$ starting to side?

[Mega]

I recall EJ saying that by Feb 2011 we see the inflation.....BTW anyone understand WHY the £ is flying?
Mike

[Ben]

Re: $ starting to side?

The government seems serious about budget cutting and being nice to business.


Sucks for my gold holdings.

[doom&gloom]

Re: $ starting to side?

I recall EJ saying that by Feb 2011 we see the inflation.....BTW anyone understand WHY the £ is flying?
Mike

dunno bout your scrip, but here is an interesting take on ours that jives well with EJ's...

http://dollarcollapse.com/articles/d...voidable-cost/

Doug Noland: “Significant Unavoidable Cost”

by John Rubino on July 30, 2010

In this week’s Credit Bubble Bulletin Prudent Bear’s Doug Noland makes a crucial point: It’s not inflation that the U.S. risks by issuing trillions of dollars of new debt, but “a crisis of confidence at the very heart of our monetary system.”

Exactly. If we keep this up the financial markets might abandon dollar-denominated assets, virtually overnight. And the only way to avoid this fate is to liquidate the debt and take the resulting pain. Here’s an excerpt:

And I find myself increasingly frustrated by the ongoing “inflation vs. deflation debate.” With today’s low level of consumer price inflation, those arguing that deflationary forces are the paramount systemic risk now dominate policy dialogue. Most tend to be inflationists. Most argue for additional stimulus and see little risk in such activist policymaking.
I see risks altogether differently. We are in the late-phase of a multi-decade historic Credit Bubble. The greatest risk at this point is that massive issuance of non-productive governmental debt foments a crisis of confidence at the very heart of our monetary system. The top priority must be to ensure that such a devastating outcome is avoided – and at significant unavoidable cost. It is imperative that we as a nation come to the recognition that real financial and economic pain must be endured to protect the long-term viability of our monetary system. The inflation rate is not the key issue. And efforts to try to inflate our way out of structural debt problems are a lost cause. We must instead move forcefully to rein in our deficits and avoid further debt monetization in order to protect the soundness of our money and Credit – or else risk a financial crash.
Most regrettably, Washington policymaking (fiscal and monetary) is on a trajectory that will inevitably destroy the creditworthiness of our nation’s vast liabilities. With ominous parallels to the mortgage/Wall Street finance Bubble, Federal Reserve policies have fostered Bubble dynamics throughout our Treasury, agency and debt markets, more generally. Instead of market dynamics working to discipline Washington’s profligate debt expansion, Federal Reserve interventions ensure that a distorted marketplace again accommodates perilous Credit excess. Our central bankers should heed Mr. Trichet’s warning. Additional quantitative ease will only fuel the Bubble and risk calamity.

[ThePythonicCow]

Re: $ starting to side?

“a crisis of confidence at the very heart of our monetary system.”

As intended, I fear. Someone is building a case to overhaul our monetary system. I doubt the "solution" they have in mind to this crisis (that they have helped foster and then helped blow out of proportion and misrepresent) is a solution in our best interests.

[shiny!]

He's missing the bigger picture

Two things in this article caught my attention:

http://dollarcollapse.com/articles/d...voidable-cost/

Doug Noland: “Significant Unavoidable Cost”

It is imperative that we as a nation come to the recognition that real financial and economic pain must be endured to protect the long-term viability of our monetary system.

He's missing the bigger picture here. He is still trying to save our "monetary system" without realizing that it's the monetary system itself that is at the heart of the problem. A monetary system based on debt, where every dollar generated by the Central Bank comes with interest owed, is mathematically doomed to fail. For every dollar created by the Fed, more money must be created to pay the interest owed, and more money must be created to pay that interest, ad infinitum... Eventually you get to the point that all money must be used just to pay the interest on the debt. We are fast approaching that point.

The only ones profiting by this Ponzi scheme are the Central Bankers themselves. The Fed is not the government, it is a consortium of private banks that pay NO taxes. Why should the working taxpayer endure "real financial and economic pain" to support Central Bankers?

Federal Reserve policies have fostered Bubble dynamics throughout our Treasury, agency and debt markets, more generally. Instead of market dynamics working to discipline Washington’s profligate debt expansion, Federal Reserve interventions ensure that a distorted marketplace again accommodates perilous Credit excess. Our central bankers should heed Mr. Trichet’s warning.

He's telling the Central Bankers to behave more responsibly, but doesn't realize that we need to get rid of the Central Bank. The government should be creating our money without interest, not borrowing it from a Central bank with interest owed. Andrew Jackson understood this.

Governments really can issue their own money. They used to. It is not a given that money must be created by Banks, but we've lived with it for almost a century now. Most people aren't seeing outside the monetary box we're in. They think it's a mandatory system when it's really an optional system.

Yes, we need smaller government and more fiscal restraint in Washington, but no austerity measures will work as long as this monetary system continues.

[ThePythonicCow]

Re: He's missing the bigger picture

He's telling the Central Bankers to behave more responsibly, but doesn't realize that we need to get rid of the Central Bank.

I've said the same thing myself, many a time.

Over on the thread at CBO: Federal Debt and the Risk of a Fiscal Crisis we are having a discussion of a quite different way of looking at this called Modern Money Theory (MMT). It really turns some accepted notions topsy-turvy.

[doom&gloom]

Re: He's missing the bigger picture

I've said the same thing myself, many a time.

Over on the thread at CBO: Federal Debt and the Risk of a Fiscal Crisis we are having a discussion of a quite different way of looking at this called Modern Money Theory (MMT). It really turns some accepted notions topsy-turvy.

I cannot speak for Doug Nolad, but I believe he thinks one cannot get rid of the Central Banksters...

[ThePythonicCow]

Re: He's missing the bigger picture

I cannot speak for Doug Nolad, but I believe he thinks one cannot get rid of the Central Banksters...

To be "perfectly clear" here:

• I suspect that you're right that Doug Noland figures we can't get rid of the U.S. Central Bank (the Fed).
• Shiny! saw this and stated we really do need to get rid of them and their lending us money into existence.
• I quite agreed with Shiny! until yesterday.
• Now I think they have a role, if we all could just understand how our money really works and what's needed.