tag:blogger.com,1999:blog-4921988708619968880.post246461190697183559..comments2024-02-28T22:03:57.237-05:00Comments on The Automatic Earth: Debt Rattle, July 18 2008: Blow me overIlargihttp://www.blogger.com/profile/09698428009501267664noreply@blogger.comBlogger28125tag:blogger.com,1999:blog-4921988708619968880.post-27299297473305079712008-07-22T12:55:00.000-04:002008-07-22T12:55:00.000-04:00To Anonymous above from Anonymous:Thanks so much f...To Anonymous above from Anonymous:<BR/><BR/>Thanks so much for the advice, so appreciate it! :~DAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-48124125721534004992008-07-21T08:35:00.000-04:002008-07-21T08:35:00.000-04:00Managing mother's Anonymous,I am in a similar situ...Managing mother's Anonymous,<BR/><BR/>I am in a similar situation with mother and mother-in-law.<BR/><BR/>Stick with Treasuries rather than corporate or municipal bonds. An all government bonds portfolio is know as ultra conservative. Bonds do poorly in inflationary environments but that is not what we face now. A “ladder” is what you need, that is a mix of Treasuries of various duration, like 90Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-58385314424616859782008-07-20T18:05:00.000-04:002008-07-20T18:05:00.000-04:00Ilargi, I am managing my mother's finances, as she...Ilargi, <BR/><BR/>I am managing my mother's finances, as she is incapable. She has a vast amount of money in treasury bonds, corporate bonds, and municipal bonds. I've been trying to talk to the financial advisor I hired to broker her accounts, and she is fixated on the idea that those investments are sound and the tax shelter they provide...but everything I'm reading on this thread says Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-78821937797249165532008-07-19T14:44:00.000-04:002008-07-19T14:44:00.000-04:00Widespread nuclear war is very possible.Widespread nuclear <B>war</B> is very possible.Bigelowhttps://www.blogger.com/profile/16883913065391637120noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-78663794216026330352008-07-19T14:42:00.000-04:002008-07-19T14:42:00.000-04:00Anonymous,Yes I read this and quite a few sources ...Anonymous,<BR/><BR/>Yes I read this and quite a few sources of information. What is it you are getting at?<BR/><BR/>FED syndicate of corrupt old banking names has ruined American money—since Christmas 1913. <BR/>Wall Street is a rigged casino. <BR/>Wall Street is a money laundering tool. <BR/>Government and corporate agenda is one and the same.<BR/>U.S. economic base is almost entirely tasked to Bigelowhttps://www.blogger.com/profile/16883913065391637120noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-68647006488206235202008-07-19T13:26:00.000-04:002008-07-19T13:26:00.000-04:00Bigelow - Do you actually read this blog? GSMBigelow - Do you actually read this blog? GSMAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-8797621141958028332008-07-19T13:14:00.000-04:002008-07-19T13:14:00.000-04:00Hidden or no, physical or electronic monetary digi...Hidden or no, physical or electronic monetary digits whatever-- it only proves the value of multiple plans for variable outcomes.Bigelowhttps://www.blogger.com/profile/16883913065391637120noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-44932435865391572522008-07-19T12:41:00.000-04:002008-07-19T12:41:00.000-04:00BigelowAnd what do the archeologic records have to...Bigelow<BR/>And what do the archeologic records have to say about the people who had no stash at all? Did it increase or decrease the chance of survival of either group? Does it pay to plan for the worst and hope for the best or to just hope for the best and plan for BAU?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-77180813588090367782008-07-19T12:37:00.000-04:002008-07-19T12:37:00.000-04:00Bigelow -- Where do you think they will find your ...Bigelow -- Where do you think they will find your hidden (or not so hidden) caches of electronic digits? GSMAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-72726105073526171732008-07-19T12:21:00.000-04:002008-07-19T12:21:00.000-04:00Yesterdays anonymous comments:“Every few years, fo...Yesterdays anonymous comments:<BR/><BR/>“Every few years, for example, archeologists in Britain dig up another cache of gold and silver hidden away by some wealthy landowner in Roman Britain as the empire fell apart. They're usually close to the ruins of the owner's rural villa, which shows the signs of being looted and burned to the ground by the Saxons.”<BR/>oilcrisis.com/whatToDo/Bigelowhttps://www.blogger.com/profile/16883913065391637120noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-43064001418741200892008-07-19T11:40:00.000-04:002008-07-19T11:40:00.000-04:00I would offer a humble caution to those thinking (...I would offer a humble caution to those thinking (like several posters have expressed here) that they will be able to achieve safety and return by deftly moving from one electronic security to another until, at the right moment, they might switch entirely to something tangible. My recollection is that the original Ponzi had many investors who knew the scam, but figured they'd get out ahead of theAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-48746235329935472402008-07-19T11:27:00.000-04:002008-07-19T11:27:00.000-04:00I recall that the politicios have “borrowed” again...I recall that the politicios have “borrowed” against Social Security & Medicare, etc to produce “”””balanced”””” Federal budgets in past administrations. Hmm nothing left in here, where did they put that money? Oh yes… all the taxes that have been collected couldn’t be put just anywhere for safe keeping, the monies were put in special non-interest bearing Treasury issues for all those Bigelowhttps://www.blogger.com/profile/16883913065391637120noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-49395664104847394942008-07-19T10:09:00.000-04:002008-07-19T10:09:00.000-04:00Thanks, Ilargi.Some argument! Quite compelling whe...Thanks, Ilargi.Some argument! Quite compelling when one is against the wall. Of course it will get better! Of course the real value is distorted currently and is much higher! <BR/>The concept of " mark to market" has more consequence that I had hitherto understood.scandiahttps://www.blogger.com/profile/07924260428840006237noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-70799246756180695722008-07-19T09:43:00.000-04:002008-07-19T09:43:00.000-04:00What argument supports such a position?Washington ...<I>What argument supports such a position?</I><BR/><BR/>Washington argues that accountancy uncertainties that exist because obligations such as Social Security and Medicare are subject to potential legal changes such as can be implemented by..... Washington, dictate that they should be left out of official accounts. There is also the issue of possible fantastic economic growth in the future, Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-51333397180286040192008-07-19T09:01:00.000-04:002008-07-19T09:01:00.000-04:00Ilargi, Carolyn Lochhead, in the SFGate article sa...Ilargi, Carolyn Lochhead, in the SFGate article said, " ...unlike corporations the gov't is not required to state its long term obligations." DUH! That sounds crazy to me. <BR/>What argument supports such a position?scandiahttps://www.blogger.com/profile/07924260428840006237noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-46571773482889081752008-07-19T05:37:00.000-04:002008-07-19T05:37:00.000-04:00I also am buying some short-term treasuries. I ac...I also am buying some short-term treasuries. I accept that everything I do comes with a degree of risk. The risk of Treasuries is that the government will choose to repudiate debts and/or commit itself to an unpayable position, or run the printing presses. Or that China dumps its holdings...<BR/><BR/>I am taking a position in Treasuries because I believe that as the stockmarket, mortgage EBrownhttps://www.blogger.com/profile/02894676347259218501noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-78441976036676450302008-07-19T01:47:00.000-04:002008-07-19T01:47:00.000-04:00el polloI think you underestimate how many guns,an...el pollo<BR/><BR/>I think you underestimate how many guns,and people who are familiar with their use here in the usa.Your right,this isn't 1776...the techniques of disrupting a society are well known...and the us is nothing but a collection of high value targets.The new fascists that have been formed by the right are slipping into economic populism fast,as too many are being hurt by this gutting Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-40471272875510099542008-07-18T22:33:00.000-04:002008-07-18T22:33:00.000-04:00ilargi, nice bit about the FDIC, clean clear and m...ilargi, nice bit about the FDIC, clean clear and might even get through to my stubborn mule of a brother, I will pass it on to him, right now!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-25715033554977462112008-07-18T20:35:00.000-04:002008-07-18T20:35:00.000-04:00Thank you everyone for patiently explaining about ...Thank you everyone for patiently explaining about the FDIC and why the government can't print more money. I believe I finally grasp all the pieces to complete this financial puzzle. My brain is tired, and still I have a few more preparations remaining to complete. Time is of the essence. <BR/><BR/>BTW, Karl Denninger has a good essay today about this very topic:<BR/>http://Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-313470314133792792008-07-18T19:36:00.000-04:002008-07-18T19:36:00.000-04:00The FDIC has $51 billion in "funds". Enough for 51...The FDIC has $51 billion in "funds". Enough for 510.000 accounts of $100.000 (or more). Say there are 200 million bank accounts: $51 billion then covers 0.255% of all US bank accounts.<BR/><BR/>Sure, not all will have $100.000. But say 5% do, or 10 million. The FDIC can then insure 5.1% of those accounts, and only in theory, because it can't be without capital. <BR/><BR/>Plus, it has to cover allIlargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-63364081347066295222008-07-18T18:57:00.000-04:002008-07-18T18:57:00.000-04:00bigelow,I have most of my assets in treasuries (Ge...bigelow,<BR/><BR/>I have most of my assets in treasuries (German), currency (USD), and gold, but I do play with ProShares including SKF and SDS with a percentage of mad money. I use one of those $10 a pop computer brokers. I think the trick is (a) making money on the ETF's (b) pulling your money out altogether before the roof caves in.<BR/><BR/>While my SKF is not under water because I jumped Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-15751740439536350982008-07-18T17:30:00.000-04:002008-07-18T17:30:00.000-04:00@anonymous - You might very well get your $100k ba...@anonymous -<BR/><BR/> You might very well get your $100k back from an FDIC insured account ... but what if that is only the down payment on a two year old Honda when you make your withdrawal and go shopping?<BR/><BR/> The problem are <I>systemic</I> - if this were just a few banks or a certain region of the country we'd bail a bit and get on with life. It's <B>everywhere</B> and you can't make .https://www.blogger.com/profile/03915219261001181341noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-55308176000752983832008-07-18T15:48:00.000-04:002008-07-18T15:48:00.000-04:00Why Buy Treasuries When You Will Be Able to Buy Fe...<A HREF="http://www.safehaven.com/article-10768.htm" REL="nofollow"> Why Buy Treasuries When You Will Be Able to Buy Fed/Treasury-Guaranteed GSEs?</A>Paul L. Kasriel, Director of Economic Research<BR/>The Northern Trust CompanyAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-72319315117216970992008-07-18T15:02:00.001-04:002008-07-18T15:02:00.001-04:00Anonymous Reader:The problem is too big, way-ay-ay...Anonymous Reader:<BR/><BR/>The problem is too big, way-ay-ay too big, for the Federal Government to take on without serious repercussions in the value of the currency (U.S. Dollar). Sure, they could conceivably print more money to hand to the FDIC to give you, but why would they? There are many downsides to that path: it puts many, many more dollars in circulation, which dilutes the value of Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-19559935205499846192008-07-18T15:02:00.000-04:002008-07-18T15:02:00.000-04:00Regarding anonymous reader’s FDIC bank coverage qu...Regarding anonymous reader’s FDIC bank coverage question, if FDIC does make good all failed banks by reaching back into the US Treasury to do it, even if account owners were paid with some electronic dollars scheme --because there is not the cash otherwise-- it would be immediately inflationary right? <BR/><BR/>Is part of your (I&S’s) argument that the US government can’t risk inflating Bigelowhttps://www.blogger.com/profile/16883913065391637120noreply@blogger.com