Stacy Summary: The Truth About Markets. Kiwi style.
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ref. max keiser – Get 6 mo’s free storage
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Rick Ackerman-
- Karl Denninger – Market Ticker
- The Big Picture
- Mish
- David Morgan
- King World News
- SmartKnowledge
- GoldCore
fiat money and the french revolution
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crash banksters – Buy Silver & gold
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The Men Who Stare at Goats
http://tinyurl.com/lltcnt
The film is based on Jon Ronson’s non-fiction bestseller of the same name, which offered an amusing insight into hilarious attempts by the US government to exploit paranormal abilities to combat enemies
Jon Ronson has done some good stuff on elites and other oddness
his site http://tinyurl.com/m4bez2
Forget your gold,…here’s your new currency:
This CO2 emissions global budget system foresees each person on the planet receiving an “account” with the same amount of CO2 emissions permitted into the atmosphere until 2050. The emissions limit for a particular country is based on the size of the population.
Carbon Credits,……I’ll say it slowly,..C A R,…..bon credits
@Max
The Cornish: They revolted in 1497, now they’re at it again
http://tinyurl.com/nqc7x3
A “world climate bank,” the WBGU suggested, could help manage “accounts” and emissions reduction targets. The scientists hope the German government will take the proposal to the international climate summit in Copenhagen in December.
@gonzomarx………….if they succeed I may think about joining them although they’re a funny lot down there and don’t like the rest of us up here so I’ll probably be refused.
@Dedo……….you don’t think there’ll be a revolt over carbon credits given the number of sceptics out there?
Here’s the link,.
http://www.globalpolicy.org/component/content/article/212-environment/48095-qworld-climate-bankq-could-manage-co2-emissions.html
@Sharon,……you wait,…..the economy will be sooo bad,..most folk will be begging for a solution,..that’s how it usually works!!
@Max & Stacy,
great show. thanks!
@M&S .. great discussion / Thanks !
@Gold … Current Max Pain Options on the GLD ETF
http://www.optionpain.com/MaxPain/Max-Pain.php
Sep09 91$
Oct09 94$
Nov09 102$
Dec09 92$
Jan10 90$
Mar10 95$
Jan11 95$
Just wondering if the GLD price will meet MaxPain this month ?
September @ 91$ would mean Gold price of ca. 930$.
Thoughts Max ?
Will the option crooks get off the hook again ?
In other words peeps,….no matter how much “gold” you’ve got,…if you’re only allocated so many “credits” that’s all you can use,. comprendo!!
The Rule by Nobody.
These definitions coincide with the terms which, since Greek antiquity, have been used to define the forms of government as the rule of man over man—of one or the few in monarchy and oligarchy, of the best or the many in aristocracy and democracy, to which today we ought to add the latest and perhaps most formidable form of such dominion, bureaucracy, or the rule by an intricate system of bureaux in which no men, neither one nor the best, neither the few nor the many, can be held responsible, and which could be properly called the rule by Nobody. Indeed, if we identify tyranny as the government that is not held to give account of itself, rule by Nobody is clearly the most tyrannical of all, since there is no one left who could even be asked to answer for what is being done. It is this state of affairs which is among the most potent causes for the current world-wide rebellious unrest.
written in 1969 by Hannah Arendt but applies to issues of Torture and Finance today.
http://tinyurl.com/n3mt4a
My guess is, folk will start killing one another for carbon credits,…(kill two birds with one stone)
Seem a bit far fetched,……: )
Wall Street Gambles on Old People Dying
“Goldman Sachs has developed a tradable index of life settlements, enabling investors to bet on whether people will live longer than expected or die sooner than planned. The index is similar to tradable stock market indices that allow investors to bet on the overall direction of the market without buying stocks. Spokesmen for Credit Suisse and Goldman Sachs declined to comment.”
Ah good old GS always on the cutting edge!!
oops forgot the link to GS story
http://tinyurl.com/lg4xxu
Oooops,….nearly forgot,.at the same time you’ll be saving the planet!!
Vienna should change their name to Wiener as a public-private partnership with a certain multinational food products corporation.
The Obama Deception HQ Full length version
http://www.youtube.com/watch?v=eAaQNACwaLw
Pretty good ….
…. mentions that the PTB ( MIC ) removed JFK because he wanted to refuse their bidding, i.e. came to office as a puppet, but refused to play the game.
That’s my take as well – as posted weeks ago.
Something I didn’t know : “Kissinger gave Obama his first job after leaving college” .
god damn Lizards…..!!!
http://tinyurl.com/dx8rnl
Great show Max and Sherbert,……tell the waiters next time to keep the noise down,.or I’ll bring Mike King on the firm to throw a CAP on their asses!!
@Max & Stacy .. maybe interesting .
Stock promoter Irving Kott, a frequent target of regulators, has died in Canada
http://sharesleuth.com/09/09/112/stock-promoter-irving-kott-a-f/
Letters reveal hidden holders of Pure Play Music stock
http://sharesleuth.com/09/08/111/letters-reveal-hidden-holders-1/
Is the U.S. Dollar Finished?
http://seekingalpha.com/article/160456-is-the-u-s-dollar-finished?source=email
Why the U.S. Dollar Drop Might Be Significant
http://seekingalpha.com/article/160400-why-the-u-s-dollar-drop-might-be-significant?source=email
Central banks are reluctant to ‘sell’ their gold, (really vending the public trust in lieu of settlements against credit default swaps on the interest rates of their treasuries,) because now they are faced with seeing the physical bullion traded on the open market and falling into the hands of political rivals.
But they may have little choice, as the regime of derivatives, which are actually networked against just about everything in the market, especially currencies, are having to resort to releasing their gold in escrow accounts in lieu of overwhelming demands of their credit default swaps obligations, only to watch it sold surreptitiously without their permission. They still technically own the gold, but have little power in retrieving it. Once they are coaxed into relinquishing their precious metals reserves, you may as well place it in the street with a sign on it saying that no one may take any of it.
Ironically, since the bankers’ strike began with the seizure of derivative junk systems, there is no demand for gold escrow accounts, so fewer and fewer gold ‘sales.’
With no gold available to hold in lieu of Credit Default Swaps held against the interest rates of their government bonds, so that they can continue to sell their bonds to the commercial banking sector, governments have resorted to buying their own bonds.
Physical gold is about 10,000 times leveraged as a risk free asset, and is the pinnacle of the derivatives junk bond network pyramid, so selling about £3 billion of gold would theoretically provide liquidity of £3 trillion of liquidity.
Remember that LTCM was holding short 400 tonnes of gold, which provided around a trillion of liquidity through a networked system of junk derivatives.
F6
Fat is an indication of poverty more than inferior intelligence:
http://www.palmbeachpost.com/localnews/content/local_news/epaper/2009/09/07/0907supermarket.html
The Obama Deception HQ Full length version
http://www.youtube.com/watch?v=eAaQNACwaLw
Praise to Alex Jones !
Well thought out …. 5 stars !
@FranSix … nice post /( nice website
http://agoracom.com/
Crack/Boom:
http://www.bloomberg.com/apps/news?pid=20601087&sid=ahxfcz1.ZZTE
@F6: wasn’t aware the LTCM had had that much physical gold…and leveraged to boot…that makes the Chinese play for physical gold a more interesting situation…doubling it’s reserves in a year that is…furthering it’s bi-lateral agreements; and decoupling from derivatives also…and an imminent offering of sovereign bonds to offshore buyers in remnimbis…it’s definitely a chess game going on; and it appears the Chinese are playing GO instead…You are so correct US gold can be sold but not removed from US….no wonder the Chinese have built a vault located @ the Hong Kong airport…easy access. Mr. Geithner hasn’t got much working for him…just required a raise in the federal debt ceiling doesn’t show strength…and his talking points @ the G-8 meeting last week wasn’t a real confidence builder either…as so many countries are favoring the removal of the dollar reserve…isn’t Iran convening another oil borse in October….aren’t they also an observer nation @ the Shanghai Coop meetings….and with Russia in play as a trading partner ( nuclear materials)…combined with the other BRIC countries this could sway the power away from dear ol’ Ben and Tim…
Sup…
Is the US dollar finished?
http://seekingalpha.com/article/160456-is-the-u-s-dollar-finished
Gold Is Still the Opportunity of a Lifetime
http://seekingalpha.com/article/160262-gold-is-still-the-opportunity-of-a-lifetime?source=article_sb_popular
Max e-mail from a guy i know in the “City”, Rummor is:-
BOE to cut rates/do more QE & offer negative rates to the banks!
Mike
Oops my bad. A £300m. escrow account of gold bullion would lead to a £3 trillion derivatives pyramid.
If the gold price declined, you’re on the hook for more or to relinquish the gold. If the gold price rises, you’re on the hook for less.
Its not about the control or fixing the gold price per se, its about the control of the derivatives pyramid scheme.
Did anybody ‘Shazam’ the music in the background?
F6
Newsweek Oct 25, 2008 : We Need a Bank Of the World
The financial crisis is global, and only an international central bank can deal with it.
… ” In the future, a global central bank is needed to oversee the rudderless global financial system. There are a number of critical functions it could perform. ” …
… ” To give it legitimacy, a global central bank would have to be governed in light of political realities. That means that its board would include not only the top financial officials of the United States, the U.K., the euro zone and Japan, but also China, Saudi Arabia, Brazil, South Africa and perhaps a few others. ” …
… ” No one should want too much globally centralized oversight. But the world’s gathering misery shows that too little leadership from the center can be equally dangerous. ” …
http://www.newsweek.com/id/165772
————————————————————
Me? …
But the world’s gathering misery shows that too MUCH leadership from the center can be EXTREMELY dangerous.
@US$ / Gold
US$ falling and Gold per US$ remains flat ( controlled / manipulated ) !
Is actually currently down versus the US$
http://www.finviz.com/forex.ashx
@Phil: “too much misery…” I concur….looks like we have another fine economic intellect on board ( F6??)
Pssst,…..Just got the word,…there is an agenda on the go, to collapse the current system, and bring in a “new” financial paradigm (schema). Gold as a store of wealth “will” become obsolete. Wealth “will” be shunned upon (uses up to much CO2),..over and out!
I would also like to point out that Goldman Sachs was known to buy out all of the options contracts on gold during the summer, but very likely would not excercise those options in the hopes they could prevent any rise in the price.
China is buying/writing puts with a buy-in settlement, which should be mentioned.
F6
@Richard@lattitude30N ….. F6
Agrred …
Welcome F6 .. good to have you here !
@Dedo … Wealth to be banned ?
I thought that was already the case !
Re: Gold to be dumped …
Hope they told China , otherwise they’re going to get pretty “physical” !
@Max
It’s time to set something straight here. I wanted to do that the last time you put the deflationist vs inflationist question in which you gace your own answer today.
If for example oil goes up because of some pipeline burst in Nigeria (supply side) or cause of a huge demand (demand side) a government will call this inflation cause oil is in the inflation basket. The same with gold now cause there is more demand the price goes up and you state that the inflationist are right.
What is the connection with the monatairy side of the economy? Noppus, nada, nothing so here you see discussions about what inflation or deflation should be going somewhat opaque.
I stated before that you in fact have two sides on the inflation-deflation coin namely the supply and demand side and the monatairy side, the money volume combined with the pace in which money cause around – the money velocity. The Multiplier effect is the effect of a rolling snowball getting bigger. I f I buy a car for instance more steel has to be bought the car seller has more money to spend and so on but that’s not the isue here.
What I am saying is that you have two ways in which at least the government talks about inflation. 1) Prices go up through suplly and demand issues or prices go up due to money volume issues.
@Stacy
Talking about hating tourists in the National Geographic Magazine of August there is a similar story about the Venitians hating their tourists. But it’s all very hypcriticall cause loads of people make a lot of money of the tourists. So it’s double thinking.
What I hate most about the Venitians that non of these tourists profits are used to restore the city. Critisizing tourists and at the same time explore their city is very hypocritical especially in case of the Italians who like to rip their tourists of with insane prices.
You don’t have this in Greece where they are happy to see the tourists and act accordingly friendly.”He how’s the weather in the Netherlands? Bad? Oh, good for us ah ah ah!”
@Phil,……Most folk, as you’re aware have a more short term perspective on events.
While it is interesting to see things unfold in the world of finance, it’s also quite obvious that the many tributaries lead to the same “green” save the planet agenda.
While most are concentrating on the past, the future has and is being prepared,…..there,…got that off my chest,.phew,..feel a lot better now : ) carbon credits, carbon credits,….lol
Greenspan predicted the crash!
Hahhahahahaha
http://news.bbc.co.uk/2/hi/business/8244600.stm
Stacy,
How will laser fusion energy change the world dynamic if it comes on line in say 5 years? THe NIF (National Ignition Facility) is going to test the system next year.
see this cool video on how laser fusion works.
https://lasers.llnl.gov/
The oil and natural gas markets would collapse i would think
The problems will be over when Matt Taibbi wins the Nobel Prize for economics.
http://www.informationclearinghouse.info/article23445.htm
PS. There is no (Alfred) “Nobel Prize” for economics. It was instituted circa 1960 by the Swedish Central Bank and continues to this day to be funded by bankers rather than the Nobel Foundation.
@phil All Y’all AJ fans
re:refried confusion AJ style….That ‘doc’I think I got to the point 20 mins in where they were stood in the foyer while some idiot kept running out giving vague snippets about the future plans of….whoooo you know who…..just as I started to think how lame the ‘doc’ was getting they went outside and played spot the world leader…”look it’s the queen of england” cut to a jumpy blurred shot of a quite youngish middle aged woman that looked nothing like….kinda desperate and childish….why?…that killed it for me…after KRS1 did a brilliant cameo, it all seemed to go downhill.. cheap as hard drive space is these days I had to erase it….didn’t even think oh I’ll watch that one day…I get the feeling I haven’t missed anything that important..dunno….PS I know ‘Rich 30 u.s. degrees’ likes a lot of seventies music..what’s not to like…but after joni who are your other fave muicians? (only messin’ don’t really wanna know)..I wouldn’t want to distract you from your schnitzelgruben.
This must be the slowest economic collapse ever, its more like a rock being slowly eroded by the wind.
Maybe the plan is to kill us all of boredom.
@Mr supergeek: “schnitzelgruben”???? ” 70′s music”???I’m just trying to add a light touch to the intensity here…lord knows we all need a break from the global meltdown…economic warfare mindwarping…Don’t you agree?? And BTW Sharon enjoys the snippets I throw in
@Mr Supergeek .. AJ
Yes , I agree, there were parts that were “pretty weak” .. but the 2nd. half was much better and very well presented.
Patience !
@Dan … ” Maybe the plan is to kill us all of boredom.”
LOL …
Mike2L will testify to that I guess !
http://www.youtube.com/watch?v=jGC1mCS4OVo
RISE UP!
Please help get this video out there.
To add to the Inflation-deflation story.
There are three ways in which the Multiplier effect gets reduced:
1) Savings Leakage (China is good example)
2) Import Leakage (USA is a good example)
3) Tax Leakage (We gonn see this soon)
At the Tax Leakage we can add the Banksters Leakage with high fees and interst rates.
Sorry if anyone else has linked this:
Max on Russia Today
http://www.youtube.com/watch?v=d-UUBTASHHU
@italicbold,……I can see why Charlie Sheen gets the parts,.: )
@youri
never wanted your stinkin’ money ….you know what you can do with your stinkin’ money put in the same place all those views about negative locals and your value as a tourist come from….it’s crap weather in england all the time but it doesn’t seem to deter the frikkin tourists….wenever I find myself behaving like a tourist I just end up feeling like I deserve to be mugged by a local..I might have to go and have another shower just talking about tourism tourist money makes me feel dirty…..
@patience…virtues just seem to bounce off me…maybe one day.
@Rich30 us degrees
easy tiger….schni…large german sausage..
enjoy…
http://cid-8ede9197aad998e3.skydrive.live.com/self.aspx/Public/Timothy%20Leary%20-%20You%20Can%20Be%20Anyone%20This%20Time%20Around.mp3
Scientology seeks to squash anonymity (online)
http://www.theregister.co.uk/2009/09/09/anonymous_backfire/
Climate alarmism is on its deathbed. By the end of this year the whole charade of climate alarmism will be in tatters. These are some examples of the events leading up to Copenhagen in December from CCNet with acknowledgement, followed by my interpretations… http://climaterealists.com/attachments/database/Collapse%20of%20Climate%20Alarmism.pdf
I like to add that people who believe in this CO2 hoax and think the eartth is warming up, have you ever thought about the fact that trough the warmth more water will vaporize and produce more clouds so in effect will reverse this devolpement? Nobody seems to realize and mention this, why? Cause the make money outtof the CO2 Hoax, that’s why!
It would come as no surprise to find that all of the Canadian Central Bank gold which was disposed of in 1994 was used as the basis for LTCM pyramid junk bond derivatives scheme, or something similar.
@stink
Noticed the Cocaine on money never the Stinking. Have you been using?
China’s $300 billion sovereign-wealth fund is eyeing big investments in distressed U.S. real estate, according to people familiar with the matter. To finance some of the deals, China may rely on an old trading partner: the U.S. government.
From: CIC Looks to Pile Cash Into U.S. Real Estate http://ow.ly/oDPc
@Youri,…..I wouldn’t get to wrapped up in your beliefs, causes a lot of tension.(you know,..proving to everyone)
If you’re right, you won’t have to pay carbon taxes,..: )
BTW,…what has right or wrong got to do with it,….just dress someone up in a fancy uniform and they can kill folk,..good huh!
@Youri:
Are the lizard people behind the climate CO2 conspiracy?
MUMBAI: Shrikant S Chouhan, senior vice president, technical research, Kotak Secutiries, is of the view that BSE Oil & Gas index is forming inverse Head & Shoulders and is in a bullish consolidation phase.
From: Hot picks from oil & gas space: Kotak Securities http://bit.ly/bnvvq
@ frances snoot
Depends on the defenition of Lizard People? I see people with one eyse more closed than the other if they try to look normal. These people lie for a business, don’t trust them! Saw in Becks face too. So Liars are Lizards!
Don’t see any Alien connection if that’s what you mean.
The Orwellian state meets the iPhone:
http://blogs.palmbeachpost.com/extracredit/2009/09/09/harvard-professor-creates-app-for-swine-flu/
@Youri:
I was hinting that Stacy asked we not discuss either lizards, lizards winking, lizards bundling up for cloudy weather, nor lizards dressed in three-piece suits planning our demise.
Only saying.
US Taxpayers Lose Big on Auto Investment, Panel Says http://bit.ly/CEDeb
09/09/09 and gold = ~$999
Anybody notice?
@F6 … Gold 999 …. wake me up on 31.12.09 please !
@FranSix:
If we stand on our heads the 999 becomes 666 and all the money falls out of our pockets!
I’m listening to the BBC World Service. Greenspan is talking about how there’s going to be (not a big shock) ANOTHER global economic crisis. Also, what was a big cause of this latest one? The fall of the Soviet Union. It’s all due to human nature. None of it’s MY fault of course.
As above so below,…..woooaaahh
http://www.youtube.com/watch?v=I9hyjgV7o-0
@Dedo…………..Gold as a store of wealth “will” become obsolete. Wealth “will” be shunned upon (uses up to much CO2),..over and out!
Dedo, will you please stop bringing me bad news!
Anyway, this is important. For once stop titting about and tell us what you know – why/how/when will gold become obsolete asa store of wealth? WE NEED TO KNOW!!
@FranSix
Exactly $!000 when I look.
JAVA based Real time Gold watcher: http://www.goldprice.org/live-gold-price.html
@Dedo:
Roman numerals don’t have zero, so toss out the Viciromaipopulus one.
@sharon,…..I’m like Cappo King (no offence Mike),..spend moocho hours studying lizards etc etc.
It’s a big jigsaw,….but once you are aware of the “goals” it’s easier to fit the pieces.
@Frances,…clever clogs,.!!
@T
Did you ever hear about a fictional book called, ‘The Ropespinner Conspiracy?’
The Russians develop a flawed mathematical financial scheme they are certain to be used by Wall St., thus hangink themselves by their own noose?
Funnier with a backwards ‘K’ I suppose.
A lot of speculation financed by the Dollar carry trade. Used to be the Yen.
Recap: Watch out for dollar carry trade http://tinyurl.com/npeusj
I dug out my ‘Hippie Wig’ not a modern crappy willie nelson one either mines from woolies circa 1970 I’m wearing it now..and I aint taking it off till….next solstice.
http://www.youtube.com/watch?v=selfqEH-JnY
anyway aint it 616…
http://en.wikipedia.org/wiki/616_(number)
@T: did greenspan really place the meltdown at the feet of the Soviet collapse???? I guess all those unpatriated ( covert??) trillions that Christopher Story refers to in his Wanta episodes are possibly on the level after all…anyone read http://www.worldreports.org ???????????
@Supergeek:
Regarding 616 vs 666:
Hell got lost in the translation!!!
@Dedo……………spend moocho hours studying lizards etc etc.
Oh, so the lizards told you, must be true then!
@S.herbert
Have you had enuff yet …or do you want some more?
New Decision-Making Approach Based On Computational Logic http://bit.ly/Tcd6Lvvv
@youri
this might not be the best time or place for a personal confession.
Russia now top oil exporter surpassing Saudi Arabia http://ow.ly/oF5c
Deutsche Bank Scraps Oil http://twurl.nl/ta8vm6
BP Makes ‘Giant’ Oil Discovery in Gulf of Mexico http://bit.ly/PKvcE
Let’s bring the banksters to their knees and take back this
once great country. There is absolutely nothing American about BofA. Imagine what a great country we could have if
we took the billions and billions of dollars we are handing over to these lowlife cowardly, weak, thieving scumbags and invested it in schools, health care, infastructure etc. Ken Lewis should be in jail. Rise up people and post this link everywhere you can.
http://www.youtube.com/watch?v=jGC1mCS4OVo
@Super,……..is Youri,.a a,..a liz,…ard!!
@Mr Supergeek
Ahaahhaaa! Catch your dift!
@Richard@Latitude30N:
The Russian collapse was precipitated by a collapse in the short-term treasury market: we had the same scare recently:
http://www.bloomberg.com/apps/news?pid=20601087&sid=a5MX8Y3f1NfQ
Summers and Rubin orchestrated the Russian collapse. Wonder is the pair will design our requiem as well?
http://www.youtube.com/watch?v=swkT07TP-mo
@Dedo:
in reference to Youri a lizard…
Takes one to know one.
@Derivatives
Ok, so here is an easier way of looking at derivatives and how to understand them better. I liken them to an inverted pyramid, a networked junk bond regime, where the apex is a ‘risk-free better than AAA’ asset called gold where liquidity is brought into the commercial banking sector. But there’s another way of looking at the whole thing.
An elephant is surrounded by visually-impaired economists each trying to determine what it is they have in the room with them. But the elephant goes on a rampage.
Allow me to point out that if you want to avoid being trampled by the elephant, then you have no choice except to grab the animal by the short and curlies. You might not find out exactly what the elephant is like, but man, did you ever just get intimate.
F6
@Dedo
No I am a magician. Self Portrait http://tinyurl.com/n6s2ry
@youri
note that only 1/6th of that oil is recoverable…
I think Zapata George was talking about that oil find on his last radio show…
He actually used a good analogy about the oil companies…
The BIG BOYS use BIG GUNS… so they need to “find” these large pools in order to stay in business at all…
whereas the juniors can get away with finding the smaller ones, closer to the surface and still make profit…
Like hunting Quail with a 10gA…
it’s pointless…
500M barrels won’t last more than a couple months of consumption, so that news is just smoke…
and if it’s the deposit he was talking about, they have to drill through a lot of SALT in order to get at it…
a slight Earth Tremor, and the pipe-line will get snapped like a glass straw…
you want and eco-disaster? There it is…
Wealthy individuals’ Chapter 11 bankruptcy filings jumped 73 percent in the second quarter from a year earlier, according to the National Bankruptcy Research Center, a research firm in Burlingame, California.
From: Wealthy Families Face Bankruptcy on Real Estate Crash http://tinyurl.com/nsggaq
@youri
cool…microchips with a sense of humour …whatever next….this I gotta see…I’m gonna have to look you up next time I’m in your land…no joke..be ready.
@youri,…..wow,….nearly as big as Frances’s hat
@youri
nice pitch…that is how I imagine alex jones head would look if he didn’t regularly nasal vent blood!
Just watched Max on Russia today (10 min. vid) – absolutely brilliant! Anyone watching that without financial know how would be able to understand very clearly what was being said. You’re a true professional Max.
@Max & Stacy,
Could you talk about Dollar Carry Trade, please? In your film on Iceland you mentioned Japan and Switzerland as the places to borrow at low interest rates. But now, this article
http://www.bloomberg.com/apps/news?pid=20601087&sid=aMjc5oqgd2Fg
says:
“The way everyone is funding their risky investments is by using dollars,” said Bilal Hafeez, [of] Deutsche Bank AG, the world’s largest currency trader. “They are borrowing dollars to invest in other markets.”
@Youri, you mentioned Dollar Cary trade also. Do you anticipate a strong rally in the USD when those investments go bust? (just as there was a strong rally in the yen a while back, a sort of currency short-squeeze)
100!
sometime ago..i had predicted 3 days for potential black swan events, 10 sep, 7 nov, 14 feb…
lets see if anything happens tomorrow..if it does ..i hope it helps my trade
@F6
uuhh 100…more101…..soz.
@Youri,
Your posts on finance are usually very sharp and on target. Its surprising to me then that you fall for global warming deniers’ hype. Their claims are easily disproved. For example, you mentioned increased temps causing more water vapor in the atmosphere. That would tend to increase, not decrease, global warming because H20 vapor is a greenhouse gas itself. (for every cloud you see there are millions of gallons of water vapor in the air that you don’t see) Water absorbs infrared heat energy given off by the earth…that’s how microwave ovens work in fact. Though its not as bad as CH4 or CO2.
You are right that the debate is driven by money & profits. Can you point to any CO2/global warming debate participants with more money than Exxon/Mobile’s $13 billion quarterly profits? Who? Who? Names?
Re: Gold, China gold
About the Beijing put on gold, is the ”Beijing put” something real or is it used more as an expression? If the general public in China starts to buy gold and silver will that have some effect on the gold price would the small buyers make a wave big enough to have an effect on the price? “…A report suggests that the Chinese government is pushing the general public into buying gold and silver bullion, which could have a dramatic effect on the markets….” “…The report notes that China’s Central Television, the main state-owned television company, has run a news programme letting the public know how easy it is to buy precious metals as an investment…” http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=88452&sn=Detail But at the same time the Chinese government wants to keep the price low…, doesn’t those two conflict with each other? Since China wants to buy more gold and apparently gets to buy an amount of gold one ends up with the same question as Evans-Pritchard asks; where is the gold going to come from? http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100000821/china-bernanke-and-the-price-of-gold/
@Max … on Russia today
Nice interview .. 100% !
doomandbloom:
On what basis your black swans will flock here?
Here is an interesting take based on the Mayan calender, November 8 is indicated:
http://www.calleman.com/content/articles/999_and_the_mayan_calendar.htm
Can you believe this???
http://www.infowars.com/media-blogosphere-react-to-sheen’s-request-for-meeting-with-obama/
“Separately, a few other blogs were up in arms about Sheen’s letter being a “hoax” because the disclaimer clarifying that the meeting with Obama was a stylized fictional account and not a real event did not get added to the bottom of the article until a little later due to technical snafus and a bombardment of traffic that shut down servers and locked out Infowars and Prison Planet webmasters. With the Infowars version having been copied across from Prison Planet, both original versions did not contain the disclaimer until the error was brought to our attention and promptly fixed as soon as we could gain access to servers that kept crashing, as many readers noted at the time. We added the disclaimer as soon as possible as well as other information that should have been included at the bottom of the original article regarding Sheen’s appearance on the show. We apologize for any confusion this may have caused and are trying to move our servers in house to prevent this routine occurrence from happening again.”
@GMO Foods
Secret FDA Memos Reveal Concerns About Genetically Modified Foods (GMOs)
http://www.youtube.com/watch?v=ubl4tYuoygo&feature=sub
@ frances S..
the dates are a mix of various understandings….i am afraid the details of these dates would make me sound too loony( which I am )…so its better to just present the results rather than the methodology…:P.
…it already looks like I am going to be wrong on the first one
@Chris,
Without the “green house gas” effect, (ie. water vapour, CO2, etc,) the temp. of the globe would be -15 Centrigrade.
Every Mass extinction in the fossil record has to do with a global cooling event. As the world got warmer, there was a greater diversity of life on the planet.
7 hot years in the late 90′s and early 2000′s; does this indicate a trend?
The problem with the ‘Global warming hypothesis’ is that it makes an assumption that now because CO2 levels exceed the global average temp. (a la ‘the Mann Curve’) that this is going to “drive” global average temp. even higher. Can anyone provide evidence for this?
Correlation does not equal cause and effect!
@Chrisvv
Don’t want to start a complete CO2 hoax debate here cause Max and Stacy wouldn’t like that but clouds can trap heat (especialy at night) but in the end block the sun and cools the earth. I am not a denier but a fact proover. It has been proved by taking ice samples and studying the air from thousends of years ago http://tinyurl.com/2t7pxf Conclusion: Co2 comes after the warming NOT before. I leave it by that.
@Sharon:
Thought about you when I saw this at the Steve Quayle site: US law but it is an interesting take:
http://www.lewrockwell.com/blog/lewrw/archives/35286.html
Gold is deflating to $1000.00.
DEFLATING!
@youri
s’cuse me for correcting you but I hope you mean ‘live by that’ though I’m sure a few would prefer you leave by that!
Treasury says millions more foreclosures coming http://tinyurl.com/mtsw7y
@youri
apologies…oops my mistake….gotta stop wearing other peoples glasses.
@Mr Supergeek
I mean Nuff Said.
Speaking about glasses, I publicly acknowledge that I look like a peace dividend dufous while wearing my glasses.
China can no longer afford to let gold or silver price slump
Chinese state endorsement of gold and silver as good investments means the country can no longer afford to let precious metals prices drop by any significant amount.
Author: Lawrence Williams
Posted: Wednesday , 09 Sep 2009
LONDON –
With Chinese state institutions hawking gold and silver to the general populace as a good investment (see China pushes silver and gold investment to the masses) – the latest news on this front being that the biggest Chinese bank, the Industrial and Commercial Bank of China (ICBC), is setting up a special precious metals department to handle growing investor demand for gold and silver within the country, the corollary is that therefore the country cannot afford to let precious metals prices fall substantially and thus alienate millions of its citizens who have been taking state advice to buy them.
..
..
http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=88887&sn=Detail
This is actually the first time I have seen an investment company advertising HFT technology. Apparently all that investing knowledge is not necessary any more since computers are doing all the work. Seems more like it is a matter of choice on how to gamble. Either open a trading account that uses HFT or go to the casino. Is there much of a difference?
TigerRock Capital Research website:
http://www.tigerrockcapital.com/key.php
@frances………thanks for that. I don’t have time to watch it right now (got to start dinner – you know, woman’s work never done and all that). I did notice that it says never talk to the police and I would definitely back that up if you are facing potential charges – not a word! And remember, you NEVER say ‘yes’ when they ask if you understand. Also very important is to never hire a lawyer if you are being charged with something under statute law (don’t know equivalent in America). The only law that cannot be circumvented here is common law and therefore a lawyer would be handy in that case.
Petrobras, BG and Repsol are jubilant over tests from a well in Brazil’s Santos pre-salt field, dubbed Guara, that show it could initially flow at 50,000 barrels per day, and could hold up to 2bn recoverable barrels of oil equivalent.
From: Oil field fever http://bit.ly/r6hFD
A year after financial crisis, a new world order emerges http://tinyurl.com/ll4dry
It’s official! Environmentalism is now a religion.
http://www.guardian.co.uk/uk/2009/sep/06/employment-tribunal-dismissal-climate-change
“Where knowledge ends, religion begins.”
– Benjamin Disraeli
@ hysterical religious nutjobs
Who’re the deniers now?
On 666 13 dead in central China gold mine fire http://bit.ly/dIPXe
On 666 13 dead in central China gold mine fire after 13BlackCats just posted
Great explanation of puts.
@oddnumberfelines
Recognized religion by the state does not change anything in regards to reality.
More a matter of popularity as a basis for appeal.
“Where knowledge ends, religion begins.”
Every fact one holds as a tenet for believe finds its basis in religion. every single one.
Religion is the choice to adhere to a species of perspective.
@It sickens me to watch …
… how WS pump Stocks UP, while the dump Gold DOWN !
A common definition is that of a group of organisms capable of interbreeding and producing fertile offspring of both genders, and separated from other such groups with which interbreeding does not (normally) happen.
http://en.wikipedia.org/wiki/Species
Religion is the procreation of perspective distinctive to ritualized behavior. Life itself can be referred to as a religion, but man classifies culture thusly, separating the metaphysical from the physical through the use of icons.
Next bubble to burst: Alt A and Option R morgages
http://www.brasschecktv.com/page/705.html
Just a thought about China’s declarations about gold. If the true intent is to increase your holdings of gold, why announce your intentions at all? Wouldn’t that be detrimental to your objectives? Like Max and Stacy said, the ‘Beijing puts’ – puts a floor under gold prices.
Perhaps China wants a floor under gold prices for an alternative reason.
For frances…….reuters.com Charlie Sheen its official
http://www.reuters.com/article/press…09+PRN20090908
The Alex Jones Show: Charlie Sheen Requests Meeting With Obama Over 9/11 Cover-Up
Actor demands investigation be reopened after majority of 9/11 Commission members say government lied about official story…..
@sharon … Reuters link
Page Not Found
Our apologies, the requested page was not found. Please double-check the URL for proper spelling and capitalization.
If you’re having trouble finding a page in Reuters, please choose from the options below:
…………………………………………………………………
Maybe they just realized it was a mistake ?
Or maybe their website got so OVERLOADED that they decided to take it down ?
100 more cancer lawsuits filed against Monsanto
Nearly 100 more cancer lawsuits filed against Monsanto
WINFIELD – Three weeks after an original 50 were filed, nearly 100 more lawsuits have been filed alleging Monsanto and related companies are responsible for causing cancer.
Like the other 50 filed earlier this month, the 97 newest complaints filed Aug. 24 in Putnam Circuit Court say Monsanto and its successor companies caused cancer by exposing the plaintiffs to dioxins/furans contamination of the air and property…
http://www.wvrecord.com/news/220760-nearly-100-more-cancer-lawsuits-filed-against-monsanto
@sharon
The AJ stunt was a major disappointment. It was like the ‘boy who cried wolf’. This stunt was not the most important event or revelation of the last 14 years as Alex hyped it to be.
Sure, it is noteworthy that Charlie Sheen is taking a stronger stand and I applaud him for it. While some will castigate the messenger, the message is no less valid.
We shall see if this causes the international stir Alex believes it will and it makes the MSM as much as he thinks it will. I think it will be mostly ignored except by people who already follow AJ.
@Phil………..this one works on the other site so should do here:-
http://www.reuters.com/article/pressRelease/idUS252554+08-Sep-2009+PRN20090908
@Sharon:
All of life’s a stage: and the ‘good guys’ are often willing participants in the last act.
Here’s the real Alex Jones:
http://www.infowars.com/the-alex-jones-action-figure/
Plastic, just like his message: swipe the card and realize your account balance.
Yep, that one works for me.
@ Dan II………….I agree, I was really annoyed when I realised the interview hadn’t actually happened, but nonetheless it has now made the msm and not just reuters so some good has come from this imo.
Sheen story also on these (I’m trying to post this again; didn’t work 1st time):-
http://www.chron.com/disp/story.mpl/…s/6609335.html
http://www.examiner.com/x-9341-Manhattan-Headlines-Examiner~y2009m9d8-Alex-Jones-publishes-fake-interview-of-President-Obama-with-Charlie-Sheen
http://blogtown.portlandmercury.com/BlogtownPDX/archives/2009/09/08/charlie-sheens-911-conspiracy-interview-with-obama
http://www.prisonplanet.com/media-bl…ith-obama.html
http://www.afterellen.com/node/58535
http://www.associatedcontent.com/art…es.html?cat=49
http://gawker.com/5354916/charlie-sh…-the-president
http://finance.yahoo.com/news/The-Al….html?x=0&.v=1
@Stacy
holy cow…pick a quieter a cafe.
it’s one thing to have to try and hear your guys over the espresso maker and coffee grinders….but that cheeze ass musack?
I’ve just tried twice to post 8 other links carrying the Sheen story but it wouldn’t let me (not awaiting moderation either).
http://www.youtube.com/watch?v=Kin1fxZAJZE
Here’s the 2nd part to the video DANNY was pointing at
re:Alt A and Option ARM mortgage defaults…
that graph was pretty ugly… $1.5Trillion toilet flush…
ZOINKS!!!!
I suspect we are going to have a problem in Canada as well with mortgages…(which Shedlock hints at but doesn’t quantify the issue)
I have friends that are on 30 year Variable Rate mortgages for homes that are inflated in value (Vancouver is a joke for house prices…)
and when the BoC decides to start putting the interest rates back up, they are all going to get hit…
China is now a net SELLER of U.S. Treasury notes and bonds!
http://www.moneyandmarkets.com/china-is-now-a-net-seller-of-us-treasury-notes-and-bonds-2-35365
Higher Interest Rates: Not a Question of ‘If’ but ‘When’
http://seekingalpha.com/article/160163-higher-interest-rates-not-a-question-of-if-but-when
Swiss topple U.S. as most competitive economy: WEF
http://www.reuters.com/article/newsOne/idUSTRE58718620090908
Good Russia Today interview Keiser
The Alex Jones Show: Charlie Sheen Requests Meeting With Obama Over 9/11 Cover-Up
http://www.reuters.com/article/pressRelease/idUS252554+08-Sep-2009+PRN20090908
Use Google dudes…
Hey Max, your Japanese fishing story (about tuna and other fish) has made it onto Channel as a key story. Apparantly the EU is telling Japan to stop it (at least I think that’s what they said, I was multi-tasking at the time).
Also, US healthcare issue now being discussed.
The U.S. Dollar Is Now Officially In Trouble
In an article published Sunday by the Telegraph-UK in London, and the content of which was not to be found anywhere near the mainstream media in the U.S., a former high level Chinese Communist Party official spoke quite candidly about the steps China is taking to protect itself from the catastrophically reckless fiscal and monetary policies being executed by the Fed and the Obama Administration:
..
..
http://truthingold.blogspot.com/2009/09/us-dollar-is-now-in-trouble.html
Oops, meant to say Channel 4 (main news here in UK).
China is now a net SELLER of U.S. Treasury notes and bonds!
http://www.moneyandmarkets.com/china-is-now-a-net-seller-of-us-treasury-notes-and-bonds-2-35365
Higher Interest Rates: Not a Question of ‘If’ but ‘When’
http://seekingalpha.com/article/160163-higher-interest-rates-not-a-question-of-if-but-when
Swiss topple U.S. as most competitive economy: WEF
http://www.reuters.com/article/newsOne/idUSTRE58718620090908
Good Russia Today interview Keiser
@Phil – that’s awesome that you saw the Russia Today interview! I am still waiting for the Youtube version of it . . . will post it as soon as I get it
@Sharon – I think the spam guard throws anything to spam that has more than five or six links
Also I think for some reason the spam guard has tagged ‘gold’ and ‘China’ as a spam word? Hard to tell though
@sharon
Perhaps. A few more people will take a look than would have otherwise. From the few items I have read, the bigger story seems to be the ‘hoax’ perpetrated by Alex. Although it is claimed that the disclaimer was accidentally left out of the original version, I find that a bit hard to swallow. It was presented as an exposive event. A fictional letter is not an explosive event. Charlie Sheen seeking an audience (audience, like Obama is the pope – sheesh) is not an explosive event. Recall that Alex said that anything happened to him, this information was set to get out regardless. Alex misjudged the reaction to this stunt.
I hope you are right and some good will come from this and that he has not harmed the growing consensus calling for a new investigation into the events of 911.
@stacy
I posted the youtube link to the RT interview earlier, around comment 50 I think.
http://www.youtube.com/watch?v=d-UUBTASHHU
RT interview with Max
WAHAHHH!
SALES OF CHAMPAGNE is DOWN 20 percent in Belgium FIFTY PERCENT DOWN IN THE US!!!!
champagne producers are lowering their champagne production by FOURTY percent!!!
@Youri:
Try Reuters: dude
http://search.us.reuters.com/query/?q=The%20Alex%20Jones%20Show%3A%20Charlie%20Sheen%20Requests%20Meeting%20With%20Obama%20Over%209%2F11%20Cover-Up&s=US&searchWhere=NEWS
@stacyherbert
Yep, and I LL UM INATI
@frances snoot
Let me fill you in here. On a lot of webpages the search function is a load of crap.
@lastoftheantimodernists
Maybe we can make an engine running on Champagne to help them
US Girl Scouts prepare for war, pestilence http://tinyurl.com/nwkz9y
Temp Chart Hiring Shows Job Rebound Isn’t Imminent http://twitpic.com/h3oad
Coming Soon: Interest-Only Mortgage Defaults http://bit.ly/dZjOB More bad news for Real Estate
@Youri:
Ditto Alex Jones…er….load of crap.
Max is on Russia Today again (I think a different segment coz hr’s talking about Americans feeling sick which I don’t recall from the 1st bit). It’s good coz Russia Today will show it several times today and possibly other days as well.
@Youri
“Maybe we can make an engine running on Champagne to help them”
http://bible.cc/ecclesiastes/1-9.htm
In 1913 Jules Goux consumed six bottles of champagne on his way to winning the Indy 500.
http://www.mudsharkracing.com/goux.htm
@Stacy…thanks, I’ll bear that in mind.
Floating Derivatives In Uncertain Waters Increases Risk of Drowning http://bit.ly/YgiuR
@Dan II……….It’s made the msm in a big way and even more importantly it goes through the major inconsistencies – I’d say that’s a big deal! If people begin to understand that their gov and the banksters are capable of such an evil act there will hell to pay. If I’m wrong on that then I bloody give up!
The Lizard People have force-fed Alex Jones Nigerian Yellow-Cake!!!!
STAND BACK!!!
http://www.youtube.com/watch?v=LhqUk28OwHs
@Max – All
This stuff must be interesting with your Wallstreet Software background and all.
Ptech built Supply Chain Infrastructure – Destruction of Free Market http://www.vimeo.com/5770472
@francis: so you hold no credence to the Christopher Story tale that a Leo Wanta was involved in a covert operation promoted by Reagan to topple the Soviet ruble that amounted to several trillion??? see the archive @ http://www.worldreports.org ??????
@Richard@Latitude30N:
No! I was only speculating about short-term Treasuries.
@Youri
That Ptech Vid was creepy…
but, I’ve found flaws in the UNISYS promise…
(to which I won’t discuss it)
Although Sandra Bullock’s character intimated the underlying issues…
however,
I need to know…
Are you a Spook?
You better fess up, or else I will track you down
and Urine-board you…
HEY YOU!!!!
YES YOU
Why haven’t you gotten in on the action on PIRATE MY FILM yet?
A Tequila with God
is going to be a fuckin HIT
like EL MARIACHI was in the early 90′s
Just think…
by ordering a handful of copies
you could potentially get a return of 4500%
That’s a helluva lot better than GOLD, kids…
even a 10 bagger won’t get you that kind of cash
AND a good flick to boot!!!
Don’t DELAY
DO IT
NOW
Thou art the Executive Producer
Fuck hollywood with a flaming broom handle
@William & Youri,
I respect your CO2 comments. Like you say Youri, let’s not debate this here and let’s stick to the financial stuff….but its a debate worth having.
Sry – off topic
@ Giuseppe Bagoshite
The Lizard People have force-fed Alex Jones Nigerian Yellow-Cake!!!!
STAND BACK!!!
Haha, thanks for that.
The romanisation, the translation system, of the city formally known as Peking, changed not the city. Or did I miss the joke?
Excellent show by the way. I like to hear a little bit of trading talk personally.
Good show, a marked improvement of the weirdness of his Alex Jones hit last week.
My continued struggle in the inflation debate, check this out, this is the Virginia Tech radio station listserv, I am the only one that isn’t buying this guy Daniel’s wild claims and outrageous premises for them:
For the hundred and first time, the money supply, look at it, yet note that it
hasn’t been injected into the economy yet!
“But the rule of thumb is that money added to the money
supply by a central bank starts to have it full effect about six months after
being added.” – This is what I said to you a year ago, however, the trillions
added to the money supply haven’t seen the light of day yet, look at the senate
hearings grilling the Fed people on the whereabouts of the money. THe banks
have hoarded the money, not increased lending or liquidity. You can’t say just
because it’s a year later there won’t be inflation. Yes, there is wage
deflation and in commodities, but that doesn’t have anything to do with the
point about money actually being injected into the real economy, as opposed to
sitting on banks’ secret balance sheets no one can see. And the POINT IS – at
what point the money gets injected into the real economy!!!!!
You’re ignoring quite a bit while pointing to things like the CPI like it’s the
only thing worth looking at, and we can go on ignoring these other
insignificant things like 20 tril, unknown amounts of money that are worth
knowing.
“But where did that money come from? You didn’t have it
> before and neither did the bank, the merchants or the rest. The answer is
> that
> within the group of you, you all have created $500 and added it to the money
> supply.”
Yes, where did the money come from? You’re correct in later saying that the
gov’t didn’t create it. Private banks did. Under the name of the Federal
Reserve. They are loaning it to us at interest. This is a big reason we
parted with England (the Bank of England) when we fought the Revolutionary war.
Then in 1913, after a lot of struggle since that time, the Bank of England wins
back control of our central banking system through the illegitamite Federal
Reserve Act, written by bankers, not legislators. So we stop having a truly
national central bank – in the Constitution it says that only Congress has the
authority to coin and regulate money. This was a big deal since the founding
of this country. But go ahead and continue to defend the private bankers.
Just because gold mining is bad for the environment? or is there another
reason?
People are going back to work? Things are going to be OK? Read the headlines?
YOU are the wingnut!
By the way the unemployment figures in the US are fudged in a major way. They
leave out the people who were already unemployed the month before, things like
that.
Quoting Daniel Heyman :
>
>
>
> Hey, that’s a really video cool! I had an economics professor who
> gave the class the lyrics to that Peter Tosh song to study in a class on
> economic crises.
>
>
>
> TWENTY FOUR YEARS AGO, IN ***1985***
>
>
>
> The dollar still hasn’t “died.”
>
>
>
> And as a matter of fact, that professor was a Marxist. And a
> real one, not a “Nancy Pelosi/George Soros/Barack Obama is a Socialist who
> wants to take my guns” teabag boogyman Marxist, either.
>
>
>
> Mr. Dyke wrote “I said mark my word, there will come a day.”
> Well I did mark his words. That’s the point. A year later and still no
> hyper-inflation, still no martial law. I really don’t want to get into this,
> but since I’m desperate for a reason to be smug, I guess I’ll have to run a
> clinic in basic economics.
>
>
>
> (I’m not even going to bother refuting a bunch of broken
> links about job openings as National Guard internment camp guards. Must be
> the
> people who are going to operate the Obama Care Death Panels. This shit gets
> too
> incoherent to even argue over. By the way, a little more openness at the fed
> is
> probably not a bad idea, but also not a big deal. Nothing compared the
> reality
> that the Keynesians at the central banks just rescued our collective asses,
> and
> may even make money for the taxpayers doing it.
> http://www.nytimes.com/2009/09/11/business/11bailout.html?hp)
>
>
>
> The question before us (not that I expect Mr. Dyke to
> listen) is why do we not have hyper-inflation? Another way to put this is to
> ask why did even a monetarist as dedicated as Milton Friedman totally oppose
> the gold standard?
>
>
>
> Let’s start with Chart One – the CPI, which you should find
> attached to your e-mail. This is the inflation rate. Since average prices are
> in real danger of falling off the bottom of the chart, I think we can agree
> that we are not in hyper-inflation.
>
>
>
> But wait, ask the wingnuts, how can that be? The central
> banks and others (notably in the U.S. the fed and the treasury department)
> have
> been adding to the money supply at a furious rate. See Chart Two – The Money
> Supply. It’s been exploding, especially starting about a year ago. The
> theories
> we wingnuts all follow says when the money supply goes up, so must prices.
>
>
>
> But the rule of thumb is that money added to the money
> supply by a central bank starts to have it full effect about six months after
> being added. Yet prices have not exploded. And they won’t.
>
>
>
> See Chart Three – Bank Credit. If you look closely you will
> see that bank credit dropped off sharply last fall, right at about the same
> time the money supply was really starting to increase. This is not an
> accident.
> The increase in the money supply was made to (and had the effect of)
> REPLACING
> the money that was in essence being taken OUT of the system by the banks.
>
>
>
> To see how this works we need to take a step back. The first
> thing we have to understand is that banks, merchants, credit card companies
> and
> consumers ADD MONEY TO THE MONEY SUPPLY EVERY DAY. It’s a normal result of
> how
> credit operates. This about it this way – say you have no money, but you get
> a
> credit card in the mail. You use that plastic to go out and buy $500 dollars
> worth of stuff. The merchants get their $500 and pay their workers and
> suppliers etc. So that $500 worth of purchases represent economic activity.
>
>
>
> But where did that money come from? You didn’t have it
> before and neither did the bank, the merchants or the rest. The answer is
> that
> within the group of you, you all have created $500 and added it to the money
> supply.
>
>
>
> Now, this makes people nervous. It should. Ideally this new
> money is absorbed into the growing economy and put to use. This is the second
> thing we need to understand – capitalist economies HAVE to grow, or they get
> sick. But they normally increase by several percent per year. Which means we
> can have, in fact SHOULD have an increasing money supply to match that
> growth.
>
>
>
> But just because someone mails you a credit card does not
> mean you or the economy can afford to run up a bunch of debt. But the fed and
> the treasury only deserve a small part of the blame for letting that
> situation
> get out of control.
>
>
>
> What they have done, and done it well in this case, is deal
> with the crisis that comes when everyone in the system shits in their pants
> and
> realizes they can’t maintain the pace of growth. The government is not the
> only
> one adding to the money supply, but it’s the only one that can decide it
> wants
> to step in when everyone else is pulling back. That’s one essential lesson of
> Keynesianism.
>
>
>
> Which brings us to Milton Friedman and the gold standard.
> The production of gold IS terrible for the environment and for the people who
> have to mine it or live around the mines. But the essential point about it
> economically is that it is inflexible. You can’t increase the amount of it
> when
> the economy needs a larger money supply. Which is why Friedman was totally
> opposed to anything like a gold standard. Friedman said the money supply
> should
> be increased at a slow steady rate – three or four percent per year – in
> harmony with the level of economic growth. But it was to be an INTENTIONAL
> increase,
> not just a random thing that depends of the mining company in Alberta or
> South
> Africa hitting a rich vein.
>
>
>
> How can I say that the fed and the treasury have done a good
> job in handing this crisis? I’ll let you read the headlines for yourself, but
> one key measure (the one the president has pointed to) is that the
> unemployment
> rate seems to be topping out. People are going back to work. There are other
> metrics to watch: as we’ve seen inflation is not going hyper; the dollar is
> down and gold is up, but neither one by much; the banks are paying the TARP
> back; and federal bonds are still selling well at a good price.
>
>
>
> Then there is the stock exchange – chart 4. I’m not a big
> fan of measuring everything by stock prices, but in this case there is a
> clear
> corollary pattern. Stock exchanges tend to be a leading indicator, several
> months ahead of the broader economy. And last summer the bottom fell out of
> the
> Dow. But it’s been climbing since the beginning of the year.
>
>
>
> Class dismissed.
>
>
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> Dan Heyman
Hi,
I live in the USA. I’m not happy at all with what wall street et al have gotten away with. I don’t think I’m a complete idiot or have no idea of what is going on here.
I would appreciate Max not talking about how dumb down we Americans are or that we don’t know whats going on. Many posts on blogs, articles, and forums are removed if they don’t support the insanity.
I’ve been to UK and Paris and have a lot of nice people as well as a number of people who are … truly stupid!
Have a good day