Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (21862)	9/7/2012 2:29:32 PM
From: The Wharf	Respond to of 24758

The title to me is wrong. So far from my perspective the paper has to do with the easing and monies that went into bank and brokerage bail out 2008 up. Many world economies are not performing well so both gov and corp bonds come into question which scared the be geepers out of me. If employment does not pick up bond markets could very well find the fall you spoke of in Yosemite. I have not finished the paper.

To: ahhaha who wrote (21862)	9/10/2012 6:10:49 AM
From: frankw1900	Read Replies (1) \| Respond to of 24758

I was reading these posts: From 21826: The CBs are careful to sterilize. That's their Achilles' Heel. Through sterilization there's no net money supply effect by their buying, but the pile of paper moves faster and faster. Eventually, the paper moves around the circle at the speed of light. QED. From 21839: I've mentioned the speed of light circle jerk. That's only an asymptotic limit. On the way out to that theoretical horizon one finds that the financial circle closes before the alleviation of some debt burden marginally improves cash flow of firms. Before the purchase representation of money can return to its true payer the value of the debt initially incurred, it must travel through another dimension. This occurs because the continuum isn't static. There is no fixed standard of value, say, as would be the case under a Gold Standard. Accordingly, the frame is translated in inflation space. By the time the circle would close under a gold standard inflation causes the circle to translate, and an adjustment must be made to the debt to reach equity. The CB doesn't do that. God will not give mankind something for nothing, so the translation increment must be compensated out of final price. Berdoo and Dragoo with their whirling dervish no consequence bond buying results in inflation, and the inflation is not only insidious, but also can't be stopped. And I thought of unintended consequences that follow from trying to do good and so I posted White's article because it had a litany of unintended consequences following from CB efforts trying to do good. (Although I think some of the consequences of CB behaviour was anticipated by them and they threw certain sectors such as insurance companies and pensioners under the bus, thinking they can't make the ommelate without breaking some eggs, which is lousy ethics/ lousy policy). I agree with this: There is no "ultra easy money" policy in place. The CBs didn't lower rates and they're not making excess money available. Unless I'm really off track White is calling official policy rates (which are near zero) "easy money" and he's describing some of the consequences of it. I din't expect quite the response that posting the article caused and i'm concerned carranza 2 thinks it's great because in my view that's kind of kiss of death stuff. White can talk all the right talk, but it's hollow. Remember Clinton and Gore? How in '92 at the convention to review NAFTA, they talked the right talk, supply side economics, better than Laffer! What BS did they walk? Socialism that's supported by importing the Mexican. I don't follow you here. Are you saying he's got a poor analysis or that he doesn't believe what he's saying? Or that it's hollow because he works in the wrong environment? Clinton was an executive. White is an advisor and researcher. Presumably his job is to speak truth as he sees it to Berdoo. .................................................