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This Doesn't Sound Good....or Sound

Please read Karl Denninger's post Bernacke, Game Over? linked below

...."Treasury prints Ts to finance its operations but the guy who buys them is the guy who prints the money in exchange. Therefore every additional Treasury sale is no longer a debt sale, it is an act of printing money by the Central Bank and destroys the standard of living of everyone in The United States.

This, should Ben engage in it, is a willful act of destruction of your private property rights, your wealth, and your income. It is not an accident, it is not "necessary" and it solves exactly nothing.

It is simply an attempt to defraud - yet again - the American People, this time by attempting to "make ok" the financing of deficit spending that the market simply will not support at the price Treasury wishes to pay."

This would be significant....Could the Economics Experts on here weigh in please?

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Where is Republicae?

I haven't seen him here lately...can anyone clue me in?

"I truly wish that real life would no longer surpass the worst excesses of my nightmarish imaginings... Arthur Silber **

"I think we are living in a world of lies: lies that don't even know they are lies, because they are the children and grandchildren of lies." ~ Chris Floyd

If I make a republicae come back thread, will y'all keep it bump

ed? I miss his input on things.

Thank you Dr. Paul for making me act on what I already knew was right.

*May the only ones to touch your junk, be the ones you want to touch your junk.*

someone said

he still comes here just sporadically....

how about Lisa C?...she is just disappeared since her short moderating period.


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Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Depressing Monday

News Bump.

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This is

probably the most important article in months. This is Insane.

and this is whats funny..

and this is whats funny.. everyone thinks the strenghtening dollar is do to people finding safehaven in the dollar,. your article/post points this out! the government has turned to WITHIN to finance itself.. look at what gold has been doing lately! this tells the story! look below your post supports this!

Jim’s Formula:
September 1, 2006

1) First interest rates rise affecting the drivers of the US economy, housing, but before that auto production goes from bull to a bear markets.
2) This impacts many other industries and the jobs report. An economy is either rising at a rising rate or business activity is falling at an increasing rate. That is economic law 101. There is no such thing in any market as a Plateau of Prosperity or Cinderella - Goldilocks situations.
3) We have witnessed the Dow rise on economic news indicating deceleration of activity. This continues until major corporations announced poor earnings, making the Dow fall faster than it rose, moving it deeply into the red.
4) The formula economically is inherent in #2 which is lower economic activity equals lower profits.
5) Lower profits leads to lower Federal Tax revenues.
6) Lower Federal tax revenues in the face of increased Federal spending causes geometric, not arithmetic, rises in the US Federal Budget deficit. This is also true for cities & States as it is for the Federal government.
7) The increased US Federal Budget deficit in the face of a US Trade Deficit increases the US Current Account Deficit.
8) The US Current Account Balance is the speedometer of the money exiting the US into world markets (deficit).
9) It is this deficit that must be met by incoming investment in the US in any form. It could be anything from businesses, equities to Treasury instruments. We are already seeing a fall off in the situation of developing nations carrying the spending habits of industrial nations; a contradiction in terms.
10) If the investment by non US entities fails to meet the exiting dollars by all means, then the US must turn within to finance the shortfall.
11) Assuming the US turns inside to finance all maturities, interest rates will rise with the long term rates moving fastest regardless of prevailing business conditions.
12) This will further contract business activity and start a downward spiral of unparalleled dimension because the size of US debt already issued is of unparalleled dimension.
Therefore as you get to #12 you are automatically right back at #1. This is an economic downward spiral.

I heard all this "slow business" as negative to gold talk in the 70s. It was totally wrong then. It will be exactly the same now.

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

How do we tell that BB is definitely decided to be

'the buyer of last resort' .... if he goes this direction to keep the yield down that is where he lands right .... game over. How do we track it?