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Old 12-31-2018, 05:34 AM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,281
FED put,,,stabbing China,,,socialism = dis-incentive,,, Armstrong on Cheney

From the link in the previous post,
"The characteristic of 1926-8 was a “Fed put” in the midst of an incipient cool-down of asset inflation (along with a growth cycle slowdown or even onset of mild recession) which succeeds apparently in igniting a fresh economic rebound and extension/intensification of asset inflation"
So, the FED "put" was backstopping markets. There was a bit of a cool down and the FED tried to stop it.
Fast-forward, "Greenspan put was a term coined in the 1990s. It referred to a reliance on a stock market put option strategy that if utilized could help investors mitigate losses and potentially profit from deflating market bubbles. "
This was carried over by Bernanke and Yellen. The FED heads didn't want any investor to ever lose a dime. After decades of asset inflation, Powell is trying to unwind the inflation.
"Greenspan took on the Chairman role with the Fed’s first actions following the 1987 stock market crisis."
By blocking all negative corrections, the FED ensured that all markets and valuation would be artificial.

12/30 Trump says “big progress” made in US-China talks – Morningstar
It all depends on how you define progress. The PBOC created more liquidity than the BOJ, FED and ECB combined. The more debt, the more instability. Trump has pushed a dagger into China.

12/29 At 20, euro remains a currency giant on fragile footing – Japan Times
Footing ! WHAT footing?
You already know what socialism did to East Germany. Look what it has done to Venezuela.
Sultan Knish: Socialism Can Kill You, But It Won't Bury You
"Capitalism, as it is acknowledged unreservedly in the Communist Manifesto, brought about economic growth, technical progress and unprecedented prosperity to the world. However, it also generated unemployment, fluctuations and crises, frequently and on an increasingly large scale, thus creating over time an ever-increasing inequality, especially in the last post-War period. The rise of socialism is rooted in these drawbacks of capitalism."

"drawbacks of capitalism." The drawbacks of capitalism are easily understood. Capitalism is competitive. It has no rewards for the lazy and the stupid. The lazy and the stupid want to consume just like the productive people. As more and more job niches are automated, more and more people are falling off the end of the job ladder. For a great many of them, it isn't their fault that they chose a career path that was susceptible to automation. Socialism isn't going to make stupid people smart. It isn't going to provide motivation to lazy people,,, quite the opposite.
"ever-increasing inequality"
A New Kind of Classroom: No Grades, No Failing, No Hurry - The New ...
A-F school grades aren't the answer if we want to raise empathetic and self-motivated students

Socialism just doesn't prepare a person for the competitive capitalist workplace. Being a slacker in school doesn't prepare a person for a competitive workplace. Man competes for survival. The slackers are drawn to government jobs. In America, GOV jobs account for about 10% of the population. In Saudi Arabia, it is 78%.
"The nonprofit Transparency International says it has identified at least 511 companies that are either wholly or majority owned by the government of Venezuela — and 70 percent of them are losing money,

Read more here:"
Venezuela destroyed their oil industry by replacing experienced engineers with socialist flunkies. In an effort to support the lazy and the stupid, socialism invariably breaks the bank.

Most investors operate on a thin margin. If a market isn't predictable, they either leave or, demand more margin / interest. Volatility is the death of markets because nobody knows what to invest in.

12/29 Opioid crisis leaves 700,000 Americans dead: “epidemic continues to worsen” – ZH
YES, but, it was profitable. That's all that matters in certain quarters.
This is the best news in years (crosspost) https://www.theamericanconservative....attis-dunford/

Armstrong on Dick Cheney,,, and the depths of the swamp.
"The World Trade Center 7 collapsed like a pancake when no plane ever touched it. That building has all the evidence of many things we will never know about. I have 20 years worth of recordings that would have been enough to put all the major New York trading banks in prison"

Armstrong says that the FED is raising rates to rescue the pension funds. I claim that it will never work in time.
Armstrong, "Therefore, the Fed realizes that the next crisis is a pension crisis and they need to raise rates to help try to bail out the pension funds. They will not be able to raise the rates fast enough to avoid the crisis coming very rapidly which will contribute to raising tax rates and further suppressing economic growth into the future."
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