tag:blogger.com,1999:blog-4921988708619968880.post1886309772010476926..comments2024-02-28T22:03:57.237-05:00Comments on The Automatic Earth: January 15 2009: Buy AmericaIlargihttp://www.blogger.com/profile/09698428009501267664noreply@blogger.comBlogger51125tag:blogger.com,1999:blog-4921988708619968880.post-58174912919111897032009-01-16T13:39:00.000-05:002009-01-16T13:39:00.000-05:00Now, I'm fine with the notion that I completely mi...Now, I'm fine with the notion that I completely misunderstand all of this.<BR/><BR/>I'm by no means an authority on finance. I've written financial software for insurance and stock trading, but that only gave me glimpses of the inner machinations.<BR/><BR/>I've learned over the decades that professional economists tend to be parrots. They are very good parrots. But over all, they spend their daysWeaseldoghttps://www.blogger.com/profile/12657976442272800800noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-36929362923153849822009-01-16T13:26:00.000-05:002009-01-16T13:26:00.000-05:00Brimstone, thank you for your response.I understan...Brimstone, thank you for your response.<BR/><BR/>I understand that portion of the equation.<BR/><BR/>But consider, if I borrow $100 on a 30 year note and my expected payback is $300, then that 100$ enters circulation is real money. The $200 is money yet to be realized. If I default or die, that $100 stays in circulation. The $200 that never existed, isn't created. But the $100, I borrowed and Weaseldoghttps://www.blogger.com/profile/12657976442272800800noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-38528197530149791072009-01-16T13:20:00.000-05:002009-01-16T13:20:00.000-05:00China WILL stop lending because it is not getting ...China WILL stop lending because it is not getting any money from sales to be able to turn around and lend the money back to the US.<BR/><BR/>China will invest their t-bills, (Trade them) to other people for assets that they want.<BR/>jalAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-6093669767417339552009-01-16T12:46:00.000-05:002009-01-16T12:46:00.000-05:00for that matter, holding anything denominated in d...for that matter, holding anything denominated in dollars, such as T paper, commits the bearer to uphold the value of the dollar. <BR/><BR/>Therefore the amount of extant cash (and anyone who pretends to know how much exists makes himself a liar) is outside the point of forcing foreign entities to uphold the dollar's value by limitless foreign lending.<BR/><BR/>China stops lending, and it shoots ***https://www.blogger.com/profile/09888364709448745997noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-57218625841366397822009-01-16T12:44:00.000-05:002009-01-16T12:44:00.000-05:00WeaselDogBut the $trillions in debt from failed be...WeaselDog<BR/><BR/><I>But the $trillions in debt from failed bets, never actually existed, did it? That wasn't money that was created and spent. It was debt created on bad bets, that never circulated. It only exists as a notation on books and has never been used to trade property in any form. If debt that didn't exist before, and was never used, disappears, what is the net effect?</I><BR/><BR/>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-61513696183063100702009-01-16T12:31:00.000-05:002009-01-16T12:31:00.000-05:00not that WIKI's infallible but:"At the present tim...not that WIKI's infallible but:<BR/><BR/>"At the present time, the U.S. dollar remains the world's foremost reserve currency. <B>In addition to holdings by central banks and other institutions there are many private holdings which are believed to be mostly in $100 denominations. The majority of U.S. notes are actually held outside the United States. All holdings of US dollar bank deposits held by***https://www.blogger.com/profile/09888364709448745997noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-80963549554500927602009-01-16T12:26:00.000-05:002009-01-16T12:26:00.000-05:00Fed Vice Chair Donald Kohn says that the bailout i...Fed Vice Chair Donald Kohn says that the bailout is now at $1.2 Trillion.<BR/><BR/>He goes on to explain how responsible they have been in lending this money.<BR/><BR/>Then he refuses to disclose who got what and what they did with it.<BR/><BR/>h/t Karl Denniger<BR/>http://www.youtube.com/watch?v=Mj0JAfq4eskWeaseldoghttps://www.blogger.com/profile/12657976442272800800noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-80301176125020112832009-01-16T12:22:00.000-05:002009-01-16T12:22:00.000-05:00WOW I just listened to the opening sentence of the...WOW I just listened to the opening sentence of the NPR link.<BR/><BR/>Lies.<BR/><BR/>SWF fund link again: http://www.economist.com/printedition/displayStory.cfm?story_id=9230598&fsrc=RSS<BR/><BR/>Russ Winter also blogs on this, but I can't find the link right now.<BR/><BR/>Isn't the first time NPR has put ribbons on 8,000 lb gorillas sitting in the collective US living room.***https://www.blogger.com/profile/09888364709448745997noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-38096828393152867132009-01-16T12:15:00.000-05:002009-01-16T12:15:00.000-05:00What are you suggesting, bluebird? Billions of $1...What are you suggesting, bluebird? Billions of $100 notes or billions in value? Because there are so many notes out there no one even knows. And yes, they are nearly all offshore.<BR/><BR/>No one even knows how many T-notes exist. All those "off-books" appropriations rolling through late night sessions of Congress, mind you. It has been a veritable counterfeiting ring.<BR/><BR/>Watch out for***https://www.blogger.com/profile/09888364709448745997noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-71931785968920576252009-01-16T12:07:00.000-05:002009-01-16T12:07:00.000-05:00babilonia @ 11:40NPR recently did a segment about ...babilonia @ 11:40<BR/>NPR recently did a segment about where the U.S. currency is held.<BR/>Currently there is appx 900 billion in U.S. cash. Guess where it is? <BR/><BR/>http://www.npr.org/templates/player/mediaPlayer.html?action=1&t=1&islist=false&id=99147699&m=99148515 <BR/>or<BR/>http://tinyurl.com/a2aft6bluebirdhttps://www.blogger.com/profile/09600634086150466162noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-32387940744812466542009-01-16T11:40:00.000-05:002009-01-16T11:40:00.000-05:00my bad, I don't think I adequately voiced my point...my bad, I don't think I adequately voiced my point: because the dollar functioned like gold, they had to support the value of their *gold.*<BR/><BR/>If they started denying loans to the US, world confidence in the new make-believe *gold* would drop.<BR/><BR/>Worse, this new imaginary *gold* is held in paper form. Most US people don't realize most dollars are held <I>outside</I> the US, in $100 ***https://www.blogger.com/profile/09888364709448745997noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-5121071556907323472009-01-16T11:24:00.000-05:002009-01-16T11:24:00.000-05:00Ilargi, i don't think I'm an 'inflationist'. I'm j...Ilargi, i don't think I'm an 'inflationist'. I'm just trying to get an understanding of this. Both sides seem to cherry pick data to fit their arguments. In aggregate, both seem to fail. So from each camp, I appear to be in the other. Much like how I'm branded a conservative by Democrats and a liberal by Republicans. As you're a deflationist, you naturally see me as an inflationist, as I have Weaseldoghttps://www.blogger.com/profile/12657976442272800800noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-68594752496072318472009-01-16T11:17:00.000-05:002009-01-16T11:17:00.000-05:00Thank you Ilargi.But the $trillions in debt from f...Thank you Ilargi.<BR/><BR/>But the $trillions in debt from failed bets, never actually existed, did it? That wasn't money that was created and spent. It was debt created on bad bets, that never circulated. It only exists as a notation on books and has never been used to trade property in any form. If debt that didn't exist before, and was never used, disappears, what is the net effect?<BR/><BR/>Weaseldoghttps://www.blogger.com/profile/12657976442272800800noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-76313201647266349652009-01-16T11:16:00.001-05:002009-01-16T11:16:00.001-05:00@ WDI lived in Fort Worth and Arlington for years....@ WD<BR/><BR/>I lived in Fort Worth and Arlington for years. Spent weeks on end on the Great Plains photographing severe weather and tornadoes.Danhttps://www.blogger.com/profile/02629934080871994373noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-27650343642093887752009-01-16T11:16:00.000-05:002009-01-16T11:16:00.000-05:00While I generally liked the dkos article, a couple...While I generally liked the dkos article, a couple of errors stood out: <BR/><BR/><I>"I was wrong. So were the other critics. Our foreign lenders, with only a couple minor exceptions, have never slackened their appetite for our dollar-based debt. China may complain once in a while, but there was never any serious measures taken to ween themselves off of dollars. "</I><BR/><BR/>1) They <I>***https://www.blogger.com/profile/09888364709448745997noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-32709003570699419562009-01-16T11:15:00.000-05:002009-01-16T11:15:00.000-05:00@ EG RE: "...However, if you are right and this is...@ EG RE: "...However, if you are right and this is spot oil for future speculation, and if oil is $10 at the end of 2009, then we taxpayers can simply pick up the tab. No harm done..."<BR/><BR/>That sums up the crime well: bet on whatever you want, because if you lose you aren't responsible for those losses. Quite ingenius, really. Leave it to future generations, or systemic collapse, to sort Danhttps://www.blogger.com/profile/02629934080871994373noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-32373960190160953312009-01-16T11:10:00.000-05:002009-01-16T11:10:00.000-05:00Links To Irving's Appeal to Obama.1 - Mayor Gears'...Links To Irving's Appeal to Obama.<BR/><BR/><A HREF="http://www.youtube.com/watch?v=4I6UVUb0CiY" REL="nofollow">1 - Mayor Gears' message to Mr. Obama</A><BR/><BR/><A HREF="http://www.youtube.com/watch?v=4I6UVUb0CiY" REL="nofollow">2 - Mayor Gears' message to Mr. Obama</A>Weaseldoghttps://www.blogger.com/profile/12657976442272800800noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-13574934476130825052009-01-16T11:08:00.000-05:002009-01-16T11:08:00.000-05:00Weaseldog,"If you lose, then you pay a mountain of...Weaseldog,<BR/><BR/><I>"If you lose, then you pay a mountain of money to someone who gets to keep and spend the lucre as they see fit. The money doesn't disappear, as it's primarily profits.</I><BR/><BR/>The problem is precisely that that trillions will not be paid, and hence disappear. Many parties in the markets, including most if not all Wall Street banks, have bet far more money than they Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-54632297519627844862009-01-16T10:58:00.000-05:002009-01-16T10:58:00.000-05:00As an aside, my city (Irving, Tx)... Had a bond el...As an aside, my city (Irving, Tx)... Had a bond election a couple of years ago to fund some wonderful and expensive new projects.<BR/><BR/>Some undisclosed quantities of bonds never sold. The City is asking Obama to use some of the bailout funds to buy the bonds.Weaseldoghttps://www.blogger.com/profile/12657976442272800800noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-79638886962596542892009-01-16T10:53:00.000-05:002009-01-16T10:53:00.000-05:00Snuffy, "I don't think you could put together a "c...Snuffy, "I don't think you could put together a "credible"cabinet w/o having a bunch of former lobbist types...Lets see what it looks like in 6 months..."<BR/><BR/>I agree with you. Obama wouldn't even have passed the primaries if he wasn't going to support the current insiders.<BR/><BR/>In six months, more folks will realize that Obama's change isn't what they were expecting. He doesn't have Weaseldoghttps://www.blogger.com/profile/12657976442272800800noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-43354255450367093002009-01-16T10:30:00.001-05:002009-01-16T10:30:00.001-05:00I&S,The anon link to the Daily Kos article The...I&S,<BR/><BR/>The anon link to the Daily Kos article The End of Bretton Woods II was excellent. The bottom line to the article was that since the US consumer was tapped out, the traditional trade surplus nations, particularly China, will not have USD to buy Treasury debt. Since the Treasury will not be able to borrow for the huge deficits including the Tarp and stimulus, they will have to el gallinazohttps://www.blogger.com/profile/00642036843036726232noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-6856602913272567212009-01-16T10:30:00.000-05:002009-01-16T10:30:00.000-05:00El Gallinazo, that's an interesting thought, that ...El Gallinazo, that's an interesting thought, that this is just another position they need to cover.<BR/><BR/>That could well be. But buying oil at $100/barrel in today's market, still isn't deflationary. Someone is walking away with a pocket full of folding money...<BR/><BR/>I'm still trying to get a handle on how this bailout is ultimately deflationary.<BR/><BR/>Every story I come across, that Weaseldoghttps://www.blogger.com/profile/12657976442272800800noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-80409341345931421532009-01-16T10:22:00.000-05:002009-01-16T10:22:00.000-05:00The tribe I was dealing with is the Umatilla/Warm ...The tribe I was dealing with is the Umatilla/Warm Springs.The reason for wanting to do biz with them is their res. starts about 80 miles from my home ,and has a lot of clean,wild country there.I have spoke with some other people about the reaction I got...They have a real dislike for outsiders on reservation land.I was told by the people I started with that there was like 4 people that I would Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-7528202146778019322009-01-16T10:11:00.000-05:002009-01-16T10:11:00.000-05:00Weaseldog,Maybe this is higher priced oil that the...Weaseldog,<BR/><BR/>Maybe this is higher priced oil that they already contracted for at $100 a barrel, and they just don't want to take the hit now. It wouldn't surprise me if oil were in the 20's by the end of the year. It wasn't so long ago ( to many raised eyebrows) that Ilargi wrote that $10 oil was not out of the question.<BR/><BR/>However, if you are right and this is spot oil for future el gallinazohttps://www.blogger.com/profile/00642036843036726232noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-54240971190547062362009-01-16T09:41:00.000-05:002009-01-16T09:41:00.000-05:00Banks are using Bailout Funds to buy and hoard oil...Banks are using Bailout Funds to buy and hoard oil, until the price goes back up.<BR/><BR/><A HREF="http://www.bloomberg.com/apps/news?pid=20601207&sid=aZ8zTUi12IkY&refer=energy" REL="nofollow">Morgan Stanley Said to Seek Supertanker to Store Oil</A><BR/><BR/>Now if the Bailout Money is used to buy oil and lease tankers, is this portion being deflated? Or does this add to the money in circulation?Weaseldoghttps://www.blogger.com/profile/12657976442272800800noreply@blogger.com