Somehow the rumor of Fed Gov. market manipulation reminds of a history lesson from 1989.
USSR, a guy named Pavlov pushed an "interesting" outstanding "ruble" reform, devastated number of smaller businesses (it was meant to limit speculation). As the result of that particular reform, everyone who was close to the government, communist directors of factories, high ranking party members etc benefited tremendously. Everyone else, including brand new breed of smaller competitive & progressive entrepreneurs would never trust soviet government again.
Absolutely everyone went 100% dollar despite still standing law prohibiting holding of foreign currencies, etc. The very next year the reminder of economy and country collapsed.
There is a difference between government regulation/oversight and manipulation. Setting the interest rate is oversight. Setting the low mortgage rate is interference. Placing the market trade through the proxy, is manipulation of the free market. Up to this year our government has never dared to go beyond interference. Feels like something has been lost, innocent belief that market could be free?
On the subject of the Fed overseeing lending standards .... each Regional Reserve bank is explicitly charged with preventing credit bubbles. They each have 9 directors on their board, 6 of which are appointed by the banks they "oversee". They are protecting the bank's interest by design.
OT: as always:
OK, we come from different worlds, but if I were to hunker down, it would not be on Mt. Everest.
I get a little buggy if I see my own breath, and I think a lot of people are going to be in world of hurt and they most likely will take it out on their neighbours, family, etc. Everyone else is hiding behind an impressive/or not security force.
He seems to be a fair and accurate representation of his constituents if you ask me.(or at least he knows how "to break it down to them"...if they ever even accidentally surf over to CSPAN in the first place)
"Somehow the rumor of Fed Gov. market manipulation brings a history lesson from 1989.
Oh dude, you want me to remember back to da daze?"
well, it is more than just a rumor. Number of professional traders and people in finance believe so. Besides there are other signs, I'll be too lazy to list.
That means it costs $207,000 a year to insure $10 million of Mexican debt with credit-default swaps, compared with $170,000 for Brazil. Credit-default swaps, which are used to hedge against losses or to speculate on a country’s ability to repay its debt, pay the buyer face value if a borrower defaults in exchange for the underlying securities or the cash equivalent.
A spokeswoman for Brazil’s Treasury declined to comment on Rodriguez’s statements.
Wow, I am truly impressed. That was a really fun arcade game. The only arcade game I ever mastered was missile command. I could play as long as I wanted on one quarter. If you could make it to 810,000 points, you got about 100 bonus cities, and since the game didn't get any harder, you could play forever.
--I wish we could play wav files to the thread....The dying pac man song would be great right now...
Is it time for the confusion/confession booth?
I wrote a little program that would do my day to day grind for me to help my carpel tunnel, and alert me of any problems. First I had to deal with I don't like the fonts, to can we customize a sound alert so we pay attention, to can you break it down to the 9th degree and tell us how to fix it.
Then do statistical analysis of gigabytes of data, Not a normal transition for a quick and dirty, get the job done POS. Then it got better when I got it done.
Then I got reprimanded for working outside of the contract.
Then the 'tool' got co-opted by the PTB, and the person that stabbed me in the back to stop me from doing anything more: because they could not make their system work, and they needed to play catch up.
Three years later, they are still having to step backward, while I have been forced to crawl a couple of miles forward.
What is the connection, it all started out being named PACMAN, I'm giving away my secret identity here. But I have moved from storing, to, eating "Cr..." to dropping grenades.
Mike in Long Island, just having fun! People send me weird stuff all the time - and I put that in the "Huh?" pile. It just seemed weird to me. Maybe it will be a real story ...
if it had surfaced on a Friday evening, I might have posted it for laugh.
Brazil had an average budget deficit equal to 3.1 percent of gross domestic product over the past six years. Mexico, Latin America’s second-biggest economy after Brazil, posted an average gap of 0.2 percent. Mexico’s deficit may reach 2 percent of GDP this year, Finance Minister Agustin Carstens said May 6.
“We have plenty of room to maneuver” in the budget, Rodriguez said. “I wouldn’t pay particular attention” to the credit-default swaps market, he said
had enough?
or should I continue to hammer this point every 15 seconds?
"The Federal Reserve is aware of several scams involving high denomination Federal Reserve notes and bonds, often in denominations of 100 million or 500 million dollars, dating back to the 1930s, usually 1934."
So I was checking out the PDF docs of the scam emails which the Fed tried to redact names, email addresses, etc. I use Adobe Acrobat Full version and it took me about three clicks to remove all the blackout bars and show the original text (it's one of those metadata things). I'm sure the targets of the scam in those emails would be be amused.
On the other hand at least the Fed is being transparent on some things.
Bond Girl - "We are showing some fake bonds we made with Photoshop to see how many American blogs fall for it. Suckers!"
I would not want to deal the Italians who played the pawns then.
The only ones I met with a sense of humor where from the deep south, and I learned quickly I did not share a common bond on that level.
They laughed, I threw up.
I'd say 70% of our Senators and Congressitters today are a joke !
Who exactly are you trying to influence with your pathetic attempts of charting skills that is so 1970's ish ?
We have the internet and web today and can easily crosscheck the history and facts of the matter.
Did Voinovich even allude to the well known fact that Reagan started the US financial ponzi scheme in earnest ( about 30 yrs ago ) and Obama ( who admires Ronnie ) is just perpetuating more of the same for the Triumph of the Banking Oligarchs.
"Greenbacks" were produced by Abraham Lincoln to pay for the Civil War. Lincoln went to the banks in both America and England and they were going to charge 20- 40% interest for money to fight the war ... This would of course bankrupted the United States.
Instead Lincoln printed money not borrowing it from the banks underwriting it with America's first income tax ... This saved us billions of dollars, trillions in today's money.
We need to do the same thing today, print our own money and underwriting the money with higher taxes on high income, capital gains, dividends and estates. We also need taxes on financial transactions, carbon, sugar, carbonation and transfats. We need to impose tariffs on all imports to the point where we have a balanced trade account.
Ask yourself one question: Why should we borrow our own money?
The answer is we don't have to and we shouldn't. The banks and the privately owned and operated Federal Reserve have shown they do not deserve, have not earned the right to the profit and prerogative of creating our money out of thin air. Fractional Reserve Banking is the bane of safe and sane commerce as it leverages our money to far up in booms and causes crashes in busts.
The answer for our problems is there but the banks own the political process and will not relinquish their monopoly on the creation of currency and credit without a fight to the death.
Then I got reprimanded for working outside of the contract.
Been there, done that.
Rigid interfaces are justified two ways - by fear and by demand of scalability. One sad side effect of the past few years is that I know understand most managers succeed through cover-my-ass, finger-pointing behavior. You just don't make it otherwise because the workplace is filled with sabotage.
Maybe it was always like that, I don't know.
I don't remember it being like that.
Had the FDIC website open in another tab in my browser from earlier in the evening. I just I clicked over and was about to close the tab when over in the right hand column of the FDIC website a flash image of Suze Orman popped up!! She was under the heading "Consumer Resources." The FDIC is plugging Suze Orman, what's next?
broward (homepage, profile) wrote on Fri, 6/12/2009 - 9:21 pm
Wow, I am truly impressed.
See?
It still works. Smile
Back in the late 1990s, I got job interviews just to talk about Xevious.
LOL again. In fact that's worth another bow. I'm too young to remember Xevious when it came out of course, but I've embarrassed myself on the game via MAME a few times.
I'd say 70% of our Senators and Congressitters today are a joke !
You are so kind, only 70%?
Really? I would have to say from the lack of any response it is more along 98% don't care. .001 respond with something that I don't know, makes sense.
Thinking of a song "lowered expectations".
"The FDIC's national public service campaign designed to help consumers learn about the benefits and limitations of deposit insurance; featuring personal finance expert Suze Orman and a link to EDIE the Estimator."
I'm not sure what, or who, EDIE the Estimator is.
CR, maybe you could ask them to see if they'd list you as one of their Consumer Resources also.
Kauai_Kahuna (homepage, profile) wrote on Fri, 6/12/2009 - 7:36 pm
km4 -
I'd say 70% of our Senators and Congressitters today are a joke !
You are so kind, only 70%?
Really? I would have to say from the lack of any response it is more along 98% don't care. .001 respond with something that I don't know, makes sense.
Thinking of a song "lowered expectations".
70% a Joke
Most of the other 30% put on a better face to mask their ineffectual self
federal debt easily exceeds annual GDP at this point if one excludes the "product" created by the federal budget deficit and other assorted federal backstops (real estate transactions which wouldn't exist without FNM/FRE etc). I'm quite confident that the 'real' GDP is well shy of ten trillion, actually.
Anyone have any thoughts on the continuing rather breathtaking decline in amount of commercial paper outstanding on a YoY basis? It's not too shabby on a Month Over Month basis most months recently, but I got to taking a look at the year over year change in the 3 month moving average...looks like a yikes to me but I am concerned about cognitive bias...
On Christmas Eve, young Pip, an orphan being raised by his sister and her husband, encounters a convict in the village churchyard. The man, a convict who has escaped from a prison ship, scares Pip into stealing him some food and a file to grind away his leg shackle. This incident is crucial: firstly, it gives Pip, who must steal the goods from his sister's house, his first taste of true guilt, and, secondly, Pip's kindness warms the convict's heart. The convict, however, waits many years to truly show his gratitude
great expectations.....listen to your shackeled señors..
This is looking more and more like option A and if so all hell could break loose
January 28, 2009
Ferguson: Cancel U.S. Debt
This is something I have alluded to a number of times here, the idea of a first-world debt restructuring, so it's interesting to have Niall Ferguson weigh in:
So I guess the unanswerable question is, what could you do to solve this problem?
Well I’ll tell you what you have to do—you actually have to cancel the debt. There are historical precedents for this.
Excessive debt burdens in the past tended to be public sector debts. What we’ve got now is an exceptional level of private debt. There’s never been an economy in history that’s had so much private debt. Britain and America today lead the world in the indebtedness of the household sector and the banking sector and the corporate sector. But debt is debt; it doesn’t even matter if it’s household debt or government. Once it gets to a certain level, there is a problem.
In the past, when excessive debt burdens were accumulated by government, they tended to do one of two things: either they defaulted—this is the Argentine solution—where you say, “Ah, I’m sorry, I’m afraid we’re not going to be able to meet the interest payments this month, and never again will we make the interest payments.”
The other scenario is inflation, where the real debt burden is eroded because the money that it’s denominated in loses value.
I don’t think we’re really going to be out of the woods here until something of that sort happens to the huge debt burdens of the U.S. economy. Either these debts will have to be fundamentally written off in some way, or inflation will have to reduce the real burden.
Lets us not forget that US GDP is actually shrinking now, less govt spending.... So maybe the real gdp is in the neighborhood of 12 trillion now, which is roughly equal to the fed debt... not counting everything that the Fed is doing...
I have at least two friends with very stable jobs and high incomes just walking away from deeply underwater mortgages (in one case VERY deeply underwater, riverside county mcmansion purchased circa '04)...
are they the vanguard in 'private debt cancellation'? i realize, of course, that CA's non-recourse first mortgages are the exception more than the rule...
"So maybe the real gdp is in the neighborhood of 12 trillion now"
not even close - how much of the S&P was finserv and homebuilders? almost a quarter. that's a conservative guess as to how much of our 2007 GDP was pure money laundering, with zero value or "productivity" involved.
Why do we always leave ourselves within the banksters framework ?
I don't know, but when I pull my credit report and they still have my current employer as the job I had 20 years ago, and yet I'm in the upper 800's, and most likely could not get a mortage to save my life... I don't know if I want to laugh or cry.
Their lack of knowledge is my fault, their lack of understanding is beyond me.
Looking for something a bit more than a position restatement, thanks all the same - the decline seems to be accelerating, at least on a YoY basis - maybe QoQ will correlate...
ah, just saw the Bond Girl post with link - thanks in advance!
Bond Girl:
"Reuters, Commercial Paper Decline Belies Economic Recovery"
Well, you know, maybe some businesses have figured out another way to operate. I have never understood the thinking that leads to a business "always" being in hock just for short-term operating capital to keep shelves stocked. If the business is even close to profitable, that sort of cash need should be something that can be handled with retained cash.
Why would a business put itself in a position of paying interest on a float for routine operations as described in the article?
"Ok I wont argue the fin services point - so 9 trillion then? Real gdp? "
at this point, yes. and eventually 6-7 trillion in late 2008 dollars - with a wilshire total at about the same value. this may take a good decade or two to reach, and the more traumatic event will be US housing equity sinking under 10 tril in that same timeframe.
the decline doesn't end until Joe Boomer dies. 1955-2035(?)
Slick Dog-
Here's Suze's public service announcement re FDIC. Sheila makes a cameo at the end:
The EDIE thing is a calculator to determine whether your deposits in one or more accounts at a particular institution are covered.
The more you know...
While Suzie, Oprah, et al irritates me to no end, it is informing the unwashed masses. and that is where I came from. So yes, you should all ban them!
LoL or
Details from Bond Girl's link - thanks again - I had not been watching the CP market after the Fed soma injection numbed out the 30 day spread, but the continuing decline in outstandings made me go 'wow'...
[snip]
Companies usually borrow in the commercial paper market to rebuild inventories in anticipation of rising sales, but sales have fallen even faster.
[snip]
Total U.S. commercial paper outstanding has shrunk to $1.23 trillion, the lowest level in more than eight years and close to half its $2.2 trillion peak nearly two years ago.
[snip]
The Federal Reserve's intervention in late 2008 to buy a huge slice of the commercial paper market has put a floor under prices but failed to stop its rapid contraction.
A struggling economy is still the main dynamic behind activity in commercial paper, analysts said.
"It is a lot better than it was, but it is still not a normal market, when you have a weak economy and you are liquidating inventory," Santow said.
Should the market's erosion stop, that would be one hint that the economy was bottoming out, analysts add.
"We need to look for a turn in indicators such as commercial paper to indicate an upturn in business needs, but we haven't seen a need in companies to increase their working capital just yet," said Dan Greenhaus, analyst in the strategy group with Miller Tabak + Co in New York.
You actually have to cancel the debt. There are historical precedents for this
Once again, I'll reference The Great Reckoning. Davidson predicts that the United States will mimic England by replacing "bonds" with "perpetuities", a fixed, sub-real-growth interest payment only, capital redemption suspended.
I have never played Pac Man, but this reminds me of yet another story.
In the early seventies, I visited Xerox's Palo Alto Research Center and was invited to play a game called "Moon Lander" on one of their computer terminals. I played the game, but didn't "get it." I didn't see how games on computers would do anything besides encourage slackers.
Then, they showed me something called a "laser printer." I "got it." Boy, did I "get it." I was so impressed that I loaded up on Xerox. This was when Peter McCullough was president, and shortly before the Scientific Data Systems debacle.
There is a moral here. It was a great idea, but in the wrong hands. Everything Xerox invented at PARC was developed by others.
I lost my shirt on that investment, lost my faith in McCullough, and began to question anything coming from the mouth of a Harvard Business School graduate.
So far NYC has paid 623,700 in interest on 66,000 principal - and they are only halfway through the term of the bonds.... No wonder Wall Street is in NYC!
"Ok I wont argue the fin services point - so 9 trillion then? Real gdp? "
HH, I know I don't understand the GDP reports, let alone details in the real GDP, and anyone that says they do is just playing you. Now many people who live and die for it might be confused, or not sure of the details.
I'm thinking this week, OK, jokes over now really;
WHERE IS THE PUNCHLINE and I BETTER LAUGH.
... Time to mellow out now. How many times can I say Meow....
ShadowInventory -
135 years and still paying - NYC is really full of idiots, isnt it...
134 Billion in bond's in "WTF" status? Coincidence? I don't think so.
You know 1 Bil transactions fees.
Why would George Voinovich embarrass himself by showing the results of his 12 years in Congress.
He should also show the results of what he did in Ohio as the Governor- we still have never recovered financially
from the 1980 or 1990 fiscal nightmare. Why is it when there is fiscal irresponsibility Voinovich is always takes the stage
and claims it was someone elses responsibility.
Somehow the rumor of Fed Gov. market manipulation reminds of a history lesson from 1989.
USSR, a guy named Pavlov pushed an "interesting" outstanding "ruble" reform, devastated number of smaller businesses (it was meant to limit speculation). As the result of that particular reform, everyone who was close to the government, communist directors of factories, high ranking party members etc benefited tremendously. Everyone else, including brand new breed of smaller competitive & progressive entrepreneurs would never trust soviet government again.
Absolutely everyone went 100% dollar despite still standing law prohibiting holding of foreign currencies, etc. The very next year the reminder of economy and country collapsed.
There is a difference between government regulation/oversight and manipulation. Setting the interest rate is oversight. Setting the low mortgage rate is interference. Placing the market trade through the proxy, is manipulation of the free market. Up to this year our government has never dared to go beyond interference. Feels like something has been lost, innocent belief that market could be free?
hot mokeys do kung fu for YU!!!
quite an edit mr chaos.
Special...
Are they TRYING to make themselves targets of ridicule?
Game over man, game over.
I wonder if he came up with that idea all by himself.
I wish we could play wav files to the thread....The dying pac man song would be great right now...
On the subject of the Fed overseeing lending standards .... each Regional Reserve bank is explicitly charged with preventing credit bubbles. They each have 9 directors on their board, 6 of which are appointed by the banks they "oversee". They are protecting the bank's interest by design.
I want Maxine Waters on Yutube doing a chart on global Sovereign CDS with a hedged FX swap.
dont h8 me......
Bond Girl, hey - maybe he was a gamer in the day!
I think Corus will be on the chopping block next Friday ... so maybe the FDIC is just getting ready.
best to all
Debt eats everything, then it becomes invincible.
Hey, guys, he's better than I am!.
He's missing Pinky and Clyde on his sign. Just saying.
I thought it was good to eat all the dots??
pleaze dont ban me CR...should I take down or are you kinda LYFAO?
PIGGED. But if I bothered to type it.
rich -
OT: as always:
OK, we come from different worlds, but if I were to hunker down, it would not be on Mt. Everest.
I get a little buggy if I see my own breath, and I think a lot of people are going to be in world of hurt and they most likely will take it out on their neighbours, family, etc. Everyone else is hiding behind an impressive/or not security force.
Since PacMan is about as relevant to what's going on as anything else I don't feel badly about what's about to follow:
Is there among the many commentariat here anyone who can translate the Japanese bondage video on zerohedge please?
(not my title - its what zerohedge called it)
video
But once you eat the power pill you can chase after the ghosts.
Eat my dots.
Comrade Kristina, here are the sounds (short video)
Mike in Long Island, yes, here is the translation:
"We are showing some fake bonds we made with Photoshop to see how many American blogs fall for it. Suckers!"
I think that is close.
best to all.
Sure, CR. But my money is on him having a disgruntled staffer.
Comrade de Chaos -
Somehow the rumor of Fed Gov. market manipulation brings a history lesson from 1989.
Oh dude, you want me to remember back to da daze?
Actually thanks, perspective gets lost with my bad vision.
"We are showing some fake bonds we made with Photoshop to see how many American blogs fall for it. Suckers!"
LOL. That was awesome.
He seems to be a fair and accurate representation of his constituents if you ask me.(or at least he knows how "to break it down to them"...if they ever even accidentally surf over to CSPAN in the first place)
Party on Wayne.
I don't feel so good.
My stomach hurts.
broward ate too many dots
LOL. I guess I deserved that.
"Somehow the rumor of Fed Gov. market manipulation brings a history lesson from 1989.
Oh dude, you want me to remember back to da daze?"
well, it is more than just a rumor. Number of professional traders and people in finance believe so. Besides there are other signs, I'll be too lazy to list.
That means it costs $207,000 a year to insure $10 million of Mexican debt with credit-default swaps, compared with $170,000 for Brazil. Credit-default swaps, which are used to hedge against losses or to speculate on a country’s ability to repay its debt, pay the buyer face value if a borrower defaults in exchange for the underlying securities or the cash equivalent.
A spokeswoman for Brazil’s Treasury declined to comment on Rodriguez’s statements.
now, watch the brazillian curve invert.
broward ate too many dots
I have the #3 world score for Xevious- 1984.
It's a surprisingly good resume ice breaker.
Apparently...the good senator spent all of his allowance on the Pac Man chart and didn't have enough to pay his webhost.
Since the FDIC cancelled Friday ...
WTF there is no Friday anymore, you should have told me that yesterday ... I showed up for work today.
broward (homepage, profile) wrote on Fri, 6/12/2009 - 8:57 pm
I have the #3 world score for Xevious- 1984.
It's a surprisingly good resume ice breaker.
LOL!!
/me bows. "I have the #3 world score for Xevious" is probably not the greatest pickup line, of course; but I still bow.
YouTube - Supertrain Opening Credits
SUPERTRAIN callin out the rob dawg....since we're doing Yutubes..
broward wrote:
I have the #3 world score for Xevious- 1984.
Wow, I am truly impressed. That was a really fun arcade game. The only arcade game I ever mastered was missile command. I could play as long as I wanted on one quarter. If you could make it to 810,000 points, you got about 100 bonus cities, and since the game didn't get any harder, you could play forever.
We can easily handle 120% of GDP. That was our indebtedness after WW II. It won't get interesting unless we get to 240% of GDP.
That SUPERTRAIN is perfect. California will buy 27. oh, wait. Nuclear powered. Can't have that.
--I wish we could play wav files to the thread....The dying pac man song would be great right now...
Is it time for the confusion/confession booth?
I wrote a little program that would do my day to day grind for me to help my carpel tunnel, and alert me of any problems. First I had to deal with I don't like the fonts, to can we customize a sound alert so we pay attention, to can you break it down to the 9th degree and tell us how to fix it.
Then do statistical analysis of gigabytes of data, Not a normal transition for a quick and dirty, get the job done POS. Then it got better when I got it done.
Then I got reprimanded for working outside of the contract.
Then the 'tool' got co-opted by the PTB, and the person that stabbed me in the back to stop me from doing anything more: because they could not make their system work, and they needed to play catch up.
Three years later, they are still having to step backward, while I have been forced to crawl a couple of miles forward.
What is the connection, it all started out being named PACMAN, I'm giving away my secret identity here. But I have moved from storing, to, eating "Cr..." to dropping grenades.
Mike in Long Island, just having fun! People send me weird stuff all the time - and I put that in the "Huh?" pile. It just seemed weird to me. Maybe it will be a real story ...
if it had surfaced on a Friday evening, I might have posted it for laugh.
best to all.
The greatest shortcoming of the human race has been its failure to understand the exponential function<I/>
"240% of GDP"
240, do I hear a higher proposal? Sir TG on the left, 300!
300% one, 300% two, 300% three SOLD!
We can easily handle 120% of GDP. That was our indebtedness after WW II.
We are not the same country, relative to the world, as we were after WW II.
Then, biggest creditor, now, biggest debtor.
Brazil had an average budget deficit equal to 3.1 percent of gross domestic product over the past six years. Mexico, Latin America’s second-biggest economy after Brazil, posted an average gap of 0.2 percent. Mexico’s deficit may reach 2 percent of GDP this year, Finance Minister Agustin Carstens said May 6.
“We have plenty of room to maneuver” in the budget, Rodriguez said. “I wouldn’t pay particular attention” to the credit-default swaps market, he said
had enough?
or should I continue to hammer this point every 15 seconds?
the f*ckin bloomberg link wont werK
From last thread:
"The Federal Reserve is aware of several scams involving high denomination Federal Reserve notes and bonds, often in denominations of 100 million or 500 million dollars, dating back to the 1930s, usually 1934."
So I was checking out the PDF docs of the scam emails which the Fed tried to redact names, email addresses, etc. I use Adobe Acrobat Full version and it took me about three clicks to remove all the blackout bars and show the original text (it's one of those metadata things). I'm sure the targets of the scam in those emails would be be amused.
On the other hand at least the Fed is being transparent on some things.
What is the connection, it all started out being named PACMAN, I'm giving away my secret identity here.
Dude you played ball for the Cowboys? That thing in Vegas was crazy...
Bond Girl - "We are showing some fake bonds we made with Photoshop to see how many American blogs fall for it. Suckers!"
I would not want to deal the Italians who played the pawns then.
The only ones I met with a sense of humor where from the deep south, and I learned quickly I did not share a common bond on that level.
They laughed, I threw up.
CR,
Glad to see you're having fun. Anytime you want to at my expense feel free! It's the least I can do since I don't have much to offer lately...
Have a great weekend.
It doesn't matter how much debt we have. We can print money, right? Right?
think about it like this:, If I went long the Brazillain 2's 6 months ago as the dollar sold off and the rally into bonds inside the decoupling.....
yer deep in the money.....but you gotta move the money. pedestrian, I know...but its reality, suck it up. dont get caught in a tragedy.
book1-
The greatest shortcoming of the human race has been its failure to understand the exponential function
Did your mean Dis-function?
Bond Girl,
Of course we can. We just have to be prepared for the eventual outcome. Here's a preview of what would happen.
I wasn't being serious, obviously.
Wow, I am truly impressed.
See?
It still works.
Back in the late 1990s, I got job interviews just to talk about Xevious.
Bond Girl - Sorry I know you weren't.
How goes the muni bond market these days? Is there much issuance or is it all secondary market trading?
Pretty heavy issuance....
USD muni bond market is going new and improved credit facility.
I'd say 70% of our Senators and Congressitters today are a joke !
Who exactly are you trying to influence with your pathetic attempts of charting skills that is so 1970's ish ?
We have the internet and web today and can easily crosscheck the history and facts of the matter.
Did Voinovich even allude to the well known fact that Reagan started the US financial ponzi scheme in earnest ( about 30 yrs ago ) and Obama ( who admires Ronnie ) is just perpetuating more of the same for the Triumph of the Banking Oligarchs.
PATHETIC !
Past Time for "Greenbacks" ...
"Greenbacks" were produced by Abraham Lincoln to pay for the Civil War. Lincoln went to the banks in both America and England and they were going to charge 20- 40% interest for money to fight the war ... This would of course bankrupted the United States.
Instead Lincoln printed money not borrowing it from the banks underwriting it with America's first income tax ... This saved us billions of dollars, trillions in today's money.
We need to do the same thing today, print our own money and underwriting the money with higher taxes on high income, capital gains, dividends and estates. We also need taxes on financial transactions, carbon, sugar, carbonation and transfats. We need to impose tariffs on all imports to the point where we have a balanced trade account.
Ask yourself one question: Why should we borrow our own money?
The answer is we don't have to and we shouldn't. The banks and the privately owned and operated Federal Reserve have shown they do not deserve, have not earned the right to the profit and prerogative of creating our money out of thin air. Fractional Reserve Banking is the bane of safe and sane commerce as it leverages our money to far up in booms and causes crashes in busts.
The answer for our problems is there but the banks own the political process and will not relinquish their monopoly on the creation of currency and credit without a fight to the death.
Then I got reprimanded for working outside of the contract.
Been there, done that.
Rigid interfaces are justified two ways - by fear and by demand of scalability. One sad side effect of the past few years is that I know understand most managers succeed through cover-my-ass, finger-pointing behavior. You just don't make it otherwise because the workplace is filled with sabotage.
Maybe it was always like that, I don't know.
I don't remember it being like that.
Back in the late 1990s, I got job interviews just to talk about Xevious.
Now all you need is your own reality show
Had the FDIC website open in another tab in my browser from earlier in the evening. I just I clicked over and was about to close the tab when over in the right hand column of the FDIC website a flash image of Suze Orman popped up!! She was under the heading "Consumer Resources." The FDIC is plugging Suze Orman, what's next?
broward (homepage, profile) wrote on Fri, 6/12/2009 - 9:21 pm
Wow, I am truly impressed.
See?
It still works. Smile
Back in the late 1990s, I got job interviews just to talk about Xevious.
LOL again. In fact that's worth another bow. I'm too young to remember Xevious when it came out of course, but I've embarrassed myself on the game via MAME a few times.
Bond Girl - I wasn't being serious, obviously.
If you are, your usually digging your own grave.
Or you'r playing with your own money, then I'm sorry.
But, So what is your gut feeling on WTF with Bonds.
It the weakest point in my blood sucker screen armour.
I hear smart people say that the US will never "default" on its debt because we can print money all the time. Drives me nuts.
km4 -
I'd say 70% of our Senators and Congressitters today are a joke !
You are so kind, only 70%?
Really? I would have to say from the lack of any response it is more along 98% don't care. .001 respond with something that I don't know, makes sense.
Thinking of a song "lowered expectations".
Bond Girl;
"I hear smart people say that the US will never "default" on its debt because we can print money all the time. Drives me nuts."
So what do these people think printing money actually means?
Here's FDIC's pitch for Suze:
"The FDIC's national public service campaign designed to help consumers learn about the benefits and limitations of deposit insurance; featuring personal finance expert Suze Orman and a link to EDIE the Estimator."
I'm not sure what, or who, EDIE the Estimator is.
CR, maybe you could ask them to see if they'd list you as one of their Consumer Resources also.
So what do these people think printing money actually means?
Repaying the debt, of course.
The debt is denominated in dollars. Here are the dollars.
KISS principle.
Kauai_Kahuna (homepage, profile) wrote on Fri, 6/12/2009 - 7:36 pm
km4 -
I'd say 70% of our Senators and Congressitters today are a joke !
You are so kind, only 70%?
Really? I would have to say from the lack of any response it is more along 98% don't care. .001 respond with something that I don't know, makes sense.
Thinking of a song "lowered expectations".
70% a Joke
Most of the other 30% put on a better face to mask their ineffectual self
Bond Girl - I wasn't being serious, obviously.
If you are, your usually digging your own grave.
Or you'r playing with your own money, then I'm sorry.
But, So what is your gut feeling on WTF with Bonds.
It the weakest point in my blood sucker screen armour.
The real question is what they think default means.
federal debt easily exceeds annual GDP at this point if one excludes the "product" created by the federal budget deficit and other assorted federal backstops (real estate transactions which wouldn't exist without FNM/FRE etc). I'm quite confident that the 'real' GDP is well shy of ten trillion, actually.
Anyone have any thoughts on the continuing rather breathtaking decline in amount of commercial paper outstanding on a YoY basis? It's not too shabby on a Month Over Month basis most months recently, but I got to taking a look at the year over year change in the 3 month moving average...looks like a yikes to me but I am concerned about cognitive bias...
energyecon: Commercial Paper Outstandings - Wile E. Coyote Lives!
Mike in Long Island - Dude you played ball for the Cowboys? That thing in Vegas was crazy...
ahh no, I wish, but not even in my dreams with the cheer leading team.
Man being honest really screws your private fantasy's
Why do we always leave ourselves within the banksters framework ?
Why should we borrow our own money?
Hasn't fractional reserve banking and the implementation of
the privately owned and operated Federal Reserve been a disaster?
On Christmas Eve, young Pip, an orphan being raised by his sister and her husband, encounters a convict in the village churchyard. The man, a convict who has escaped from a prison ship, scares Pip into stealing him some food and a file to grind away his leg shackle. This incident is crucial: firstly, it gives Pip, who must steal the goods from his sister's house, his first taste of true guilt, and, secondly, Pip's kindness warms the convict's heart. The convict, however, waits many years to truly show his gratitude
great expectations.....listen to your shackeled señors..
This is looking more and more like option A and if so all hell could break loose
January 28, 2009
Ferguson: Cancel U.S. Debt
This is something I have alluded to a number of times here, the idea of a first-world debt restructuring, so it's interesting to have Niall Ferguson weigh in:
So I guess the unanswerable question is, what could you do to solve this problem?
Well I’ll tell you what you have to do—you actually have to cancel the debt. There are historical precedents for this.
Excessive debt burdens in the past tended to be public sector debts. What we’ve got now is an exceptional level of private debt. There’s never been an economy in history that’s had so much private debt. Britain and America today lead the world in the indebtedness of the household sector and the banking sector and the corporate sector. But debt is debt; it doesn’t even matter if it’s household debt or government. Once it gets to a certain level, there is a problem.
In the past, when excessive debt burdens were accumulated by government, they tended to do one of two things: either they defaulted—this is the Argentine solution—where you say, “Ah, I’m sorry, I’m afraid we’re not going to be able to meet the interest payments this month, and never again will we make the interest payments.”
The other scenario is inflation, where the real debt burden is eroded because the money that it’s denominated in loses value.
I don’t think we’re really going to be out of the woods here until something of that sort happens to the huge debt burdens of the U.S. economy. Either these debts will have to be fundamentally written off in some way, or inflation will have to reduce the real burden.
More here. Paul Kedrosky: Ferguson: Cancel U.S. Debt
Lets us not forget that US GDP is actually shrinking now, less govt spending.... So maybe the real gdp is in the neighborhood of 12 trillion now, which is roughly equal to the fed debt... not counting everything that the Fed is doing...
energyecon
Securtized banking is dead ...
Without the Fed's intervention on behalf of their share holders - the banksters
the financial system would be a smoking ruins ...
such are the consequences of fractional reserve banking ...
Commercial enterprises dont want to borrow money now, unless they are cashing out ahead of bk...
I have at least two friends with very stable jobs and high incomes just walking away from deeply underwater mortgages (in one case VERY deeply underwater, riverside county mcmansion purchased circa '04)...
are they the vanguard in 'private debt cancellation'? i realize, of course, that CA's non-recourse first mortgages are the exception more than the rule...
Reuters, Commercial Paper Decline Belies Economic Recovery
ANALYSIS - Commercial paper decline belies economic recovery
| Business News
| Reuters
"So maybe the real gdp is in the neighborhood of 12 trillion now"
not even close - how much of the S&P was finserv and homebuilders? almost a quarter. that's a conservative guess as to how much of our 2007 GDP was pure money laundering, with zero value or "productivity" involved.
I see where the House of Representatives voted to audit the Fed today ... !
The Senate will be closely watched on this one ...
sure would like to have a pavel poem..
Bond Girl
At the end of the year, when liquidity needs are greatest
the great unraveling will occur ... if not before ...
probably overstayed my welcome.....
nytol
Now all you need is your own reality show
Won't work.
Sex club doesn't allow cell phones or cameras.
The rest would be sitting and reading CR.
Ok I wont argue the fin services point - so 9 trillion then? Real gdp?
Here's Suze's public service announcement re FDIC. Sheila makes a cameo at the end:
YouTube - FDIC Public Service Announcement: "Nobody" Closed Captioned
The EDIE thing is a calculator to determine whether your deposits in one or more accounts at a particular institution are covered.
8 ignored comments?
I was almost about to give up.....
I may be back, and I may just watch.......
mmckinl -
Why do we always leave ourselves within the banksters framework ?
I don't know, but when I pull my credit report and they still have my current employer as the job I had 20 years ago, and yet I'm in the upper 800's, and most likely could not get a mortage to save my life... I don't know if I want to laugh or cry.
Their lack of knowledge is my fault, their lack of understanding is beyond me.
Looking for something a bit more than a position restatement, thanks all the same - the decline seems to be accelerating, at least on a YoY basis - maybe QoQ will correlate...
ah, just saw the Bond Girl post with link - thanks in advance!
The rest would be sitting and reading CR.
Americans would actually watch that.
The Reagan Economy of supply side economics and deficits don't matter has finally matured i.e. we've all been trickled on with a golden shower.
And Obama ( who admires Ronnie ) is just perpetuating more of the same for the Triumph of the Banking Oligarchs.
Maybe we should figure on 6 trillion gdp - taking deflation into account...
Bond Girl - do you know if there are still bearer bonds? Or were they made illegal in 1982?
"Ok I wont argue the fin services point - so 9 trillion then? Real gdp?"
~~~~
How much of the economy was based on the bubble ?
Certainly the bubble raised all economic activity in every sector save perhaps defense ...
to a lesser or greater degree ...
Bond Girl:
"Reuters, Commercial Paper Decline Belies Economic Recovery"
Well, you know, maybe some businesses have figured out another way to operate. I have never understood the thinking that leads to a business "always" being in hock just for short-term operating capital to keep shelves stocked. If the business is even close to profitable, that sort of cash need should be something that can be handled with retained cash.
Why would a business put itself in a position of paying interest on a float for routine operations as described in the article?
"Ok I wont argue the fin services point - so 9 trillion then? Real gdp? "
at this point, yes. and eventually 6-7 trillion in late 2008 dollars - with a wilshire total at about the same value. this may take a good decade or two to reach, and the more traumatic event will be US housing equity sinking under 10 tril in that same timeframe.
the decline doesn't end until Joe Boomer dies. 1955-2035(?)
Shadow Inventory -
Here's a cool story for you
That's What You Call Investing for the Long Term - NY Times
Slick Dog-
Here's Suze's public service announcement re FDIC. Sheila makes a cameo at the end:
The EDIE thing is a calculator to determine whether your deposits in one or more accounts at a particular institution are covered.
The more you know...
While Suzie, Oprah, et al irritates me to no end, it is informing the unwashed masses. and that is where I came from. So yes, you should all ban them!
LoL or
Sheer genius. Now I must drink more to erase that image from my memory.
Thanks, CR.
Details from Bond Girl's link - thanks again - I had not been watching the CP market after the Fed soma injection numbed out the 30 day spread, but the continuing decline in outstandings made me go 'wow'...
[snip]
Companies usually borrow in the commercial paper market to rebuild inventories in anticipation of rising sales, but sales have fallen even faster.
[snip]
Total U.S. commercial paper outstanding has shrunk to $1.23 trillion, the lowest level in more than eight years and close to half its $2.2 trillion peak nearly two years ago.
[snip]
The Federal Reserve's intervention in late 2008 to buy a huge slice of the commercial paper market has put a floor under prices but failed to stop its rapid contraction.
A struggling economy is still the main dynamic behind activity in commercial paper, analysts said.
"It is a lot better than it was, but it is still not a normal market, when you have a weak economy and you are liquidating inventory," Santow said.
Should the market's erosion stop, that would be one hint that the economy was bottoming out, analysts add.
"We need to look for a turn in indicators such as commercial paper to indicate an upturn in business needs, but we haven't seen a need in companies to increase their working capital just yet," said Dan Greenhaus, analyst in the strategy group with Miller Tabak + Co in New York.
ANALYSIS - Commercial paper decline belies economic recovery
| Business News
| Reuters
"Why would a business put itself in a position of paying interest on a float for routine operations as described in the article?"
~~~~
Tax law and opportunity costs ...
The same reason companies lease instead of buy ... tax write offs ...
More distortion of the economy to underwrite financial institutions
through tax law that favors debt over equity ...
You actually have to cancel the debt. There are historical precedents for this
Once again, I'll reference The Great Reckoning. Davidson predicts that the United States will mimic England by replacing "bonds" with "perpetuities", a fixed, sub-real-growth interest payment only, capital redemption suspended.
We have to maintain a fiction of contract law.
When it happens, there will be no warning.
I have never played Pac Man, but this reminds me of yet another story.
In the early seventies, I visited Xerox's Palo Alto Research Center and was invited to play a game called "Moon Lander" on one of their computer terminals. I played the game, but didn't "get it." I didn't see how games on computers would do anything besides encourage slackers.
Then, they showed me something called a "laser printer." I "got it." Boy, did I "get it." I was so impressed that I loaded up on Xerox. This was when Peter McCullough was president, and shortly before the Scientific Data Systems debacle.
There is a moral here. It was a great idea, but in the wrong hands. Everything Xerox invented at PARC was developed by others.
I lost my shirt on that investment, lost my faith in McCullough, and began to question anything coming from the mouth of a Harvard Business School graduate.
It was an expensive education.
135 years and still paying - NYC is really full of idiots, isnt it....
So far NYC has paid 623,700 in interest on 66,000 principal - and they are only halfway through the term of the bonds.... No wonder Wall Street is in NYC!
HollywoodHack-
"Ok I wont argue the fin services point - so 9 trillion then? Real gdp? "
HH, I know I don't understand the GDP reports, let alone details in the real GDP, and anyone that says they do is just playing you. Now many people who live and die for it might be confused, or not sure of the details.
I'm thinking this week, OK, jokes over now really;
WHERE IS THE PUNCHLINE and I BETTER LAUGH.
... Time to mellow out now. How many times can I say Meow....
ShadowInventory -
135 years and still paying - NYC is really full of idiots, isnt it...
134 Billion in bond's in "WTF" status? Coincidence? I don't think so.
You know 1 Bil transactions fees.
Pac-Man!!
Bring me back to the summer of 1980.
Rubik's Cube, Game&Watch, anyone?
Why would George Voinovich embarrass himself by showing the results of his 12 years in Congress.
He should also show the results of what he did in Ohio as the Governor- we still have never recovered financially
from the 1980 or 1990 fiscal nightmare. Why is it when there is fiscal irresponsibility Voinovich is always takes the stage
and claims it was someone elses responsibility.
It's almost as if he was retarded.