tag:blogger.com,1999:blog-4921988708619968880.post8119059733944500731..comments2024-02-28T22:03:57.237-05:00Comments on The Automatic Earth: Debt Rattle, October 24 2008: Shot to RipponsIlargihttp://www.blogger.com/profile/09698428009501267664noreply@blogger.comBlogger107125tag:blogger.com,1999:blog-4921988708619968880.post-23571262582341431002008-10-25T14:52:00.000-04:002008-10-25T14:52:00.000-04:00Gregre currencyhttp://en.wikipedia.org/wiki/ Image...Greg<BR/><BR/>re currency<BR/><BR/>http://en.wikipedia.org/wiki/ Image:Components_of_the_United_ States_money_supply2.svg<BR/><BR/>remove spaces where appropriate<BR/><BR/>go to graph<BR/><BR/>Image:Components of the United States money supply2.svg<BR/><BR/>and enlarge. Currency is the bottom green. Does look to be about $900B. The money supply including M3 which Greenspan stopped publishing el gallinazohttps://www.blogger.com/profile/00642036843036726232noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-49991342679807938872008-10-25T14:47:00.000-04:002008-10-25T14:47:00.000-04:00To all:Friend who is a broker/pusher for Merrill/B...To all:<BR/><BR/>Friend who is a broker/pusher for Merrill/BoA told me today that there has been no PPT activity the past few weeks, just bargain-hunters and hedge funds buying on the dips. I expressed marked skepticism, but he held firm: no PPT activity.<BR/><BR/>Anyone have an opinion on this? I find it hard to believe.<BR/><BR/>OarwellAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-63579692515789418052008-10-25T14:42:00.000-04:002008-10-25T14:42:00.000-04:00Ahimsa, who said anything about insanity? Many peo...Ahimsa, who said anything about insanity? Many people who fall for paranoid conspiracy theories and their promoters are just mentally slothful and don't want to actually do real thinking, although of course many others are in fact suffering from some form of mental disorder. The thing that makes conspiracy thinking so attractive to such types is that it always uses pieces of truth, but the Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-1120012939827522552008-10-25T14:38:00.000-04:002008-10-25T14:38:00.000-04:00Here's a working NY Times Nocera - So When Will Ba...Here's a working <A HREF="http://www.nytimes.com/2008/10/25/business/25nocera.html?_r=1&oref=slogin" REL="nofollow">NY Times Nocera - So When Will Banks Give Loans?</A> link.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-27866721142023484772008-10-25T14:26:00.000-04:002008-10-25T14:26:00.000-04:00I, along with others here, agree that Starcade is ...I, along with others here, agree that Starcade is not insane. Starcade is simply anticipating a possible ultimate scenario sooner than most of us are.<BR/><BR/>Outtacontrol, thanks for your input to the question on timing of land purchase I posed a few days ago. I think Stoneleigh addressed the topic on her comment at 12:17 PM today.<BR/><BR/>AhimsaAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-1590450702096361242008-10-25T14:04:00.000-04:002008-10-25T14:04:00.000-04:00Greg"Any links data to show the 97% funny money?"W...Greg<BR/><BR/>"Any links data to show the 97% funny money?"<BR/><BR/>Well, I think there are basically two types of money - fiat paper and debt. I learned a couple of months ago (and I think but am not sure that Stoneleigh was one of the sources) that in the USA, fiat paper is about $900B. All the rest is credit/funny money. So, you can do the arithmetic. I don't have any links handy and el gallinazohttps://www.blogger.com/profile/00642036843036726232noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-68640701686066131502008-10-25T13:56:00.000-04:002008-10-25T13:56:00.000-04:00el pollo said...In our fractional reserve system, ...el pollo said...<BR/><I><BR/>In our fractional reserve system, 97% of our money/credit supply is constructed of debt. No debt - almost no money. Which may be where we are headed anyway through debt default.<BR/></I><BR/><BR/><BR/>Any links data to show the 97% funny money?<BR/><BR/>Thanks,gregAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-60731326604307422852008-10-25T13:49:00.000-04:002008-10-25T13:49:00.000-04:00OCIt's definitely a slow motion train wreck, b...OC<BR/><BR/>It's definitely a slow motion train wreck, but as I&S predicted, it is accelerating, and I think that the function of the acceleration is exponential.<BR/><BR/>You know we are living in interesting times when the NYTimes Saturday business columnist, Joe Nocera, essentially calls SecTreas Hankenstein a lying sack of shit and starts predicting pitchforks in his last paragraph.<el gallinazohttps://www.blogger.com/profile/00642036843036726232noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-47937008838244651642008-10-25T13:38:00.001-04:002008-10-25T13:38:00.001-04:00In your considerable understanding perhaps you cou...In your considerable understanding perhaps you could stretch your imagination to come up with a possible senario supposing that instead of "bail-out", debts were forgiven, wiped clean. How would that have changed our economic outlook?WILDBLUESbysushttps://www.blogger.com/profile/05721938956504857045noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-73839335590748989782008-10-25T13:38:00.000-04:002008-10-25T13:38:00.000-04:00Mink, if one is unable to continue paying down the...Mink, if one is unable to continue paying down their mortgage, the least they could do, I think, is to offer their services to the mortgage holder as live-in caretakers. What do you think?;)<BR/><BR/>OC<BR/><BR/>Gee, don't you know it is all over and will continue being all over until Gia drives a stake through our hearts? ... Okay, that's it, time for me to go out into the sunshine and work in Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-61507752316773798592008-10-25T13:31:00.000-04:002008-10-25T13:31:00.000-04:00el pollo - great idea. Now if we could just figur...el pollo - <BR/><BR/>great idea. Now if we could just figure out where to deport Ted Nugent.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-84538343037543724782008-10-25T13:23:00.000-04:002008-10-25T13:23:00.000-04:00EPI found yahoo's rejection of MSFT ample evidence...EP<BR/><BR/>I found yahoo's rejection of MSFT ample evidence that this financial collapse will take longer than I think (I thought it was all over in January, then March, then a few weeks ago- I'm starting to ignore myself now). Many people with lots of money don't think this meltdown is going to be catastrophic. Because of that, it will take more time to play out. This can be good for anyone Farmerodhttps://www.blogger.com/profile/03492165772535123915noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-41412751561459857802008-10-25T13:08:00.000-04:002008-10-25T13:08:00.000-04:00Watched James Galbraith, son of John, last night t...Watched James Galbraith, son of John, last night tell how there was unlimited time left ifor the US dollar as a reserve currency and therefore unlimited debt to be enjoyed. With treasuries running at between .5% and .3% lately i don't follow that talk. I don't even understand why we haven't moved back to multiple currencies as reserve. I think it worked before and "Hey Dude don't we know we got Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-62646398707644982812008-10-25T12:48:00.000-04:002008-10-25T12:48:00.000-04:00If all mortgage owners are in negative equity, and...If all mortgage owners are in negative equity, and half of them are unemployed, the chances that the debt will be pursued (by the government, who practically owns it now) are as good as the chances for a debtors' revolt. If people simply stop paying, and squat their own houses - as they will under such circumstances - it would be very difficult to get them out, and quite pointless too.<BR/><minkhttps://www.blogger.com/profile/11494109557449444993noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-47042244514924126912008-10-25T12:47:00.000-04:002008-10-25T12:47:00.000-04:00You say that we either "share or face angry men in...You say that we either "share or face angry men in the street". I am always confused by statements like that.<BR/><BR/>If the problem is central banks inflating by making money out of nothing why doesn't the answer come: Abolish them?<BR/><BR/>You cannot have debt like this without a government empowered central bank (the Fed, the IMF, etc.)<BR/><BR/>Explain to me how we "share" without using Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-80815950724976811092008-10-25T12:27:00.000-04:002008-10-25T12:27:00.000-04:00CR & OOCYeah, checked it with the NY Times gra...CR & OOC<BR/><BR/>Yeah, checked it with the NY Times graph. The vertical spike was a yahoo FU (although not as big as turning down Bill Gates :-)<BR/><BR/>But still found it interesting that the TSX was so unaffected.el gallinazohttps://www.blogger.com/profile/00642036843036726232noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-90980602281879645512008-10-25T12:19:00.000-04:002008-10-25T12:19:00.000-04:00the newbie"Yes it will be hard if this all pans ou...the newbie<BR/><BR/>"Yes it will be hard if this all pans out the way it looks, but we are not going to just start killing each other by the millions. "<BR/><BR/>Probably true but we better deport Mel Gibson back to Australia first.el gallinazohttps://www.blogger.com/profile/00642036843036726232noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-2486292187982873232008-10-25T12:18:00.000-04:002008-10-25T12:18:00.000-04:00CRThat graph is a yahoo problem, methinks. IIRC, ...CR<BR/><BR/>That graph is a yahoo problem, methinks. IIRC, around 3:45 yesterday, their DOW numbers essentially stopped and didn't update until well after the market closed. The <A HREF="http://www.tsx.com/" REL="nofollow">TSX</A> did climb at the end but nothing out of the ordinary.Farmerodhttps://www.blogger.com/profile/03492165772535123915noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-45588911905850773592008-10-25T12:17:00.000-04:002008-10-25T12:17:00.000-04:00Anon(X?),It WILL make the Great Depression seem li...Anon(X?),<BR/><BR/><I>It WILL make the Great Depression seem like a walk in the park.<BR/><BR/>How will the many millions of unemployed men feed their families? How will they acquire/afford clothing after the first couple years once the global supply lines break down? After the first couple years, tens of millions of Americans will have NO dollars.</I><BR/><BR/>Agreed. This is likely to be Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-76033799077244154572008-10-25T12:10:00.000-04:002008-10-25T12:10:00.000-04:00RE: all the blood bath by Christmas posts.I think ...RE: all the blood bath by Christmas posts.<BR/><BR/>I think you are underestimating average Americans. Yes it will be hard if this all pans out the way it looks, but we are not going to just start killing each other by the millions. People have lived through remarkable times and circumstances and will again. Please take a deep breath to clear your head. Panic can destroy you and blind you to Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-50257082525936037882008-10-25T12:02:00.000-04:002008-10-25T12:02:00.000-04:00AnonX,Setting up new economies takes capital, ener...AnonX,<BR/><BR/><I>Setting up new economies takes capital, energy, and time. This needed to happen in the 1970's. Just to focus on the capital aspect, Where's the money going to come from?</I><BR/><BR/>Exactly. We will adapt through deprivation, not massive new public infrastructure projects. The Keynesian approach wont be an option.<BR/><BR/><I>Of the people who do understand the futility to theStoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-36287728041852223962008-10-25T11:57:00.000-04:002008-10-25T11:57:00.000-04:00elpollo said:I thought it strange that the TSX onl...elpollo said:<BR/>I thought it strange that the TSX only lost less than a half a percent. Are they operating north of the border?<BR/><BR/><BR/>See this <A HREF="http://finance.yahoo.com/echarts?s=%5EGSPTSE#chart1:symbol=%5Egsptse;range=1d;compare=%5Edji;indicator=wpr+roc+volume;charttype=line;crosshair=on;ohlcvalues=1;logscale=off;source=undefined" REL="nofollow">graph</A><BR/><BR/>Quite used toAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-72273987084293587802008-10-25T11:53:00.000-04:002008-10-25T11:53:00.000-04:00Greg"What about treasury bond mutual funds? It can...Greg<BR/><BR/>"What about treasury bond mutual funds? It can be a pain buying separate treasuries, creating a ladder etc."<BR/><BR/>Assuming you are a Yankee, I think the best way to do short term treasuries is with treasurydirect.gov<BR/><BR/>It is very convenient, once you are set up. You just put your dollars into the bank you sign up with, order that amount for the next auction (13 week is el gallinazohttps://www.blogger.com/profile/00642036843036726232noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-75653845721813431732008-10-25T11:34:00.000-04:002008-10-25T11:34:00.000-04:00el pollo said...Stoneleigh recommends that during ...el pollo said...<BR/><I><BR/>Stoneleigh recommends that during the deflationary period we are going through which will last at least a year and probably quite a bit longer, that you hold your non-physical assets in currency or short term treasuries. She also recommends that said currency or cash equivalents be in the currency of the country in which you are residing as there will be tremendous Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-16637212855251746772008-10-25T11:18:00.000-04:002008-10-25T11:18:00.000-04:00Blue Monday,I thought Stoneleigh recommended short...Blue Monday,<BR/><BR/><I>I thought Stoneleigh recommended short term treasuries in your own currency, what ever it might be.</I><BR/><BR/>I generally recommend cash in whatever your own currency is, but bonds are trickier. Some countries bonds will be riskier than others as some countries are already teetering on the brink of default and don't have the cushion of a flight-to-safety effect (or Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.com