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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: yoremonhoj who wrote (10823)	7/17/2008 8:55:31 PM
From: ecrire	Respond to of 50116

As the Fed regularly, every week, supplies Billions to the banking system taking questionable assets as collateral, is that "draining"? Must get out my dictionary.

To: yoremonhoj who wrote (10823)	7/17/2008 10:41:14 PM
From: pogohere	Read Replies (2) \| Respond to of 50116

A hearty thanks to you for posting that excerpt from Lee Adler. I listened to Radio Free Wall Street last week and this and LA didn't mention this continuing drain, or any monetary news. Without a subscription to the Pro Addition, I rely on the radio show for this data. "Lee Adler agrees with Slider on the Fed's recent action." More like Slider has caught up with Lee Adler, who has documented that the Fed hasn't expanded the monetary base for ~18 months. BTW, I agree with Slider on most of his recent analysis. He didn't agree with LA earlier this year, as my post indicated. "The question is will Benny keep it up if the market goes into a bigger tail spin and what happens when FCB's decide to stop treasury purchases?" Yes, indeed, that's the really interesting question. The data shows that a credit collapse coincides with (is a proximate cause of?) a rise in the price of gold. What adds to the difficulty in the analysis is the shift in fundamentals in a very profound way. There is data going back over the 300 years of Western industrial economic growth. That coincides with the disappearance of China from the world economy, after 18 centuries of having the world's biggest GDP. China is baaaacccckkkk. If we add in India, we have historic data/patterns that don't reflect any of these developments. Russia has gone in the last, what, 15 years, from bankrupt to holding hundreds of billions of reserves, including $US100bil of US GSEs. My understanding is that we are in a transition from a world reserve currency we know to an unknown monetary regime that will reflect these new "fundamentals." It's not as if we've never seen this kind of looting before: witness Morgan's early 20th century scams starting in 1907 and leading to the creation of the Fed in 1913. That world transitioned from British sterling to the US$, but still took decades to complete. The manipulations during the depression of the 1930s facilitated more looting: credit was extended to industry consolidators (e.g. Standard Brands) with the credit that was extended to them, and then were wiped out with the collapse of credit, while the big guys scooped up the assets. Patterns are fun to play with and the astute traders do well with them. But they are not set in concrete and it pays to be attuned to genuine shifts in the fundamentals. I can't see any foreign central banks cutting off the US from the liquidity they control until there is an alternative monetary regime that has a real future. I suspect the recent 3 straight days of meetings between the Japanese emperor and the top Chinese politico while the US guy (was it Bush?) was kept waiting in the lobby, is worth noting. These folks don't care for one another, but don't like being pushed around by the US even more so. And they are the US's bankers. The Russians have created a security entente with the Chinese and some others, with Iran on the cusp of entry therein and India standing by, while they consolidate their hegemony over Central Asian oil and gas and the associated pipelines. There's both a hot war and a cold war raging. As you asked: "The question is will Benny keep it up if the market goes into a bigger tail spin and what happens when FCB's decide to stop treasury purchases?" Lemme know when you get an answer (:>)