“$23 PAPER SPOT”
[This is a very bad sign.]
BUYING PHYSICAL NOW
The New World Order is quite real. The deeper down the rabbit hole you go, in learning about it, the more you will need medicine for your soul. You will go through stages of disorientation and vulnerability, and you will run the risk of succumbing to darkness, fear, hate, anger and bringing out your lesser self. Therefore, look at your mind and feel your emotions. Then select from the “Paths of Love” categories on the right in order to apply the proper antidotes to the particular poisons to which you have become exposed. For example if you feel fear, then go to categories of “Courage”, etc. Then, with renewed vitality and passion for life & liberty, continue on your journey. And always try to hold in your awareness that which is ultimately most important…and real – love.
“Adding the SGS estimate of excluded long-term discouraged workers back into the total unemployed and labor force, unemployment—more in line with common experience as estimated by the SGS-Alternate Unemployment Measure—notched higher to 22.5% see above chart in January from 22.4% in December.
via My Blog
Karl shooting straight.
Classic 101 with Mike Maloney.
Can you say “Pottersvilles” (and, again, private gain & public risk)?
CNBC HAS LEARNED THAT THE OBAMA ADMINISTRATION AND FEDERAL REGULATORS ARE CLOSE TO A PLAN TO SELL THE BILLIONS OF DOLLARS WORTH OF FORECLOSED PROPERTIES ON THE BOOKS OF FANNIE MAE, FREDDIE MAC AND THE FHA AND THE BILLIONS MORE THAT ARE COMING. THERE WILL BE A PILOT SALES PROGRAM STARTING IN THE VERY NEAR FUTURE, THAT ACCORDING TO ADMINISTRATION OFFICIALS. THEY WANT TO SELL THESE PROPERTIES IN BULK TO INVESTORS AS RENTALS.
It is instructive to consider how the tiny village in the south of France where my brother lives is responding to the closure of rural services and the devolution of centralized funding. The village has actively constructed subsidized housing on village-owned land to attract young families with children so the village school and post office won’t be closed.
Those who depend on a strategy of pleading with central authorities to continue funding at old levels are doomed to disappointment–all systems follow an S-Curve of rapid expansion, stasis and decline. The Central State is no different. The solution is localism. By creating cheap housing with its own modest tax resources, then the village attracts young families, whose children will keep the village school from closing, and the commerce brought to the village and its post office will keep it above the “closure” threshold.
Passively hoping that centralized concentrations of wealth and power will return to pre-eminence is a losing strategy. Focusing local resources on obvious bootstrap solutions is the winning strategy, not just in the U.S. but globally.
Remarks by Governor Ben S. Bernanke
Before the National Economists Club, Washington, D.C.
November 21, 2002
Deflation: Making Sure “It” Doesn’t Happen Here
Quotes from speech;
However, a deflationary recession may differ in one respect from “normal” recessions in which the inflation rate is at least modestly positive: Deflation of sufficient magnitude may result in the nominal interest rate declining to zero or very close to zero. Once the nominal interest rate is at zero, no further downward adjustment in the rate can occur, since lenders generally will not accept a negative nominal interest rate when it is possible instead to hold cash. At this point, the nominal interest rate is said to have hit the “zero bound.”
1. I’ll lower interest rates to zero.
The Fed should and does use its regulatory and supervisory powers to ensure that the financial system will remain resilient if financial conditions change rapidly. And at times of extreme threat to financial stability, the Federal Reserve stands ready to use the discount window and other tools to protect the financial system, as it did during the 1987 stock market crash and the September 11, 2001, terrorist attacks.
2. I’ll buy the securities from the banks to expand feds balance sheets.
Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.
3. I’ll increase the money supply
A more direct method, which I personally prefer, would be for the Fed to begin announcing explicit ceilings for yields on longer-maturity Treasury debt (say, bonds maturing within the next two years). The Fed could enforce these interest-rate ceilings by committing to make unlimited purchases of securities up to two years from maturity at prices consistent with the targeted yields. If this program were successful, not only would yields on medium-term Treasury securities fall, but (because of links operating through expectations of future interest rates) yields on longer-term public and private debt (such as mortgages) would likely fall as well.
4. I’ll buy our country’s debt
5. I’ll devalue the dollar 40% like FDR did.