Debt Rattle Feb 5 2014: From the Bernanke Put to the Yellen Trap
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Marjory Collins Super Suds in cooperative store, Greenbelt, Maryland May 1942 Sifting through the debris after the initial wave of the year’s first ma
[See the full post at: Debt Rattle Feb 5 2014: From the Bernanke Put to the Yellen Trap]Its just a constant death march isn’t it? It just gets depressing after a while.
Im not quite sure when its gonna happen this year, but the fed and other central banks will get back on that QE ride and keep this show going a little while longer, and people will keep on going about life like everything is hunky dory. I honestly feel like i’ve been living in a circus ever since i’ve realised the road we’ve been heading to (kudos to TAE for that!).
I know you don’t like to comment on metals etc… but is there any truth to this story?
Why is the FED tapering? https://www.paulcraigroberts.org/2014/01/30/fed-tapering/
It seems astonishing that Keynes predicted that eventually it would come down to a battle between the banks and the people.
Great article.
However, on Postal savings accounts. Social Security 2.0? The people “Loan” their money to the government through these accounts, whereby con’gress borrows these funds for boondoggle programs and wars, replacing them with Treasury Paper, just like Social Security?
Hell, why not follow one giant Ponzi with another.
Insanity prevails.
@Ted,
Re; Roberts’ line in your link,
” The question is: will the Fed let the banks go in order to save the dollar?”Loaded question. The Fed is the Banks.
In the end, these false prophets will be exposed by the fact they can’t print resources. That will be when they hand the day to day operation of the world economy over to their Pentagon Division.
Cornered badgers and such.
A more pertinent question might be, “Who tries to manipulate the gold price when the US financial system is gone?
Or, Au has been around for thousands of years as a medium of exchange. Will the Fed be?
It is up to individuals and small cohesive groups how to live on 10% of the current fossil fuel use. It is important to realize that 10% won’t begin to cover the embedded/invisible fossil fuel use in the products that we use.
Keep your nice steel gardening tools in good repair.Central banks cannot create money, they cannot offer unsecured loans. Sorry, they just can’t.
If they do they are busted, there are bank runs … because then there are no lenders of last resort.
Money increase is due to private sector lending = Wall Street finance along with City of London and Frankfurt lending. Central banks can front-run on interest rates but that’s about it.
Tapering is ‘au courant’ because it doesn’t matter in the real world whether it is taking place or not. However, the Fed cannot afford to be ‘caught out’ … seen as irrelevant otherwise it would be irrelevant. Afterwards, bank runs … because then there are no lenders of last resort.
Remember, Walter Bagehot’s famous remark about bankers and credit applies to central banks as well.
: )
Superb synopsis and writing, Ilargi! Charles Hugh Smith writes in “The Mafia State of Mind”:
“The mafia state of mind is all about establishing a monopoly that leaves the populace no other choice, and that creates sufficient leverage to enable systemic extortion. In the mafia state of mind, the government is a partner in the racket. When thugs arrive in a peasant village in China to drive the residents off their land so a corrupt developer can build hundreds of highrise flats, where are the corrupt officials of the government? In line to collect their “fees”, which will fund their purchase of homes in Vancouver, B.C. or Sydney, Australia. […]
When there is no other choice but submission, when voting for either party yields the same results, the mafia state of mind reigns supreme. The mafia state of mind exists in all ideological flavors–socialist, capitalist, communist. The mafia state of mind is simple: leave the populace no choice but submission, enforce monopolies of control and power, and then extract and extort to your heart’s content.
Once the mafia state of mind has seeped into every nook and cranny of the society and economy, it’s not even recognized as corruption: it’s simply the way the system works. And so the residents of nominal democracies in Asia, Europe and the Americas do not even realize how thoroughly corrupted their societies and economies really are; they cling to the illusions of choice even as their incomes, wealth and political influence are funneled into the hands of various elites by overlapping extortion rackets.
Once you realize that the mafia is a state of mind, you recognize just how thoroughly it has corrupted and criminalized our entire society and economy.”
When Jamie Dimon gets to walk around free while Edward Snowden can’t, something is terribly wrong. Good interview with Edward Snowden (first interview of him by German television):
https://www.liveleak.com/view?i=f93_1390833151
A very articulate and intelligent young man.
“Bernanke’s Biggest Beneficiaries”:
“It’s not quite accurate, however, to say Bernanke ‘bailed out the bankers’ and to stop there. The banks and financial institutions that were bailed are but the ‘institutional conduits’ for the real beneficiaries—the big money investors who provide the financial means for the banks, who invest on their behalf as well as themselves institutionally. […]
The investors that constitute the markets are the elite core of finance capitalists today. They are sometimes referred to as ‘very high net worth’ investors, or even ‘ultra high net worth’ investors. The arbitrary distinction between the two—very high and ultra—who together represent the elite layer of finance capitalists as a group is typically a cut off of $5-$30 million in readily available, i.e. liquid) investable assets (VHNWs) vs. more than $30 million (UHNWs).
According to a study in 2013 by Capgemini, a global business consultancy, VHNWs globally increased their investable wealth in 2012 alone by more than $4 trillion, to $46.2 trillion. Another report in 2013 by the big Euro bank, UBS, indicated the total wealth held by the UHNW wealthiest 200,000 investors in the world amounted to $28 trillion.”
How can you lose when you own the game?
“Top Ten Examples of Welfare for the Rich”:
“If you want to look at the welfare for the rich and corporations start with the federal Internal Revenue Code. That is the King James Bible of welfare for the rich and corporations. Special breaks in tax code is the reason there are thousands of lobbyists in the halls of Congress, hundreds of lobbyists around each state legislature and tens of thousands of tax lawyers all over the country.”
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