BlackyBlack

Gold Above $1,000: Indicative of an Imminent Market Fall?

I've been waiting for someone to ask that question. The write downs ended pretty much as soon as they started, which makes me think they can't take any more writedowns. So they writedown 1 trillion and change and sell the rest of the worthless paper to the Fed for fat dollars.

My guess is they are feverishly trying to finish that project before someone asks the question - where are the writedowns. So then they can say, writedowns? Who needs writedowns.


On Sep 08 11:16 AM Jason Tillberg wrote:

> Write downs? Where were they last quarter? You have some 13% of total
> mortgages delinquent, yet banks didn't have much write downs.
>
> Soon, 50% of all mortgage holders will be underwater. Completely
> broke and earnings less money than before if they are lucky to have
> a job.
>
> When the write downs come, I suspect the dollar will rally as people
> scramble to get dollars to pay down their debt.
>
> The debt is still there. Equity can easily evaporate and I suspect
> at some point, we will see a massive liquidation and monster crisis.
>
>
> I put time frame between now and as late as end of 2012.

Scary Drop in Velocity of Money: Is Deflation Knocking?

The future is here, and it wants its money back.

What Does the Dollar Bottom Mean for Stocks and Commodities?

The dollar will go back up when the next crisis hits.

U.S. Monetary Transmission System Remains Broken

Sometimes I think it all collapsed long ago and you guys are just arguing about the facades finally falling over. The script to this movie even seems plagiarized. Is there a real economy there somewhere? To use the blood transfusion analogy - how long has the patient been on the table and how long have we known that he was dead but kept pumping anyway? I'm beginning to think a lot of waste in the system is for the purpose of this artificial pump - keep pumping money out and a lot of it will be wasted - but what sticks will be enough to give us positive inflation er gdp I mean.

The Law of One: How Shadow Banks Hijacked the Fed

Bravo - finally someone gets it right. Same people still in charge and the Fed knew (how could they not know) how it worked all along. I disagree that you can review securitization and get the credit boom going again. It worked because it was a way of counterfeiting money. If you put the restrictions you want on it (covered bonds & transparency/accountab... you won't get the volume you need and you increase the transaction costs to prohibitive levels. But at least someone finally gets it and it gets out there. My question: before you can restart securitzn don't you have to deal with the toxic assets you have left from the last try? How are you going to do that - cash them out, rip them up, rename them and sell them to suckers? This right here is the real issue. Until this gets answered time will be asked to stand still.

CDS, Bond Speculation, and the Marginal Utility of Debt

The answer to your last question is because of the falling marginal utility of debt! The answer is very similar to Gresham's law (where bad money drives out good) - in this case faux capital drives out good. And the mechanism that allows this to happen is the falling marginal utility of debt. But it is really just two ways of looking at the same process. Non-faux capital is actually being consumed by the creation of debt, so it is not really there to be able to cause production. It appears to be there, but it is being diluted too! And always ahead of the dilution of the faux capital. The non-faux capital will be depleted before the faux capital of course because the non-faux capital cannot compete with the faux capital - because the faux capital always creates a return on investment higher than the non-faux capital - if you are slick you will know that the return can be measured as the rate of debt creation. In other words it's a Ponzi scheme.

Debt Man Walking. Calafia Pundit Collapses.

When your world is made of cake, you assume the whole world is made of cake.

Analyzing Murphy on Mish's Deflationism

I also would add that Murphy is ignoring the previously very inflationary effect of securitization on all that credit. If at every stage of the game, credit is securitized (or leveraged), then the (almost total) collapse of securitization on all that credit is way more powerful a deflationary force than just the pull back in credit itself.

SEC's Dangerous California Interference

You attys aren't getting what he's saying. He's saying the ious ain't money, ain't legal tender. They is glass beads. In other words, nobody gots to accept them as payment.

Basically it means people (creditors) can demand payment in legal tender, don't have to accept the ious, and can force California to default.

Ratings Agencies' Mysterious Changing Forecasts

Why do these exist again? I keep forgetting.

Is a Case of Quant Trading Sabotage About to Destroy Goldman Sachs?

GS will ask that anything and everything they provide the court be put under seal because its a trade secret.

Everything is a trade secret until its not a secret anymore.

On Fake Bonds, Owning Gold and the Inflation vs. Deflation Debate

And another thing - sorry this fake bonds story really pissed me off because it's got to be a planted story. And why plant the story you ask? Because the world is experiencing crushing deflation right now.

We can't create inflation via the normal routes, so we have to try and monkey with the INFLATION EXPECTATIONS.

ooh ooh theres so much dollars out there - fake ones everywhere - look how our money supply is out of control - woo woo.

This reeks of desperation. And lazymindedness.

Strange Inconsistencies in the $134.5 Billion Bearer Bond Mystery

I don't think there were any bonds, any Japanese businessmen, or any suitcase with a false bottom. I think this was a fake story.

Interestingly, all the comments who yesterday rightly called it a hoax have disappeared from this thread.

FAKE FAKE FAKE FAKE

You're getting drawn into the story. But it's all bullshit. The STORY is what's fake.




On Jun 19 09:33 AM ricardoRI wrote:

> I think we a lot of over imaginative imaginations, world conspiracies,
> taking down the US currency, etc. It is obvious to me that these
> are simply counterfeit, and the perps were caught. End of simple
> story.

On Fake Bonds, Owning Gold and the Inflation vs. Deflation Debate

I thought over this story last night and I am pretty much convinced the whole story was fake from the get go. There were no Japanese businessmen and no fake bonds. It's a propaganda piece, written no doubt by someone who has watched too much tv and participated too little in the real world.

Strange Inconsistencies in the $134.5 Billion Bearer Bond Mystery

This stinks like a crappy plot to a bad movie. This has got to be a black op for some purpose such as you & the comments have suggested above. My guess is it's some intelligence group laying the foundation for 1) changing laws about payment instruments, 2) some future war (establishing tensions between countries), or 3) as you suggest - calling the currency into question. Because its such a crappy attempt with holes immediately gaping, the op was dropped. Now you read that the men were freed, Japan never learned who they were, no country is prosecuting, the instruments have evaporated, and the US is saying no big deal counterfeit schemes "happen all the time." Who is writing these scenarios anyway? You'd think with all the people out of work they'd get better writers.