tag:blogger.com,1999:blog-648884752216444797.post5033246877894825604..comments2024-03-28T09:59:13.754-07:00Comments on bionic mosquito: The QE Will Continue Until Inflation Improvesbionic mosquitohttp://www.blogger.com/profile/12002548958078731031noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-648884752216444797.post-79212734615947567462014-10-20T19:17:14.720-07:002014-10-20T19:17:14.720-07:00I only see this as a possibility after a good amou...I only see this as a possibility after a good amount of price inflation - in other word, the dollars would go up in value only after going much further down in value.<br /><br />bionic mosquitohttps://www.blogger.com/profile/12002548958078731031noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-55689226473353973022014-10-20T16:10:58.186-07:002014-10-20T16:10:58.186-07:00Thank you, I suppose that is the more accurate vie...Thank you, I suppose that is the more accurate view. I have a hard time wrapping my head around the concept that these worthless fiat dollars will go up in value under any circumstances, although I understand how credit destruction reduces money supply.Jonathan Jaechhttps://www.blogger.com/profile/10379443520888976176noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-38865015634638495732014-10-20T16:07:20.867-07:002014-10-20T16:07:20.867-07:00True enough. And few seem to care about the defau...True enough. And few seem to care about the default so who knows.Jonathan Jaechhttps://www.blogger.com/profile/10379443520888976176noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-9468780880992502972014-10-20T15:04:37.768-07:002014-10-20T15:04:37.768-07:00I think we can already consider bonds owned by the...I think we can already consider bonds owned by the Fed as "in default." As long as the balance sheet doesn't shrink.<br /><br />Interest income is returned to the Treasury department, less a small handling fee.<br /><br />This could continue for some time, I imagine.bionic mosquitohttps://www.blogger.com/profile/12002548958078731031noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-45166299745155026512014-10-20T15:03:04.515-07:002014-10-20T15:03:04.515-07:00If stopping or reversing QE is necessary to mainta...If stopping or reversing QE is necessary to maintain faith in the USD, I believe the Fed will do it. This will be destructive to many / all asset prices in dollar terms. <br /><br />The choice will then be which asset will suffer least; I suspect it will be the assets least dependent on artificial credit.<br /><br />Holding currency might, at that time, be the best bet - this assumes that the one thing the Fed / USG will defend at all costs is bank deposits.<br />bionic mosquitohttps://www.blogger.com/profile/12002548958078731031noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-15890946638938863712014-10-20T13:39:38.007-07:002014-10-20T13:39:38.007-07:00Mexico replaced the old peso with the new on Janua...Mexico replaced the old peso with the new on January 1, 1993 at 1000 to one. There was a sell-off in Mexican securities in latter part of 1992 but the long-term effect on securities looks about nil. Presumably the average Mexican experienced some pretty severe price increases in consumer goods around that time. It seems safe to assume that the main effect the US of a currency replacement would be severe price increases in all imported goods and an accompanying recessionary or depressionary dislocation in the economy. Catalyst for Mexican currency replacement was default on external debt, would the U.S. follow a similar pattern?Jonathan Jaechhttps://www.blogger.com/profile/10379443520888976176noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-84731283391879404422014-10-20T13:18:59.932-07:002014-10-20T13:18:59.932-07:00I quite like your last paragraph, but can't qu...I quite like your last paragraph, but can't quite figure out what you mean by the last sentence. There is no crystal ball or inside information here, but we can make an educated guess that a central bank plan exists to replace a rapidly-failing currency with a new, central bank controlled, also inflatable currency, perhaps with some appearance of greater stability. Although appearances may not even be necessary as the news media willl just read the central bank press release and the public will believe almost whatever is read. In such a scenario, owning a portfolio of real estate and commodities would be superior (I assume) to holding fiat currency, particularly dollars; are you suggesting something else?Jonathan Jaechhttps://www.blogger.com/profile/10379443520888976176noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-11643653433401950742014-10-20T03:57:49.251-07:002014-10-20T03:57:49.251-07:00[quote] it all depends if the Chinese elite care t...[quote] it all depends if the Chinese elite care to share some of the wealth with the Anglo elite[/quote]<br /><br />Thats where Russia comes in. Russia and central Asia(the Caspian) have the energy which China needs for the future. Russia and Iran currently block access by the Anglos to the energy riches of central Asia<br /><br />If "regime change" (Putin replaced by a new Yeltsin) occurs in Russia, then the Anglos will quickly send troops into the Caspian and central Asia to secure the oil and gas fields. Then they will have their hands on China's throat.<br /><br />Regime change in Russia has become an urgent requirementCommenter No 1noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-47710254848262687962014-10-19T16:25:25.382-07:002014-10-19T16:25:25.382-07:00We all just get to guess...
I think they thought ...We all just get to guess...<br /><br />I think they thought they had the global warming thing far enough along - carbon taxes were going to drive the new currency. A few unfortunate email revelations later....<br /><br />As to the Asians, it all depends if the Chinese elite care to share some of the wealth with the Anglo elite. I am not fully settled either way, but I lean toward no.<br /><br />They have a 5000 year history, and look at the Anglo as a flash in the pan.bionic mosquitohttps://www.blogger.com/profile/12002548958078731031noreply@blogger.comtag:blogger.com,1999:blog-648884752216444797.post-10571715674652855742014-10-19T13:13:03.619-07:002014-10-19T13:13:03.619-07:00Ya know what really helps? to have the end in mind...Ya know what really helps? to have the end in mind!<br /><br />I believe I have mentioned before that our monetary system has an expiration date. In fact, everywhere debt-money rules has an expiration date, meaning, a point in time where it fails. Ours failed in 2008, I don't think it was supposed to fail so soon as Asia was not ready to take on the mantle of prime borrower. Hence QE.<br /><br />I don't know what the financial oligarchs have in store for us, but I'm sure it ain't good; we are likely to used up and discarded like worn-out clothing. That QE is ending(or is it) means that "they" are ready to move their plan forward to live off the willing Asian middle class to borrow their way to a lifestyle to which the elites have become accustomed. Just to be clear, it's not the Asians to whom the riches flow but the Oligarchs who create the "money" and live off the interest, just as they've done for the last 100 years in which WE were the willing borrowers.<br /><br />Just a little forward thinking reveals what I've said to be true. Try it, you might like it.markhttps://www.blogger.com/profile/07458572414243185043noreply@blogger.com