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  • Can Deflation Be Avoided? [View article]
    Chinese investors are already buying up California real estate. This proves that their currency is worthless. Everyone wants to invest in developed countries because it is only a matter of time before the emerging markets plummet into civil unrest.


    On Jan 01 12:21 PM AlexR wrote:

    > If there is severe deflation in rich countries, what would keep emerging
    > markets, which historically have no qualms about printing money,
    > from buying up the world?
    Jan 01 14:39 pm |Rating: +1 -1 |Link to Comment
  • U.S. Economy: Sinking in an Ocean of Newly-Minted Money [View article]
    I said about the same thing in the comment section of another blog. Why won't people wake-up? Get out the crazy glue, people- Humpty Dumpty is teetering on the edge.


    On Dec 22 02:28 PM constructe wrote:

    > The velocity of money they are talking about is where the money supply
    > was turned into CDS and CDO contracts and then spun around about
    > 100 times from $400 billion to $40 trillion dollars over a course
    > of 3 or 4 years. The reason you don't see it is called Base 1 which
    > allowed banks to hide all their gambles off their balance sheet because
    > basically they aren't really an investment. Duh.
    >
    > This was done to help banks leverage themselves out of the dot com
    > mess. So you are 100% correct in your analysis. That's why there
    > is no velocity of money now. Actually, there should be no money at
    > all if you cleared all this ficticious accounting. It accounts for
    > about the same as the net worth of all Americans.
    >
    > Now you know how hoplessly stupid the banking system got under Alan
    > Greenspan and Bush Jr's administration that asked every regulator
    > to take a 8 year nap.
    >
    > So now the Fed has been adding trillions to it's balance sheet to
    > remake money to try to get some velocity going again. Unfortunately,
    > since no one knows the total liability of the CDS and CDO contracts
    > still, nor who owns them or owes them, no one feels very confident
    > doing any loans. Would you?
    >
    > So the real question is, when will the banks, Fed, Treasury, and
    > government own up to this derivatives mess and clean it up. Otherwise,
    > we are in limbo no matter how much the fed inflates. There is a big
    > hole in the baloon and it's going CDSSSSSSSSSSSSSSSSSSSS...
    Dec 23 03:12 am |Rating: +1 -1 |Link to Comment
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