveling eras, not during Crisis eras.
America had hyperinflation during the Revolutionary War crisis era and also during the Civil War crisis era. If America had not outlawed gold the Fed would have been bankrupt and paper money would have been worthless in the Great Depression crisis era. With paper money very much in danger in the last 3 American crisis eras, I don't think it is safe now.
John wrote:That's because hyperinflation occurs during Awakening or Unraveling eras, not during Crisis eras.
Hello John, Vince, Higgie and others,
I have come to the conclusion that the eventual global economic result will be massive deflation and serious depression, but the journey getting there could easily be very high if not hyper inflation. Central banks are going to keep printing money. I can see gold at above $ 20 000 an ounce, but the final implosion and crash will be massive deflation.
Its going to be even more deceptive than the ruinous 30's.
Many people working for low wages already have two, even three, jobs and have for years. Now they are barely getting by on that and don't have time to work another job.
The majority of people want inflation this time around because the majority are not profitable and are not self supporting without government jobs, contracts, aid and/or bailouts. That does not mean the minority who are self supporting are happy with that or won't try to get out from under the thumb of the majority by some means other than the ballot box, which they know they have lost.
Back to the comments from awhile back about how the most capable employees are driven out or swept under the rug. I'm starting to form a view on this. It just starts with this idea: The most "successful" corporations in America are the ones that are the worst run and are the first in line for the most bailout dollars. If this is true, then bad employees are needed, not good ones. As we saw with the example posted, JP Morgan plans to lose $50 billion in order to get $200 billion in government bailout dollars. It appears Comrade Obama is on board with this wonderful idea.
While the periphery breaks down rather slowly at first, the capital cities of the hegemon should collapse suddenly and violently.
Everything is turned on its head. Some of the world's largest banks agree that a controlled stock market crash is needed. That's because if the stock market goes higher and then starts to crash from higher levels, the crash could get out of control.
Basically stated, anything less than a controlled market crash, one that finally gets the ECB involved with Germany's permission of course, merely pushes the market higher on nothing but hope of an intervention that said market lift makes even more improbable, as now both Citi and DB admit, which can and will lead to an uncontrolled market collapse, one from which not even the ECB will be able to extricate Europe.
In this light, will Greece simply be the start of the much overdue "controlled demolition", that will bring the ECB out of hibernation, that is paradoxically instrumental in avoiding an uncontrolled demolition, where not even the ECB will have any powers left to prevent a collapse?
Higgenbotham wrote:Everything is turned on its head. Some of the world's largest banks agree that a controlled stock market crash is needed. That's because if the stock market goes higher and then starts to crash from higher levels, the crash could get out of control.
Basically stated, anything less than a controlled market crash, one that finally gets the ECB involved with Germany's permission of course, merely pushes the market higher on nothing but hope of an intervention that said market lift makes even more improbable, as now both Citi and DB admit, which can and will lead to an uncontrolled market collapse, one from which not even the ECB will be able to extricate Europe.
In this light, will Greece simply be the start of the much overdue "controlled demolition", that will bring the ECB out of hibernation, that is paradoxically instrumental in avoiding an uncontrolled demolition, where not even the ECB will have any powers left to prevent a collapse?
Higgenbotham wrote:
Many people working for low wages already have two, even three, jobs and have for years. Now they are barely getting by on that and don't have time to work another job.
When things get really hard people start trading things directly with each other. One guy trades some extra fish with another guy who has extra potatoes. This has the side effect that nobody pays any sales tax, social security tax, unemployment tax, income taxes, or inflation taxes. After all, we just traded fish for potatoes. Without a government taking a cut five different ways it actually takes far less work to stay alive.
So are you seeing any barter or black market stuff?