Posted on 04/26/2011 5:01:00 PM PDT by Kartographer
"Just as Charles Ponzi needed donuts to turn back a suspicious crowd of investors, the Fed needs “donuts” in order to fill the bellies of the literally millions of investors worldwide who worry about the alarmingly large U.S. budget deficit and the impact that the U.S. debt dilemma could have on their Treasury holdings...Their collective buying has created what we believe to be a profit illusion with many investors mistakenly believing they can continuously reap profits from perpetually falling bond yields and rising bond prices, just as they have had opportunity to do over the past 30 years, amid the great secular bull market for Treasuries and the bond market more generally...For many reasons, this “duration tailwind” for Treasuries can’t last, particularly because the United States has reached the Keynesian Endpoint, where the last balance sheet has been tapped."
(Excerpt) Read more at zerohedge.com ...
How much will Ben print up for QE3? You have to know it is coming.
The Keynesian endpoint. Oh, you mean that alternative universe that doesn’t exist except in the mind of Doc Brown and the brain-dead Marxists.
Oh,It’s coming...
He gives a speech tomorrow... so I’d bet it comes tomorrow.
LLS
LLS
Or someone may be dropping the dime on Obama. I can not wait to see it.
I was listening to Mark Levin earlier and he was making a very interesting point.
QE3 will probably not happen because everyone is bailing on buying US debt.
What the heads are talking about now is Financial/Economic Repression.
What this means is that the Fed forces industry to buy the debt. How? Member banks will be forced to increase their cash reserves. This pulls money out of the economy (loans, etc.) and this is what the Federal Reserve will use to finance the debt and increase spending.
Folks, the Federal Reserve is evil. Pure and simple. It was a socialist-banking system from the beginning, and it has followed the same path of all socialist tyrannies.
True. And Ron Paul is after them. He seems to be the only one. But all the Conservatives here get mad at me when I bring it up. Why? BTW I just saw the Krout on BOR trying to put down Trump for going after Obama. Are they double agents? That Krout is creepy he reminds me of Dr. Strangelove.
Obama’s happy, he’s done all this on purpose.
Freaking foreigner destroys America unlawfully from within.
First read through, thought you were talking about the “Kenya-isian” in the WH.
Many conservatives mistake an attack on our banking system as an attack on Capitalism and the free-market system. That has partly been orchestrated by the Left, who, when they ruin an economy because of banking mismanagement, put the blame on Capitalism.
The truth is that our major banking system is the antithesis of Capitalism and the free-market economy. It uses the printing press to get itself out of trouble. In a true free-market economy, those banks that take on risky investments and loans and then blow it, should be out of business. Instead, they turn on the printing press (a la incestuous relationship between the Treasury and the FR) and inflate their way out. By doing so they privatize the profits and socialize the losses. A true socialist enterprise.
But many people are waking up to this truth.
Conservatives also love Milton Friedman, and I too really admire his writing on Capitalism and freedom. But Friedman’s arguments have a huge gap when he turns around and supports Monetarism, which is exactly what we have been suffering from for the past decades. You can have a free-market system if some private enterprise (our central-banking system) has free rein to control the value of the thing everyone uses for trading and exchange. How he supported a central bank that is nothing more than a socialist cartel and then tried to prove that this was capitalism and a free-market system is beyond me.
But by the end of his career he was wising up. He distanced himself from monetarism and even stated that it could only work if there were a Constitutional Amendment that restricted the central bank to inflating the currency supply as a strict proportion to GDP.
But we all see how legislative mandates to control budgets and spending have worked out, haven’t we?
And he should have known that since GDP is 1/3 comprised of government spending, the workaround of a Constitutional Amendment would be simply to increase spending at a massive rate one year. This would then increase the GDP and allow the central bank to produce more currency.
Anyway, it seems anyone paying attention is waking up to the nightmare that is the “planned economy” and “central banking.”
Cool. I always liked Ron Paul for similar reasons but everybody thinks I am Kooky for it. The whole scam is pretty obvious to me.
sfl
Bkmk for later
Oh man... that would be outstanding!
LLS
You are welcome. :-)
LLS
“You can have a free-market system if some private enterprise (our central-banking system) has free rein to control the value of the thing everyone uses for trading and exchange.”
Should be:
You CAN’T have a free-market system if some private enterprise (our central-banking system) has free rein to control the value of the thing everyone uses for trading and exchange.
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