tag:blogger.com,1999:blog-4921988708619968880.post5711477598724446107..comments2024-02-28T22:03:57.237-05:00Comments on The Automatic Earth: Debt Rattle, July 20 2008: The Grief CycleIlargihttp://www.blogger.com/profile/09698428009501267664noreply@blogger.comBlogger29125tag:blogger.com,1999:blog-4921988708619968880.post-13170758818784533602008-07-21T09:23:00.000-04:002008-07-21T09:23:00.000-04:00While it's possible that the market bounce of the ...While it's possible that the market bounce of the last few days is the beginning of the larger rally I have been anticipating (ie a rally measured in weeks taking us back above 12,000 to test the trendline from 1974 that was recently broken), it is also possible that it is just a temporary short-squeeze. If the latter is the case then it should be over very soon, and we should see new lows in theStoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-2322822285005584792008-07-21T08:51:00.000-04:002008-07-21T08:51:00.000-04:00Shock Doctrine on YouTubeAn interview with Naomi ...<B>Shock Doctrine</B> on YouTube<BR/>An interview with <BR/><A HREF="http://www.youtube.com/watch?v=H2chLI6yrKQ" REL="nofollow"> Naomi Klein and Tavis, Part I</A><BR/><A HREF="http://www.youtube.com/watch?v=bsx6f7Q8QZo" REL="nofollow"> Naomi Klein and Tavis, Part 2</A><BR/><BR/>“They have really hollowed out the government which is a real problem for whoever takes over after them. Because I thinkBigelowhttps://www.blogger.com/profile/16883913065391637120noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-50904995658334513032008-07-21T07:50:00.000-04:002008-07-21T07:50:00.000-04:00Z,International debt financing is still with us fo...Z,<BR/><BR/>International debt financing is still with us for the time being. Creditors like having countries in a state of permanent debt slavery, as they can continue to extract rents. Until it becomes impossible for them to do so, the model will persist. For the time being the predictable response is to raise rents (ie interest rates) to reflect a higher level of risk. <BR/><BR/>I firmly Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-44807862654080854462008-07-21T00:35:00.000-04:002008-07-21T00:35:00.000-04:00Stoneleigh,isn't the international debt financing ...Stoneleigh,<BR/><BR/>isn't the international debt financing model already on the way of breaking down with the creditor nations and SWFs announcing to diversify away from USTB? my guess is that if the creditors around the world can afford to have the debt financing model (along with the existing world financial order) completely broken, it would have already. otherwise, will the US issuing more Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-17436459527216700322008-07-20T23:24:00.000-04:002008-07-20T23:24:00.000-04:00Z,As the patriarch of the Rothschild clan once sai...Z,<BR/><BR/>As the patriarch of the Rothschild clan once said, "Give me the power to control a nation's currency and I care not who makes its laws." I don't think the power to operate as a private central bank would be surrendered lightly, although with the extent of the upheaval I expect all power relationships could eventually be disrupted.<BR/><BR/>I can envisage currency printing once the Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-83880759399572123162008-07-20T22:18:00.000-04:002008-07-20T22:18:00.000-04:00Stoneleigh,OC was asking Why won't the US run the ...Stoneleigh,<BR/><BR/>OC was asking <I>Why won't the US run the printing presses?</I> I suppose the US means .gov rather than the FED. if the .gov decided it is better to sell the future generations now to have the liquidity to prevent the meltdown in their hands, don't they have the way to make the FED to <I> run the printing press</I> especially when they have the printer BB running the FED now?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-85729953792435978842008-07-20T22:13:00.000-04:002008-07-20T22:13:00.000-04:00From 2nd comment above...“As of December 2007, cur...From 2nd comment above...<BR/>“As of December 2007, currency in circulation—that is, U.S. coins and paper currency in the hands of the public—totaled about $829 billion dollars.”<BR/><BR/>Does anyone know the amount of currency in circulation when Bush took office in 2001? I tried searching The Google, and was unable to find anything.<BR/>Thank you,<BR/>Anonymous ReaderAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-70844009084449172982008-07-20T21:46:00.000-04:002008-07-20T21:46:00.000-04:00Stoneleigh and CROK. I've got it now. I have to ...Stoneleigh and CR<BR/><BR/>OK. I've got it now. I have to excorcise this image I have that the Fed is a benevolent institution designed to act for the betterment of The People. The Fed <I>wants</I> the events to unfold as they are. Utter financial destruction plausibly denied.<BR/><BR/>And yet the IMF and WB, who are presumably branches of the same banking mafia, facilitated the collapse of Farmerodhttps://www.blogger.com/profile/03492165772535123915noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-54946995424717235722008-07-20T20:51:00.000-04:002008-07-20T20:51:00.000-04:00PPSThanks Stoneleigh for your wonderful analysis i...PPS<BR/><BR/>Thanks Stoneleigh for your wonderful analysis in TOD of August 14. Was even better after a year had passed.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-66838186302394224452008-07-20T20:40:00.000-04:002008-07-20T20:40:00.000-04:00Outtacontrol,"Ok, since we're still talking about ...Outtacontrol,<BR/><BR/>"Ok, since we're still talking about inflation, I'll ask my question again because I still haven't read - or at least understood - the answer."<BR/><BR/>Because with the price of gas, Helicopter Ben can't tank up, and so he can't figure out how to drop the money.<BR/><BR/>PS<BR/><BR/>Thanks anon #1 for your answer.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-70714682362225111292008-07-20T20:34:00.001-04:002008-07-20T20:34:00.001-04:00ilargi's comment on top: Now, the US government co...ilargi's comment on top: <BR/><I>Now, the US government could guarantee that, in theory. But issuing that much fresh credit would hit the US dollar so hard that if and when (two big questions) you’d get your money, it wouldn’t be worth much anymore. Plus, since you, the taxpayer, are ultimately on the hook for all government guarantees, it’d be not much different from taking money out of your Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-40128341247009626092008-07-20T20:34:00.000-04:002008-07-20T20:34:00.000-04:00OC,The Fed doesn't actually print money anyway - t...OC,<BR/><BR/>The Fed doesn't actually print money anyway - they midwife credit, which requires willing borrowers and lenders. If they were to monetize huge debts, which would amount to the same thing, they would be throwing away the source of their own power. They are, after all, a private institution, not a public service, despite appearances to the contrary. What would they gain from throwing Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-42798733670452679602008-07-20T20:20:00.000-04:002008-07-20T20:20:00.000-04:00Hi outtathere,I am sure you will get the correct a...Hi outtathere,<BR/><BR/>I am sure you will get the correct answer and all in due course, in the meantime how about these:<BR/><BR/>1. Because the whole world is watching?<BR/><BR/>2. Because you don't try to engage hand crank before the engine stops?<BR/><BR/>3. If the Boyz in the back stateroom can jump ship first why would they sink the ship sooner?<BR/><BR/>Anyway, that sounds like a good Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-50582574419737691742008-07-20T19:23:00.000-04:002008-07-20T19:23:00.000-04:00Ok, since we're still talking about inflation, I'l...Ok, since we're still talking about inflation, I'll ask my question again because I still haven't read - or at least understood - the answer.<BR/><BR/>Why won't the US run the printing presses? I understand that it's game over when they do. But it's game over eventually anyway. Why not run them? Has the Fed / US been rational so far? Why have so many other countries run the presses if they Farmerodhttps://www.blogger.com/profile/03492165772535123915noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-47515442179446731392008-07-20T18:34:00.000-04:002008-07-20T18:34:00.000-04:00I was wondering how accurate the estimates of amou...I was wondering how accurate the <BR/>estimates of amount of US money in circulation recently, especially because I heard the M3 report is not published anymore. Is it possible that the US government has a lot more money in circulation than they claim?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-22210847511929781182008-07-20T17:51:00.000-04:002008-07-20T17:51:00.000-04:00"Is it worth correcting people every time they use...<I>"Is it worth correcting people every time they use the word "inflation" to mean something other than increase in money supply relative to goods?"</I><BR/><BR/>I don't do it in daily life, but obviously I must do it here.Ilargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-60858170073010782572008-07-20T17:42:00.000-04:002008-07-20T17:42:00.000-04:00Oh, and another thing...Is it worth correcting peo...Oh, and another thing...<BR/><BR/>Is it worth correcting people every time they use the word "inflation" to mean something other than increase in money supply relative to goods?<BR/><BR/>It seems futile. Like correcting spoken grammar (I'm an English teacher).<BR/><BR/>But then, I've stopped talking about peak oil, too...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-86891768437106871802008-07-20T17:38:00.000-04:002008-07-20T17:38:00.000-04:00Anon #2,You're welcome :)Anon #2,<BR/><BR/>You're welcome :)Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-77509861431637544292008-07-20T17:35:00.000-04:002008-07-20T17:35:00.000-04:00Hi, Anon #2 again.Stoneleigh, ilargi, thanks for t...Hi, Anon #2 again.<BR/><BR/>Stoneleigh, ilargi, thanks for those thoughtful responses! I appreciate your taking the time to write them.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-27603295924826676502008-07-20T17:29:00.000-04:002008-07-20T17:29:00.000-04:00Kenny,In economic terms, demand is not what one wa...Kenny,<BR/><BR/>In economic terms, demand is not what one wants, it is what one is ready, willing and able to pay for. During a depression, the effective money supply will contract due to the virtual elimination of credit (we are seeing only the initial tightening so far but that has very much further to go). Purchasing power will be reduced simply because very few people will have access to Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-81885434973078023202008-07-20T16:54:00.000-04:002008-07-20T16:54:00.000-04:00Stoneleigh you say:Nevertheless, strategic commodi...Stoneleigh you say:<BR/><BR/><I>Nevertheless, strategic commodities may fall by a relatively small amount in comparison with non-essentials, and they would still be less affordable than at present as purchasing power would be falling faster than price</I><BR/><BR/><BR/>I keep reading 'purchasing power' as value of the dollar, which doesn't seem to make much sense to me, would you try to clear Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-31402733689312406002008-07-20T16:43:00.000-04:002008-07-20T16:43:00.000-04:00It is remarkable that Ilargi and Stoneleigh are ab...It is remarkable that Ilargi and Stoneleigh are able to sift through vast amounts of news and recover so many bits of the real story, because the media is biased, wrong and usually telling only convenient truths. <BR/><BR/>The New York Times does a great job blaming the victim, to color its article and then does a little reporting. What it doesn’t mention is that the general U.S. price level (CPIBigelowhttps://www.blogger.com/profile/16883913065391637120noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-18880717578472426532008-07-20T16:31:00.000-04:002008-07-20T16:31:00.000-04:00Anon #3,We're in Canada too:)No debt at all is bes...Anon #3,<BR/><BR/>We're in Canada too:)<BR/><BR/>No debt at all is best if you can manage it, as is having liquidity (cash and cash equivalents such as short term treasures) under your own control. Ideal you should have at least several months to a year's worth of liquid funds if you can manage it (which is a big 'if' for most people unfortunately).<BR/><BR/>Canada is about a year behind the US Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-90453711012741897142008-07-20T16:10:00.000-04:002008-07-20T16:10:00.000-04:00".. your comments on inflation/deflation reveal th...<I>".. your comments on inflation/deflation reveal that it is literally impossible to discuss economics in any clear way today."</I><BR/><BR/>I think that's putting it a bit harshly, but yes, it is not easy. Still, prices can increase for all sorts of reasons, ranging from scarcities to strikes and even bad weather, and it is silly to gather all of them under the same umbrella, because the effectIlargihttps://www.blogger.com/profile/09698428009501267664noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-5901793332119359142008-07-20T16:08:00.000-04:002008-07-20T16:08:00.000-04:00Anon #2,Inflation is an increase in the money supp...Anon #2,<BR/><BR/>Inflation is an increase in the money supply relative to available goods and services, as a consequence of which prices may rise. Imagine is there were suddenly twice as much money available, evenly distributed. All else being equal you would expect prices to double, with a time lag. Hence rising prices is a lagging symptom of inflation, not inflation itself. Google Ludwig von Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.com