DiverCity

Irrational Exuberance of the Green Shoots

The problem is that the chump populace has not a clue about the facts presented by Mr. Kim. If, then, perception is reality, as the Wall Street shills, the banksters, the lying Federal Reserve and the lying politicians clearly believe, does that mean the chump populace will bring about the hoped for recovery by opening up those pocketbooks, maxing out those credit cards and taking out those home equity loans? That is clearly what the aforementioned shills, fraudsters and liars seek, and no doubt they are colluding to convince us chumps that economic recovery will happen right soon now. Unfortunately, even if they succeed resulting in a modest recovery, the can has been kicked just a little farther down the road to ruin.

Ongoing $134.5 Billion Bearer Bond Mystery: Possible Link to Upcoming Bank Holiday

I agree that a devaluation here would be unlike that by FDR, but wouldn't ridding all currencies from the free float be the objective here? In other words, the devaluation would be against a basket of currencies, a basket of commodities, some combination of the two, or the IMF's SDRs, which would then function much like gold did prior to the US's abandonment of Bretton Woods -- as a benchmark against which the individual currencies could be valued. I'm just thinking out loud....


On Jul 16 01:22 PM TBill wrote:

> Remember, Italy has the world's best forgers. They are always looking
> for something high value to forge. But first, they have to get their
> hands on a real one...
>
> And why run off so many? How the heck are you supposed to market
> them without raising suspicion? Deposit them and borrow against them?
> I mean, what's a bank to think went someone shows up with over $100
> billion to deposit? If they had only one, maybe they get away with
> it, particularly if no one knows for sure what a real one looks like.
> Remember, these guys can turn out paper so good even the Treasury
> wouldn't know the difference without checking the numbers, and even
> then might pronounce it real. OTOH, once you've set up the presses,
> might as well run off a bunch...
>
> ONe thing I know for sure, you can forget about a bank holiday for
> the purpose of devaluing the dollar. It worked in FDR's case because
> the dollar was tied to gold. Today's dollar isn't tied to anything.

Ongoing $134.5 Billion Bearer Bond Mystery: Possible Link to Upcoming Bank Holiday

Agreed that the USGovt can orchestrate a big devaluation by the means you describe. However, as others have said, that would be too disorderly and leave matters out of central bank control. An orderly, albeit very abrupt, devaluation is the goal, I would think.

On Jul 16 11:00 AM Screwloose wrote:

> Do you still need a "bank holiday" to devalue a floating currency?
> Under a fixed-value gold standard, maybe; but these days?
>
> All a big devaluation would take is for the Fed to reveal that it's
> been fiddling the "indirect" Treasury bids through secret swap deals
> with other central banks and that China is now only buying the short
> end.
>
> Leak something like that and devaluing the dollar isn't going to
> be a problem - although supporting it from total collapse might be....
>
>
> To devalue it only against gold/silver they simply need to direct
> the COMEX-manipulating banks to take a "holiday" - preferably a permanent
> one.

Taxpayers vs. Investors: The Imminent Disinformation Schism

There's no way that the Time article is not tongue in cheek. If not, we're doomed.

Eight Reasons Bank of America Is Going to $20

BAC is utterly insolvent. The author is simply gambling, which, of course, could pay off if the USG injects enough money into the banks and they can somehow avoid nationalization. But I just don't see it.

12 Reasons to Short Gold

Louis is sticking his head in the sand. And I'm not a goldbug. In fact, I just sold all the "gold" (GLD) I had this week. The President and the Fed are knowingly lying to you, Louis. The Baltic Dry Index had to shoot up the very little bit it did as shipping had come to nil. And saying that the percentage rise we've just seen is a meaningful indicator ignores that shipping is still down to depressionary levels by any sane measure.

Louis may also be a manipulator. It would appear that he frequently hypes for the Oxford Club, whose most recent series of claims about "gas rebates" turn out to be mere Canadian oil and gas trusts. Canadian law has changed, so their longevity and profitability beyond 2011 is highly doubtful. And they're unquestionably not rebates. My elderly father was very nearly hooked with these manipulative claims.

Turning Japanese: The Audacity of Reality (Part 3 of 3)

Alright -- had to do real work, unlike the Turtle and BS Boy seem ever to do as attested by their non-stop apologia for fiat fraud land on nearly every cotton picken' article on SA touching on these subjects (and Lord knows how many others).

To counter your absurd hypothetical, BS Boy, the banksters need to know that there's a reasonable likelihood they'll get paid back, and the regulators kind of want to see certain criteria padding a loan file that makes said result at least somewhat likely in the sweet bye and bye. Moreover, there is not an inexhaustable supply of borrowers -- even borrowers who don't meet lending criteria. Man, this is so easy. You guys with your academic theories just can't see.

Turtle -- and I think you know this but must want to intentionally obfuscate -- you posit only one side of the fractional reserve banking edifice (writ, house of cards) and attempt to buttress your position by playing semantical games. Please recall that for the banksters, loans are assets and demand deposits are liabilities. Now, if Bank A gets a deposit from me of $1,000 (because I work), and the reserve requirement is 10%, it most certainly can set aside $100 and lend $900, thereby complying with its mandated reserve requirements. Consequently, it has $100 of my initial deposit and has loaned out $900 of same. Remember, a loan is an asset and a demand deposit is a liability. Pray tell, Turtle, where lieth the error in my ways?

Turning Japanese: The Audacity of Reality (Part 3 of 3)

BS Detector, you write like the fool of an academician that you are. Your arguments have no real world application and you fail to see the huge zit on the end of your nose that has just popped. I don't know why the author bothers to respond to your inanity and lack of real world precience.

31 October, your comments are right on. Those jobs are not coming back. The fool of an academician that BS Boy is cannot understand the simple truism that we just can't all sell each other hamburgers and maintain the lifestyle we've had for the last 30 years. Of course, he probably doesn't even care as he enjoys his tenured position and will continue to get paid until the proles rise up and take it from him by force.

Speaking of proles, the individual who has the issue with his CAPS LOCK expresses legitimate, albeit somewhat misplaced frustrations about the loss of manufacturing jobs. The sad fact is, however, that the car companies, for example, are not competitive, their product is substandard, and they must face the cleansing fire of a bankruptcy to come be able to survive -- and survive I hope they do.

Myrtle the Turtle, surely you jest?? You don't think banks lend more than deposits on hand? And you purport to speak authoritatively about the fraud that is fractional reserve banking?

Folks, we are regressing to the mean of a lower standard -- a much lower standard -- of living in the West relative to the rest of the world. Or did you surmise that through the application of an academic theory that we could perpetuate the frauds of limitless credit and fiat currency in perpetuity? Do they have an academic theory for that, BS Boy?

Ghost Malls: Coming to Your Town

Folks, you've got to be able to extrapolate. To say that the malls will be used for shelters or churches or what not, and that this somehow lessens the impact of the anticipated retail failures, ignores that if they do result there won't be a lot of money spent on geegaws that are sold in the mall, that employment will contract greatly, and that property tax revenues will plummet. This is a microcosm of what is happening with the velocity of money -- it's slowing precipitously. It's a very vicious deflationary maelstrom that feeds on itself. Social mood has indeed changed for many (but of course not all) Westerners. Pocket books are closing and it's hard to pry them open because people fear losing their jobs and the consequent inability to pay off all the ridiculous debt they've incurred. In short, I think you ignore what Mr. Quinn says at your own peril if you think it's all just pessimistic gloom and doom.

Orwellian Finance: Is 1984 Happening in 2009?

Thanks Mr. Quinn for another fine and eminently correct opinion piece. I have NO HOPE that the majority will wake up, but perhaps it won't take a majority. Maybe a minority can effect the kind of change we really need, which certainly won't come about through the mindless and stupid feel-goodisms mouthed by all members of the Party.

Countdown of Manipulated Gold Price Running Out

CLH is a leftist who believes in the Fed's fascist monetary policies. Check out his previous posts where he slanders true conservatives such as Ron Paul. CLH, your so-called "strong dollar" is a chimera.

Bullion Shortage and Spot Prices Tell Two Different Gold Stories

Sane: Most everyday people can't afford to take delivery of multiples of 1000 oz. silver bars or 400 oz. gold bars trading on COMEX. The Chicago Board of Trade mini contracts are, however, an option for small traders, so yes it's partly ignorance of that option and partly trepidation over dealing in futures.

Kinross/Aurelian Deal Dampens Junior Miners' Hopes

Paul, you're a strange dude. I attempt to decipher your posts as I'm truly interested in varying opinions on the PMs and related stocks. I can't figure out, however, whether or not you're stupid, being facetious, or simply can't speak or write the English language. Please get a tutor or have someone help you with your posts as they are singularly unhelpful to me.

We've Crossed the Line from Capitalism to Socialism

Plug aka prole-boy, go look up the definition of coup de'etat and you'll understand what the traitors Paulson and Bernanke are doing....

We've Crossed the Line from Capitalism to Socialism

Further to your stupidity, thoroughbred, I just realized that you think the credit market freeze results from the holders refusal to trade toxic debt instruments. Again, moron. The problem is that the banks won't lend to each other at realistic rates of interest because of the risk the lending banks won't be paid back as a result of the toxic debt assets on balance sheets.