the price of gold

[dingo]

"We should accept that deleveraging is ultimately unavoidable. If it comes with a period of deflation – so be it. But we will get neither. The system will be sustained at this stage of arrested collapse for as long as policymakers can get away with it. My outlook is that we will get even bigger central bank balance sheets (forget exit strategies! There is no exit!), we will get no sustained growth but inflation will creep higher.

The noisy advocates of easy money and of government stimulus always pretend to care for the unemployed youth. It is today’s youth that would have most to gain from a cleansing correction now, and it is those who already made their money and who sit on inflated assets and overstretched balance sheets that have most to gain from the central bank’s policy of extend and pretend. That is, until the whole thing goes pop anyway. Which won’t take too long."

[denjohn]

[dingo]

Bernanke knows QE3 will fail, but he doesn't really care. His job is to protect the Fed's political power and the banking sector's wealth. He is doing an excellent job at his "real" job while failing catastrophically at his PR job of reviving the real economy and employment.

It's no secret that the Federal Reserve exists for one purpose--to protect the wealth and power of the banks. This can be illustrated by one question: does the Fed loan funds at 0% to households or communities? No. It loans "free money" at 0% to the banks so they can loan money to students at 7%.

When the banks get in trouble, the Fed rushes to loan them $29 trillion. When a student gets in financial trouble, he is hounded for the rest of his life by rapacious debt collectors.

Despite the transparency of its raison d'etre support of a neofeudal financial Aristocracy, the Fed presides in a nominal democracy and thus faces increasing political pressure as its public PR goals--maintaining stable prices, i.e. moderate inflation, and full employment--are clearly not being met.

The Fed thus needs to "manage perceptions" to maintain its facade of omnipotence and competence.

-C.H.Smith

[Amskeptic]

Bernanke knows QE3 will fail, but he doesn't really care. The Fed thus needs to "manage perceptions" to maintain its facade of omnipotence and competence.
-C.H.Smith

I get the sense that there is doom under the carpet. We cannot bring outrselves to discuss it, because a raging argument would break out. Capitalism is under stress as its model of limitless expansion meets a very finite and crowded world. There is a sustainable model waiting to be discovered.
Colin

[denjohn]

I get the sense that there is doom under the carpet. We cannot bring outrselves to discuss it, because a raging argument would break out. Capitalism is under stress as its model of limitless expansion meets a very finite and crowded world. There is a sustainable model waiting to be discovered.
Colin

I reckon you've got that right ex the "because a raging argument would break out" part, it seems that complacency, a sense of powerlessness, and short-sightedness are more significant reasons.

Here's the link to the entire article Dingo quoted from:
http://charleshughsmith.blogspot.com/20 ... ailed.html

[Westy78]

Bernanke knows QE3 will fail, but he doesn't really care. The Fed thus needs to "manage perceptions" to maintain its facade of omnipotence and competence.
-C.H.Smith

I get the sense that there is doom under the carpet. We cannot bring outrselves to discuss it, because a raging argument would break out. Capitalism is under stress as its model of limitless expansion meets a very finite and crowded world. There is a sustainable model waiting to be discovered.
Colin

But can it be accomplished with the current rate of population expansion?

[Amskeptic]

Bernanke knows QE3 will fail, but he doesn't really care. The Fed thus needs to "manage perceptions" to maintain its facade of omnipotence and competence.
-C.H.Smith

I get the sense that there is doom under the carpet. We cannot bring outrselves to discuss it, because a raging argument would break out. Capitalism is under stress as its model of limitless expansion meets a very finite and crowded world. There is a sustainable model waiting to be discovered.
Colin

But can it be accomplished with the current rate of population expansion?

We are actually self-correcting. Look at international birthrates. We of industrialized economies are no longer even replacing ourselves, Africa is beginning to level out, the contraction point is guesstimated at the 12 billion to 17 billion point, clearly a stressful number. Apparently, the signal-to-noise ratio of modern life extinguishes the large farm family model for a little family of one offspring, if that.
Colin

[Spezialist]

Saw a movie recently

"In Time"

Your lifetime is your currency

[denjohn]

End of the Road: How Money Became Worthless
http://www.economicreason.com/goldismon ... worthless/

A great, viewable online, 2012, 55 min film tying together The Price of Gold, Fiat Currency History, Bailouts, Inflation, The Dollar, The Federal Reserve, Money Printing, Ponzi Schemes, Financial Education and Responsibility, and Financial Collapse.

Wall Street is being occupied. Europe is collapsing in on itself. Around the world, people are consumed by fear and anger, and one question is on everyone’s lips: Is the financial crisis over, or are we headed towards economic disaster? End of the Road is a documentary that chronicles the global financial collapse. Told in an entertaining and easy to follow style, the film tells the story of how the world came to be in such a state, from the seeds sown after WW2, to the current troubles facing us today, and to the possible future that may await us all. Some of the world’s top economic minds share the hidden tale behind the mishandling of the world’s finances, give insight into how bad policy and a flawed monetary system joined together to create a catastrophe, as well as sharing their own personal advice on how the average person can best prepare for their financial future.

[dingo]

great vid...explains it all very clearly..the system is rotted to the core. ...the entire American experiment has to be re-engineered from the ground up.

[glasseye]

Capitalism is under stress as its model of limitless expansion meets a very finite and crowded world. There is a sustainable model waiting to be discovered.
Colin

Ronald Wright, who wrote "Stolen Continents", a shocking book on how Europeans raped and pillaged their way through native cultures in the Americas, has some good things to say in this article. Highly recommended.

http://truth-out.org/opinion/item/13891 ... our-future

Unfortunately, if history is any lesson, we'll keep on keeping on until it breaks. And then, it's gonna be reeeeeely hard to fix.

[Amskeptic]

we'll keep on keeping on until it breaks. And then, it's gonna be reeeeeely hard to fix.

Better get rid of that Sprinter and snag a 1967-74 Volkswagen. You can fix that.
Colin

[glasseye]

we'll keep on keeping on until it breaks. And then, it's gonna be reeeeeely hard to fix.

Better get rid of that Sprinter and snag a 1967-74 Volkswagen. You can fix that.
Colin

Aghh! Bite yo' tongue, sir!

"Just a sec. I got it. Lemme see, It's right here on the PDF. Page 1554: Engine Control Unit CAN bus multiplexer diagnostic procedures..."

[BellePlaine]

I was recently introduced to the concept of money as debt, meaning a dollar represents something owed by someone to someone. The expanding money supply represents increasing debt. Those debts are borne by the underclasses, and owed to the elites. I think that there is truth in it. The kicker is that even though the supply of money grows, it becomes harder and harder to come by for those of us in debt. The reason is because when one of those big Federal Reserve banks creates money and then loans it out, the bank also gets interest on that loan. The interest wasn’t included in the creation of the money for the original loan. Money/wealth gets transferred.

[Amskeptic]

when one of those big Federal Reserve banks creates money and then loans it out,
the bank also gets interest on that loan.
The interest wasn’t included in the creation of the money for the original loan.
Money/wealth gets transferred.

Ouch to hell, good point.
Colin