There will be no economic recovery.
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27-12-2014, 09:20 AM
There will be no economic recovery.
As countries continue to take on more and more debt they will never be able to raise interest rates because they will not be able to service their interest obligations. Neither will a lot of the population as many already live on the breadline.

Citigroup and others (through the cromnibus bill) have made it so they can expand their derivative portfolios and it is all backed up by federal insurance, meaning that taxpayers will be responsible to pay for any losses, how thoughtful of them Angry

The amount of unfunded liabilities are in the trillions....




I feel so much, and yet I feel nothing.
I am a rock, I am the sky, the birds and the trees and everything beyond.
I am the wind, in the fields in which I roar. I am the water, in which I drown.
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27-12-2014, 09:25 AM
RE: There will be no economic recovery.
I claim no expertise in this area, but I suspect that big picture you are on to something. We dodged the last bullet, but I don't sense we've solved the bottom line problem at all.

To me, it's a classic case of hyper over design. The global financial system is now so complex nobody really understands it.

The 20th century taught us that pure communism doesn't work. Perhaps it will be the 21st century that teaches us that this level of free market doesn't work either.

In both cases, it likely takes a tidal wave of pain to sink the message home. I take comfort in the knowledge that my dumb ass will be dead soon.
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27-12-2014, 10:25 AM
RE: There will be no economic recovery.
The U.S. is recovering quite nicely. We've had consecutive quarters of strong GDP growth and unemployment is approaching its natural level, with improving labor force participation as well. Bernanke's response to the crisis was spot on. IF the US sinks back to recession, it will be due to the malaise in Europe, where policy makers have responded less well. That, and crazy Muslims and Russians.

Gloom and doom makes for good headlines though.
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27-12-2014, 10:33 AM
RE: There will be no economic recovery.
(27-12-2014 10:25 AM)freetoreason Wrote:  The U.S. is recovering quite nicely. We've had consecutive quarters of strong GDP growth and unemployment is approaching its natural level, with improving labor force participation as well. Bernanke's response to the crisis was spot on. IF the US sinks back to recession, it will be due to the malaise in Europe, where policy makers have responded less well. That, and crazy Muslims and Russians.

Gloom and doom makes for good headlines though.

You haven't watched the video then?

I feel so much, and yet I feel nothing.
I am a rock, I am the sky, the birds and the trees and everything beyond.
I am the wind, in the fields in which I roar. I am the water, in which I drown.
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27-12-2014, 02:18 PM
RE: There will be no economic recovery.
(27-12-2014 10:33 AM)bemore Wrote:  
(27-12-2014 10:25 AM)freetoreason Wrote:  The U.S. is recovering quite nicely. We've had consecutive quarters of strong GDP growth and unemployment is approaching its natural level, with improving labor force participation as well. Bernanke's response to the crisis was spot on. IF the US sinks back to recession, it will be due to the malaise in Europe, where policy makers have responded less well. That, and crazy Muslims and Russians.

Gloom and doom makes for good headlines though.

You haven't watched the video then?

I won't, because Stefan is a gibbering crackpot of the highest order. Drinking Beverage

For context, this is the same guy Luminon copy-pastes a good chunk of his inane bullshit from.

[Image: E3WvRwZ.gif]
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27-12-2014, 02:35 PM
RE: There will be no economic recovery.
Gas prices fall to under 2$ in my area for the first time in ages! Then I see a segment on one of the news shows about how Russia's economy is largely based on oil sales, and is now struggling even worse than before, and I can't help the knee jerk reaction of thinking that my cheap gallon of gas is being used like a weapon! Possibly to spank the Ruskies for trying to move away from the U.S. dollar!
Warning! First article google spat at me!!

Obviously, could be just coincedence, but I still went, "Hmmmmm Consider ".
Not an economics expert, either, so take ^ with a grain of salt. Tongue

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27-12-2014, 02:51 PM
RE: There will be no economic recovery.
(27-12-2014 02:18 PM)EvolutionKills Wrote:  I won't, because Stefan is a gibbering crackpot of the highest order. Drinking Beverage

With a superiority complex to boot.

Although, if I remember correctly, I believe I learned about The Thinking Atheist when Stefan interviewed Seth on the freedomain radio podcast, so he's not all bad. Smile

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27-12-2014, 03:07 PM
RE: There will be no economic recovery.
(27-12-2014 02:51 PM)Can_of_Beans Wrote:  
(27-12-2014 02:18 PM)EvolutionKills Wrote:  I won't, because Stefan is a gibbering crackpot of the highest order. Drinking Beverage

With a superiority complex to boot.

Although, if I remember correctly, I believe I learned about The Thinking Atheist when Stefan interviewed Seth on the freedomain radio podcast, so he's not all bad. Smile

Testimony rejected for listening to gibbering crackpots. You are clearly not to be trusted Tongue

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(06-02-2014 03:47 PM)Momsurroundedbyboys Wrote:  And I'm giving myself a conclusion again from all the facepalming.
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27-12-2014, 05:38 PM
RE: There will be no economic recovery.
(27-12-2014 09:25 AM)Baba Bozo Wrote:  The 20th century taught us that pure communism doesn't work. Perhaps it will be the 21st century that teaches us that this level of free market doesn't work either.

The problem is modern capital markets are not really "free markets". At least, not as that phrase was envisioned by Adam Smith.

As long as we have a system where corporate executives the all the upside and shareholders and employees take all the down side, a system where markets can be manipulated the way we've seen the past few years, and where we have entities who can make bets so large that society can't afford for them to lose and they are not only bailed out but allowed to maintain their wealth and market position, we are never going to have a free market and, worse, we will never really recover economically.

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28-12-2014, 10:15 AM
RE: There will be no economic recovery.
(27-12-2014 02:35 PM)TheGulegon Wrote:  Possibly to spank the Ruskies for trying to move away from the U.S. dollar!





I would be interested in hearing a compelling arguement/differing viewpoint against this if anybody bothers to watch it. With Russia having close ties to a then pro-russian government in Ukraine, to then having that partnership took away. I can see why they would annex Crimea to protect their own interests. After all the US has been doing the same for years with regards to protecting the Petro-Dollar (saddam hussein asking for payment in Euros or direct aid, Qaddafi and libya wanting to start a Gold Dinar) anybody can call me a conspiracy theorist for that as it is merely "coincidence".


Back to the happy topic of the Economy. It is a massive topic and I have been trying my best to learn as much of the machine as I can over some years. Whilst I probably dont have the know how or knowledge of knowing the every financial tool/instrument or knowing the whole history,the whys, whats... blah blah. I like to think I know enough to simplify the way I see the system.

All money (fiat) is created through debt. Money is pooled at the top (the "1" percent and the ever growing gap between rich and poor) and the debt is pushed to the bottom (everybody else) Just like BNW mentioned there is no accountablity. When things go bad banks get bailed out with even more "free" money which has its own advantages (the myth of trickle down economics) when they become insolvent, whilst you lose your home, your savings and investments and access to credit. Even when huge cases of fraud are uncovered there is no change (Libor, money laundering etc) You may hear of "record" fines, but hey.... your not really gonna want to rock the foundations of the very system that sustains everything (the whole system, political donations etc)

There will be another crash. I dont know what will caus it or when it will happen but things fail, bubbles pop, history is littered with them. This time though the system is so overleveraged that there will be no bail "outs", it will be bail "ins".

I feel so much, and yet I feel nothing.
I am a rock, I am the sky, the birds and the trees and everything beyond.
I am the wind, in the fields in which I roar. I am the water, in which I drown.
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