The disastrous 40-year debt supercycle Is coming to an end and taking us all down with it. Good-bye cruel world.
I know these guys don't have all their money in cash and stashed under their mattresses...but, will someone give a little wider meaning of what "I'm in cash" means.
We could still pull a rabbit out of the hat and go-go-go for growth. Slash taxes, slash spending, expedite Keyston, fracking and the transition to natural gas, and build coal and nuclear power plants. Replace the educational system with vouchers. Repeal Obamacare. Get sane regulation of derivatives markets. If we can achieve sustained 5% real GDP growth for the next couple of decades, we’re out of the woods. But we gotta get serious about growth.
Thank you Blam for posting this.
IMHO, the fact that there are not 50+ replies on this thread says volumes.
bookmark for reading when I’m wide awake
I’ve seen Stockman on various shows, he’s very sobering
this was a very understandable article....seems like it explained it all...
In the next seven weeks, this crazy lunatic who's running the Fed increased the balance sheet of the Fed by $900 billion, in seven weeks. In other words, they expanded the balance sheet of the Fed as rapidly in seven weeks as it had occurred during the first 93 years of its existence. And that's not all, as they say on late night TV: in the next six weeks they added another $900 billion. So in thirteen weeks they tripled the balance sheet of the Fed.
Question: Is there reason to beat up on Bernanke as he does, or should the Fed's bigger balance sheet be a matter of indifference, or even cause for joy, among us dollar-holders?
As is the case when I pose such obtuse questions, I have no stake (other than USD) in the argument and just want to learn.
long but good
“David: No, I would stay out of any security markets. These are unsafe markets at any speed. It’s all tied together. As I was saying when the great margin call comes and they start selling the Treasury bond, they’ll take everything else with it. Real estate is priced off Treasuries. Mortgaged-backed securities are priced off Treasuries. Corporates are priced off Treasuries. Junk bonds are priced off Treasuries. Everything. The stock market will go into a panic. We don’t know when the timing will come we’ve never been in a world where there is $15 trillion worth of central-bank balance sheets, like we have today. The only thing I think you can conclude is preservation is the only thing you are about as an investor. Forget about yield. Forget about return. Just keep yourself liquid and preserve your capital, because you can’t predict the day when, as I say, the great margin call in the sky comes down. “
Well now David pay attention, as I have said years ago, the Security to back Treasuries they now have: It’s Extortion-Care leverage.
Treasuries backed by Extortion-Care. And it IS the reason for the rabid passing of the opened ended leverage vehicle, shackled on the backs of every individual.
THE Mandate Extortion-Care.
Good find, blam.
I look at the get-rich-quick con men. They started with Amway and network-marketing scams in the 70’s. Then they moved to the stock market in the 80’s. They moved to the dot.com’s in the 90’s. Then the house-flippers of the last decade.
At each period, they got their pile of money, then suddenly liquidated it, and ran with the cash before the scheme collapsed. And they took their seed money to start the next scam.
If we want to know the timing of the coming collapse, watch the speculators. When the ship sinks, the rats are the first to leave.