tag:blogger.com,1999:blog-4921988708619968880.post1079829202054971236..comments2024-02-28T22:03:57.237-05:00Comments on The Automatic Earth: Debt Rattle, February 13 2008Ilargihttp://www.blogger.com/profile/09698428009501267664noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-4921988708619968880.post-15205758413420319402008-02-15T13:49:00.000-05:002008-02-15T13:49:00.000-05:00I do have a question regarding the eternal debate ...I do have a question regarding the eternal debate between deflation and hyperinflation. <BR/><BR/>I agree that deflation has arrived big time. However, there have clearly been instances of hyperinflation, e.g. Germany in the Twenties and Zimbabwe currently.<BR/><BR/>If the Fed/Federal Government is determined to hyperinflate, how would they do it?<BR/><BR/>Jeffrey J. Brownwestexashttps://www.blogger.com/profile/13648669299354997219noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-35188513438677504782008-02-14T11:11:00.000-05:002008-02-14T11:11:00.000-05:0010,000, ilargi,Sure I got the bones of what is hap...10,000, ilargi,<BR/><BR/>Sure I got the bones of what is happening. Just wanted to know some details of what specific levers might be manipulated to orchestrate things, you know, interest rates, bond issuance? others.... and what is this 'cash' people talk of? Where is the line between cash and ones and zeros in a computer somewhere... how do we react to a 'bank run'?<BR/><BR/>And I get that Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-91518183991892167392008-02-14T09:09:00.000-05:002008-02-14T09:09:00.000-05:00gkil, 10.000mile,Whether there is a plan or not, w...gkil, 10.000mile,<BR/><BR/>Whether there is a plan or not, we must realize that restarting the economy is not possible after the downturn, at least not in any way shape or form that we know it today. Buying up factories will be a useless exercise, since there will be no energy to run them. <BR/><BR/>The same goes for transportation in the bloated way we have become used to. It won't be there, we Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-12544546369084873082008-02-14T07:46:00.000-05:002008-02-14T07:46:00.000-05:00Is there a sinister "plan"? Probably not, but I th...Is there a sinister "plan"? Probably not, but I think it is a useful exercise to imagine that there is, just to give yourself an idea of the shape things might take.<BR/><BR/>Some 19th centuries bank panics, in the robber baron days of capitalism (an oxymoron?), seem to have been deliberately engineered to create an opportunity to bankrupt and buy up rivals. See Henry Liu on the panic of 1907.<BRAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-30448902281336982782008-02-14T00:39:00.000-05:002008-02-14T00:39:00.000-05:00Like to thank the publishers, followed them over f...Like to thank the publishers, followed them over from the oil drum.<BR/><BR/>Very very very useful service. I always wanted to live through some exciting period of history, mine seemed a boring upward trajectory of stability and peace and I peacefully slumbered through the 80s and 90s like so many of us... doh! however the stability and peace were/are illusory, resource constraints will bite Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-8369122487655489452008-02-13T23:46:00.000-05:002008-02-13T23:46:00.000-05:00Preying on the Elderly.Six years ago I mistakenly ...Preying on the Elderly.<BR/><BR/>Six years ago I mistakenly suggested to my elderly mother that she take out a reverse mortgage with Wells Fargo so she could have extra cash in her old age and even buy a car. Two years ago she had to enter a nursing home and Wells Fargo put her house in foreclosure because she no longer lived in the house. As her conservator I fought in court for two years for Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-36831090040241379952008-02-13T21:07:00.000-05:002008-02-13T21:07:00.000-05:00Ilargi, The Fed is buying nonsense paper,Would tha...Ilargi, <BR/><BR/><I>The Fed is buying nonsense paper,</I><BR/><BR/>Would that mean increased deficit or higher taxes? That choice along with a more devalued dollar?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-57523322072420879602008-02-13T18:13:00.000-05:002008-02-13T18:13:00.000-05:00Anon,The Fed is buying nonsense paper, or more acc...Anon,<BR/><BR/>The Fed is buying nonsense paper, or more accurately, taking it in as collateral for loans at the TAF, which is supposed to be short term, but gets stretches ever further. At a certain point, they may de facto have taken over some of the large backs. The amounts owed them will certainly far surpass the value of the collateral.Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-16903452035224120312008-02-13T18:10:00.000-05:002008-02-13T18:10:00.000-05:00François, The reason we don't try too much to be '...François, <BR/><BR/>The reason we don't try too much to be 'balanced', whatever that may be, is because of what the very media you talk about are publishing. Let people go there for their daily portion of sweet cookies. <BR/><BR/>We very much do factual, rational articles, we don't do doom. Most people don't wish to see that, but I take real good care of making sure we do. <BR/><BR/>Most of what Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-65091704445133140342008-02-13T18:07:00.000-05:002008-02-13T18:07:00.000-05:00Anon.Cash would be pretty much ... cash. You can g...Anon.<BR/><BR/>Cash would be pretty much ... cash. You can go for things that are very liquid, easy to sell/convert to cash, but you'd still have to find people willing to part with the cash they just realized is the only thing worth holding. There are not a lot of assets that fit that picture.Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-72305546402091919022008-02-13T17:01:00.000-05:002008-02-13T17:01:00.000-05:00Henry CK Liu's latest:Inflation targetingHenry CK Liu's latest:<BR/><A HREF="http://www.henryckliu.com/page153.html" REL="nofollow">Inflation targeting</A>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-90246800991610274742008-02-13T16:37:00.000-05:002008-02-13T16:37:00.000-05:00in "Depression risk might force U.S. to buy assets...in "Depression risk might force U.S. to buy assets" above:<BR/><BR/><I>Currently the Federal Reserve can buy only debt issued by the Treasury, as well as U.S. agency debentures and mortgage-backed securities.</I><BR/><BR/>what kind of mortgage-backed securities is the Fed holding?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-45664736221807252372008-02-13T15:51:00.000-05:002008-02-13T15:51:00.000-05:00Hello,In response to Brecon above, if it is any co...Hello,<BR/><BR/>In response to Brecon above, if it is any comfort, the French press would appear to be almost totally oblivious to the problems.<BR/><BR/>A major weekly news magazine started delivering a few issues trying to hook me for a subscription. Plus I receive Le Monde. So I have been reading and comparing with Der Spiegel and the collection here.<BR/><BR/>Unfortunately, there is not much Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-3318363849900605582008-02-13T15:41:00.000-05:002008-02-13T15:41:00.000-05:00Depression risk might force U.S. to buy assets"If ...<B>Depression risk might force U.S. to buy assets</B><BR/><BR/><I>"If we don't avoid depression, the only thing worth holding is cash," he added.</I><BR/><BR/>From that article, what would be considered cash? I guess it would depend on how tacky things get?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-66970023642877134122008-02-13T12:12:00.000-05:002008-02-13T12:12:00.000-05:00"I wonder why they focus on the US, and how they s...<I>"I wonder why they focus on the US, and how they see the vicious circle that trapped the UK"</I><BR/><BR/>The MSM in GB is slightly scary. Anyone with half a brain can see that nearly all the newsprint economic commentators are either shutting their eyes to the incredibly obvious; or they believe their own propaganda, or they really <I>are</I> that naive -- lawd 'elp us. <BR/><BR/>Presumably, Half Emptyhttps://www.blogger.com/profile/04589816424420932962noreply@blogger.com