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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (72408)	3/27/2011 6:57:44 PM
From: TobagoJack	Respond to of 217686

i believe that is THE plan, for reset #1 because that was always the way in a lot of variations the flaw is that wealth cannot be printed and whenever tried, always get diluted and the effect shows up in prices of somethings one way, and other things other ways then we move on to reset #2, 3 ... finally, reset gold, price at somewhere between usd 7k-70k the market share of usd in global trade has been steadily decreasing over the past so many years the market makers in washington do not feel it because the absolute amount of dollars used in trade clearing has been rising and then perhaps only recently falling the fall shall pick up speed p.s. should all usa federal, state, municipal, and large corporate debt get monetized directly and indirectly by the fed, as is in process now, all would be whole, and all outrageous debt incurred in the past made good instead of going bad, per process of hyper inflation, the process that is difficult to stop then we would get the "i promise to be good from this point on", #1 ... #n the private holders of debt in zimbabwe were also made 'hole', and then ... because wealth cannot be printed to survive such a process genuinely whole, getgold

To: carranza2 who wrote (72408)	3/28/2011 12:47:13 PM
From: Cogito Ergo Sum	Respond to of 217686

duplicate

To: carranza2 who wrote (72408)	3/28/2011 12:48:39 PM
From: Cogito Ergo Sum	Respond to of 217686

That is US government saying our currency is toilet paper ... no ? Sends out bad vibes... reminds me of that old saccharine Air Supply tune.. Making Love out of Nothing at All :o)

To: carranza2 who wrote (72408)	3/28/2011 1:40:49 PM
From: KyrosL	2 Recommendations Respond to of 217686

This is a terrible idea. It's identical to declaring that the US is Zimbabwe. By "burning" the Treasuries on its balance sheet, the Fed would formally declare that it never intends to withdraw the money it printed to buy them. Right now, it theoretically has the option of selling those Treasuries at some future time, thus un-printing the money it printed to buy them. Of course, if there is an iron clad guarantee that this is only going to happen once, it may work. But can you trust US politicians to honor such a guarantee?

To: carranza2 who wrote (72408)	3/28/2011 8:34:44 PM
From: TobagoJack	Read Replies (4) \| Respond to of 217686

another hint from the austrian, if only by inference as he was discussing another topic From: H Sent: Tue, March 29, 2011 3:22:30 AM Subject: Re: Comments - Week of March 28 If interest rates on JGB's were to begin rising, there would be nothing the BoJ could possibly do about that, except perhaps to adopt a very tight policy. Certainly it will be impossible for it to keep rates from rising by monetizing government debt (I offer the ECB's and the Fed's non-successes in these endeavors as recent empirical proof). If JGB rates were rising because the market loses confidence in the government's solvency or in the conduct of monetary policy, it would probably be very late in the game with regards to adopting viable countermeasures. Chances are that fresh mistakes would be made. Given the extreme size of Japan's outstanding government debt relative to its economy, one could also well argue that it is already in a debt trap. It's not a situation that is completely beyond redemption imo, but that would require a major change in course. However, regardless of Japan's debt problems due to its government's past mistakes, Shirakawa is correct that printing more money won't solve Japan's economic problems, but will instead achieve the exact opposite and make them even worse. No wealth can be created by printing money. Absolutely nothing positive can be achieved for an economy by doing that, except for a brief illusion of prosperity that in reality consumes even more scarce capital. This is why whenever inflationary policies are adopted in an effort to 'give commerce a shot in the arm' so to speak, recession immediately returns when the inflationary policies are abandoned again. In that sense there should be no illusions regarding QE in the US either. The situation is very much analogous to that of revolutionary France with its inflation of assignats. The moment the inflationary push ends, one is back to square one, except for the fact that the economy is structurally even weaker than prior to the inflation. On Sat, Mar 26, 2011 at 2:31 AM, M wrote: [Re what you mentioned,] Shirakawa has it exactly right of course. If the central bank buys government bonds with yen created from thin air, then it is actually misleading to call this activity 'funding'. At any given time, all economic activities are already funded, and what funds them is not money, but the pool of real funding. If the government now obtains a gob of counterfeit money via the BoJ, then it will disturb these pre-existing arrangements and plans by bidding for resources from the pool of real funding while effectively contributing nothing to it. This should be best termed 'stealing'. It can not possibly help the economy to create any additional wealth - it will achieve the exact opposite, further impoverishment. I agree H, but if say interest rates on JGB's start to rise to near 3%, doesn't that simply put Japan into a debt trap? And if so, that means that they either have to default at some stage or simply monetize, tanking the currency? It appears that in the coming years, Japan is screwed either way.....no?