RE: Motley Fool weighs in on the budget crisis

Collarspace Discussion Forums

Home Login Search

RE: Motley Fool weighs in on the budget crisis

View related threads: (in this forum | in all forums)

Logged in as: Guest

All Forums >> [Community Discussions] >> Dungeon of Political and Religious Discussion >> RE: Motley Fool weighs in on the budget crisis

Page: << < prev 1 [2]

Message

<< Older Topic Newer Topic >>

RE: Motley Fool weighs in on the budget crisis - 2/16/2011 10:27:24 AM

Moonhead

Posts: 16520
Joined: 9/21/2009
Status: offline

quote:

ORIGINAL: willbeurdaddy
That will change as soon as there is a meaningful uptick in hiring. If youve been watching mid/long term interest rates, inflation is coming.

Some time around the twelfth of never, then.

_____________________________

I like to think he was eaten by rats, in the dark, during a fog. It's what he would have wanted...
(Simon R Green on the late James Herbert)

(in reply to willbeurdaddy)

Profile

Post #: 21

RE: Motley Fool weighs in on the budget crisis - 2/16/2011 11:23:28 AM

cloudboy

Posts: 7306
Joined: 12/14/2005
Status: offline

I'm reading Jon Krakauer's Where Men Win Glory: The Odyssey of Pat Tillman, and according to his research on the Afghan war, Bin Laden's goal was to lure the US into Afghanistan so that we'd step into quick sand and get mired down. Low and behold, Bin Laden received a bonus when the wonks in WASH then targeted IRAQ, too.

Each action is a testament to American ignorance dovetailing with our military industrial complex. Once the boogie man of Communism fell, the wonks latched onto terrorism to replace it. This had more to do with money and special interests than it did with national security.

< Message edited by cloudboy -- 2/16/2011 11:24:43 AM >

(in reply to DarkSteven)

Profile

Post #: 22

RE: Motley Fool weighs in on the budget crisis - 2/16/2011 1:45:30 PM

Fellow

Posts: 1486
Joined: 9/21/2009
Status: offline

quote:

Your hyperinflation argument is bogus. Inflation is very low, despite high M, because V is still so low. That's what the Fed tried to address.

This is correct argument, but hyperinflation may not have much to do with fundamentals. It would be triggered by the loss of faith in US currency (psychology). Sudden substantial US Treasury bonds dumping in World markets can trigger such event any time.

(in reply to willbeurdaddy)

Profile

Post #: 23

RE: Motley Fool weighs in on the budget crisis - 2/16/2011 1:56:58 PM

Hippiekinkster

Posts: 5512
Joined: 11/20/2007
From: Liechtenstein
Status: offline

quote:

ORIGINAL: jlf1961

Jefff, how bout we exile all republicans to Sarah Palin's home town in Alaska?

Too many mod cons in Wasilla. Maybe one of the Aleutians.

_____________________________

"We are convinced that freedom w/o Socialism is privilege and injustice, and that Socialism w/o freedom is slavery and brutality." Bakunin

“Nothing we do, however virtuous, can be accomplished alone; therefore we are saved by love.” Reinhold Ne

(in reply to jlf1961)

Profile

Post #: 24

RE: Motley Fool weighs in on the budget crisis - 2/16/2011 1:59:56 PM

willbeurdaddy

Posts: 11894
Joined: 4/8/2006
Status: offline

quote:

ORIGINAL: Fellow

quote:

Your hyperinflation argument is bogus. Inflation is very low, despite high M, because V is still so low. That's what the Fed tried to address.

This is correct argument, but hyperinflation may not have much to do with fundamentals. It would be triggered by the loss of faith in US currency (psychology). Sudden substantial US Treasury bonds dumping in World markets can trigger such event any time.

Its not "dumping" them per se, but loss of buyers for them driving up the interest rates. People dont have a clue how fucked we are if interest rates go up even a few percent....and the hole may already be too deep to dig out of.

_____________________________

Hear the lark
and harken
to the barking of the dogfox,
gone to ground.

(in reply to Fellow)

Profile

Post #: 25

RE: Motley Fool weighs in on the budget crisis - 2/16/2011 1:59:57 PM

Hippiekinkster

Posts: 5512
Joined: 11/20/2007
From: Liechtenstein
Status: offline

quote:

ORIGINAL: jlf1961

Ken, considering I have voted democrat every election since Reagan, I doubt that.

Besides I am trying to form a new group, the Popular Front for the Liberation of Texas, I am against Yankees and republicans.

Trying to overthrow the Lone Star Police State?

_____________________________

"We are convinced that freedom w/o Socialism is privilege and injustice, and that Socialism w/o freedom is slavery and brutality." Bakunin

“Nothing we do, however virtuous, can be accomplished alone; therefore we are saved by love.” Reinhold Ne

(in reply to jlf1961)

Profile

Post #: 26

RE: Motley Fool weighs in on the budget crisis - 2/16/2011 8:08:40 PM

Arpig

Posts: 9930
Joined: 1/3/2006
From: Increasingly further from reality
Status: offline

quote:

That will change as soon as there is a meaningful uptick in hiring. If youve been watching mid/long term interest rates, inflation is coming.

Run everyone...the sky is falling...willbe said so so it MUST be true.

_____________________________

Big man! Pig Man!
Ha Ha...Charade you are!

Why do they leave out the letter b on "Garage Sale" signs?

CM's #1 All-Time Also-Ran

(in reply to willbeurdaddy)

Profile

Post #: 27

RE: Motley Fool weighs in on the budget crisis - 2/16/2011 8:13:42 PM

Arpig

Posts: 9930
Joined: 1/3/2006
From: Increasingly further from reality
Status: offline

quote:

and the hole may already be too deep to dig out of.

Actually Willbe, I agree this time, but I think its already too deep...repudiation or reconciliation is coming because the US isn't the only nation driving up enormous debts...pretty much all of them are.

_____________________________

Big man! Pig Man!
Ha Ha...Charade you are!

Why do they leave out the letter b on "Garage Sale" signs?

CM's #1 All-Time Also-Ran

(in reply to willbeurdaddy)

Profile

Post #: 28

RE: Motley Fool weighs in on the budget crisis - 2/17/2011 3:22:32 PM

EternalHoH

Posts: 791
Joined: 5/30/2010
Status: offline

Google "Interest Rate Swaps". Read up on an element of this, the bogus unfunded 'insurance' that becomes payable when interest rates go up. After all, what Fortune 500 business would not want to be reimbursed by 'insurance' when the costs of borrowing go up as a result of interest rate increases. In the end, it simply was a damn shame that an element of this 'insurance' mechanism turned out to be a ponzi scheme run by Wall St.

Just like with "Credit Default Swaps", which was bogus 'insurance' that was supposed to pay investors who owned mortgage-backed securities when unqualified homeowners defaulted on mortgages and turned those securities into dogshit. When that part of Wall Street's ponzi scheme collapsed, we came close to another depression.

Notational amounts on Housing swaps were around $60 trillion, and when that unraveled, it took down Bear, Lehman and AIG. Notational amounts on Interest Rate Swaps are over $400 trillion. How do we survive that? How do we use interest rates to control inflation without blowing up what remains of our financial industry?

This is the result, not of government, but of Wall St taking advantage of both technological and ethical loopholes that were handed to them by financial deregulation. Simpleton Americans voting on simpleton 'keep government out of private business' issues. Incredibly uneducated Rural America, those folks in 'flyover' territory, at their best (worst)!

I agree with Fellow that Obama is slowly coming around to the realization that there is no fix on the horizon; that it is beyond the point of repair with the tools he is 'authorized by the people' to use. When that $60 trillion sub-sector started to collapse, the only solution he had was to throw the federal purse at it, in an attempt to stop the chain of dominoes from falling. But now the same simpleton Americans who carried the water on deregulation now have an issue with his 'federal purse' approach. If I were Obama, I'd say "fuck them" and exit, too.

The global debt crisis is small compared to the Wall St. Legitimacy crisis. The global debt crisis is just like the unqualified homeowner crisis, both are ills, but the negative impact of both ills have been magnified many-fold by Wall St illegitimacy. We seem to have forgotten about that since Wall St came out of recession. Just because Wall St itself is making tons of money again does not mean the legitimacy of what it does has been restored.

-

< Message edited by EternalHoH -- 2/17/2011 4:21:49 PM >

(in reply to willbeurdaddy)

Profile

Post #: 29

RE: Motley Fool weighs in on the budget crisis - 2/17/2011 8:10:36 PM

Musicmystery

Posts: 30259
Joined: 3/14/2005
Status: offline

quote:

ORIGINAL: Fellow

quote:

Your hyperinflation argument is bogus. Inflation is very low, despite high M, because V is still so low. That's what the Fed tried to address.

This is correct argument, but hyperinflation may not have much to do with fundamentals. It would be triggered by the loss of faith in US currency (psychology). Sudden substantial US Treasury bonds dumping in World markets can trigger such event any time.

To buy what instead?

Reality is, the world still flocks to U.S. Treasuries, and for good reason.

But no, that would not trigger hyperinflation. M or V would still have to jump, and your scenario wouldn't do it.

< Message edited by Musicmystery -- 2/17/2011 8:14:10 PM >

(in reply to Fellow)

Profile

Post #: 30