Great Depression of 2016

[MrsBrooke]

Hopefully that article was written with tongue in cheek. It is natural for people to stop spending on unneeded items when they are unsure of the future.

The fed now has as close to zero interest on funds to its best borrowers. Still, the economy is not taking off. Real estate is moving, but it seems as if it is mostly foreign investors and wealthy investors putting dollars into real assets rather than dollar denominated instruments. They want out of the dollar before it collapses.

The low interest rate makes it easy for foreigners to borrow US dollars and then turn them into hard assets that will weather the coming inflation. The US's monetary policy is financing a raid on US assets.

On October 20th, the IMF will meet and propose changed rules for currency operations. I am afraid the dollar will suffer. If it is no longer used as the principle reserve currency, those dollars will gravitate back to the US. The IMF may expand the special drawing rights and enable currency swaps that avoid the dollar. That won't be good for us.

I read that the amount of dollars held abroad is between twice and four times that in use in the USA. It is easy for the powers that be to expand the money supply, but just how do they contract it? Hang on, we are in for some interesting times.

I am sure others will disagree with my thinking, but that is what makes the world go around.

I get twitchy when the Fed starts writing tongue-in-cheek and mocking the American people for trying to save money... I guess they would prefer we run our households like they run their budgets... with little regard for the future. Except our homes can be taken away if we don't pay our debts.... But the Fed just keeps printing! Lucky them!

I saw an article where Deutsche Bank asked if Yellen is setting up another housing bubble.

There are some young traders today who have never seen interest rates above 0%.... just like there are toddlers in California who have NEVER experienced rain.

Texas is trying to repatriate $1B in gold bullion. Yaaaay!

@hemet dennis , did you even bother to read the article before you launched a personal attack at me that has nothing to do with anything? I'm curious as to your thoughts on it.

MrsB

 

[rufus]

The governments of this world can print endless amounts of currency, but they cannot print jars of peanut butter or loaves of bread. Know your priorities.

I am afraid that gold is gone. Loaned, rented or stolen, it is gone.

Did you see where the Federal government wants jurisdiction over all water ways? Even temporary puddles. This worries me. I have land that on occasion will have a small pond collect.

 

[hemet dennis]

Hopefully that article was written with tongue in cheek. It is natural for people to stop spending on unneeded items when they are unsure of the future.

The fed now has as close to zero interest on funds to its best borrowers. Still, the economy is not taking off. Real estate is moving, but it seems as if it is mostly foreign investors and wealthy investors putting dollars into real assets rather than dollar denominated instruments. They want out of the dollar before it collapses.

The low interest rate makes it easy for foreigners to borrow US dollars and then turn them into hard assets that will weather the coming inflation. The US's monetary policy is financing a raid on US assets.

On October 20th, the IMF will meet and propose changed rules for currency operations. I am afraid the dollar will suffer. If it is no longer used as the principle reserve currency, those dollars will gravitate back to the US. The IMF may expand the special drawing rights and enable currency swaps that avoid the dollar. That won't be good for us.

I read that the amount of dollars held abroad is between twice and four times that in use in the USA. It is easy for the powers that be to expand the money supply, but just how do they contract it? Hang on, we are in for some interesting times.

I am sure others will disagree with my thinking, but that is what makes the world go around.

Here's a fun assignment. How does the FED shrink the money supply ?

 

[rufus]

Read this. http://www.nytimes.com/2015/05/23/u...n-federal-role-in-clean-water-regulation.html

If the government can deny water, they can deny life.

 

[hemet dennis]

Read this. http://www.nytimes.com/2015/05/23/u...n-federal-role-in-clean-water-regulation.html

If the government can deny water, they can deny life.

Still working on that assignment ?

 

[rufus]

Dennis, I am afraid they can't. In theory, they could increase the discount rate and sell bonds. But there is already so many dollars out there that even if the prime rate was raised, those other sources would fill the void. As to the question of selling bonds, no one will buy bonds willingly.

The government may "take over" retirement funds and force them to buy bonds. This doesn't work. The Soviets had required investment in government bonds that couldn't be sold, traded or cashed in. They could only be exchanged for more bonds when they matured. Of course, those new bonds couldn't be sold, traded or cashed in. It was a scam. Obama's "My IRA" plan sounds similar.

I guess we will find out soon enough.

 

[hemet dennis]

Quote:
I"m curious why you think it was from the FED.

 

[MrsBrooke]

Read this. http://www.nytimes.com/2015/05/23/u...n-federal-role-in-clean-water-regulation.html

If the government can deny water, they can deny life.

I did see that.

I guess they'll be providing clean oxygen in cans like they did in Space Balls. LOLOLOLOL.

http://www.npr.org/sections/thetwo-...-for-a-breath-of-fresh-air-in-china-about-860

.............. Oh. Wait.

Are we to be taxed and regulated to death?

"Awaken! awaken! ye sons of the shore, Whose waves murmur, "Freedom!" midst Slavery's roar."

MrsB

 

[hemet dennis]

Dennis, I am afraid they can't. In theory, they could increase the discount rate and sell bonds. But there is already so many dollars out there that even if the prime rate was raised, those other sources would fill the void. As to the question of selling bonds, no one will buy bonds willingly.

The government may "take over" retirement funds and force them to buy bonds. This doesn't work. The Soviets had required investment in government bonds that couldn't be sold, traded or cashed in. They could only be exchanged for more bonds when they matured. Of course, those new bonds couldn't be sold, traded or cashed in. It was a scam. Obama's "My IRA" plan sounds similar.

I guess we will find out soon enough.

Totally untrue !

The FED has a balance sheet of government bonds that would be sold to shrink the money supply, just as has been done many times before.

 

[rufus]

Dennis, to whom would they sell those bonds? The Chinese and Japanese have had it with the US bonds. I hope you have some cash to put into this.