Perspectives on the global economic changes

Theo_Fidel · Post by **Theo_Fidel** » 06 Mar 2014 20:27

India needs to figure out how to get off the oil economy. At least start with transportation.

It is the single biggest drain on Indian Capital/Wealth. Every year we write a cheque for somewhere between 10% - 15% of our entire GDP to the middle eastern countries. If you are unable to invest properly in our infrastructure, this has to be one major reason. On some days I have a tendency to think, the difference between India & China is the Daqqing Super giant field in China which gave China a 20 Billion barrel boost to its capital account.

Austin · Post by **Austin** » 06 Mar 2014 22:08

A bit older but interesting debate on Zero Interest Rate

David Stockman vs. Clive Crook: Debate Over Zero-Interest Rate

Austin · Post by **Austin** » 06 Mar 2014 22:17

James Turk, co-founder and director of GoldMoney.com, explains that gold is much better than fiat currency and tells why he is bullish on silver right now

http://rt.com/shows/boom-bust/gold-ukra ... -woes-090/

Austin · Post by **Austin** » 07 Mar 2014 10:35

US Fed says threshold high for changing taper plans

The U.S. economic outlook would have to change substantially for the Federal Reserve to alter the pace at which it is winding down asset purchases, a top U.S. central banker said on Thursday.

While growth is likely to quicken this year, the threshold for changing course on stimulus withdrawal is "pretty high," said New York Fed President William Dudley during an event hosted by The Wall Street Journal.

"The outlook would have to change in a material way relative to my expectation," he added.

The Fed this year started winding down five years' worth of unprecedented accommodative policies meant to fight the 2007-09 recession and foster a stronger recovery. That means the central bank will eventually stop buying trillions of dollars worth of bonds and holding overnight interest rates at zero.

But Dudley said economic headwinds are likely to persist for some time and added that the U.S. central bank is still a long way from raising overnight interest rates.

Austin · Post by **Austin** » 07 Mar 2014 10:36

Lets say of Fed Taper out QE 3 by EOY .... can they still keep interest rate at Zero or will they be forced to hike interest rate when Tapering is done ?

Neshant · Post by **Neshant** » 07 Mar 2014 12:32

Bernanke is living high on the hog charging $250,000 for speaking engagements. "He is fully booked" and will make more than he made yearly as fed chair, per speaking engagement.

What is this other than a back door bribe for offloading the gambling losses of private bankers onto the public and also trying to prevent their prosecution for crimes? Who would be paying 250k to hear words of wisdom from him when at the very height of the housing bubble, he claimed there was no bubble.

Meanwhile Tim Geithner has joined a hedge fund (which no doubt benefitted via the bailouts) after having sworn up and down that he would not join Wall Street after leaving his position as Treasury Secretary.

Central banker is nothing more than bribe collecting con artists.

This is one of the strongest arguments against having a "wise man" at the top with all the power to control the monetary system. Aside from the obvious fact that the wise man may well be a fool who ends up destroying the lives of millions, gravitation of power & authority into the hands of a few inevitably leads to massive corruption.

_________

http://money.cnn.com/2014/03/05/news...html?iid=HP_LN

Austin · Post by **Austin** » 07 Mar 2014 13:29

Neshant wrote:Who would be paying 250k to hear words of wisdom from him when at the very height of the housing bubble, he claimed there was no bubble.

Uncle Ben and Aunty Jannet are saying the same there is no bubble .......Yellen infact stated she doesnt see any Orange Light forget about the Red Ones.

Same goes for UK PM and BOE Chairman that he doesnt see any housing bubble in UK.

But to be fair why would they say the inevitable and get the Stock to crash and get blamed in the bargain ....they would rather let the inevitable happen when it does and say they never saw it coming ( plausible deniability ) that way they dont get blamed for it .....and the action moves on to how to save it and what to do next ....which turns them into a Hero.

Neshant · Post by **Neshant** » 07 Mar 2014 19:36

The entire premise of central banking rests on the claim that "wise men" know more than the rest of us how to price risk and can predict what is happening in the economy. If they were to reveal they don't know anymore than the man in the street about what is about to happen, the premise for their existance vanishes. A frightening view emerges where clueless bozos are gambling with unbelievable amounts of money and the lives of hundreds of millions.

Of course the real reason for their existance is to pass on the gambling losses of their cronies, the private banks, to the rest of society. All else is merely designed to hide that through fancy jargon and slick talk to convince the masses they have some useful role to play.

vishvak · Post by **vishvak** » 07 Mar 2014 20:08

Some news from Spain link
Colau's Platform for People Affected by Mortgages

..
..But two years ago the couple's mortgage payments more than doubled from 800 to nearly 2000 euros a month...
..
"Spain has one of the worst housing policies in Europe." .. People must continue to pay off their mortgages, complete with interest and penalty charges, even after they have been evicted and their home - whose value is appraised by the bank itself - has been repossessed. Since mortgage defaulters are disqualified from filing for bankruptcy, many are saddled with debts they can never escape.
..
a remark by a representative of the AEB, the Spanish Banking Association.. "He boasted that Spain has got the best mortgage system in the whole world," .. This new policy only suspends evictions for two years but the Platform says thousands of vulnerable families are still being made homeless. According to the Bank of Spain, evictions accelerated in the first half of last year when more than 35,000 Spanish homes were seized by banks for non-payment.
..

Austin · Post by **Austin** » 07 Mar 2014 23:14

Jim Rickards on dollar debasement & Peter Joseph explains Zeitgeist Movement

http://rt.com/shows/boom-bust/dollar-de ... ement-346/

Neshant · Post by **Neshant** » 09 Mar 2014 05:50

Austin · Post by **Austin** » 09 Mar 2014 12:13

^^ Interesting

Two gloomy news on two major economies

China Is Crashing … As Predicted

The Top 12 Signs That The U.S. Economy Is Heading Toward Another Recession

TSJones · Post by **TSJones** » 09 Mar 2014 13:23

I don't know how some of you guys can live with all of these negative thoughts.

http://www.mrmoneymustache.com/2014/03/ ... ll-doomed/

Austin · Post by **Austin** » 09 Mar 2014 15:36

Greenspan: Stocks Aren't in Bubble Territory

While some financial commentators argue that the stock market has turned into a bubble, former Federal Reserve Chairman Alan Greenspan disagrees.

"That's not to say we may not be near highs, but you don't get the buoyancy, the type of movements — what I would call the equity premium that characterizes a bubble or euphoria," he tells CNBC.

"Two or three years ago, we were at the highest level of equity premium, a rate of return on equity that the markets require. We had had the highest equity premium in 50 years. It's come down a bit."

Greenspan says the Fed can't prevent bubbles. "You can try to defuse it. You'll fail, as we did in 1994," he explains. "Unless you break the back of the actual euphoria that generates the bubbles, you're bound to fail. And the result of that is something that is outside the hands of the Fed."

Asked if there's a bubble in Silicon Valley acquisitions, Greenspan answers, "Bubbles are not the problem. Bubbles, by definition, will deflate. It's the institution which holds toxic assets which is a critical issue."

For example, when the dot-com stock bubble burst in 2000, huge losses resulted. "But it was essentially in those types of institutions which were not leveraged," he notes.

"At the time, households, they weren't. Other pension funds, mutual funds, they took a huge hit. But to get a crisis, you need serial default."

And, of course, no serial default occurred then. "If you look at the effect on the GDP, it was virtually negligible," Greenspan argues.

He is very concerned about banks being adequately capitalized. "There's nothing superior to that." But he's not too impressed with the Dodd-Frank financial reform law.

"Coming from what's in Dodd-Frank, the diagnosis is basically wrong," he maintains.

"We're getting into a situation where the problem is wholly in the capital area. We went into the Lehman Brothers [crisis] with Lehman holding 3 percent tangible capital. You can't function that way."

Dodd-Frank is holding back the economy. "The difficulty is when I was at the Fed we had a few rulings a year," Greenspan says.

"Those rulings were extended because you had to go through all sorts of loops and circles of discussing with your colleagues and regulatory areas. And we managed to do that."

But Dodd-Frank includes a huge number of requirements, he adds. "I don't think there's enough time to do it," he said. "And I don't think it's going to work. In fact, I wrote an op-ed piece immediately after Dodd-Frank carried on. I said this isn't going to work, and it hasn't."

Many other experts don't see a bubble in the stock market either.

Jeffrey Kleintop, chief market strategist at LPL Financial, tells CNNMoney that stocks can achieve "mid- to high-single-digit gains" before dividends over the next 10 years, though not without increased volatility.

So the stock rally isn't winding down, he says. "In fact, the bull market may be getting a second wind."

Austin · Post by **Austin** » 09 Mar 2014 22:39

What do they mean by this
http://www.zerohedge.com/news/2013-10-0 ... wn-america

Nevertheless, since 1989 total US credit market debt has simply gone parabolic. Today it is nearly $58 trillion or 3.6X GDP and represents a leverage ratio far above the historic trend line of 1.6X national income---a level that held for most of the century prior to 1980. In fact, owing to the madness of our rolling national LBO over the last quarter century, the American economy is now lugging a financial albatross which amounts to two extra turns of debt or about $30 trillion.

What is Credit Market Debt ?

sivab · Post by **sivab** » 09 Mar 2014 23:32

^^^ Its the total debt outstanding in US for all sectors

http://research.stlouisfed.org/fred2/series/TCMDO

And Chinese have managed to do better ~US$15 trillion in last 5 years.

panduranghari · Post by **panduranghari** » 10 Mar 2014 02:57

Austin ji
Stockmans article on ZH was a tour de force.

Some comments again from ZH;

And it's that attitude and mentality - attention span of a hummingbird, don't confuse me with complex arguments, say it in 10 words, or better yet with a picture, and maybe serve it with a quadruple bacon-and-egg cheeseburger, fries, gravy and an extra large shake, washed down with some zantac and maybe a handful of prozac and ****, that's keepin' USA on top of the ******' heap.

Sorry, it's not just about "money" but what money represents!
When said people lose a lot of money or what money they had to some bankster or system that empowers them, things are gonna get dicey to say the least.
Stockman may have been part of the system at one point, but is it possible for even an insider to wake up at some point and realize the error of one's ways?
Heck, I was once the biggest neocon on the planet, until I realized all my production just built things that killed people.
There's hope for everyone and the take no prisoners attitude that leads to comments decrying Stockman as the antithesis of what he is currently writing is BS...

Austin · Post by **Austin** » 10 Mar 2014 16:02

panduranghari wrote:Austin ji
Stockmans article on ZH was a tour de force.

Some comments again from ZH;

Indeed when you look at those figures its mind boggling .....what makes Stockman different is he has put up all in figures comparing to say 89 and where it is now .... and its even more mind boggling that the entire Fed express of QE is just there to prop up Wall St and Banks .... and its all happening at the cost of productive economy , rising debt of working class with all support from Government.

Austin · Post by **Austin** » 10 Mar 2014 16:05

sivab wrote:^^^ Its the total debt outstanding in US for all sectors

http://research.stlouisfed.org/fred2/series/TCMDO

And Chinese have managed to do better ~US$15 trillion in last 5 years.

So thats total US credit market debt---including that of households, business, financial institutions and government.

I wonder if they would ever be able to pay those debt as US economy is not growing to the extent they can curb the rising debt let alone pay it.

China is surely in same boat the difference being China still grows at 6 %

Austin · Post by **Austin** » 11 Mar 2014 11:16

Here is a good article on how Oil Prices are controlled

Sam’s Exchange: Donald’s Diplomacy - OPEC and the Oil price

Austin · Post by **Austin** » 11 Mar 2014 11:26

Nice Interview on prospects of Shale Oil and Gas

Shale - The Last Oil And Gas Train: Interview With Arthur Berman

Austin · Post by **Austin** » 11 Mar 2014 16:34

Klarman warns of impending asset price bubble

One of the world's most respected investors has raised the alarm over a looming asset price bubble, calling out "nosebleed valuations" in technology shares like Netflix and Tesla Motors and warning of the potential for a brutal correction across financial markets.

Seth Klarman, the publicity shy head of the $27 billion Baupost Group whose investment opinions have attracted a near cult-like following, said that investors were underplaying risk and were not prepared for an end to central banks reversing a five-year experiment in ultra-loose money.

Mr Klarman wrote in a private letter to clients: "When the markets reverse, everything investors thought they knew will be turned upside down and inside out. 'Buy the dips' will be replaced with 'what was I thinking?' . . . Anyone who is poorly positioned and ill-prepared will find there's a long way to fall. Few, if any, will escape unscathed.

"Any year in which the S&P 500 jumps 32 percent and the Nasdaq 40 percent while corporate earnings barely increase should be a cause for concern, not for further exuberance," Mr Klarman wrote.

"On almost any metric, the US equity market is historically quite expensive. A sceptic would have to be blind not to see bubbles inflating in junk bond issuance, credit quality, and yields, not to mention the nosebleed stock market valuations of fashionable companies like Netflix and Tesla Motors," he wrote. The Baupost Group declined to comment.

Since central banks slashed interest rates to record lows and began a policy of buying up government bonds after the 2008 market crash, the S&P 500 has rallied by more than 150 percent to new all-time highs. Bond yields have fallen sharply and many other assets, from fine art to property in Singapore and London, have leapt in value.

Austin · Post by **Austin** » 11 Mar 2014 17:18

China deposit rates likely to be liberalized in 2 years – central bank

China’s central bank governor said Tuesday that the country’s deposit rates are likely to be liberalized in one to two years, Reuters reported. “Deposit rate liberalization is on our agenda,” said Zhou Xiaochuan, the head of the People's Bank of China. The move will allow financial markets to decide the price of loans. Economists say this will go a long way to prevent the wasteful investment funded by artificially cheap credit that has led to a massive buildup in debt.

akashganga · Post by **akashganga** » 11 Mar 2014 22:45

Austin wrote:Klarman warns of impending asset price bubble
One of the world's most respected investors has raised the alarm over a looming asset price bubble, calling out "nosebleed valuations" in technology shares like Netflix and Tesla Motors and warning of the potential for a brutal correction across financial markets.

Seth Klarman, the publicity shy head of the $27 billion Baupost Group whose investment opinions have attracted a near cult-like following, said that investors were underplaying risk and were not prepared for an end to central banks reversing a five-year experiment in ultra-loose money.

Mr Klarman wrote in a private letter to clients: "When the markets reverse, everything investors thought they knew will be turned upside down and inside out. 'Buy the dips' will be replaced with 'what was I thinking?' . . . Anyone who is poorly positioned and ill-prepared will find there's a long way to fall. Few, if any, will escape unscathed.

"Any year in which the S&P 500 jumps 32 percent and the Nasdaq 40 percent while corporate earnings barely increase should be a cause for concern, not for further exuberance," Mr Klarman wrote.

"On almost any metric, the US equity market is historically quite expensive. A sceptic would have to be blind not to see bubbles inflating in junk bond issuance, credit quality, and yields, not to mention the nosebleed stock market valuations of fashionable companies like Netflix and Tesla Motors," he wrote. The Baupost Group declined to comment.

Since central banks slashed interest rates to record lows and began a policy of buying up government bonds after the 2008 market crash, the S&P 500 has rallied by more than 150 percent to new all-time highs. Bond yields have fallen sharply and many other assets, from fine art to property in Singapore and London, have leapt in value.

The reason stock market and all asset prices are going up is due to free money printing by US fed. Both Bush (republican), and Obama (Democrat) support this money printing. Both parties in the US wants power. To gain power they need billions of dollars which can only come from wall street and wall street can only fund politicians if they allow them to flourish. In the US significant portion of main street is dependent on wall street. So if the stock prices go down it wipes out wealth of baby boomers and also large parts of main street. So no politician will allow stock markets to go down. The only way markets and asset prices can be kept up in US dollar terms is by money printing and giving them to wall street cronies. US needs a nutcase like Ron Paul to become president for one term, let market forces take over, let asset prices come down significantly, and let the population swallow the bitter medicine. That will make US healthier in the long run. My 2 cents.

vic · Post by **vic** » 12 Mar 2014 08:02

The historical high of Nikki was 39,000 in 1989 and after 25 years Japan is still deflating with Nikki stuck at 15-16,000. I fail to understand the economic principle to keep asset prices high or encourage inflation (on artificially high prices). But QE is here to stay along with stagnation.

Austin · Post by **Austin** » 12 Mar 2014 14:43

Here is something to chew on QE

Yellenomics: The Folly of Free Money

Austin · Post by **Austin** » 12 Mar 2014 15:18

Interesting Interview ( Video )

Erin gives you the scoop on the reality of our debt drenched world today. Then Part Two of our interview with economist and author Jim Rickards, in which argues that monetary solutions can't solve the structural problems we around the globe. Tom Ferguson, a professor of political science at the University of Massachusetts-Boston, joins to bring you his insight in the huge flow of money in our political campaigns and how that affects politics. And for Big Deal, Erin and Edward Harrison talk about Abenomics' struggles to solve Japan's enduring economic woes.

Jim Rickards: Monetary solutions can't solve structural problems

panduranghari · Post by **panduranghari** » 12 Mar 2014 18:03

vic wrote:The historical high of Nikki was 39,000 in 1989 and after 25 years Japan is still deflating with Nikki stuck at 15-16,000. I fail to understand the economic principle to keep asset prices high or encourage inflation (on artificially high prices). But QE is here to stay along with stagnation.

3 word answer - Yen Carry Trade.

panduranghari · Post by **panduranghari** » 12 Mar 2014 18:15

akashganga wrote: US needs a nutcase like Ron Paul to become president for one term, let market forces take over, let asset prices come down significantly, and let the population swallow the bitter medicine. That will make US healthier in the long run. My 2 cents.

If you read the following passage written by von mises at least 50 years back, you may feel the time for anyone to course correct is beyond late. The Titanic is about to hit the iceberg, the only question is how many have life boats?

Von Mises wrote:This first stage of the inflationary process may last for many years. While it lasts, the prices of many goods and services are not yet adjusted to the altered money relation. There are still people in the country who have not yet become aware of the fact that they are confronted with a price revolution which will finally result in a considerable rise of all prices, although the extent of this rise will not be the same in the various commodities and services. These people still believe that prices one day will drop. Waiting for this day, they restrict their purchases and concomitantly increase their cash holdings. As long as such ideas are still held by public opinion, it is not yet too late for the government to abandon its inflationary policy.’

“But then, finally, the masses wake up. They become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly. A breakdown occurs. The crack-up boom appears. Everybody is anxious to swap his money against ‘real’ goods, no matter whether he needs them or not, no matter how much money he has to pay for them. Within a very short time, within a few weeks or even days, the things which were used as money are no longer used as media of exchange. They become scrap paper. Nobody wants to give away anything against them.

“It was this that happened with the Continental currency in America in 1781, with the French mandats territoriaux in 1796, and with the German mark in 1923. It will happen again whenever the same conditions appear. If a thing has to be used as a medium of exchange, public opinion must not believe that the quantity of this thing will increase beyond all bounds. Inflation is a policy that cannot last.

The global buoyancy we are seeing is nothing but a crack up boom. Ignore it at your own peril.

Theo_Fidel · Post by **Theo_Fidel** » 12 Mar 2014 19:23

Well the boom did not happen 50 years ago, so how can being wrong then make a person wise now? One is baffled.
--------------------------------

Austin wrote:Erin gives you the scoop on the reality of our debt drenched world today.

Well to be fair the world is drenched in savings as well. Yes including the USA. There is so much savings, money does not know where to go! Which is why bond rates are so low in USA & Japan.

The USA savings rate of 5%-10% is misleading due to 2 points.
- Your 401K or Trad IRA contribution does not count in the savings rate as it is considered pre-tax and hence not countable.
- You mortgage principal payment does not count as housing is considered as consumption! So in effect house value does not count as savings.

The Net worth of USA Households alone is $80 Trillion+.

Many Trillions of dollars are saved every year as well in order to finance the debt. In fact as the USA annual deficit now recedes to $300-$400 billion in a couple of years there are already questions being asked on where to park all these savings. Historically these sorts of mismatches also result in damaging speculative bubbles as savings chase ever declining pay outs. You can see the dynamic in China where consumption is low and bubble investment high.

chanakyaa · Post by **chanakyaa** » 13 Mar 2014 07:02

Deluded Currency Cultists Believe The Dollar Is Invincible

http://www.alt-market.com/articles/2041 ... invincible

panduranghari · Post by **panduranghari** » 13 Mar 2014 14:03

Theo_Fidel wrote:Well the boom did not happen 50 years ago, so how can being wrong then make a person wise now? One is baffled.
--------------------------------

Mises has just explained what crack up boom is. He would be amazed by the continuous QE, the bailouts, the intelligence defying growth of stock indices. That is all to it. I doubt is he was any good at predictions. But Mises was best reader of trends. And what he said is very much applicable.

chola · Post by **chola** » 13 Mar 2014 17:40

Theo_Fidel wrote:Well the boom did not happen 50 years ago, so how can being wrong then make a person wise now? One is baffled.
--------------------------------

Austin wrote:Erin gives you the scoop on the reality of our debt drenched world today.
Well to be fair the world is drenched in savings as well. Yes including the USA. There is so much savings, money does not know where to go! Which is why bond rates are so low in USA & Japan.

A very good point. With the trillions printed since the two QEs began, US assets especially among corporations and financial are at a massive high.

You couple that huge printing of money (which is used to buy corporate bonds) with low inflation and you have more money created out of thin air than you can do with.

But is that is hardly a bad thing. For most of the world, the problem is the ability to create wealth. Having no good place to put wealth is the least of our worries.

Many Trillions of dollars are saved every year as well in order to finance the debt. In fact as the USA annual deficit now recedes to $300-$400 billion in a couple of years there are already questions being asked on where to park all these savings. Historically these sorts of mismatches also result in damaging speculative bubbles as savings chase ever declining pay outs. You can see the dynamic in China where consumption is low and bubble investment high.

Both the US and China consume on an level unimaginable to the rest of the world. The US bought 15 million cars in 2013. The chinis bought 20 million in the same year. We bought barely 1.8m in India with a population four times the US and the same as China.

Where do we want to be? Certainly not consuming cars at less than 1/10th of China's. And the chinis are rightly considered a low consumption society.

Bubbles comes from consumers already having spent on what they want and still having massive wealth to put away on investments.

People like to talk about the Japanese real estate and stock bubble. But the system that created that bubble also made Japan one of the wealthiest nations on earth. The reality is bubbles are part and parcel of rapid growth. If you stick to a low performing economy, you might never experience bubbles since no one has surplus wealth to invest.

What the US and China have done is acquire the ability to print money without inflation. In fact, their currencies actually gains against everyone else's even as they print more and more of them, meaning they can buy more and more hard resources with paper coming out of their presses. That is the sweet spot that all nations should aspire to. This is where I want India to be.

But you can never get things so right that people have just enough money to get all they want but no money left over for speculation. It is far better to overshoot on wealth creation than under.

But let's worry about creating wealth first. Worrying about bubbles is putting the horse before the cart.

panduranghari · Post by **panduranghari** » 13 Mar 2014 18:09

chanakyaa wrote:Deluded Currency Cultists Believe The Dollar Is Invincible

http://www.alt-market.com/articles/2041 ... invincible

Mr Market meet Mr Trouble

Mr. Trouble walks through the door every morning and into a party every night. But he is a master of disguise.

One day, he comes with the healthy mien of a robust high-yield debt market. The next day he is crumpled over, as if depressed by unusually low consumer price inflation. And on the weekend here he is again – a big shot from Wall Street with the highest profit margins in 60 years.

Yes, dear reader, trouble comes in many guises and disguises. An honest, properly functioning economy spots him immediately and promptly shows him the door. But a trumped-up, highly manipulated and mountebank economy is like a carnival hoedown. You can find anything you want… but nothing is exactly what it appears to be.

Economists refer to this as the problem of “distortion.” The real cost of real capital is usually set by the prevailing interest rates. When the Fed permits Mr. Market to function normally investors can take the facts at face value. When the Fed intervenes the effect is to distort the economy and the markets.

Artificially sending interest rates lower makes capital too cheap. It is borrowed too easily and spent too readily. The result is over-speculation… and over-investment.

That is why we have a record issuance of junk bonds in 2014. It is just one more of the many drag queens and carnival kings that have been corrupted by the Fed’s heavy-handed meddling in the markets.

On display, too, is the US “recovery” – the weakest ever in postwar history! Never before has such a strong recession been followed by such a weak bounce back. Quarter after quarter, job growth, GDP growth and consumer price growth substantially underperform every other recovery since World War II.

panduranghari · Post by **panduranghari** » 13 Mar 2014 18:15

chola wrote:What the US and China have done is acquire the ability to print money without inflation. .

Saar please do point out how that is realistic? I would prefer some proof of that statement. Without having anything tangible to compare the currency to, the idea that there is no inflation with continuous printing for 5 years, is a logical fallacy.

Austin · Post by **Austin** » 13 Mar 2014 18:29

Max Keiser and Stacy Herbert discuss bashing the markets with metal pipes in order to save the markets. As a result - Libor fraud, gold fix fraud, ISDA fix fraud and now Forex market fraud - each fraud is a whack, bam, bash to the market; trying to defraud the market to save the market. In the second half, Max interviews Kyle Torpey about MtGox, Dorian ‘Satoshi; Nakamoto and sovereign cryptocoins.

http://rt.com/shows/keiser-report/episo ... eiser-478/

Austin · Post by **Austin** » 13 Mar 2014 18:32

Fed nominee Fischer supports QE3 amid ‘high unemployment rate ( RT )

Stanley Fischer, the nominee for Federal Reserve Chair Janet Yellen’s top lieutenant, has said the US economy still needs unprecedented accommodation because “at 6.7 percent, the unemployment rate remains too high,” Bloomberg reported. Achievement of both maximum employment and price stability requires the continuation of an expansionary monetary policy, he said in remarks prepared for his confirmation hearing before the Senate Banking Committee. The measure is needed “even though the degree of expansion is being gradually and cautiously cut back as the Fed reduces its monthly purchases,” Fischer said.

chanakyaa · Post by **chanakyaa** » 14 Mar 2014 04:32

panduranghari wrote:
chola wrote:What the US and China have done is acquire the ability to print money without inflation. .
Saar please do point out how that is realistic? I would prefer some proof of that statement. Without having anything tangible to compare the currency to, the idea that there is no inflation with continuous printing for 5 years, is a logical fallacy.

Haha. I'm sure there are many ways to achieve this. Centralize/monopolize money printing and inflation reporting....and wallah. You have endless money printing without inflation. Regardless of how much you print, inflation will always be 2%, if you disagree, you are enemy of the state.

In the promised land, inflation is there in every single product people consume, insurance, services, state/local taxes; but the inflation number never goes up. What a fantastic way of cheating people and transfer wealth to private sector. Other than helping employment improve, doubt it helps anything else.

panduranghari · Post by **panduranghari** » 14 Mar 2014 16:31

x post

http://forums.bharat-rakshak.com/viewto ... 4#p1608624

Philip wrote:Bread and circuses was the way the ancient Romans kept the population happy.Their equivalent of the T-20 and Bollywood was the arena,where for more than half the year,free entertainment in the form of the most elaborate gladiatorial contests were staged.Ever been to the Colloseum?

In the Indian context,the first blow to render India impotent was made "at the stroke of the midnight hour" way back in '47.India and Pak were made to wage war with each other ever since partition to keep them from developing their true potential and dominating world events.The manner in which we achieved Independence through Gandhi and his non-violent strategy,electrified the colonies in Africa and Asia and beyond and sounded the death-knell for the imperial/colonial era.But what replaced this era of servitude? A powerful UNSC in favour of just 5 N-weapon states,with the rest of the nations as mere observers,and a global economic structure loaded heavily in favour of the capitalist nations.Weak ,corrupt and venal leaderships and autocratic dictators were the instruments of retaining a new era of neo-colonialism through willing marionettes like Man Mohan Singh.

I have a slightly different perspective on this though I agree overall with the assessment you have made.

In Breton Woods in 1945 when the victorious powers met and formulated the next economic system, they wanted to made gold as essential element of this system. However, it was hijacked by the US for its own advantage making dollar the de jure indicium. In that time I would assume atleast 80% of global gold was concentrated in the west. However, the past 70 odd years the gold has moved to the hands who understand its value. In many ways, the US and thus the west dug its own grave. They most certainly would like to reclaim this gold. Overt colonisation is not possible, but they will use economic warfare.

Liu · Post by **Liu** » 14 Mar 2014 16:52

chola wrote: A very good point. With the trillions printed since the two QEs began, US assets especially among corporations and financial are at a massive high.

You couple that huge printing of money (which is used to buy corporate bonds) with low inflation and you have more money created out of thin air than you can do with.

But is that is hardly a bad thing. For most of the world, the problem is the ability to create wealth. Having no good place to put wealth is the least of our worries.

Many Trillions of dollars are saved every year as well in order to finance the debt. In fact as the USA annual deficit now recedes to $300-$400 billion in a couple of years there are already questions being asked on where to park all these savings. Historically these sorts of mismatches also result in damaging speculative bubbles as savings chase ever declining pay outs. You can see the dynamic in China where consumption is low and bubble investment high.
Both the US and China consume on an level unimaginable to the rest of the world. The US bought 15 million cars in 2013. The chinis bought 20 million in the same year. We bought barely 1.8m in India with a population four times the US and the same as China.

Where do we want to be? Certainly not consuming cars at less than 1/10th of China's. And the chinis are rightly considered a low consumption society.

Bubbles comes from consumers already having spent on what they want and still having massive wealth to put away on investments.

People like to talk about the Japanese real estate and stock bubble. But the system that created that bubble also made Japan one of the wealthiest nations on earth. The reality is bubbles are part and parcel of rapid growth. If you stick to a low performing economy, you might never experience bubbles since no one has surplus wealth to invest.

What the US and China have done is acquire the ability to print money without inflation. In fact, their currencies actually gains against everyone else's even as they print more and more of them, meaning they can buy more and more hard resources with paper coming out of their presses. That is the sweet spot that all nations should aspire to. This is where I want India to be.

But you can never get things so right that people have just enough money to get all they want but no money left over for speculation. It is far better to overshoot on wealth creation than under.

But let's worry about creating wealth first. Worrying about bubbles is putting the horse before the cart.

pls attention:

China produced 23M autos while chinese bought 22M auto last years.

USA produced 10M autos while yankees bought 15M autos..

Indian prouduced only 1/10 autos of CHinese,so its consumed only 1/10.