Where's helocopter Ben?

[Mega]

Ben
I need Dow 20,000
I need Gold $4,000
Where the F*ck are you???
Cheers
Yout Mate Mega

[globaleconomicollaps]

Re: Where's helocopter Ben?

Ben
I need Dow 20,000
I need Gold $4,000
Where the F*ck are you???
Cheers
Yout Mate Mega

News in the news section Mike.

[vt]

Re: Where's helocopter Ben?

Why would Ben want to get in his helicopter? The U.S. market is only down 2% or so from a three year peak. EJ said something to the effect that QE3 would only be done as a last resort. Another wise source I follow said that it would take an S&P 500 at 1100 to get the FED to act.

The FED has to be concerned that if they use QE3 too soon, it would be possibly looked at as a political move.

[sunskyfan]

Re: Where's helocopter Ben?

Poor Ben didn't expect the giant black hole of infinite securitization to suck up all the money he throws out. I think he is now realizing that his helicopter is being sucked down now and will soon disappear beyond the event horizon. Poor bastard probably thinks that parachute will work too ;). Should have taken some Physics back in graduate school.

[cjppjc]

Re: Where's helocopter Ben?

Which brings us to money creation VS money destruction. Can someone help flush this out for me.

Inflation is not comming because of all the money destruction going on. Kapoom will be a currency run. But what currency will be bid up?

[BadJuju]

Re: Where's helocopter Ben?

Hi, cjppjc! Good to see you.

I wish I could say, but I am not sure on that. Like you, I see the same thing happening, though.

[doom&gloom]

Re: Where's helocopter Ben?

Which brings us to money creation VS money destruction. Can someone help flush this out for me.

Inflation is not comming because of all the money destruction going on. Kapoom will be a currency run. But what currency will be bid up?

why does it need to be a currency?

I would much rather own productive farmland, quality stox, etc. FRN's (euros's etc) are just a means of exchange, not a store of value. We all know that one. Gold is a store of value.

So what gets 'the bid'? everything of value.

[sunskyfan]

Re: Where's helocopter Ben?

It is less about currency destruction at this point than about currency being drawn out of circulation. Think of it like there is a few giant digital mattresses and "banks" are moving them from under one mattress to another and calling it an economy.

[Mega]

Re: Where's helocopter Ben?

I want $4,000 GOLD !!!!!!!!
GIVE IT TO ME YOU BASTARD!
Signed
Mega

[gwynedd1]

Re: Where's helocopter Ben?

Money in the hands of a few really isn't like money anymore. Its better to think of purchasing power and what they purchase really does not make it to the general economy. I also don't see why the Fed, who works for the banks, wants inflation? Why do creditors want inflation again? The only inflation they want is one created with more of their own credit. Buying depressed goods cheaply is just as good. I have never understood the argument that the FED will just inflate. Why would they for their own sakes? All they will do is prevent a collapse as they have.

[gwynedd1]

Re: Where's helocopter Ben?

It is less about currency destruction at this point than about currency being drawn out of circulation. Think of it like there is a few giant digital mattresses and "banks" are moving them from under one mattress to another and calling it an economy.

More simply the currency is moving towards those with a marginal propensity to consume less, so called. But that is not really accurate. I think of Maslow's hierarchy. More will be driven to concerns of mere survival as we see with spam and macaroni and powdered cheese; these have more demand. Those who have had their fill of yachts and black tie parties will now have so much disposable wealth, they will seek the "actualization" which looks to include a joy ride in space. It is the middle that is being compressed, and so much so that P&G has already banana repuliblicanized their product line. What it is really doing is taking workers out of circulation to serve the middle class and they are being diverted to serve the wealthy much like it was when the Pharaoh of Egypt used the surplus for the pyramids.

[thriftyandboringinohio]

Re: Where's helocopter Ben?

... I also don't see why the Fed, who works for the banks, wants inflation? Why do creditors want inflation again? ...

It seems to me that the big banks can profit in either environment - low inflation/low interest rate conditions or high inflation/high interest rate conditions.
As long as they know it's coming and have time to adjust, they can devise a winning strategy. Although their old loans erode with inflation and rising interest rates, they can price new loans ahead of the new trend. They have already shifted much of their old book of loans onto the public accounts.

[tmicou]

Re: Where's helocopter Ben?

Why would Ben want to get in his helicopter? The U.S. market is only down 2% or so from a three year peak. EJ said something to the effect that QE3 would only be done as a last resort. Another wise source I follow said that it would take an S&P 500 at 1100 to get the FED to act.

The FED has to be concerned that if they use QE3 too soon, it would be possibly looked at as a political move.

I think the FED believes it will be perceived as a political move if they DO or if they DON'T print. Either way, it looks political, so I suspect they only think about that to the extent that it forwards the FEDs intentions. It seems to me the "whites of their eyes" concepts are more meaningful. To my way of thinking (which could be very wrong), Ben is playing chicken with Congress. I believe he realizes that QE3 alone will do little other than to allow Congress to kick the can down the road some more, without substantially helping the economy. If anything, QE3 would be enabling Congress to do nothing. It is my view that he won't do anything at all until after they fix part or all of the "fiscal cliff" problem. As it stands now, he can blame future downturns on Congress not doing their job, and they are unlikely to "get back to work" before the election. The lame duck session is likely to do something about the fiscal cliff. Once that happens (provided it's substantial), Ben will gas up the helicopter and be off. So the way I see it is Nothing until Election --> Congress acts --> Ben takes a Heli flight sometime in Dec or 2013Q1.

[gwynedd1]

Re: Where's helocopter Ben?

It seems to me that the big banks can profit in either environment - low inflation/low interest rate conditions or high inflation/high interest rate conditions.
As long as they know it's coming and have time to adjust, they can devise a winning strategy. Although their old loans erode with inflation and rising interest rates, they can price new loans ahead of the new trend. They have already shifted much of their old book of loans onto the public accounts.

Yes indeed. Inflation they know about isn't going to bother a creditor at all. Its surprise inflation. Yet surprise deflation to a debtor( possibly engineered deflation by creditors) can be quite a boon, that is until the person rolls over and dies exposing a deflated asset. Whoops don't let it get that bad. Best thing to do is to keep people paying those mortgages and eating mac and cheese. The worst kid of inflation would be big deficits.