In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘hyperinflation’

Money and credit and the current backdrop

Posted by seumasach on April 30, 2014

“Today’s markets would react negatively to any major expansion of central bank Credit from the likes of Brazil, Russia, Turkey, India, Indonesia or South Africa. This market dynamic provides a huge competitive advantage to developed central banks, markets and economies. Increasingly, this competitive advantage along with the destabilizing global role of Federal Reserve “money” are sources of heightened global animosities. More than ever before, EM economies see developed “money” printing as a force for rising inequality”. 

In other words, the ability of Washington and London to “quantitatively ease” is an imperial privilege. However, there is one crucial distinction between this and past forms of imperial exploitation: QE is also impoverishing, through inflation, the whole US and UK populations, outside the 0.01 % elite.

Doug Noland

Prudent Bear

27th April, 2014

Trouble brewing

Over the years, money and the “Moneyness” of Credit have remained focal points of my Macro Credit Analytical Framework. From my perspective, money is fundamentally defined by perceptions. “Money” is a financial claim perceived as safe and a liquid store of nominal value. Understandably, this definition is troubling to monetary purists. Yet in the spirit of Ludwig von Mises and his notion of broad money/“fiduciary media,” my view of contemporary “money” is focused on an array of financial claims and their functionality. 

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John Williams of Shadow Stats “This is end of the world type stuff”

Posted by seumasach on February 12, 2012

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Shadowstats’ John Williams: Prepare For The Hyperinflationary Great Depression

Posted by smeddum on December 15, 2009

Shadowstats’ John Williams: Prepare For The Hyperinflationary Great Depression
Submitted by Tyler Durden to ZeroHedge

12/14/2009

John Williams, who runs the popular counter government data manipulation site Shadowstats, has thrown down the gauntlet to deflationists, and in an extensive report concludes that the probability of a hyperinflationary episode in America over the next year has reached critical levels. While the debate between deflationists and (hyper)inflationists has been a long and painful one, numerous events set off in motion by the Bernanke Fed (as a direct legacy of the Greenspan multi-decade period of cheap and boundless credit) may have well cast America as the unwilling protagonist in the sequel of the failed monetary policy economic experiment better known as Zimbabwe. Read the rest of this entry »

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Peter Schiff on Deflation

Posted by smeddum on September 13, 2009

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The Weimar Hyperinflation? Could it Happen Again?

Posted by smeddum on May 20, 2009

The Weimar Hyperinflation? Could it Happen Again?

by Ellen Brown

Global Research, May 19, 2009
webofdebt.com

“It was horrible. Horrible! Like lightning it struck. No one was prepared. The shelves in the grocery stores were empty. You could buy nothing with your paper money.” – Harvard University law professor Friedrich Kessler on the Weimar Republic hyperinflation (1993 interview) Read the rest of this entry »

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The Dirty Little Financial Secret

Posted by smeddum on April 7, 2009

 

The Dirty Little Financial Secret 

The Reality no one Wants to Address

 

by Gilles d’Aymery

 

 

 

(Swans – April 6, 2009)  Last week, US Treasury Secretary Timothy Geithner unveiled the administration’s latest plan to deal with the financial tsunami, the Public-Private Investment Partnership (PPIP). The stock market soared. Meanwhile, President Obama flew to London to attend the two-day G-20 summit, which, at its conclusion, issued an optimistic communiqué that emphasized the commitment of the respective governments to stabilize the global economy, get back on the road to growth, and create jobs. The market responded with mitigated zeal. The pundits claimed that at long last the bottom had been reached and the worst of times was finally behind us. Time to invest again, they trumpeted. Never mind that the real economy lost over 600,000 jobs in March and that it keeps deteriorating at a fast pace. Hope springs eternal. However, in light of the sheer magnitude of numbers involved in this worldwide financial crisis, the chances that the PPIP plan and the decisions taken by the G-20 will succeed are unfortunately close to nil. The numbers speak for themselves. Read the rest of this entry »

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Bank of England Ignites Quantitative Inflation

Posted by smeddum on March 6, 2009

 

Market oracle


By: Nadeem_Walayat

Interest-Rates

This is an interesting article in that it is written by a deflationist. He also seems to accept that the problem is credit. However, the problem is productivity. Credit for consumption or to pay off bad debts is only adding to the inflationary cycle

Diamond Rated - Best Financial Markets Analysis ArticleEconomic Shock and Awe as Interest Rates are cut to 0.5% coupled with £75 Billion conjured out of thin air by Mervyn King Waving his “Central Bank Magic Wand“. The government through what should be more accurately termed as “Quantitative Inflation” than “Quantative Easing” sanctioned £75 billion in the initial print run which will have a multiplier effect through fractional reserve banking and leverage of anywhere from between X10 to X20 the amount depending on how it filters through the economy, therefore £75 billion increase in the money supply implies the supply of credit should jump by anywhere between £750 billion to £1.5 trillion, but more probably in the region of X10 at £750 billion over the next few months, with expectations of several more doses of “Quantitative Inflation” during 2009 that seeks to devalue the British Pound towards parity to the U.S. Dollar. Read the rest of this entry »

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Crossing the Rubicon: Monetizing the long bond

Posted by smeddum on January 23, 2009

January 22, 2009   Seeking Alpha

From Wiki: The phrase “crossing the Rubicon” has survived to refer to any people committing themselves irrevocably to a risky and revolutionary course of action  

. In the annals of circular finance, nothing compares to the spectacle of a government’s central bank printing large amounts of host currency and then loaning it to the host government’s treasury so that that government can pay its bills. Yet that is the path, according to several recent media reports, that the US Federal Reserve Bank is about to embark upon. The Fed has already announced its intention of directly buying GSE debt. Since the GSEs were effectively nationalized this is the same as buying Treasuries; GSE debt and Treasuries are both now direct obligations of the US Government. But this announcement either was not widely recognized by the markets for what it was, or it was ineffective for other reasons. Ben had to come to market with the next step in his program. Read the rest of this entry »

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The Manipulation of Gold prices

Posted by smeddum on December 7, 2008

The Manipulation of Gold Prices

5/12/08
Networknews
There is no other leveraged commodity market where short sellers increase their positions, materially, as the price rises, and increase them even more when prices are exploding, except gold and silver. The reason traders don’t normally do that is that it exposes short sellers to unlimited liability and risk. Yet, in both March and July 2008, and on countless occasions over the past 21 years, vast numbers of new gold and silver short positions were temporarily opened up, with the position holders seemingly unconcerned about the fact that precious metals had just risen exponentially, and that there was a very real potential they would bankrupt themselves with unlimited upside potential. Normal traders would not expose themselves to such unlimited risks. Read the rest of this entry »

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Failed CB Franchise & Gold Explosion

Posted by smeddum on November 26, 2008

Failed CB Franchise & Gold Explosion

By: Jim Willie CB, GoldenJackass.com

— Posted Wednesday, 26 November 2008 Source: GoldSeek.com

The OMEN for a powerful shift in the gold market in my playful mind was the very real earthquake on November 18 here in Costa Rica, a clear signal from the financial gods, no minor tremor, measured at 6.0 on the Richter scale. The tremor confirmed the tectonic shifts to come to the gold market without question. This was the biggest earthquake in my life, no damage at all though, roof and toys intact. Numerous stories testify in aggregate to a severe tightening of the physical market, certain to put pressure on the corrupt paper market managed by the COMEX and its parent NYMEX. Read the rest of this entry »

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