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To: teevee who wrote (149973)	4/23/2011 11:55:28 AM
From: ChanceIs	1 Recommendation Respond to of 206097

>>>It is not a foul act as the alternatives all have far worse consequences.<<< I am enjoying this discussion but need to devote time elsewhere. I will suggest that it is commonly acknowledged that while the Fed can print money, it can't determine where it will go. There is a mountain of circumstantial evidence that it is flowing into commodities and the high gasoline prices are screwing J6P. That is a bad consequence. The money is clearly flowing into the banks who made unwise allocations into real estate and are still vainly attempting to minimize their losses there or otherwise keep capital inefficiently invested. "far worse consequences!?!?!" I don't think so. Consider Iceland - which I admit is an isolated case. But they told the banks to piss up a rope, and now they have recovered. Ireland has agreed to play the central bank's game, but will eventually do the same thing as Iceland. We will have to see how it recovers. The Greeks have been resisting to agree to play any game, but it seems that they will have the decision impressed upon them and be forced to go the Icelandic route directly. We shall see shortly. I saw a headline for a 75% hair cut on Greek debt held by Citi. Hmmm. Greece refusing to choose which game to play. I think myself clever for conjuring that characterization - pardon my conceit. However it reminds me of that old maxim about thermodynamics which I wish I had authored..... Thermodynamics: You can't win, You can't break even, and You have to play. Can you see any difference between living in the US under its fiat monetary system with Bernanke's aggressive printing, and thermodynamics?

To: teevee who wrote (149973)	4/23/2011 1:45:02 PM
From: ChanceIs	Respond to of 206097

>>>They have no doubt painted themselves into a corner, but their corner is significantly larger than the concentration camps built to imprison a large majority of the global population. <<< Again, I don't disagree that we will go into QEIII. But I pose the questions: how far/long can it continue and what are the unintended consequences? As mentioned earlier in this piece, and many other times on The Automatic Earth, the dominant and natural economic trend is debt deflation, while the dominant (and natural) political trend is aggressive fiscal and monetary policies that are crafted to funnel money into major banks, rather than the productive economy. There are very few reasons to think that either of these trends will reverse in the short-term, either by design of the financial elite class or by the inadvertent consequences of their actions. They have no doubt painted themselves into a corner, but their corner is significantly larger than the concentration camps built to imprison a large majority of the global population. The latter fact is clearly evidenced by the perpetual taxpayer subsidies given to financial institutions in the sullied names of "economic recovery" and "austerity". The cities of Greece continue to erupt in violence as its citizens are forced to bail out European banks, and, meanwhile, Americans continue to mistake their own reflections in the global mirror. Earlier this year, Standard & Poor's rating agency downgraded the outlook for the triple-A rated status of Treasury bonds (from "stable" to "negative"), in what was nothing less than an act of aiding and abetting the politicians, bankers and major corporate executives who strive for the imposition of austerity on everyone but themselves. The only difference between Greece and the U.S. is that the latter is not a "weak player" in the eyes of elite institutions, such as the IMF. Which means that, while the Greek taxpayers may soon be put out of their misery, we will die a much slower death, choking on our own debt for years to come. theautomaticearth.blogspot.com