View Single Post
Old 01-04-2019, 01:29 AM
Danny B Danny B is online now
Platinum Member
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,281
Confidence has turned to doom loops

Ronnie Rayguy put together the plunge protection team. Their job was to put a floor under the markets if they fell too much. It did work after a fashion. The Western CBs put together a cartel to suppress the price of gold. It did work for several years. There are lots of claims that the PPT is at work again, trying to stop the fall in markets. Along with the PPT is the exchange stabilization fund.. Remember that these groups have a key to the printing press and, it doesn't cost anything to pump in liquidity.
Armstrong claims that the PPT can not change anything. BUT, his program Socrates gets the RSS feeds and knows ALL. Did Socrates allow for the actions of the PPT in it's calculations?
Here is Armstrong to tell you that nobody can manipulate the markets.
A. Socrates knows what the PPT is doing.
B. It is OBVIOUS that the markets can be controlled in the short run.

"All of this rates discussion at a time of worry about a looming economic slowdown thanks to the possibility of a trade war, along with worries among monetarists and supply-siders (who should know better) who fear the Fed’s alleged cessation of its “easy money” policies will stop the present economic boom in its tracks. Couldn’t the Fed undo its supposed damage through so-called monetary ease? No, it couldn’t. “Easy money” is a myth, one that members of the right should be embarrassed to associate themselves with.

Seemingly forgotten by proponents of what's so flamboyantly ridiculous it is that borrowers of dollars are not borrowing the currency itself. In truth, they’re borrowing what dollars can be exchanged for. In commercial terms, borrowers seek dollars in order to exchange them for capital goods like trucks, tractors, computers, WiFi access, and most crucial of all, human capital."
You see the fallacy, don't you. Borrowers are NOT borrowing dollars to buy tractors. They are borrowing dollars to speculate. They are NOT borrowing dollars to invest in human capital. Robots, maybe, but not people.

If you borrow money for pure consumption, you likely can't repay it. If you borrow money for investment, there is a good chance that you can repay it. If you borrow money for pure speculation, you might be able to repay it. If EVERYBODY borrows money for pure speculation, they can't all repay it. When it all unwinds, everything is affected.

OK, so, the doom loops have started to loop and loop. What else does that affect?

An Inside Look At The Social Decay That Is Eating Away At America Like An Aggressive Form Of Cancer

1/03 China issues a stark warning about its housing sector – Zero Hedge
China is both a liar and, a cheerleader. If they issue a warning, it is probably too late to stop the crash.
1/03 Worse than obsolete: NATO creates enemies – Future of Freedom
1/03 NATO partisans started a new cold war with Russia – American Conservative

As long as it sells expensive arms, everybody should be happy.
Reply With Quote