Nine in ten homeowners with positive equity! Soon the government will come to seize that as well...

We're from the government and we're here to HELOC your home.

Shhh.. don't say that out loud!

//US and Europe same side of coin trying to look different?//

Multiple choice for Americans, due July 1st given California budget deadline:

(a) Bailout about California in 2009 to the tune of $30B or so by the time it gets done. Bailout out California again in 2010, 2011, and 2012 while California voters simultaneously increase spending for things such as public sector pension spending through the ballot initiative process. Buy stock in kneepads for the next 3 years.

(b) Do not bailout California and watch the municipal bond market melt apart. Could be worse than Lehman Brothers and kick off the "second slope down" part of the W-shaped recession.

American taxpayer, the choice is yours. As Denis Leary once said please try to get your whole head in front of the shotgun before pulling the trigger.

I wasn't around yesterday for the comment-feature-brainstorm:
a) I'd prefer a system where users could choose how they want to see the posts... so if there was moderation one could choose to view thread in moderated mode; and one could view the thread in classic mode.
b) How about a feature that is the opposite of "ignore"... kind've a "favorite" button and those posters comments will appear boxed (like CR and the user's posts appear).

As far as market goes, not just California crises; but I'm not so sure the GM bankruptcy will be as expedited as the Chrysler one.

“We have complete trust in the fact that the U.S. views its strong-dollar policy as fundamental,” Yosano, 70, said in an interview in Tokyo on June 10 before attending a Group of Eight meeting of finance ministers starting today in Italy. “So our trust in U.S. Treasuries is absolutely unshakable.”

Basically every large holder of T's says they are worried about them while having confidence in them. At least they can say they were right about whatever ends up happening.

Re: Paul Krugman (somewhat OT)
Anyone see his NYT Op-Ed today? Why is an economist writing a political hit-piece? Aren't there better things for economists to write about? Really, this guy has a shred of integrity left? Let's have our Nobel Prize winning Economist write about politics; that sounds like a great fucking idea. Instead of writing something meaningful and academic about the economy; I can only assume he has nothing nice to say about the economy.

Sorry; but I was thinking about why I continue to read CR. You know why I value CR and fellow posters? First, there is transparency. I'm fairly certain CR is not getting money from people who depend on his analysis being "rosy". Additionally, while I believe CR leans left (and seemingly most posters do; although probably more libertarian?) I don't feel like he is antagonizing left-right arguments. ie. CR does not have to go into "political hack" mode. Furthermore, long-time posters here who are from different parts of the spectrum can come here and fairly rationally have arguments. And the print-media wonders why they are dying? I prefer having the truth and facts told to me by people ("blogs") that are free of the strings that come with the traditional print media.

And really, as I was watching CNBC this morning I couldn't figure out what the difference was in getting financial advice from here or on CNBC. I really could care less if some guy represents "Blah-blah Investment Group". Infact, a guy in a suit with a wire sticking out of his head shilling on TV seems less trustworthy than an older-than-middle-aged lawyer from Florida, someone whose handle is a controversial pun on the Holocaust, and various other folks who actually appear to have some relevant experience they can share.

I think Krugman's column deserves as much scrutiny as his un-mentioned meeting with Barack Obama in the Whitehouse... in fact why would he put this out unless he was trying to get back in the good-graces of the Democrat party? But really; who pays "Economists" to be attack dogs? And as to the point of his article; crazy-people do crazy things. The way this story was trumped up really pissed me off... was he the only guy who shot someone on Wednesday? This security guy was the only person who was killed by gunfire on Monday? Doesn't it make sense that more moderate politics and public rhetoric might lead to fewer crazy people? Furthermore, while stuck in the airport trying to avoid CNN on the limitless TVs in the terminal, all tuned to one damn station, CNN went to the crazy-guy's website and broadcasted his disgusting views to the whole damn universe. What was the point of that? They treat the embarrasing David Carradine death story with kid gloves, and walk around what happened... but hey, this crazy-old-guy with a gun... let's spend the whole day profiling him and fear mongering that there are only a certain-type of crazy people out there.

Comrade Coinz-

Yeah I don't get that one. When $134B moves around the world, someone will tend to notice.

Now for something completely different. Okay, put on your tinfoil beanies for this post. A few days ago I was having a discussion with an old friend of mine about synchronicity. My latest trip down the road of seemingly random events brought together was triggered by watching 2001. Love that movie. Anyway, I did some research on Kubrick afterwords and ended up reading a lot about the black stone in the Kaaba and the black stone(philosopher's stone) some say is a goal of Kabbalah. Both have oral traditions that date back to Abraham and Ishmael. Kubrick means cubed brick...the Kaaba is a cube...the numbers 3 and 4 figure prominently in Kabbalah...2001 backwards is 12...etc...lots of good conspiracy crap. You can even tie the Luciferians into the mix with Prometheus/Enki/Atlas... Anyway, during this conversation, BlackRock and Blackstone flashed in my mind, and I remembered both companies had a lot to do with mortgage back securities, and I wondered how they were surviving this financial meltdown. And this morning, I read on Bloomberg that BlackRock buys Barclays to become the world's largest fund manager with more assets than the Federal Reserve. All the nuts think the philosopher's stone is about ultimate knowledge and eternal life.....I think the classical alchemists were trying to turn lead into gold as well though. It seems BlackRock just turned a huge lead balloon into gold. Something to think about.

@WiW-BoT?

I am so tired of listening to the constant carping from the don't-dare-raise-my-taxes jackasses who promote "Libertarian" minimalism and "creative destruction" that I'm about ready for option B - since so many of them seem (deliberately?) obtuse to the results of the Lehman experiment. Still feels like cutting one's nose off to spite themselves.

How about it BondGirl? It seems to me we've got historical experience with muni-bond defaults - do you think a Cali collapse would cause the market to melt down, or is that a state-by-state evaluation? I would think some money would fly to safer bonds (higher rated states), but maybe not.

global manufacturing -20%+ = depression
global real estate -40% = severe depression
global consumer -7% = severe recession
global finance -35% = severe depression

and offsetting all of this...

global government debt financing to the tune of 10% of gdp, being underwritten by central banks.

Bottom line, the economy would be in depression, except for exploding government deficits.

Yep, that's a sustainable green shoot.

Comrade Scott (profile) wrote on Fri, 6/12/2009 - 9:44 am

I am so tired of listening to the constant carping from the don't-dare-raise-my-taxes jackasses who promote "Libertarian" minimalism and "creative destruction" that I'm about ready for option B - since so many of them seem (deliberately?) obtuse to the results of the Lehman experiment.

As opposed to the brave new world of printing money to meet your obligations?

Hyperinflation - Wikipedia, the free encyclopedia

Examples of hyperinflation

Angola
Angola went through its worst inflation from 1991 to 1995. In early 1991, the highest denomination was 50,000 kwanzas. By 1994, it was 500,000 kwanzas. In the 1995 currency reform, 1 kwanza reajustado was exchanged for 1,000 kwanzas. The highest denomination in 1995 was 5,000,000 kwanzas reajustados. In the 1999 currency reform, 1 new kwanza was exchanged for 1,000,000 kwanzas reajustados. The overall impact of hyperinflation: 1 new kwanza = 1,000,000,000 pre 1991 kwanzas.

Argentina
Argentina went through steady inflation from 1975 to 1991. At the beginning of 1975, the highest denomination was 1,000 pesos. In late 1976, the highest denomination was 5,000 pesos. In early 1979, the highest denomination was 10,000 pesos. By the end of 1981, the highest denomination was 1,000,000 pesos. In the 1983 currency reform, 1 Peso argentino was exchanged for 10,000 pesos. In the 1985 currency reform, 1 austral was exchanged for 1,000 pesos argentinos. In the 1992 currency reform, 1 new peso was exchanged for 10,000 australes. The overall impact of hyperinflation: 1 (1992) peso = 100,000,000,000 pre-1983 pesos.

Austria
Between 1921 and 1922, inflation in Austria reached 134%. With the highest banknote in denominations of 500,000 Austro-Hungarian krones.

Belarus
Belarus went through steady inflation from 1994 to 2002. In 1993, the highest denomination was 5,000 rublei. By 1999, it was 5,000,000 rublei. In the 2000 currency reform, the ruble was replaced by the new ruble at an exchange rate of 1 new ruble = 1,000 old rublei. The highest denomination in 2008 was 100,000 rublei, equal to 100,000,000 pre-2000 rublei.

Bolivia
Bolivia went through its worst inflation between 1984 and 1986. Before 1984, the highest denomination was 1,000 pesos bolivianos. By 1985, the highest denomination was 10 Million pesos bolivianos. In 1985, a Bolivian note for 1 million pesos was worth 55 cents in US dollars, one-thousandth of its exchange value of $5,000 less than three years previously.[12] In the 1987 currency reform, the Peso Boliviano was replaced by the Boliviano at a rate of 1,000,000 : 1.

Bosnia-Herzegovina
Bosnia-Hezegovina went through its worst inflation in 1993. In 1992, the highest denomination was 1,000 dinara. By 1993, the highest denomination was 100,000,000 dinara. In the Republika Srpska, the highest denomination was 10,000 dinara in 1992 and 10,000,000,000 dinara in 1993. 50,000,000,000 dinara notes were also printed in 1993 but never issued.

Brazil
From 1986 to 1994, the base currency unit was shifted three times to adjust for inflation in the final years of the Brazilian military dictatorship era. A 1967 cruzeiro was, in 1994, worth less than one trillionth of a US cent, after adjusting for multiple devaluations and note changes. A new currency called real was adopted in 1994, and hyperinflation was eventually brought under control. The real was also the currency in use until 1942; 1 (current) real is the equivalent of 2,750,000,000,000,000,000 of old reals (called réis in Portuguese).[13]

Bulgaria
During 1996 the Bulgarian economy collapsed due to the BSP's, slow and mismanaged economic reforms, its disastrous agricultural policy, and an unstable and decentralized banking system, which led to an inflation rate of 311% and the collapse of the lev, with an exhange rate $1:Lev reaching 1:3000. When pro-reform forces came into power in the spring 1997, an ambitious economic reform package, including introduction of a currency board regime and pegging the Bulgarian Lev to the German Deutsche Mark (and consequently to the euro), was agreed to with the IMF and the World Bank, and the economy began to stabilize.

Chile
Beginning in 1971, during the presidency of Salvador Allende, Chilean inflation began to rise and reached peaks of 1,200% in 1973. As a result of the hyperinflation, food became scarce and overpriced. A 1973 coup d'état deposed Allende and installed a military government led by Augusto Pinochet. Pinochet's free-market economic policy ended the inflation and except for an economic depression in 1981 the economy has recovered. Overall impact of the inflation: 1 current Chilean Peso = 1,000 Escudos.

China
As the first user of fiat currency, China has had an early history of troubles caused by hyperinflation. The Yuan Dynasty printed huge amounts of fiat paper money to fund their wars, and the resulting hyperinflation, coupled with other factors, led to its demise at the hands of a revolution. The Republic of China went through the worst inflation 1948-49. In 1947, the highest denomination was 50,000 yuan. By mid-1948, the highest denomination was 180,000,000 yuan. The 1948 currency reform replaced the yuan by the gold yuan at an exchange rate of 1 gold yuan = 3,000,000 yuan. In less than 1 year, the highest denomination was 10,000,000 gold yuan. In the final days of the civil war, the Silver Yuan was briefly introduced at the rate of 500,000,000 Gold Yuan. Meanwhile the highest denomination issued by a regional bank was 6,000,000,000 yuan (issued by XinJiang Provincial Bank in 1949). After the renminbi was instituted by the new communist government, hyperinflation ceased with a revaluation of 1:10,000 old Renminbi in 1955.

Free City of Danzig
Danzig went through its worst inflation in 1923. In 1922, the highest denomination was 1,000 Mark. By 1923, the highest denomination was 10,000,000,000 Mark.

Georgia
Georgia went through its worst inflation in 1994. In 1993, the highest denomination was 100,000 coupons [kuponi]. By 1994, the highest denomination was 1,000,000 coupons. In the 1995 currency reform, a new currency lari was introduced with 1 lari exchanged for 1,000,000 coupons.

Germany

Main article: Inflation in the Weimar Republic

Germany went through its worst inflation in 1923. In 1922, the highest denomination was 50,000 Mark. By 1923, the highest denomination was 100,000,000,000,000 Mark. In December 1923 the exchange rate was 4,200,000,000,000 Marks to 1 US dollar.[14] In 1923, the rate of inflation hit 3.25 × 106 percent per month (prices double every two days). Beginning on November 20, 1923, 1,000,000,000,000 old Marks were exchanged for 1 Rentenmark[14] so that 4.2 Rentenmarks were worth 1 US dollar, exactly the same rate the Mark had in 1914.

Greece
Greece went through its worst inflation in 1944. In 1942, the highest denomination was 50,000 drachmai. By 1944, the highest denomination was 100,000,000,000,000 drachmai. In the 1944 currency reform, 1 new drachma was exchanged for 50,000,000,000 drachmai. Another currency reform in 1953 replaced the drachma at an exchange rate of 1 new drachma = 1,000 old drachmai. The overall impact of hyperinflation: 1 (1953) drachma = 50,000,000,000,000 pre 1944 drachmai. The Greek monthly inflation rate reached 8.5 billion percent in October 1944.

Sweeping up the banknotes from the street after the Hungarian pengo was replaced in 1946

Hungary
Hungary went through the worst inflation ever between the end of 1945 and July 1946. In 1944, the highest denomination was 1,000 pengő. By the end of 1945, it was 10,000,000 pengő. The highest denomination in mid-1946 was 100,000,000,000,000,000,000 pengő. A special currency the adópengő - or tax pengő - was created for tax and postal payments [1]. The value of the adópengő was adjusted each day, by radio announcement. On January 1, 1946 one adópengő equaled one pengő. By late July, one adópengő equaled 2,000,000,000,000,000,000,000 or 2×1021pengő. When the pengő was replaced in August 1946 by the forint, the total value of all Hungarian banknotes in circulation amounted to one-thousandth of one US dollar. [15] It is the most severe known incident of inflation recorded, peaking at 1.3 × 1016 percent per month (prices double every 15 hours) [16] . The overall impact of hyperinflation: On 18 August, 1946 400,000,000,000,000,000,000,000,000,000 or 4 × 1029 (four hundred octillion [ short scale ] ) pengő became 1 forint.

One source [2] states that this hyperinflation was purposely started by trained Russian Marxists in order to destroy the Hungarian middle and upper classes. The 1946 currency reform changed the currency to forint. Previously, between 1922 and 1924 inflation in Hungary reached 98%.

Israel
Inflation accelerated in the 1970s, rising steadily from 13% in 1971 to 111% in 1979. From 133% in 1980, it leaped to 191% in 1983 and then to 445% in 1984, threatening to become a four-digit figure within a year or two. In 1985 Israel froze all prices by law. That same year, inflation more than halved, to 185%. Within a few months, the authorities began to lift the price freeze on some items; in other cases it took almost a year. By 1986, inflation was down to 19%.

Japan
After WW II, Japan went through the highest denomination at that time, which was a 75,000,000,000 Yen bank cheque. The Japan wholesale price index (relative to 1 as the average of 1930) shot up to 16.3 in 1943, 127.9 in 1948 and 342.5 in 1951. In the early 1950s, after achieving independence from USA, Japan controlled its own money. Through its rapidly growing export trade, Japan stabilized the Yen quickly.

Krajina
Krajina went through the worst inflation in 1993. In 1992, the highest denomination was 50,000 dinara. By 1993, the highest denomination was 50,000,000,000 dinara. Note that this unrecognized country was reincorporated into Croatia in 1998.

Madagascar
The Malagasy franc had a turbulent time in 2004, losing nearly half its value and sparking rampant inflation. On 1 January 2005 the Malagasy ariary replaced the previous currency at a rate of one ariary for five Malagsy francs. In May 2005 there were riots over rising inflation, although falling prices have since calmed the situation.

Mozambique
Mozambique was one of the world's poorest countries when it became independent in 1975. Mismanagement and a brutal civil war from 1977-92 led to continued inflation. The highest denomination in 1976 was 100 meticals. By 2004, it was 500,000 meticals. In the 2006 currency reform, 1 new metical was exchanged for 1,000 old meticals.

Nicaragua
Nicaragua went through the worst inflation from 1987 to 1990. From 1943 to April 1971, one US dollar equalled 7 córdobas. From April 1971 to early 1978, one US dollar was worth 10 córdobas. In early 1986, the highest denomination was 10,000 córdobas. By 1987, it was 1,000,000 córdobas. In the 1988 currency reform, 1 new córdoba was exchanged for 10,000 old córdobas. The highest denomination in 1990 was 100,000,000 new córdobas. In the 1991 currency reform, 1 new córdoba was exchanged for 5,000,000 old córdobas. The overall impact of hyperinflation: 1 (1991) córdoba = 50,000,000,000 pre-1988 córdobas.

Peru
Peru went through its worst inflation from 1988 to 1990. In the 1985 currency reform, 1 inti was exchanged for 1,000 soles. In 1986, the highest denomination was 1,000 intis. But in September 1988, monthly inflation went to 132%. In August 1990, monthly inflation was 397%. The highest denomination was 10,000,000 intis by 1991. In the 1991 currency reform, 1 nuevo sol was exchanged for 1,000,000 intis. The overall impact of hyperinflation: 1 nuevo sol = 1,000,000,000 (old) soles.

Philippines
The Japanese government occupying the Philippines during the World War II issued fiat currencies for general circulation. The Japanese-sponsored Second Philippine Republic government led by Jose P. Laurel at the same time outlawed possession of other currencies, most especially "guerilla money." The fiat money was dubbed "Mickey Mouse Money" because it is similar to play money and is next to worthless. Survivors of the war often tell tales of bringing suitcase or bayong (native bags made of woven coconut or buri leaf strips) overflowing with Japanese-issued bills. In the early times, 75 Mickey Mouse pesos could buy one duck egg[17]. In 1944, a box of matches cost more than 100 Mickey Mouse pesos.[18].

In 1942, the highest denomination available was 10 pesos. Before the end of the war, because of inflation, the Japanese government was forced to issue 100, 500 and 1000 peso notes.

Poland
Poland went through inflation (second time) between 1989 and 1991. The highest denomination in 1989 was 200,000 zlotych. It was 1,000,000 zlotych in 1991 and 2,000,000 zlotych in 1992; the exchange rate was 9500 zlotych for 1 US dollar in January 1990 and 19600 zlotych at the end of August 1992. In the 1994 currency reform, 1 new zloty was exchanged for 10,000 old zlotych and 1 US$ exchange rate was ca. 2.5 zlotych (new).
Previously, between 1922 and 1924, Polish inflation reached 275% and exchange rate in 1923 was 6,375,000 Polish marka (mkp) for 1 US dollar (before the inflation there was only 9 mkp for 1US$ in 1918), and the highest denomination was 10,000,000 mkp. In the 1924 currency reform there was new currency introduced: 1 zloty = 1,800,000 mkp.

Republika Srpska
Republika Srpska was the breakaway region of Bosnia. As with Krajina, it pegged its currency, the Republika Srpska dinar, to that of Yugoslavia. Their bills were almost the same as Krajina's, but they issued fewer and didn't issue currency after 1993.

Romania
Romania is still working through steady inflation. The highest denomination in 1998 was 100,000 lei. By 2000 it was 500,000 lei. In early 2005 it was 1,000,000 lei. In July 2005 the leu was replaced by the new leu at 10,000 old lei = 1 new leu. Inflation in 2005 was 9%. In 2006 the highest denomination is 500 lei (= 5,000,000 old lei).

Russian Federation
Between 1921 and 1922 inflation in Soviet Russia reached 213%.

In 1992, the first year of post-Soviet economic reform, inflation was 2,520%. In 1993 the annual rate was 840%, and in 1994, 224%. The ruble devalued from about 40 r/$ in 1991 to about 30,000 r/$ in 1999.

Turkey
Throughout the 1990s Turkey dealt with severe inflation rates that finally crippled the economy into a recession in 2001. The highest denomination in 1995 was 1,000,000 lira. By 2005 it was 20,000,000 lira. Recently Turkey has achieved single digit inflation for the first time in decades, and in the 2005 currency reform, introduced the New Turkish Lira; 1 was exchanged for 1,000,000 old lira.

Ukraine
Ukraine went through its worst inflation between 1993 and 1995. In 1992, the Ukrainian karbovanets was introduced, which was exchanged with the defunct Soviet ruble at a rate of 1 UAK = 1 SUR. Before 1993, the highest denomination was 1,000 karbovantsiv. By 1995, it was 1,000,000 karbovantsiv. In 1996, during the transition to the Hryvnya and the subsequent phase out of the karbovanets, the exchange rate was 100,000 UAK = 1 UAH. This translates to a hyperinflation rate of approximately 1,400% per month. And to this day Ukraine holds the world record for most inflation in one calendar year, which was set in 1993.[19]

United States
During the Revolutionary War, the Continental Congress authorized the printing of paper currency called continental currency. The easily counterfeited notes depreciated rapidly, giving rise to the expression "not worth a continental."

Between January 1861 and April 1865, the Lerner Commodity Price Index of leading cities in the eastern Confederacy states increased from 100 to over 9000.[20] As the U.S. Civil War dragged on the Confederate States of America dollar had less and less value, until it was almost worthless by the last few months of the war.

Yugoslavia
Yugoslavia went through a period of hyperinflation and subsequent currency reforms from 1989 to 1994. The highest denomination in 1988 was 50,000 dinars. By 1989 it was 2,000,000 dinars. In the 1990 currency reform, 1 new dinar was exchanged for 10,000 old dinars. In the 1992 currency reform, 1 new dinar was exchanged for 10 old dinars. The highest denomination in 1992 was 50,000 dinars. By 1993, it was 10,000,000,000 dinars. In the 1993 currency reform, 1 new dinar was exchanged for 1,000,000 old dinars. But before the year was over, the highest denomination was 500,000,000,000 dinars. In the 1994 currency reform, 1 new dinar was exchanged for 1,000,000,000 old dinars. In another currency reform a month later, 1 novi dinar was exchanged for 13 million dinars (1 novi dinar = 1 German mark at the time of exchange). The overall impact of hyperinflation: 1 novi dinar = 1 × 1027~1.3 × 1027 pre 1990 dinars. Yugoslavia's rate of inflation hit 5 × 1015 percent cumalative inflation over the time period 1 October 1993 and 24 January 1994.

Zaire (now the Democratic Republic of the Congo)
Zaire went through a period of inflation between 1989 and 1996. In 1988, the highest denomination was 5,000 zaires. By 1992, it was 5,000,000 zaires. In the 1993 currency reform, 1 nouveau zaire was exchanged for 3,000,000 old zaires. The highest denomination in 1996 was 1,000,000 nouveaux zaires. In 1997, Zaire was renamed the Congo Democratic Republic and changed its currency to francs. 1 franc was exchanged for 100,000 nouveaux zaires. The overall impact of hyperinflation: 1 franc = 3 × 1011 pre 1989 zaires.

Zimbabwe

Main article: Hyperinflation in Zimbabwe

At Independence in 1980, the Zimbabwe dollar was worth about USD 1.25. Since then, rampant inflation and the collapse of the economy have severely devalued the currency, causing many organisations to favour using the US dollar or South African rand instead. Inflation was stable until Robert Mugabe began a program of land reforms that primarily focused on taking land from white farmers and redistributing those properties and assets to black farmers; this in turn sent food production and revenues from export of food plummeting.[21][22][23] Though inflation in Zimbabwe was a monetary phenomena (the result of Mugabe's government printing money) as can be seen by the appearance of ever higher face value printed notes (whose face value exceeded the sum of all previously existing notes).

Early in the 21st century Zimbabwe started to experience chronic inflation. Inflation reached 624% in 2004, then fell back to low triple digits before surging to a new high of 1,730% in 2006. During that time, the Reserve Bank of Zimbabwe revalued its currency on 1 August 2006 at a rate of 1,000 old Zimbabwean dollars to 1 revalued Zimbabwean dollar. In June 2007, inflation in Zimbabwe had risen to 11,000% year-to-year from an earlier estimate of 9,000%. On 5 May 2008 the Reserve Bank of Zimbabwe issued bank notes or "bearer cheques" for the value of ZWD 100 million and ZWD 250 million.[24]. Ten days later on 15 May, new bearer cheques with a value of ZWD 500 million (then equivalent to about USD 2.5) were issued.[25] Five days later on May 20th, a new series of notes in the form of "agro cheques" were issued in denominations of ZWD 5 billion, ZWD 25 billion and ZWD 50 billion. An additional agro cheque was issued for ZWD 100 billion on 21 July.[26] Meanwhile inflation has officially surged to 2,200,000%[27] with some analysts estimating figures surpassing 9,000,000 percent.[28] As of 22 July 2008, the value of the ZWD had fallen to approximately 688 billion per 1 USD, or 688 trillion pre-August 2006 Zimbabwean dollars.[29] On 1 August 2008, the Zimbabwe dollar was redenominated by removing 10 zeroes. ZWD 10 billion became 1 dollar after the redenomination.[30]. On 19 August 2008, official figures announced for June estimated the inflation over 11,250,000 percent.[31] Zimbabwe's annual inflation was 231,000,000% in July[32] (prices doubling every 17.3 days). At the beginning of November 2008, the inflation rate was calculated to be at 516 quintillion percent (516,000,000,000,000,000,000%). The monthly inflation was 13.2 billion percent.[33]

Zimbabwe hyperinflation approached post Second World War Hungary's hyperinflation (Hungary: 12.95 quadrillion percent per month (195% daily), i.e. prices doubling every 15.6 hours. Zimbabwe: 79.6 billion percent per month (98.0%), ie. prices doubling every 24.7 hours[34]).[16] On 16 January 2009, Zimbabwe issued a ZWD100 trillion bill.[35]

There was no Lehman "experiment." It was aborted before the results were known.

Hmm...I think the results were in...that's when the TED and the A2/P2 spreads blew out...right after Lehman's collapse. Why do you feel the results were unknown? Should the government (and I agree they fear the markets - both parties) have waited longer to see what happened with that spread?

@HomeGnome - I hadn't heard any such thing...was that "work" directing state and muni bond work towards Lehman?

I think we have been so brainwashed by the mainstream media (and their masters) to think of everything in terms of "left" "right" that we have forgotten between correct and wrong. I don't think that one has to be a conservative to believe that spending more than what you have is just wrong, that borrow and spend whether practiced by a Democratic or Republican President is wrong, Lets face it as long as they (MSM) can present issues in the context of left/right partisans will be drawn to the barricades while the looters have a free rein of the Treasury.

B_R - the fed is not engaging in hyper-inflationary printing...they will have to use the Volcker approach when the deflation turns the corner, but for now, it's not hyperinflationary.

The US has inflated it's way out of several war debts before - notably the Revolutionary and the Civil War. Inflation is the means by which we have cramdowns/debt-forgiveness/etc. throughout the economy. Yes, it will be a hidden tax - it always is...but as you seem to be suggesting: we must pay our due. This is the glass-half-full/half-empty argument. That, and it's an argument about who will pay.

Inflation you say?...where?

No Outside Links

So how many retirees whose savings are destroyed by the collapse of the dollar are you going to take personal responsibility for feeding and housing?

Look, you have to understand that this was all about tee times. Someone had to clear out the riff raff, and caddy were just becoming entirely too expensive.

Comrade Scott (profile) wrote on Fri, 6/12/2009 - 10:00 am

B_R - the fed is not engaging in hyper-inflationary printing.

Yeah they are. They're monetizing debt that's just a week old. It's well-documented.

The faith in the currency just hasn't collapsed yet due to structural constraints.

Across the Curve » Blog Archive » Midday Miscellany

I'm sorry that you can't accept default through default and want to bail out bankers by robbing me as well via default through inflation. Unfortunately for you, I anticipated your strategy and robbed myself some time ago. Good luck socializing the losses, oh shill for the bankers.

edit: How about letting Cali default on all those nice bonds that make up the retiree's savings investments?

So, you're telling me, same result, except we also destroy the currency and any private wealth that happens to be prudently invested? That's clever.

$8,000 tax credit may be expanded to all buyers (not just first time buyers) next year.

Bill expands tax credit for home buyers : News-Record.com : Greensboro & the Triad's most trusted source for local news and analysis

$8,000 tax credit may be expanded to all buyers (not just first time buyers) next year.

Maybe they should expand the tax credit to everyone with a mortgage that doesn't walk away from it.

Speaking of metaphors, you might think of the Treasury as a giant body shop where the crumpled fenders of the economy are hammered out by gnomes wearing three-piece suits and green eye-shades. Instead of hammers they use rock-hard slices of bread (tranches), attached to batons made of rolled up mortgages.

University of Michigan Consumer Sentiment

Okay, sorry... I'm off before you all decide to shoot me.

Don't stop talking. Listening to you, it's relaxing.

Cheers,
prat

The world is a great poem, and great poems are filled with allusion and metaphor. -pavel

But is there original meaning...that is what I have been searching for all my life. I see pieces of a gigantic web here and there and I know it is more than my brain finding meaning in order to keep me sane, but just because you travel the road doesn't mean you ever get to the destination. As a poet (I am too) you know that inspiration is a muse that whispers in your ear. Tells you secrets without context and shows you things that were never in you to begin with. It is very frustrating to be a vessel and not the captain sailing the ship. I haven't come to terms with it yet. You can call me a Jonah.

Vonbek777 (profile) wrote (in reply to...) on Fri, 6/12/2009 - 9:18 am
It is very frustrating to be a vessel and not the captain sailing the ship. I haven't come to terms with it yet. You can call me a Jonah.

Pity the vessel that confuses itself with the captain. Many of them end up ruling the world.

Comrade Scott (profile) wrote on Fri, 6/12/2009 - 10:18 am

I'm surprised we're arguing, because I generally find myself in complete agreement with you.

I'm sorry to disagree then, but I think you're crazy to want to print your way out of this.

Printing your way out of problems for states is the equivalent of shooting your way out of problems on a personal level. Oh you might get out of A problem, but only by getting into a much bigger one. Sure, we "saved" the banking system -- by destroying its context. In the piracy analogy, let me suggest the phrase, "once you pay the Danegeld, you'll never get rid of the Dane."

The US dollar and our fairly administered, open and transparent financial system were the US' greatest strength. That has flatly been destroyed at this point, because we decided to flip over the table and start swinging rather than take a hard loss. You will feel the effects of this gross, global-scale irresponsibility for generations to come. It is going to be looked at historically as one of the dumbest things this or any other great power has ever done, period, end of discussion, especially because we could have just let the banks fail and recapitalized new ones for a fraction of what we threw away doing it wrong.

We have certainly printed our way out of problems before. At none of those points was the US currency the centerpoint of the global financial system, nor did our future good fortune turn entirely upon the axis of its worth. We bought our position with a bargain regarding that instrument and we have broken that bargain when it went against us. Pardon the Norse analogy, as it is both obscure and imprecise, but this is the Cheating of Hrimthurs over the Aesir-garth Wall. This is a grave troth-breaking that will help bring the winding of our gjallarhorn from the future to the now and I think if anybody supports it, they are flatly just not seeing exactly what has been done. I urge you, if you normally agree with me, to rethink your position on this matter.

The way the analogy is imprecise is that the Cheating of the Giant is the first of the great troth-breakings that the Aesir perpetrate, while we have already committed the Keeping of Slaves, the Murder of the Autocthones, and the Great Betrayal, where we fought to free the world and then imposed an empire on it for our own profit in the aftermath of our victory. In its place, the Sacrifice of the Yankee Dollar will be much more like the breaking of the ale-pledge between Othin and Loki after the death of Baldur, when Othin forced Loki to drink bale without sharing it -- a final, stupid mistake that seems almost like willful self-immolation.

I am sick and tired of Bernanke telling us that our savings rate is going up because the current account deficit and trade deficit are going down. They are going down because the economy finally fell off a cliff into a depression with good paying jobs continuing to be outsourced and not coming back. The current account deficit is down also because short term interest rates went down. The deficits went down because Bernanke is printing up and creating out of thin air 300 billion and 800 billion to buy treasuries and mortgage debt instead of borrowing from foreigners with more printing to come. I am disgusted with personalities telling us what a great job Bernanke is doing. They are just talking their book. Suze Orman has said that Bernanke is doing a great job when rumor has it that she has all her money in municipal bonds, which have gone up 50% in the last 6 months since Ben backstopped municipals and high yield bonds which are also up, while US treasuries which have suffered as a consequence. Suze, you are out of your mind and permission is denied to ever make that statement again since Ben is facillitating spending money we don't have (something you despise) at the expense of present and future generations of taxpayer's. Volcker also recently stated that Bernanke was doing well. He must still be on Obama's payroll because earlier this year he said he hated financial engineers and said his grandson was one. Fareed Zacharia on his show likewise said that he liked what Bernanke was doing, but Fareed is an Indian by birth and is a globalist. His recent show wherein he was arguing with the former president of Pakistan Muchariff about whether Pakistan's troops shoud be stationed on Afghanistan's border and not that of India was very telling. They should all have to acknowledge exactly what their vested interests are before they make their statements , just like years ago.

Pfff.

1 in 10 is message management, from the people i've been speaking to around here.

There's still an awful lot of official price denial atm, with local taxes based on property values...

pavel,

It's a pleasure having you in the commentariat...

Trust, and what happens when it's torn. Thanks Byz. And for what happened next in the story that's lasted, I can consult the mythology, or just wait, and look.

Heidi? Sorry, but I keep thinking of my aunt . . .