Financial topics

[aedens]

http://www.zerohedge.com/news/2013-05-1 ... rveillance

data strips from day one and the watchers eat the watchers now. Green to gray pills is nothing new under the Sun.


http://gdxforum.com/forum/viewtopic.php ... rips#p4453

Welcome the real matrix G. There is no spoon

treasury and the bank are the terminal feed

[Higgenbotham]

I just ran across this piece by Martin Armstrong. He nails it.

The Mad Max Outcome
Posted on May 8, 2013 by Martin Armstrong

A number of readers have asked doesn’t gold survive a Mad Max event? Historically, the answer to that is no. Dark Ages seem to be the total collapse of all economic activity on a collective basis. This is why there are huge gaps in the monetary history in Greece, Western Europe after the fall of Rome, and even in Japan. The duration is rather consistent – 600 years. What happens is civilization swings to its opposite – no-civilization where just enclaves emerge with little to no interaction with others. There must ALWAYS be two opposites – male & female, God & Devil, cold & heat, fertile & desert, and winter & summer just to mention a few. This nature. It is a swing back and forth between two extremes that we seen even in social behavior, which is why there are democrats and republicans or labor and conservative.

The Mad Max outcome is the swing back to barter where the dominant object of value first becomes food, then tools (bronze), and only after all that becomes stable, we see the return to luxury which is when gold and silver come back. You cannot eat them. They are valuable only based upon the demand of others. If they want food, sorry even gold goes off the map during such periods. It is typically grain or in the case of Japan bags of rice.

We can catch a glimpse of the dangers of the Mad Max event. Just look at Egypt as all investment collapses because once there is no rule of law, nothing has value! This is why people just walked away from property causing the abandonment of major cities. That not only impacted Rome, but many of the Mayan cities were abandoned with no sign of fire, war, or some natural event. They just left. This is why the corruption in New York is so dangerous. The handling of M.F. Global was an international disgrace. The repeal of Glass-Steagal was outrageous. Letting the NY boys have their way with the courts and control the reins of prosecutorial power is the destruction of all investment. If they can make money trading and have to rig the game, the end is here.

So the object is to blink before we go that far. But government is digging in its heels refusing to reform or relinquish the slightest amount of power. That is our problem. When they start to pay attention to government instead of the latest sports figures and scores, then things will start to get interesting. Historically, society waits until it is too late and then they just massacre the protesters.

http://www.bloomberg.com/news/2013-05-0 ... antes.html

[aedens]

http://www.jewishworldreview.com/cols/will050813.php3

As many still have missed in the current culture political economy meme of one-term and he got his one term. That literal term is obamacare since both party's know since 1980, and before the system on the cost basis of medical and desease cluster groups from now "polital correct" term of retards from the red playbook to avert calling it was it is or your a dictionary lexicon of deseased minds. Self inflicted suicide from multi partner relationships. We all uderstand as does armstrong when trade balances ensue there is no issue. We know who controls that and as noted networking realities will not stop. The one percent as well as some others know this facet. Warching the red and blue trolls lately observes and sparpes the fact they do not consider the flow of services. I can check the numbers again and if we slow another fifty percent consider what we had in flow if the seventy's. For over a decade, and in some level of reality what took these confused party's as long as it did to unwind to the political kill switches here and there of depravity's.
http://www.brookings.edu/fp/projects/is ... er2003.pdf
No accidents only intent. The swamp creatures from DC can nail this down anytime they wish on contract and statute law. As the current economists grovel to the paper tigers about sweden and how wonderfull the social compact is working there they always refuse to state the obvious that they are the first to the slop bucket on what is considered free markets. As we are reminded by Mises
It is characteristic of current political thinking to welcome every suggestion which aims at enlarging the influence of government. Inflation can be pursued only so long as the public still does not believe it will continue. As reminded once the people generally realize that the inflation will be continued on and on and that the value of the monetary unit will decline more and more, then the fate of the money is sealed. Only the belief, that the inflation will come to a stop, maintains the value of the notes. If the practice persists of covering government deficits with the issue of notes, then the day will come without fail, sooner or later, when the monetary systems of those nations pursuing this course will break down completely. Parse the words carefully now since even the thinking democrats know the administration is toxic and a literal kill switch. The Republicans sure as hell know this and only want to be first to the slop bucket also after 2014. Marry the trade, no I think not. The political roaches will insist the issue is educate, and gasp, they horde thing and scurry out to buy value. Sorry to say some people plan ahead even if they cannot as the macro parasites they are. Currently my son in law will be late home today since the mobilized democratic base we call them are just waking up at noon and as always slapping each other which peaks after the saturday induced crack, meth and alcohol frenzy. Thats right we are paying for these village idiots on all levels everywhere. The special people will insist they are just misunderstood people.

[John]

RC, I am 100% short. I do move in and out though. Sometimes several times a day (and night).

Higgie, you're a human algo computer.

[Reality Check]

The problem with the inflation argument is that only recently is any of the U.S. "printed" money actually been printed money in circulation, and even now it is only a tiny fraction of what has been printed.

For years "printed money" has just ended up in historically unheard of balances of electronic dollars, credited to the accounts of fractional reserve banks, with said accounts being the accounts of the fractional reserve banks held at the Federal Reserve Banks. These historically unheard levels of excess balances of fractional reserve banks is where the printed money has been soaked up.

Not by highly leveraged fractional reserve dollars in circulation.

This has come about by replacing near worthless bank assets ( read privately insured mortgages ) with better bank assets ( read mortgages insured the U.S. government ) through refinancing using electronic dollars "printed" by the FED to pay off the mortgages being refinanced.

Interest rates on loans to the largest fractional reserve banks have been held at artificially low interest rates, while the interest rates on loans to businesses and consumers have been held at artificially high rates ( high when compared to the cost of money for the lenders and the the official rate of inflation ).

The recent change is caused by the resumed expansion of the Real Estate bubble in some U.S. housing markets.

Which has resulted in houses selling for prices that substantially exceed the mortgages on them, thus injecting some of those printed dollars into the real economy through spending by the seller of the house.

What is going to happen here is still unclear, but the FED is now talking about ending the most current money printing binge ( Is it still QE3 or are we into QE4 now ? ) because the "economy is getting better".

When will that be factored into mortgage interest rates and the stock market ???

[Higgenbotham]

RC, I am 100% short. I do move in and out though. Sometimes several times a day (and night).

Higgie, you're a human algo computer.

That's pretty much true except for one thing. I was up all night Thursday night and into Friday. Then Friday a little after noon I fell asleep by mistake. The algos never sleep.

[Higgenbotham]

What is going to happen here is still unclear, but the FED is now talking about ending the most current money printing binge ( Is it still QE3 or are we into QE4 now ? ) because the "economy is getting better".

When will that be factored into mortgage interest rates and the stock market ???

The Fed released some minutes awhile back which mentioned some discussion about the efficacy of QE3 and QE4 and we saw how the market reacted to that, though the market was much lower at that time. I noted that quite a few people dismissed those minutes but some didn't. Then on Thursday there was a rumor that some news to that effect was going to be released and we also saw how the market reacted to that. Since the rumored news was actually released after the close on Friday, the next test will come tonight and tomorrow. I'm not sure how much we can read into it because the market could be ready to correct anyway. If this is a "normal" bubble the top would still be expected to be some months away. My opinion is there's nothing normal about it, even as far as bubbles go.

[John]

That's pretty much true except for one thing. I was up all night Thursday night and into Friday. Then Friday a little after noon I fell asleep by mistake. The algos never sleep.

Hmmmm. Perhaps you could write a script that watches for some precipitous change,
and beeps loudly when it does. That way, you could safely take cat naps.

[gerald]

http://www.zerohedge.com/news/2013-05-1 ... rveillance

data strips from day one and the watchers eat the watchers now. Green to gray pills is nothing new under the Sun.


http://gdxforum.com/forum/viewtopic.php ... rips#p4453

Welcome the real matrix G. There is no spoon

treasury and the bank are the terminal feed

Thanks --
Yes - welcome to prison planet

[vincecate]

The problem with the inflation argument is that only recently is any of the U.S. "printed" money actually been printed money in circulation, and even now it is only a tiny fraction of what has been printed.

Electronic money and printed money are equivalent. If the owner of electronic money wants to get printed money they can. If this is a bank getting money from the Fed the Fed might have to print up some more. The key issue of making more money will eventually lower the value works the same even if some part of the money supply is electronic.