30 replies to this topic

[Rogerdodger]

So....if the Fed is hellbent on hyperinflation and what amounts to counterfeiting, and there are no jobs hence no spending to speak of, and the kids cannot possibly buy a first home, we end up with .......the banks owning all real estate, all stocks, all bonds, all formerly public utilities, all manufacturing, such as it is. so tell me how this is any different from the soviet system. looks the same to me.

 

Ed Zachary!

[kinga200]

Is the Fed really going to raise rates BEFORE the election?  it would seem unprecedented for such a thing to occur.
 
If they raise rates in September they could potentially swing the entire election in the opposite direction that it is going now and put mr. T in a prime position to win.
 
Not only that but they could potentially prick the bubble stock market and send it spiraling down violently right into the election.  As we all know the stock market is the monkey on every voters back.  If it is going up into and during an election the voters will be all pacified.  But if it hits their wallets big time, then they will get angry and demand change.
 
I would be SHOCKED to see Fed raise in September and try to turn tables on the election.  I guess it all depends on next weeks jobs numbers.

[kinga200]

Maybe that is why they pushed this market higher. Meaning raise rates then drop the market from a higher level. They did the same thing in 2007. They knew there was a problem with the banks. Push markets as far as they could then drop from a higher level.I just don't think they knew how out of control it would get.

Makes sense to me.

[ryanoo]

Deflation depends on the beholder...

 

Are we talking about currency appreciation or diminishing prices...?  or both?

 

Bottom line is we are OVERPRODUCTIVE - and yet these geniuses down at the F'ed can't figure that out...

 

Alan Greenspan knew it, he was so far out as to suggest that we continue to manufacture excess goods and dump them in the sea or bury them if necessary... to keep the economy up.

 

So we're already overproductive and we're about to expand the man/machine interface by 5X  as the internet expands from 10B to 50B I.P. addresses, majority of them machines...over the next 5 years... through IoT (Internet of Things)

 

So could we have deflation... as fewer people work to make a living through "productive" pursuits as machines take over?  As we see personal income PLUMMET behind less employment and Personal spending dive with it?

 

Could we see an extension of the decline in discretionary spending as incomes shrink and taxes rise?

 

I'd say deflation is a very strong possibility...

 

Let's get real, we have 30 year olds still living with Mom and Dad ...

The 'machine takeover' will only worsen the wealth disparity much much more, with the business profits going to corporate owners and investors,  investments, commercial real estates, etc, which will enrich the top 1% & top 10%, with the bottom 90% working class people left with no jobs and no money to spend.  To boost spending, governments will need to give free money to the people via  universal basic income, and collect most of this money from the top 1% and 10% by the progressive tax system.  When machines replace humans, the humans will need money to spend from somewhere such as UBI and find ways to spend their excess time creatively in some activity other than in the good old jobs. Also, they really should not tax the principal residences with price below certain price range. JMHO.

 

 http://www.washingto...ddle-class.html 

https://www.cbo.gov/publication/51846 

[AChartist]

what happened to their service economy jobs, what form of value creation were they servicing as expense waste?

 

What are "creators" going to get paid in UBA.

 

How will they develop talent when no one is incentivized to work. How will talent rise to capability and productivity without

 

the work history through meritocracy.

 

UBA sounds like depopulation. No they have no interest in survival of an american culture, they want depopulation.

 

The next hoax I want to know about is real gdp. I dont remember exact numbers say for example SP500 final domestic sales are

 

3T and global is 5T. In pareto rule the 20% is 80% of the system but in this context say it is 5% and 95%.

 

This is same in employment and in the entire society, tiny numbers of creators carry hundreds of rote monkey "task" employees.

 

The point of the pareto rule is I know there is SP400 companies, proprietorship, just compare Apple revenues to say the #50th company,

 

the point is SP500 is enough to statistically define it even if SP400 add another increment.

 

If final sales is all costs to market including tax and regulatory wastes, then gdp as in "product", cannot be more than final sales.

 

 

They have nothing left to count for the gdp than credit debt, tax and waste (obamacare).

 

 

So whatever the problem is, it is much more corrupt than can be explained or understood and UBA confounds moral hazards that much worse.

[AChartist]

Say's law means nothing is created until a product is produced and the production of

one product creates the market for a second product.

In satanism, welfare, universal basic income, helicopter money is sent to asian products,

satanist "stimulous" is Say's law for asia.

Particularly since china stopped buying their treasury debt. Why would they take

printed tissue paper to get into terrorist entanglements,

for their labor, energy, natural resources. Why wouldnt they just print

their own paper to buy their own products with. Lets see 2B chinese customers

or 17.5M "middle class" americans still alive.

[AChartist]

what are the creators going to be paid in UBA, millions?

 

that'll get the ignorant chanting in the streets for equality

[Iblayz]

Where in the world does this idea come from that RAISING interest rates if BEARISH? You lower interest rates to stimulate the economy when it is faltering. What is the opposite? This is a quote from a Reuters article that summarized the Fed meeting.

 

A solid U.S. labor market "has strengthened" the case for the first rate increase since last December, Fed Chair Janet Yellen told a central banking conference in Jackson Hole, Wyoming. Several of her colleagues said the increase could come as soon as next month if the economy does well.

Further rate hikes are expected to be few and far between as the U.S. central bank tries to balance a desire to fuel growth against worries it could overheat the economy.

 

 

http://www.reuters.c...s-idUSKCN11300L

 

So there is concern that raising interest rates too far too fast will OVERHEAT the economy........not crush it.

[qqqqtrdr]

Since interest rates are so low, raise the interest rates a quarter percent probably won't matter that much...   The reason why, is that interest rates people pay for home loans will only change short term...   As the housing market slows long term the number of home loans will drop and long term rates will drop to meet demand...   The only problem or benefit for some with higher rates it does put a lid on home prices...

[alexnewbee]

Where in the world does this idea come from that RAISING interest rates if BEARISH? You lower interest rates to stimulate the economy when it is faltering. What is the opposite? This is a quote from a Reuters article that summarized the Fed meeting.
 

A solid U.S. labor market "has strengthened" the case for the first rate increase since last December, Fed Chair Janet Yellen told a central banking conference in Jackson Hole, Wyoming. Several of her colleagues said the increase could come as soon as next month if the economy does well.
Further rate hikes are expected to be few and far between as the U.S. central bank tries to balance a desire to fuel growth against worries it could overheat the economy.
 

 
http://www.reuters.c...s-idUSKCN11300L
 
So there is concern that raising interest rates too far too fast will OVERHEAT the economy........not crush it.

1) 1979-80
2) crashing Chinese yuan will send deflationary shock wave.