have you ever played Monopoly when rules constantly change?
when some spoiled brat bully changes to rules to suit himself?
that is what I compare it to
or played basketball as a kid with an asshole who altered the rules as the game progressed?
the Central Bankers are legally capable of doing almost anything they want in order to ATTEMPT to produce and sustain a healthy economy
but since they are officially a Congressional Concession organization, they must hoodwink Congress in order to fix new rules in banking
a serious warning I see is that Congress is now slowly wising up to GreenFarm's and its own disasters in the making
right now, regional banks are not seeing much of a rise in lending despite lower interest rates
they are frustrated and impotent now
they control shorterm rates and money supply restrictions as they pertain to deposit requirements
if CB's want to push money around more, they could conceivably install a carry tax on idle money
idle money foments recession
I think this is farfetched, but always possible
the more likely event in my view is continued erosion of control of the situation
I have frequently used a catchy phrase...
"the US has exported our debt, both federal and trade, so that we have ceded control of both our treasury yield and dollar currency value"
I dont say this loosely
foreigners are now in control of bonds and dollars
it is officially far out of control
and getting worse by the month
THEY dont want us to hold gold other than for JEWELRY !!!
a relevant term these days now applies to what you mention
it is "money velocity", which has slowed in recent months
the slower the velocity, the deeper the recession
velocity is decelerating now in my opinion
CB's have some latitude to be sure, oodles of it
here are some wild things CB's can do:
- carry tax on idle money
- lower depository reqmts
- create domestic dollar and firewall foreign sellers
- limit personal gold holdings for US citizens
- prevent purchase or movement of gold across borders
- confiscate citizen gold and silver
- forbid ownership of precious metal mining stocks
the real question is how far will they allow themselves to lose control and see inflation or deflation to grow, or possibly to have both grow in different sectors of the economy
e.g. deflation in credit-based sectors, inflation in cash-based sectors
honestly, I dont know what the hell these incompetent desperate cowboys at the Central Banks will do
they have 31 years of horrible irresponsible socialist policy to defend
they cannot start over, Mulligan
they are truly screwed
GOLD WILL EXACT ITS REVENGE
thanks for the gratitude
sometimes I wonder if I waste my time
I often write just to crystallize thoughts, knowing maybe only a few will give a hot turd
much appreciated, since I love to put words and thoughts down
even more when others engage in a tough topic
/ jim |
