Another Mainstream Media Article: Hmmmmm (Inflation)
The Market Ticker ® - Commentary on The Capital Markets
Posted 2010-10-28 13:32
by Karl Denninger
in Federal Reserve
Ignore this thread
Another Mainstream Media Article: Hmmmmm (Inflation)
 

Heh, this is getting to be a pattern....

"The problem I have with QE2, is it behaves like a tax on the consumer," said David Giroux, a fund manager at T. Rowe Price. "People want to believe it's a free lunch for the economy, but it's definitely not. Next year, we're going to be paying more at the gas pump and the grocery store."

Yep.

Now I am a bit foggy on my History Class in High School, but I do recall that somewhere in the last couple hundred years we did have a wee dust-up with some folks over taxation without representation.

Can someone explain to me what representation I have on The Board of Governors of The Federal Reserve?

That could be a wee problem if people came to understand what Bernanke is actually doing to them and it's not an accident - but rather a fully-understood and expected outcome, no?

Just asking....

Disclosure: Long LEAP CALLs on Boiled Rope futures (/BRFU)

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User Info Another Mainstream Media Article: Hmmmmm (Inflation) in forum [Market-Ticker]
Eaglewwit
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I think you put to much faith in the intelligence of current America.
Gates
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Scottsdale
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So - what are the mechanics of dragging these people out of their offices and stringing them up - hows that gonna happen? in theory of course...

Bobinator5000
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Well first an angry mob with guns shows up outside the door, surrounds the building.

Then, they go in the building.

And then _BAD_ , Unmentionable things happen.


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If (rate of inflation) * (total unencumbered currency) > (total unencumbered currency) per year; the difference is guaranteed to default per year. Covering the difference via debt causes exponential inflation; Interest reaches unsaleable levels, monetary base contracts, then collateral values and banks collapse.
Genesis
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Updated... a bit.... smiley

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Brett
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His name was Joseph Stack. His name was Joseph Stack......
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Gates, it's a critical mass type thing. You're going to have to overload the systems defense/counter-measure system to the point where Law enforcement can no longer protect the pigmen (ala Katrina, if it gets bad enough Mr. Cop starts looking out for #1). Then you would need a Jedi-Mind Trick dispenser to 'recruit' the poor and downtrodden who feel they have lost all, have nothing left to lose and want revenge, give them a weapon and a mission and point them in the banker's direction. It's the same model that Al Qaeda used to engineer operations around the globe. Find those who have nothing left to live for, strap a bomb to their chest and tell them that guy over there is responsible for you and your families pain. Americans are a lazy sort though and not very competent so the banksters have nothing to worry about. I sure as hell ain't betting on them. But I am frantically trying to improve mah homesteading / mad-max skillz.

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Americans need to stop wasting their time calling their representatives or protesting in Washington DC. Instead, protest in front of the personal homes of Bankster CEO/CFOs,in front of the personal homes of your representative.... They made it personal and so should you.
Pookie
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"...fully-understood and expected outcome..."

You got that right. They know exactly what they are doing.

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Once you admit that the individual is merely a means to serve the ends of the higher entity called society or the nation, most of those features of totalitarian regimes which horrify us follow of necessity. --F.A. Hayek
Trades50
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The commodity price increases will counteract any QE positive effects. Wage completion is fierce. Few jobs and so many people competing for them.

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When the people fear the government, there is tyranny. When the government fears the people, there is liberty. - Thomas Jefferson
Need4mospd
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Quote:
Can someone explain to me what representation I have on The Board of Governors of The Federal Reserve?


Would it even matter if we did have "representation" there?

Just saying...
Bighiller
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BAD from the perspective of who? Clearly not those getting ass raped each and everyday.

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The Earth will forget Mankind.
The play of life will go on.
Genesis
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Actually, it very well might.

But whether it does or doesn't the delineation drawn in our founding documents lies there. Consent is consent - it's when you get ****ed without consent that it's rape.

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Popothebright
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Calling inflation a form of "taxation" is even too kind. It's "embezzlement" -- as the dictionary says: "Embezzlement: The mis-appropriation of assets entrusted to one's care".

Sounds right to me.

They are taking value away from Americans without permission while supposedly protecting that value, and they are selectively preserving and increasing the wealth of a small subsection of wealthy Americans with whom they have personal and professional connections.

Embezzlement.


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In America the choice of political party is little more than a choice of which corrupt management team implements the corporate agenda.
Gates
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LOL - Karl... whats the premium on BRF's:-) front month?

Detersbb
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Those are fighting words Market-Ticker guy. The last time I read someone challenged the inflation being taxation without representation and constituting a deprivation of property by the quasi-government very private institution of the Federal Reserve it was thrown out of court. Without a remedy available under the law, rebellion becomes a last resort, and that means blood shed. I agree with what you are saying keep doing the helav-a-good job, Sir.
Genesis
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Like I said, the only action I'm taking or advocating is going long boiled rope futures. I think that's a market bet that will pay.

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Popothebright
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KD -- Just to get some clarity on this post -- You've argued in the past that a bond-market dislocation is a high likelihood in the face of dollar-weakness. (Forcing deflation -- by way of rising rates -- out of an inflationary scenario)

... If I understood correctly, that is.

Are you still on that page? Or do you think the Fed's actions may have changed the game somewhat, and now we are looking at long term inflation?

TIA,
Popo

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In America the choice of political party is little more than a choice of which corrupt management team implements the corporate agenda.

Detersbb
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I know that Mike Rivero at his website (whatreallyhappened) has stated on numerous occasions that he believes that there is going to be a very lucrative market in guillotines in the very near and foreseeable future. If my memory serves me right I know that there is a rope component to the guillotine. I really do not want to see any violence, but that is the only way I see it playing out. It is not like at anytime in history when corrupt people seize the reins of government after having been brought to the public attention they said, "Well yeah, sorry about that on, we will just turn ourselves in now, how does tomorrow morning between 8-10 sound? That way I can put more house in order, spend a little quality time with the kids and have a last night with the wife. Sound good to you?" I wish it where that way, but it does not seem so.
Brett
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His name was Joseph Stack. His name was Joseph Stack......
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"Well yeah, sorry about that on, we will just turn ourselves in now, how does tomorrow morning between 8-10 sound? That way I can put more house in order, spend a little quality time with the kids and have a last night with the wife. Sound good to you?"

HAHAHAHAHAHA!!! RIGHT?!?!

That's why I laugh when people think the elections are going mean jack-squat.

ALL IN /BRFU

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Americans need to stop wasting their time calling their representatives or protesting in Washington DC. Instead, protest in front of the personal homes of Bankster CEO/CFOs,in front of the personal homes of your representative.... They made it personal and so should you.
Bighiller
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I think Joe Stack was onto something, just went into the wrong building.

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The Earth will forget Mankind.
The play of life will go on.
Smacktle
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I call for people to join the PABITH Club. Punch A Banker In The Face!
Or Bernanke, Paulson, Geithner et al...

If your feeling some pain! Dish it back out!

I just went and voted in my local elections and for the first time ever voted straight Libertarian Partty except for one Republican. It was the only way I could think of to send a message.

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The faults of the burglar are the qualities of the financier.
- George Bernard Shaw

Rickcaird
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Boynton Beach, Fl
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There are some other places starting to consider civil unrest as the result of QE2. Some links are in this Daily Reckoning post.

http://dailyreckoning.com/zero-hedge-exp....

I am sympathetic to Karl's point about the Fed and "Taxation without Representation". In the 70's, fiscal policy led to inflation. The Fed did nothing to counter it until Volcker took over. In this case, the Fed and monetary policy are leading toward inflation. I understand Bernancke is talking about 2% inflation as his target, but I doubt he can control the level of inflation very easily. It will get out of control.
Traderdoc
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The Boiled Rope Parties and Banker Gangbangs will be something to behold one day.

Coming to a town near you.

Otiswild
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So feeding them into an industrial plastic shredder feet-first on C-SPAN is unmentionable?
Lenguado
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Orlando, FL
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Rail. Tar. Feathers. Pitchforks. Torches.

Some assembly required.
smileysmileysmileysmileysmiley

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I just realized... they aren't saying, "Keynesian Economics"
they're saying "Kenyansian Economics". Grass Huts for everyone!
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Welcome to history’s first Double Dip Depression
Pika-steph
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Damn. There really should be Boiled Rope Futures.

Hmmm....hemp futures.... smiley

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