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nestor7

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  • Hyperinflation: More Than Just a Monetary Phenomenon [View article]
    At the rate the government is spending money, we will see the current account deficit rise to $25-30 trillion over the next 10 years. If not the FED, then who buys this debt? About 40% of the current $14 trillion deficit is short term and coming due over the next 5 years. Can increased taxes and growth in the economy shrink the debt? How do you have both?

    The private sector cannot spend as before because their assets have dwindled and the forever-credit spigot has been almost closed. Throw in demographic trends and you have a basically lackluster consumer.

    Can business spending save the day? Not likely since many firms will want to keep a hoard of cash just in case we have another serious economic downturn. If businesses are getting increased productivity, then why spend more money to improve it?

    I cannot see how we will not have a debt bubble, a gold/silver bubble and a commodity bubble during the next 4-8 years. We are not in a new bull market for stocks since we never reached a true bottom during the last few years due to government intervention and false stimulus. True long-term cycle bottoms are formed when the S & P reaches PE's below 10. That has not happened during the last 10 years.

    At some point, we will have a reckoning that forces the government to drastically cut spending and I believe that will be the collapse of the bond market due to rising interest rates and some sort of inflation. Hyper inflation? Well, Cullen, you have dynamically stated your case and it is highly plausible. However, there may be some unknown event that fires up inflation to highly unintended levels.
    Mar 21 03:07 PM | 7 Likes Like |Link to Comment
  • How to Prepare for the Next Banking Crisis - Whalen [View article]
    As the public begins to bid up stocks and the markets trend higher, Obama and his cronnies, including Uncle Benny, will be waiting to pull the trigger on another massive Wall Street crash. This will in effect transfer more from the middle to the super rich, just as in 2008. This will further equate into a financial crises complete with failing mortgage holders and an earthquake in housing. The big, big picture is that of Obama and his rogue socialists completeing the transfer of wealth from the middle to not the poor, but to the wealthy. This leaves us with two classes and an economy mostly controlled by statists. We no longer have a capitalist system in America as witnesses by bailouts, union kiss-ups and stealth intervention in many markets by communists.
    Nov 13 05:33 PM | 7 Likes Like |Link to Comment
  • Dear Paul Krugman: You Do Not Understand Modern Monetary Theory [View article]
    Amen, Cullen. Maybe the direction and rate of increase in a deficit matters most. Ours just happens to be going parabolic. A parabolic movement cannot be sustained. Trust is eroding in our financial system because it has been invaded by the socialist Ponzi schemes of income redistribution. To sustain these programs,a corrupt government must eventually borrow itself into inflationary destruction. Allowed to be natural without government interference, our economy and financial systems work well. It is always government's greed for power and control that destroys a workable way of existence.
    Mar 27 03:09 PM | 6 Likes Like |Link to Comment
  • State of the Union Address: Our Leaders Still Don't Get It [View article]
    A $400 billion cut over 10 years? Who is he kidding? In the next ten years, the deficit will grow at least another $5 trillion if not 10 trillion or more. Freezing gov't paychecks for two years? After that period, there will be raises upon raises to catch up for lost time. The deficit is already strangling our country. What happens when interest rates rise significantly? If we are going to have 4-5% growth over a few years, which is what is needed to possibly reduce unemployment, than rates will rise. Or, I guess Uncle Benny will try to keep rates at zero for the next decade. Yes, my household finances are just like the government. I do sometimes overspend and waste my income. I have some expenses I can't seem to control. The difference is that I save a lot more than I spend and I have the courage to say no when it comes to spending.
    Jan 26 11:01 AM | 6 Likes Like |Link to Comment
  • This Might Be A Stock Bubble, But Valuation Metrics Won't Help You Understand That [View article]
    I don't think it is so much a bubble. Over-extended for sure since we haven't had any meaningful correction for almost 3 years. Then again many high flyers have had serious pullbacks, and some have not recovered, but many are on the updraft again. How can you really evaluate a market so infected by the FED's manipulations and tampered with by unprecedented share buybacks?
    Jul 20 11:13 AM | 5 Likes Like |Link to Comment
  • Cut, Cap and Balance = R.I.P. USA [View article]
    Even with the government spending trillions above its intake, the economy is little improved. The amount of available capital for investment is shrinking and thus we will see little new growth for perhaps the next decade. Not even Marxists like Obama and Uncle Benny can stop this trend. Throw in the inevitable collaspe of UniCredit, Italy's biggest bank, and the European debt crisis ignites a new world debt crisis. The politicians, in real numbers, will never cut spending. One way or another, hidden from full view, they will continue to fund the American socialist welfare redistribution state of poverty, as they must. Once hooked on the drug of government free-basing, the expectations of a life supported by big government will not die easily. The once great system of free capitalism is being destroyed by the Marxists and their "the same for all" mentality has rendered this country unworkable. Bombs away as the blind will be washed out to sea once again by the tide of socialist servitude and the death of self-reliance.
    Jun 24 09:47 PM | 5 Likes Like |Link to Comment
  • Credit Default Swaps: Here We Go Again [View article]
    We are at the point in which there is no fluffy and sane way out for America. Uncle Benny can QE all he wants but the end result will be the same. MISERY and PAIN, courtesy of the Marxists and their love of debt. I.E. Capital Destruction.
    Mar 10 01:10 PM | 5 Likes Like |Link to Comment
  • Financialization and Our Increasingly Unstable Economy [View article]
    Obama couldn't balance a checkbook, let alone understand the economy. He creates $1.5 trillion dollar deficits every year and yet thinks he is being the big spending cutter. Just think, another 6 years of this Marxist spending and we add $10-15 trillion to the debt. Of course, we will never get to that point without kneeling at the alter of massive depression and social dysfunction. The minute you think that government should fix things, you are asking for the mother of all problem creators to expose its ugly head. The problem now is that government is far to big for our economy to handle safely. It would need to be chopped by 2/3 to get it back into fitting with the economy. As big government socialists continue to suck the life out of capital formation, we have the FED buying debt in order to keep the capital infusion process from imploding. Without intelligent capital, we are doomed as a free society. The elitist intellectuals running this circus are all about power and not about improving living standards. However, this will eventually pass and in some future generation, the idea of free markets, capitalism and freedom of living will be reborn again.
    Mar 6 03:57 PM | 5 Likes Like |Link to Comment
  • Who's Propping Up the Market? [View article]
    My theory is that there are a lot of ultra-rich socialists propping up the markets as they sucker in the little guy. This will lead to mom and pop being fleeced yet again as the elite rich continue to take from the middle. I have little doubt that many markets are manipulated, however so subtle, so as to set up the many to be rendered as only participants to be scrubbed clean by the big money crowd. This is how the rich make their bucks. If they could not pick the remaining 90% clean, there could be few profits for the big players. I have nothing against being rich or seeking to earn huge profits, its just that the vast majority fail to see the game is rigged so that the many feed the few.
    Mar 5 06:29 PM | 5 Likes Like |Link to Comment
  • The Employment Report Belly Flop [View article]
    These numbers mean nothing, except perhaps if you need a job, and the markets are totally ignoring anything negative. It is up, up and away, no matter what is happening. The money-grabbing professionals on Wall Street are now re-suckering the retail investors back into the market. This is likely to continue for some time. And any student of market history knows the eventual outcome. The bigger problem this time is that there is little final demand for products and services without the consumer adding more debts. The government has given up all reason as it continues to spend and print money whole hog. We have to create more and more debt just to keep the economy afloat. With the unemployment rate dropping at .04% a month, we will see zero unemployment in about 2 years. The government cannot control itself internally and I see no reason to believe any of their numbers anymore. At some point, the markets will meet with the brick wall known as reality.
    Feb 5 09:48 AM | 5 Likes Like |Link to Comment
  • The Long Road Back to Full Employment [View article]
    Re-inventing manufacturing might bring back jobs. We have enough service type jobs and don't need the government creating jobs. Hiring new workers into the government only adds to the deficit. Make-work programs are highly inefficient costwise and add no longer term employment. The bigger problem may be that we really don't know how many jobs we need because we don't know the true unemployment numbers. I think millions of wanna-be workers are off the radar due to faulty government reporting. And many jobs don't pay as well as government assistance; so why work? The socialists will try to keep as many on the government dole as possible since this represents much of their voting base.
    Dec 30 11:19 AM | 5 Likes Like |Link to Comment
  • Thoughts On The 5 Points Of 'Austrian Beliefs' [View article]
    Since we now live in an economic reality where the government and the FED pick the winners, I will bet the farm that "certain" big banks and businesses have little to fear when it comes to failing, no matter how rotten they may become.
    Jul 7 08:46 AM | 4 Likes Like |Link to Comment
  • If You Are Scared Of The Current Market, This Article Clarifies Why You Should Be [View article]
    Let 'er fall 40% or rise 40%; opportunity comes to the prepared trader/investor armed with a plan and a keen eye. The markets have been so distorted by QE and share buybacks (the main support for earnings which certainly hasn't been rising revenues) that it is difficult to know what real prices are anymore. The mainstream consumer is dying on the vine and the government continues to bog down business with a ton of new rules and regs, most of them useless and superfluous. Fear of falling prices is not the mindset to have. One can always trade both ways. It is not a sin to go short.
    Feb 5 07:47 PM | 4 Likes Like |Link to Comment
  • Contemplating Bernanke's '3% Solution' [View article]
    Steve Forbes classifies Benny as the "Supreme Socialist" in his effort to control the economy. And with all his thimblerigging anyone can see why. You are right...it is criminal fraud and counterfeiting to the max. Our financial system is so gummed up with this false stimulation that its collapse is imminent. There is nobody to watchdog the Fed since Obama the "Supreme Marxist" is totally in bed with Benny's shenanigans. We are too far gone as a viable economy with a debt-drugged dollar and our money system will eventually implode, make no mistake. The sooner the better to weed out the rats spinning the money wheel.
    Feb 20 01:22 PM | 4 Likes Like |Link to Comment
  • 2008 All Over Again? [View article]
    Once again we have the minority (the more profitable traders and investors) moving the markets higher in an attempt to suck in the majority; that is the "dumb" money that remains on the sidelines. This is easily seen as the participation rate has been extremely narrow. Market indices are simply manipulated with much of the trading occurring in the most heavily weighted stocks. The only perception that is holding the market back from racing to test its all-time highs is the daily batch of gobbledygook coming out of Europe. Joe investor will likely decide to buy again at near the market top only to be bamboozled yet again. This is how the pros play the game. They have been able to supersede the trappings of the mind
    that plague most investors. In any event, it must be that the minority takes from the majority. That is the only way the game can survive and (God bless their souls) the rich can remain so despite Obama's greedy Marxist plans.
    Feb 10 11:17 AM | 4 Likes Like |Link to Comment
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