« Foreclosed Houses Have No Papers So No Foreclosings! | Main | A Fairy Tale: The Good Ship 'Even Keel' »

Comments

Ignorant Old Lady

Where are all these billions the Fed continues to "pump" into the "system" coming from? The printers?

Katya

Pretty good question. I don't think they are actually printing anything...that costs money. :) I would say that they are making loans from their reserve funds (funds deposited at the Fed by member banks), but I think it could be they just type some numbers into their magic box and whoosh, money shows up in the account of the borrower.

Jeffrey Willsey

Elaine is brilliant.

I am sending her some of my fiat cash and I hope you do too.

An unpaid non political announcement.

Al

Katya,
I believe you're right, the Feds do a Repo where a member bank makes up a security and the Fed purchases the security for a set period then the member bank pays back the Fed. To my understanding that's how the Fed pumps $ into the system. All an accounting fiction, nothing actually printed up.

EEngineer

The crux of the problem is that a "short time" in the grand scheme of things often exceeds the professional, if not outright, lifespan of an individual human. As a result systemic imbalances that can only last for a "short time" can seem like permanent good times, or the achievement of nirvana, to those in the right time and place in history.

It reminds me of an off hand observation that John Perkins makes in "Confessions of an Economic Hitman". He said that while he clearly understood what he was up to and how he was doing it, that the later generations did not. In only a decade or so; all the BS reports and theories that he and his generation had published to justify their work had become accepted as reasonable and proper academic work. Once they were accepted as truly good vs merely a useful deception, it was only a matter of time before the same techniques were but to use here at home to enhance the return on every business endeavor imaginable.

I see the same cycle of "drinking your own kool-aid" in all sorts of places. Business, politics, religion; none are immune. I guess it all comes down to who watches the watchers and who teaches the teachers?

shargash
If we look at all this as if it is Götterdämmerung and the Bifrost Bridge is collapsing and Valhalla is being repossessed by the Frost Giant/dragon, Fafner, we can guess what will happen next: the Fat Lady Will Sing.

ROFLMAO! That made my day, Elaine. :)

Elaine Supkis

I am publishing a little fairy tale called 'The Good Ship, the Even Keel.' It is quite amusing.

And of course, you are all right! The 'money' being created is fictional and NOT backed by anything except the say-so of the Federal Reserve. And this has crashed in the past and will, in the future. This is why playing with fire while the Santa Ana winds are blowing is insanity.

Canuck

Whhoop! Whhoop! **Discontinuity alert**

Elaine extols the USA to be unified, harmonious and nationalistic in service of strength in world and internal affairs, implying of course that fractured backbiting provincial, narrowly focused self-serving issues should be suppressed for the better good of all.

Subsequently issues judgement on euro-unifed activities:

“They aren't an empire. They don't even like each other. Inside of each other's own countries, they hate each other. So there is no real unity here and the unified currency should either be abandoned or the Europeans must continue to follow Germany into forming the 4th Reich”.

Texas loves New York as Spain loves Denmark

The shinning path of uniform harmony for North America is purchased on the burden and destruction of the original inhabitants. Never in the history of the earth was such a wide expanse of collaborative opportunity made available for such little investment in blood of conquistadors and oppressors.

These conditions never existed on a continental scale without large major disruptions of established comparative societies. In a work “Unique”, a situation without equal.

So lets take a dump on Europeans unable to shake their feudal tendencies, the Africans for running scared to captured slavery instead of stoic evisceration and Latin America for being dazed and rocking from endless pummeling from world powers seeking advantage. Why can’t they just wipe away their history, borders and culture and start anew as Americans had. Truly unworthy of a foot let alone stage in world affairs.

So, collaborative effort of disparate groups (i.e. Euro Union) is an effort in futility? Should only successful efforts be acknowledged? (Oooh, those crafty Chinese, so industrious!)

Elaine you claim to rally against WWIII, but I think you know the key lies more within cooperative efforts like Euro Union and Chinese diplomacy than picking apart nascent efforts at getting people looking in the same direction. Particularly when they seem pointless and ineffective.

steve

Actually, the last two days of REPO activity
amounted to a net drain, not add. These loans from the Fed have to be paid back plus interest. Google Repo & go to Wikipedia to read more.

Elaine Supkis

YES, OUR DEBTS ARE GROWING!!!! And to 'pay' for this, the banks will take this cheaper loan money and lend it out and this increases the money supply which causes inflation, Steve.

Canuck: NO ONE can beat me when it comes to talking about history. And here it is: the US right now, RIGHT NOW, is 'united.' This was done VERY BLOODILY just like the unity of Scotland with England is drenched in blood! And this unity is very FRAGILE. Will fall apart in an instant!

All we need is for our currency to collapse.

NO NATION IS UNITED unless there is a solid currency and a good government. Then people forgive the past. But the only OTHER route out of disintegration is the one we are on right now: war. Wars unite people. But if you lose a war, the divisions grow much worse. During the Vietnam War, our cities rioted and burned.


Just for example.

Canuck

Wouldn’t dream of trying to beat/challenge you on historical precepts Elaine. Wouldn’t want to get scorched to a cinder.

I’m trying to point out that I agree with Jim Willie CB that the Euro/European Union is untested as of yet both as a financial instrument and as a social bonding construct for the Europeans. Bringing up societies who have faced and are facing major challenges in geographical terms such as Africa and South America illustrates how unique the voluntary adoption of the euro is.

As the Euro is strengthening against the dollar at the moment it seems disingenuous to encourage the European Union to disassociate because they “Hate” each other. Further it seems that the good old USA is much farther along toward a fascist 4th Reich than the Germans. How exactly is Germany dominating the European Union with fascistic military/industrial social controls? What evidences is there that the German government is organizing its political power structure along these lines? How exactly is Germany going to dominate the European Union in a fascist sense when the populations are alert and wary of European Union policies and fully cognizant Germany’s militaristic history?

As for the US Civil war bloodily keeping the fragile US together I’m unqualified to venture very far into this but my best understanding is that it was overall a states rights conflict and with the defeat of the Confederacy states rights relating to all states were ceded in majority to the Federal Government. Such a fundamental change would suggest that the US wasn’t the same country at all after the Civil War. How would an individual state divorce itself from the USA when the Civil War abrogated the power to effect such a process, fragile or not?

Elaine Supkis

Power grows out of the barrel of a gun and Europe disarmed and surrendered to us.

DeVaul

Cannuck raises a good point about state's rights. Basically, they have none. Yes, they can create different domestic laws and refuse to follow other states, but they are in all actuality provinces and not states as that terms is understood by most nonamericans.

Any state that tries to leave the union will be attacked, and I doubt the outcome would be any different if they followed all legal and social rules in doing so and had 100% approval from the citizens to leave the union.

The "state" is really the Federal Government. That's why I can exist despite being an outlaw with no home state.

Elaine Supkis

Note that when states pass pot laws, the Feds ignore them or attack them. Federal law has grown like a monster in the last 150 years.

The comments to this entry are closed.

Blog powered by Typepad