New Democracy Unable To Form Government, Anti-Bailout Parties Now Get Opportunity To Eject Greece From Euro
Well, that lasted far less than the three days expected:- SAMARAS SAYS WAS UNABLE TO FORM GOVERNMENT
- SAMARAS SAYS DID ALL POSSIBLE TO FORM GOVERNMENT
- SAMARAS HANDS BACK MANDATE TO PRESIDENT PAPOULIAS
- SAMARAS SAYS AIM TO KEEP GREECE IN EURO
Two Charts Exposing America's Record Shadow Welfare State
There
was a little mentioned tangent to last Friday's very disappointing NFP
print of +115,000 (driven by a surge in temp jobs offsetting a
collapse in full time positions): as David Rosenberg notes, the jobs
number was about half of another far more important number - that of Americans applying for disability,
which in April was +225,000. He continues: "this is the new stealth
stimulus program - so far in 2011, nearly one million Americans have
applied for disability and year-to-date, 333k have actually enrolled
(covering 539k family members). In total, more than five million people
have been added to disability coverage since President Obama took over
three years ago." The punchline will make all those who adore
(insolvent) welfare states shake with giddy delight: "So look -
either safety standards at work have eroded dramatically or the "99%"
have found a creative way to milk the system and turn the economy into a quasi welfare state".... Yup. What he said. Because remember: the BLS assumes that any amount up to the total 53 million people, is not in the labor force as
they have other "wefare" based forms of government handouts and see no
need at all to look for a job. Is there any wonder why US unemployment
is realistically 20% if not much higher? As for the other chart, food
stamps, we know that story all too well.
By Greg Hunter’s USAWatchdog.com
Dear CIGAs,
There has been so much bad economic news out, recently, I do not see how anyone with half a frontal lobe could say the economy is not in trouble. Friday, new unemployment figures were announced, and a weak 119,000 jobs were created. The rate fell to 8.1%, but only because more discouraged workers stopped looking for work and disappeared from the government’s data base. In Friday’s report, economist John Williams of Shadowstats.com summed it all up by saying, “The headline U.3 unemployment rate dropped a statistically insignificant notch to 8.1% in April, from 8.2% in March, but the “good” news was anything but good. The declining pace of headline unemployment reflected an accelerating increase in the number of the headline unemployed giving up looking for work, because there were no jobs to be had. . . . The SGS-Alternate Unemployment Measure, accordingly, notched higher in April to 22.3%, from 22.2% in March.” (Click here to go to the free section of Shawowstats.com.) So, unemployment in the real world actually went up—not down. According to outplacement firm Challenger, Gray & Christmas, planned job cuts rose 7.1% in April, and more than 40,000 more workers are going to be laid off. (Click here for more on this story.)
Housing is another sad story. Year-over-year housing prices continue to decline despite record low 30-year mortgage rates below 4%! In the last two years alone, 1 million homeowners who bought houses lost money and are underwater. In January, the Federal Reserve estimated 12 million Americans owed more than their homes were worth. (Click here for more on that story.) Economist Robert Shiller of the Case-Shiller home price index lamented, two weeks ago, “I worry that we might not see a really major turnaround in our lifetimes.”
More…
Dear CIGAs,
There has been so much bad economic news out, recently, I do not see how anyone with half a frontal lobe could say the economy is not in trouble. Friday, new unemployment figures were announced, and a weak 119,000 jobs were created. The rate fell to 8.1%, but only because more discouraged workers stopped looking for work and disappeared from the government’s data base. In Friday’s report, economist John Williams of Shadowstats.com summed it all up by saying, “The headline U.3 unemployment rate dropped a statistically insignificant notch to 8.1% in April, from 8.2% in March, but the “good” news was anything but good. The declining pace of headline unemployment reflected an accelerating increase in the number of the headline unemployed giving up looking for work, because there were no jobs to be had. . . . The SGS-Alternate Unemployment Measure, accordingly, notched higher in April to 22.3%, from 22.2% in March.” (Click here to go to the free section of Shawowstats.com.) So, unemployment in the real world actually went up—not down. According to outplacement firm Challenger, Gray & Christmas, planned job cuts rose 7.1% in April, and more than 40,000 more workers are going to be laid off. (Click here for more on this story.)
Housing is another sad story. Year-over-year housing prices continue to decline despite record low 30-year mortgage rates below 4%! In the last two years alone, 1 million homeowners who bought houses lost money and are underwater. In January, the Federal Reserve estimated 12 million Americans owed more than their homes were worth. (Click here for more on that story.) Economist Robert Shiller of the Case-Shiller home price index lamented, two weeks ago, “I worry that we might not see a really major turnaround in our lifetimes.”
More…
May 7, 2012, at 9:44 am
by Jim Sinclair in the category Jim's Mailbox |
Print This Post | 
Email This Post
by Jim Sinclair in the category Jim's Mailbox |
Print This Post | Email This PostDear Jim,
Here’s an inflation as a currency event in action. CIGAs may wish to take note of what it looks like in reality when it hits.
"Shoppers in Malawi have been scrambling to buy basic goods, fearing huge price rises after the currency was devalued by 33%.
The BBC’s Raphael Tenthani in Blantyre says that many shops had run out of staple foods such as sugar, cooking oil and bread by the end of Monday.
The kwacha was devalued as part of moves by the new government to restore donor funding.
The former government had rejected IMF calls to devalue the currency."
More…
Regards,
CIGA Pedro
Birth/Death Model Smaller Role In Weak Job Recovery CIGA Eric
Non-farm payrolls are seasonally adjusted while jobs created or lost from the birth/death model are not. This makes interpretations from month to month comparisons of the two time series spotty at best. A comparison of similar time periods not only removes influence of seasonal adjustments but also helps to quantify why the current job recovery is weak in comparison to the previous cycle.
Chart: Birth/Death Model (BDM) Contribution to Non-farm Net Payrolls (NFP) Added/(Lost)
Jim, without the 206,000 jobs imagined into existence by the BLS’ CES Net Birth/Death Model, the economy would print a loss of 91,000 jobs in April.
More…
from Silver Vigilante:
Despite the media blackout, Ron Paul is still a leading candidate in
the 2012 U.S. Presidential election against President Barack Obama. On
Sunday May 6 2012, the results out of Nevada and Maine marked a
historical event in the history of presidential elections. He won
overall 43 delegates in the two states, who he will be bringing to
Tampa, Florida for the national convention. Ron Paul, who has run for
president four times altogether, continues to de facto shape national
debate and the coming presidential election.
When looked at in terms of how the election has been covered by national media outlets, one would presume that Paul was a third party candidate – say, along the lines of his former self, Ralph Nader or Ross Perot. But, the reality is Ron Paul has reshaped the image of the Republican Party in the United States.
Read More @ SilverVigilante.com
Despite the media blackout, Ron Paul is still a leading candidate in
the 2012 U.S. Presidential election against President Barack Obama. On
Sunday May 6 2012, the results out of Nevada and Maine marked a
historical event in the history of presidential elections. He won
overall 43 delegates in the two states, who he will be bringing to
Tampa, Florida for the national convention. Ron Paul, who has run for
president four times altogether, continues to de facto shape national
debate and the coming presidential election.When looked at in terms of how the election has been covered by national media outlets, one would presume that Paul was a third party candidate – say, along the lines of his former self, Ralph Nader or Ross Perot. But, the reality is Ron Paul has reshaped the image of the Republican Party in the United States.
Read More @ SilverVigilante.com
by Eric Blair, Activist Post
As Ron Paul continues to rack up delegates leading up to the national convention in Tampa, several mainstream media outlets have finally begun to pay attention, but most articles and news casts stress that Congressman Paul still has no chance at winning the nomination.
If Ron Paul doesn’t have a shot, then why is the Romney campaign and the establishment GOP freaking out?
Last week, GOP Chairman Michael McDonald threatened Nevada that if Ron Paul delegates take over national convention slots, they won’t be invited to Tampa. If these mafia tactics weren’t enough, the Romney campaign resorted to the lowest form of dirty tricks at the Nevada convention.
Read More @ Activist Post
As Ron Paul continues to rack up delegates leading up to the national convention in Tampa, several mainstream media outlets have finally begun to pay attention, but most articles and news casts stress that Congressman Paul still has no chance at winning the nomination.
If Ron Paul doesn’t have a shot, then why is the Romney campaign and the establishment GOP freaking out?
Last week, GOP Chairman Michael McDonald threatened Nevada that if Ron Paul delegates take over national convention slots, they won’t be invited to Tampa. If these mafia tactics weren’t enough, the Romney campaign resorted to the lowest form of dirty tricks at the Nevada convention.
Read More @ Activist Post
Rachel Maddow: Ron Paul Gains Unstoppable Momentum in Battle for GOP Delegates
More On Gold And The Economy...
Dave in Denver at The Golden Truth - 21 minutes ago
*"These paper money addicts, who remain trapped in the fallacies of
Keynesianism, are revealed as a vast intellectual Sahara. Won’t somebody
inform them that overprinting caused this mess. More overprinting is
obviously the wrong remedy. If a little arsenic is bad for you, then maybe
a lot more is not good either.
Meanwhile, gold and silver are in long-term ‘Super Major Uptrends.’ That’s
one way to protect yourself, and that’s for survival purposes, not for
capital gains. Whatever happens next, sooner or later the world must return
to wealth in the ground. So, I think that mining st... more »
Americans: Too broke to go bankrupt
Eric De Groot at Eric De Groot - 1 hour ago
What's next, the return of debtors' prison? This practice was abolished only after too many politically connected individuals found themselves incarcerated after the panic of 1796 . Headline: Americans: Too broke to go bankrupt This year, hundreds of thousands of Americans are expected to be too broke to file for bankruptcy. The average cost to file for Chapter 7 bankruptcy... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Do What Buffett Says, Not What He Does
As can be seen in the attached clip Warren Buffett, as part of his anti money tirade, both real (gold) and fiat, the Chairman of Berkshire is certainly not a fan of holding cash in any form. To wit: "cash is as risky an asset you can own over time."
In other words, the opportunity cost of not owning something else with
that cash is indicative of even more risk in the equities arena. So one
wonders: is the fact that Buffett's firm now has a record amount of cash on its books more an example of senility or hypocrisy.... Or is all hell about to break loose as per Buffett's own words? We can't decide.Arizona Battles For States’ Rights, American Votes in George Soros’ Hands & the Ron Paul Revolution: Infowars.com’s Patrick Henningsen
4.1.1. The President is authorized by the Constitution and laws of the United States to employ the Armed Forces of the United States to suppress insurrections, rebellions, and domestic violence under various conditions and circumstances. Planning and preparedness by the Federal Government and the Department of Defense for civil disturbances are important due to the potential severity of the consequences of such events for the Nation and the population.
4.1.2. Military resources may be employed in support of civilian law enforcement operations in the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, and the U.S. territories and possessions only in the parameters of the Constitution and laws of the United States and the authority of the President and the Secretary of Defense, including delegations of that authority through this Directive or
other means.
Read More @ PublicIntelligence.net
Document also describes forced labor
by Paul Joseph Watson, Infowars:
A shocking U.S. Army manual that describes how “political activists,”
including American citizens, are to be indoctrinated in re-education
camps also includes rules on forced labor and separating political
prisoners by confining them in isolation.
by Paul Joseph Watson, Infowars:
A shocking U.S. Army manual that describes how “political activists,”
including American citizens, are to be indoctrinated in re-education
camps also includes rules on forced labor and separating political
prisoners by confining them in isolation.
Aside from detailing how PSYOP teams will use
“indoctrination programs to reduce or remove antagonistic attitudes,” as
well as targeting “political activists” with indoctrination programs to
provide “understanding and appreciation of U.S. policies and actions,”
the manual directs political prisoners to be separated from the rest of
the camp population.
On page 284, the manual (PDF)
describes how “Malcontents, rabble-rousers, trained agitators, and
political officers who may attempt to organize resistance or create
disturbances within the I/R facility,” are to be confined “in isolated
enclosures to deny them access to the general population.”
Read More @ Infowars.com
from Public Intelligence:
Preparing Guardsmen to become effective Joint Task Force Commanders (CJTFs) is a critical first step in securing the United States from attack through an active layered defense and responding to a wide range of challenging incidents. Initially, the National Guard Bureau (NGB) designed this course to provide potential CJTFs the knowledge and ability to plan and employ National Guard (NG) Joint Task Forces (JTFs) for homeland defense (HD) and defense support of civil authorities (DSCA). The course has become a partnership between NGB and USNORTHCOM.
Specifically, the NG JTF Commander Course is designed to:
Preparing Guardsmen to become effective Joint Task Force Commanders (CJTFs) is a critical first step in securing the United States from attack through an active layered defense and responding to a wide range of challenging incidents. Initially, the National Guard Bureau (NGB) designed this course to provide potential CJTFs the knowledge and ability to plan and employ National Guard (NG) Joint Task Forces (JTFs) for homeland defense (HD) and defense support of civil authorities (DSCA). The course has become a partnership between NGB and USNORTHCOM.
Specifically, the NG JTF Commander Course is designed to:
- Develop a cadre of trained and ready leaders, able to successfully execute JTF Command Authority
- Prepare potential CJTFs for large scale, no-notice homeland security (HS) incidents (e.g., biological attack), as well as pre-planned events Read More @ PublicIntelligence.net
CNBC:
Gold eased on Monday after elections in France and Greece at the
weekend reflected strong anti-austerity feeling and raised concerns over
the euro zone’s ability to battle its debt crisis, knocking the euro to
a three-month low versus the dollar.
Greek voters in particular rejected the austerity-for-aid policies that have shielded the country from bankruptcy and a euro exit, dealing a serious blow to the euro zone’s fragile political consensus on debt.
Read More @ CNBC
Gold eased on Monday after elections in France and Greece at the
weekend reflected strong anti-austerity feeling and raised concerns over
the euro zone’s ability to battle its debt crisis, knocking the euro to
a three-month low versus the dollar. Greek voters in particular rejected the austerity-for-aid policies that have shielded the country from bankruptcy and a euro exit, dealing a serious blow to the euro zone’s fragile political consensus on debt.
Read More @ CNBC
from Silver Vigilante:
Love of money is the root of all evil, we have heard since we were
young. But is this an accurate statement? Is money the root of all evil?
Can modern man even know what he is talking about in this regard or
does his lack of experience with real money weigh too heavy on the way
he sees the world? Mark Twain said that the lack of money is the root of
all evil, and the more I’ve pondered this, the more I’ve wondered: is
it the lack of money in modern civilization that is the root of all
evil?
First of all, we must get our definition for money sorted out. Money is a circulating medium of exchange in any given society. Today, the nations of the world use fiat currency as their official medium of exchange. But, is fiat currency truly money?
Read More @ SilverVigilante.com
Love of money is the root of all evil, we have heard since we were
young. But is this an accurate statement? Is money the root of all evil?
Can modern man even know what he is talking about in this regard or
does his lack of experience with real money weigh too heavy on the way
he sees the world? Mark Twain said that the lack of money is the root of
all evil, and the more I’ve pondered this, the more I’ve wondered: is
it the lack of money in modern civilization that is the root of all
evil?First of all, we must get our definition for money sorted out. Money is a circulating medium of exchange in any given society. Today, the nations of the world use fiat currency as their official medium of exchange. But, is fiat currency truly money?
Read More @ SilverVigilante.com
By Andre Gratian, The Market Oracle:
Current Position of the Market
SPX: Very Long-term trend – The very-long-term cycles are down and, if they make their lows when expected (after this bull market is over) there will be another steep and prolonged decline into late 2014. It is probable, however, that the steep correction of 2007-2009 will have curtailed the full downward pressure potential of the 120-yr cycle.
SPX: Intermediate trend – The intermediate uptrend is still intact and so is the extended short-term correction.
Analysis of the short-term trend is done on a daily basis with the help of hourly charts. It is an important adjunct to the analysis of daily and weekly charts which discusses the course of longer market trends.
Read More @ TheMarketOracle.co.uk
Current Position of the MarketSPX: Very Long-term trend – The very-long-term cycles are down and, if they make their lows when expected (after this bull market is over) there will be another steep and prolonged decline into late 2014. It is probable, however, that the steep correction of 2007-2009 will have curtailed the full downward pressure potential of the 120-yr cycle.
SPX: Intermediate trend – The intermediate uptrend is still intact and so is the extended short-term correction.
Analysis of the short-term trend is done on a daily basis with the help of hourly charts. It is an important adjunct to the analysis of daily and weekly charts which discusses the course of longer market trends.
Read More @ TheMarketOracle.co.uk
from, Wealth Wire:
In difficult economic times, the last thing that you want is poor financial advice. These are the times when it is crucial to being given advice on what to invest in, where to put your money and how to manage your portfolio. But if there is one that has been hurting the economy from recovering faster, it could be the lack of sound financial advising and planning out there today.
It’s a scary reality to face but most of us are not receiving the proper financial advice we need or we deserve. And the first step is recognizing that. So to help you with distinguishing if you’ve been receiving poor direction from your advisor (or even from close friends), here is our list of 7 Signs You’re Getting Bad Financial Advice courtesy of U.S. News and World Report‘s Rob Russell:
Read More @ WealthWire.com
In difficult economic times, the last thing that you want is poor financial advice. These are the times when it is crucial to being given advice on what to invest in, where to put your money and how to manage your portfolio. But if there is one that has been hurting the economy from recovering faster, it could be the lack of sound financial advising and planning out there today.
It’s a scary reality to face but most of us are not receiving the proper financial advice we need or we deserve. And the first step is recognizing that. So to help you with distinguishing if you’ve been receiving poor direction from your advisor (or even from close friends), here is our list of 7 Signs You’re Getting Bad Financial Advice courtesy of U.S. News and World Report‘s Rob Russell:
Read More @ WealthWire.com
by Charles Hugh Smith, Of Two Minds:
The industries that are increasing productivity do so by eliminating entire industries
and entire job categories.
The global economy is facing a structural surplus of labor
and a scarcity of paid work. Here is the critical backdrop for the global recession that is
unfolding and the stated desire of central banks and states everywhere for “economic growth”: most of the so-called “growth” since the 2008 global financial meltdown was funded by sovereign debt and “free money” spun by central banks, not organic growth based on rising earned incomes.
Take away the speculation dependent on “free money” and the global stimulus dependent on massive quantities of fresh debt, and how much “growth” would be left?
What policy makers and pundits dare not admit is that the global economy is entering the “end of paid work” foreseen by Jeremy Rifkin. I have covered this topic in depth many times, starting with End of Work, End of Affluence (December 5, 2008).
Read More @ OfTwoMinds.com
The industries that are increasing productivity do so by eliminating entire industriesand entire job categories.
The global economy is facing a structural surplus of labor
and a scarcity of paid work. Here is the critical backdrop for the global recession that is
unfolding and the stated desire of central banks and states everywhere for “economic growth”: most of the so-called “growth” since the 2008 global financial meltdown was funded by sovereign debt and “free money” spun by central banks, not organic growth based on rising earned incomes.
Take away the speculation dependent on “free money” and the global stimulus dependent on massive quantities of fresh debt, and how much “growth” would be left?
What policy makers and pundits dare not admit is that the global economy is entering the “end of paid work” foreseen by Jeremy Rifkin. I have covered this topic in depth many times, starting with End of Work, End of Affluence (December 5, 2008).
Read More @ OfTwoMinds.com
by Silver Shield, Dont-Tread-On.me :
“Man is free at the instant he wants to be.” -Voltaire
I have been making a very strong case that we do not need to organize and “fight” this corrupt world, we simply need to expose and walk away from it. This is the opposite consciousness that will ensure victory. No more wasted efforts, marches and organizations, just leaderless, independent revolution. No more fearing mysterious bad guys. No more waiting for knights in shining armor. We have the power to free ourselves the moment we are honestly seeking the truth and take the responsibility that comes with it. Once you take responsibility to make yourself totally free you become stronger and independent. It also has the opposite effect of depriving the collective forces from your time, talent and money. This is the underlying thesis of the Silver Bullet and the Silver Shield, but it works in personal relationships, careers and governments.
“Don’t believe them, don’t fear them, don’t ask anything of them” – Aleksandr Solzhenitsyn.
Read More @ Dont-Tread-On.me
“Man is free at the instant he wants to be.” -VoltaireI have been making a very strong case that we do not need to organize and “fight” this corrupt world, we simply need to expose and walk away from it. This is the opposite consciousness that will ensure victory. No more wasted efforts, marches and organizations, just leaderless, independent revolution. No more fearing mysterious bad guys. No more waiting for knights in shining armor. We have the power to free ourselves the moment we are honestly seeking the truth and take the responsibility that comes with it. Once you take responsibility to make yourself totally free you become stronger and independent. It also has the opposite effect of depriving the collective forces from your time, talent and money. This is the underlying thesis of the Silver Bullet and the Silver Shield, but it works in personal relationships, careers and governments.
“Don’t believe them, don’t fear them, don’t ask anything of them” – Aleksandr Solzhenitsyn.
Read More @ Dont-Tread-On.me
Protesters clash with Moscow police at ‘March of Millions’
from ArmstrongEconomics:
I
have worked with people on Capitol Hill for some time now. I testified
before the House Ways & Means Committee in 1997 on the global
economy and taxation. When I was young and idealistically naïve, I met
with the US Treasury during the Reagan Administration. I stupidly
assumed that everyone would do the right thing and therefore if they
were not doing so, then the answer must be surely they did not see at
the problem correctly! When Paul Volcker raised interest rates to insane
levels in 1981 to fight inflation, perhaps being a trader rather than
an academic, I saw things from a far more practical perspective. I was
beside myself. How could you raise interest rates to fight inflation
when you yourself are the biggest borrower? It was like that crazy scene
in the move Blazing Saddles where the black guy holds the gun to his
own head and says if anyone moves, the black guys get it. I could not
understand how there could be such stupidity in Washington, DC. So I
worked out the simple math and showed the Treasury that this policy was
disastrous. They would cause the National Debt to rise from $1 trill to
$8 trilling by the end of the decade. This was just insane! They look at
me as if I was nuts. They replied – “But we will be paying back with
cheaper dollars!”
More @ ArmstrongEconomics.org
I
have worked with people on Capitol Hill for some time now. I testified
before the House Ways & Means Committee in 1997 on the global
economy and taxation. When I was young and idealistically naïve, I met
with the US Treasury during the Reagan Administration. I stupidly
assumed that everyone would do the right thing and therefore if they
were not doing so, then the answer must be surely they did not see at
the problem correctly! When Paul Volcker raised interest rates to insane
levels in 1981 to fight inflation, perhaps being a trader rather than
an academic, I saw things from a far more practical perspective. I was
beside myself. How could you raise interest rates to fight inflation
when you yourself are the biggest borrower? It was like that crazy scene
in the move Blazing Saddles where the black guy holds the gun to his
own head and says if anyone moves, the black guys get it. I could not
understand how there could be such stupidity in Washington, DC. So I
worked out the simple math and showed the Treasury that this policy was
disastrous. They would cause the National Debt to rise from $1 trill to
$8 trilling by the end of the decade. This was just insane! They look at
me as if I was nuts. They replied – “But we will be paying back with
cheaper dollars!” More @ ArmstrongEconomics.org
by Lance Roberts, Financial Sense:
Recently, a wealthy customer of mine came into my office chortling about how he was able to sign up for VA disability.
“Are you disabled?” I asked. “You seem healthy, aren’t you a tennis player?”
“Yes,” he replied, “but back when I was in the military I had a very hard landing (wink, wink), and now I’m starting to feel some of those aches and pains.”
To this I replied, “You’re a wealthy man. You’re worth millions. Why would you need to sign up for VA disability benefits and collect $1,400 a month from the government when you don’t need the money?”
Read More @ Financial Sense.com
Recently, a wealthy customer of mine came into my office chortling about how he was able to sign up for VA disability.
“Are you disabled?” I asked. “You seem healthy, aren’t you a tennis player?”
“Yes,” he replied, “but back when I was in the military I had a very hard landing (wink, wink), and now I’m starting to feel some of those aches and pains.”
To this I replied, “You’re a wealthy man. You’re worth millions. Why would you need to sign up for VA disability benefits and collect $1,400 a month from the government when you don’t need the money?”
Read More @ Financial Sense.com
from Azizonomics:
What
are the classic signs of an asset bubble? People piling into an asset
class to such an extent that it becomes unprofitable to do so.
Treasury bonds are so overbought that they are now producing negative real yields (yield minus inflation):
That’s right, after taking into account inflation, many investors in treasuries are standing over a drain and pouring their money down it.
And so America’s creditors are now getting slapped quite heavily in the mouth by the Fed’s easy money inflationist policies.
I propose (much, I am sure, to the consternation of the monetarist-Keynesian “print money and watch your problems evaporate” establishment) that this is a very, very, very dangerous position. And I propose that those economists who are calling for even greater inflation are playing with dynamite.
See, while the establishment seems to largely believe that the negative return on treasuries will juice up the American economy — in other words that “hoarders” will stop hoarding and start spending — I believe that negative side-effects from these policies may cause severe harm.
Read More @ Azizonomics.com
I'm PayPal Verified
What
are the classic signs of an asset bubble? People piling into an asset
class to such an extent that it becomes unprofitable to do so.Treasury bonds are so overbought that they are now producing negative real yields (yield minus inflation):
That’s right, after taking into account inflation, many investors in treasuries are standing over a drain and pouring their money down it.
And so America’s creditors are now getting slapped quite heavily in the mouth by the Fed’s easy money inflationist policies.
I propose (much, I am sure, to the consternation of the monetarist-Keynesian “print money and watch your problems evaporate” establishment) that this is a very, very, very dangerous position. And I propose that those economists who are calling for even greater inflation are playing with dynamite.
See, while the establishment seems to largely believe that the negative return on treasuries will juice up the American economy — in other words that “hoarders” will stop hoarding and start spending — I believe that negative side-effects from these policies may cause severe harm.
Read More @ Azizonomics.com
I'm PayPal Verified
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