What Tabby has been lecturing about.

[tabs]

Originally Posted by flatbutt

In other words whatever our investment choices are it is a crap shoot and we're all likely screwed?

Honestly yes you are. Why and I do give you a reason why to put your hat on. They are fking with the USD which is the world's reserve currency and everybody HAS borrowed STAGGERING sums of money. It is insidious because they are undermining the foundation of the system itself.

For the people who don't have anything they could care less...but it is guys who sweated and saved that are being bent over..You have something to take.

[Porsche-O-Phile]

Tabs is Zerohedge. Doom and gloom! Fear! Death! New Dark Ages! Eat your pets!

Jeezus. Why do I still bother with this site?

[tabs]

Fact remains beyond a reasonable doubt the US govt is borrowing a Trillion USD a year. Regardless of tax reform that was going to happen as the Boomers retired. Sooner or later the appetite for that much debt is going to be sated. When is the question, so far it is just a complacent shrug of the shoulders as to the accretion.

So the metric to watch is the bid to cover ratio for US Treasury auctions. That in recent years has been skewed (along with the USD) in the US favor as a flight to quality move by the world. A lower bid to cover ratio.means you have to entice purchasers with higher interest rates. Unless a Central Bank picks up the slack.

The good news is the FED is slowly sloughing off their 3.5T worth as it matures. (They are slowly taking liquidity out of the system). God only knows what they are doing through proxy third parties? The bad news is that the European Central Bank is still printing money to buy debt at least through December.

The bid to cover has declined slightly recently as more debt than usual is coming on line. If this continues interest rates may become rather volatile. Which could very well prove to be fatal for the US with the amount of debt it is carrying.

[tabs]

Originally Posted by Porsche-O-Phile

Tabs is Zerohedge. Doom and gloom! Fear! Death! New Dark Ages! Eat your pets!

Jeezus. Why do I still bother with this site?

Because you are a moth.

[tabs]

Quite frankly does MRM fully understand the complexity of the system? Can he track the beast on an ongoing basis in his head? It is far more involved than reading statistics it requires knowing and understanding sentiment as well. You have to know how the beast twitches.

Personally I don't read any of the doomer and gloomers. Only time is when a link is posted here.

The US govt is spending apx 4.5T a year on an income of 3.5T. It is creating a Trillion in liquidity year on the back of future income and productivity of the US. The bad part is that obligation including unfunded AP is roughly 120T. With private obligations it is apx 165T. The saving grace is that only 21T of the debt is interest bearing and is being paid on. As that payable portion of debt climbs as the AP comes due it will become interesting.

[Shaun @ Tru6]

Ted, until any of your predictions come to be, I would be a little less bold, especially with those your senior. Or has the Dollar lost world currency status and we've been experiencing hyper-inflation for the last several years?

[Porsche-O-Phile]

Originally Posted by tabs

Because you are a moth.

Perhaps more like a fly since the content you’ve posted here is... well... fly attractant.

[tabs]

Originally Posted by Shaun @ Tru6

Ted, until any of your predictions come to be, I would be a little less bold, especially with those your senior. Or has the Dollar lost world currency status and we've been experiencing hyper-inflation for the last several years?

The Chinese are working overtime on it. Along with other moves the Chinese have created an oil exchange based in on the RMB backed by Gold. This is a direct alternative and challenge to USD supremacy.

With the amount of liquidity created by the Central bank's there should have been hyper inflation given Demand being a constant. With weak Demand the huge amount of liquidity kept prices from deflating too badly. You see inflation in some hard asset classes..high end art, collectable cars & guns among others. Those are alternatives to traditional asset classes.

The FED realized in February of 2013 that if they continued to print money they would eventually run into problems. They counter acted that problem with the TAPER off of QE3 which ceased in Dec 2014. They maintained their credibility after someone whispered in their ear that there was a problem brewing.

I have had my money on the table and invested for 30 years. Shauny you must be hyper active as you are so impatient. It takes awhile for the water to boil and cook you. Never fear with huge deficits we are getting there.

[tabs]

Originally Posted by Porsche-O-Phile

Perhaps more like a fly since the content you’ve posted here is... well... fly attractant.

If you want to be a fly you can be a fly.

[Shaun @ Tru6]

Originally Posted by tabs

The Chinese are working overtime on it. Along with other moves the Chinese have created an oil exchange based in on the RMB backed by Gold. This is a direct alternative and challenge to USD supremacy.

With the amount of liquidity created by the Central bank's there should have been hyper inflation given Demand being a constant. With weak Demand the huge amount of liquidity kept prices from deflating too badly. You see inflation in some hard asset classes..high end art, collectable cars & guns among others. Those are alternatives to traditional asset classes.

The FED realized in February of 2013 that if they continued to print money they would eventually run into problems. They counter acted that problem with the TAPER off of QE3 which ceased in Dec 2014. They maintained their credibility after someone whispered in their ear that there was a problem brewing.

I have had my money on the table and invested for 30 years. Shauny you must be hyper active as you are so impatient. It takes awhile for the water to boil and cook you. Never fear with huge deficits we are getting there.

China is only slightly less corrupt than India which less corrupt than Russia. So, no. You seem to revel in the small picture that only academia can produce.

Those are not examples of inflation, those are bubbles. Please, for the love of God, learn the difference.

[tabs]

Originally Posted by Shaun @ Tru6

China is only slightly less corrupt than India which less corrupt than Russia. So, no. You seem to revel in the small picture that only academia can produce.

Those are not examples of inflation, those are bubbles. Please, for the love of God, learn the difference.

Hmmm and how much more corrupt are they than HRC and the Democrats with their rigging of their Primary season? How much more corrupt are they over say the DOJ or IRS or VA affairs? Over Trumps collusion with the Russians (this is for you Liberals who would deny that HRC is corrupt).

The gun bubble has been expanding since 1997....

You are dealing with semantics...bubble, hyper inflation...both are the exuberant inflating of an asset price. Both have an element of being unsustainable and have a root cause of people valuing the object more than cash. One maybe greed and the other fear..In flush times it probably is greed, but in hard times it is more likely fear...in this case people don't trust the cash and the manipulation of the currency. Couple that with gobs of newly printed cash..liquidity and with no really viable alternative it has to go someplace ..into an asset that has perceived value.

You got anything else...to bring to the table..If not go stand in the corner. Ohhh and put your cone shaped hat on that says dunce on it.

[Shaun @ Tru6]

Ted, please, everyone can see. Don't be dismayed, you'll get it. Someday.

[tabs]

Originally Posted by Shaun @ Tru6

Ted, please, everyone can see. Don't be dismayed, you'll get it. Someday.

So we are down to making exclamations....the last desperate grasping refuge of those that have run out of logic and rationality.

[Shaun @ Tru6]

No, I just want you to be right for once. I'm pulling for you.

[tabs]

Originally Posted by Shaun @ Tru6

No, I just want you to be right for once. I'm pulling for you.

Thank you for the concern, it is appreciated.

[fred cook]

Originally Posted by tabs

The way monetary policy is being applied the only thing cash will be good for is to wipe your azz. Just like the Weimar.

The government might just ignore cash like it ignores CSA currency. It is worthless. So they may issue an EBT card good for so many food credits a month.

Not quite, I have some original CSA currency. A Confederate $100 bill will bring more than $100 Federal! Of course, that only holds as long as there are collectors!

[tabs]

Originally Posted by fred cook

Not quite, I have some original CSA currency. A Confederate $100 bill will bring more than $100 Federal! Of course, that only holds as long as there are collectors!

In San Quentin they say, "That is the way the pellet drops."

[aschen]

Economic predictions are of zero value without a timeline

[tabs]

Originally Posted by aschen

Economic predictions are of zero value without a timeline

A M.D. told my Dad's cousin he had 6 months to live. He died 4 years later. That medical time line had zero value.

[aschen]

Exactly

Im sure the economy is dying like the rest of us, but predicting its demise without accurately sayin when just makes you another missleading dr.