davidgmills
https://www.investmentwatchblog.com/strange-bedfellows-indeed-trump-and-aoc-converge-on-monetary-policy/

 

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It would be espically ironic if Congress’ most outspoken socialist turned out to be instrumental in re-electing Trump by making easy money acceptable just in time for 2020.

But – as strange as this new alignment of the political stars looks at first glance – it’s also inevitable. Once a society takes on more debt than it can ever hope to pay off, the only way to avoid another Great Depression is to inflate away the currency. So it should come as no surprise that both ends of the ideological spectrum are rationalizing lower (and soon negative) interest rates and next-gen QE.

 

Ye shall know the phony left by the gates they keep.
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PaganWoman
I wish I understood any of this.  The manipulation of money is beyond comprehension by peeps like me.  
Love Wins...it takes time and seems as if it will never truly win ....believe it will ~PaganWoman
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davidgmills
I don't understand any of it either because it is designed to be unintelligible.
Ye shall know the phony left by the gates they keep.
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aspirant
Could it be just a magic trick?
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davidgmills

aspirant wrote:
Could it be just a magic trick?


That is as good a description as I have ever heard.  We never seem to  catch the sleight of hand.  Duped every time.

 

 

Ye shall know the phony left by the gates they keep.
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Sriracha
Since the treasury has been drained. The next bankster bailout will actually be a bail in. Wich simply means they will confiscate the money you and I have in the bank. Just like was done in Cypruss a few years ago.
Pipeline and Railroad across the Berring Strait: Bye bye middle east quagmires. Bye bye 23ft/gal super tankers polluting the world. Add a highway to that. Then we can drive to Asia, Europe and Africa. Road trip heaven!
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davidgmills
All the more reason to have as little money in a bank as you can.  Probably best to be invested in other private entities than banks.  Although the banks could take their money as well.  But at least those entities might have the ability to take on the banks in court or in Congress.
Ye shall know the phony left by the gates they keep.
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PaganWoman
davidgmills wrote:
All the more reason to have as little money in a bank as you can.  Probably best to be invested in other private entities than banks.  Although the banks could take their money as well.  But at least those entities might have the ability to take on the banks in court or in Congress.


David what are private entity?
Love Wins...it takes time and seems as if it will never truly win ....believe it will ~PaganWoman
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Fire With Fire
Economic arguments on the internet tend to be couched in terms of certitude -- invariably unwarranted certitude.  One of the oldest topics in the field is the question of money -- should it be loose or tight?  Loose money is connected with inflation, more dollars chasing a finite amount of product.  Tight money is connected with stagnation, fewer dollars available for sellers causing product to sit on shelves.  There is no "correct" monetary policy and throughout modern history there have been a very wide variety of approaches and expediencies.

As the article points out, a strong dollar helps foreign manufacturers, while a weak dollar helps domestic manufacturers -- at least in the short term.

(The following is a slight edit of a post I made a few days ago. I believe it fits on this thread.)

I have been sampling the Stock Market "news" stories of the day linked from my iPhone app called, "Stocks."  There is an insular group of "reporters" who work for the major business or general news platforms who have to file stories every day that "explain" why the stock market rose, fell or held steady on the day.  What a miserable job -- calling "sources" from the Street to get what they will say on the record about why prices moved the way they did.  Obviously, there are some problems of credibility with such reporting.  If I short Omni-Orbco, I have a real good reason to lie about what I think its price will be next week.  Nevertheless, I have been running into a lot of interesting opinions, and even a few facts, in these stories from the business press.

The Dow and S&P hit new all time highs on July 11, based on the presumed likelihood of the Federal Reserve lowering interest rates.

With this mid summer rally, the "markets" are now showing investments "worth" roughly four times what they were "worth" ten years ago.  Many articles mention that this coincides with the "longest economic expansion" in history.  Oh, and aggregate consumer debt has also reached an all time high, surpassing the bubble that burst in 2008.

This alleged business "expansion" is almost entirely fluff.  Faced with the debt crisis and the high proportion of really bad loans hanging over the banking industry as of 2009, the Fed began giving money away at practically zero percent interest.  Those with the wherewithal to take advantage did -- and most of that "money" created out of thin air has gone into investments, creating this illusory four fold increase in corporate "wealth."  On the hope that the Fed will go back to giving away free money, the "markets" have regained everything lost during the 2018 "correction," obviously on the related hope that more free money pumping into the economy will drive the markets to ever higher levels.

Another note I saw from these daily market stories related that now 80% of trading is now conducted by computer programs.

Meanwhile, the tents I see in my business travels along the West Coast continue to proliferate.  I heard a recent estimate that there are more than 60,000 people in Los Angeles without a home.  In San Francisco, the dysfunctional economy is driving housing costs to the point where unless you make six figures, you are shit out of luck.  In Seattle, there is a homeless encampment under the Interstate 5 and Interstate 90 interchange with what look to be many hundreds of tents. 

It is a bizarre sight -- a host of gigantic cranes along the horizon in each West Coast city as the low interest loose money policy has created a high end boom, while the ranks of the homeless and the hopeless keep growing in the shadows.  This dysfunctional economy is still running on borrowed funds rather than from consumer demand.  

I firmly believe that the "ideology" driving this week's expected lowering of interest rates is nothing more than fear of kicking off the next crash, with no further benefits promised, expected -- or even possible.



If things were just to stay as bad as they are now, the present schemes for keeping the status quo in place would probably work.  But that is not what is happening.  Another crash is either days, months or at most a few years away.  The last crash gave us fraudulent Hope and Change, followed by Occupy and then the Sanders and Trump campaigns -- which blew the Bush-Clinton paradigm to smithereens.  In turn, that led to the utterly untenable political stalemate between our national political leaders who are trying to throw each other in jail -- or it least they claim to be doing so, and the "news" is dominated by one criminal inquiry after another.

When (not if) the next crash comes, there will be a revolution.  That does not necessarily mean a violent revolution.
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