Interview w/RLA - Come And Get It!
The Market Ticker - Commentary on The Capital Markets
Logging in or registering will improve your experience here
Main Navigation
Full-Text Search & Archives
Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions. For investment, legal or other professional advice specific to your situation contact a licensed professional in your jurisdiction.


The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be sent unmodified to lawmakers via print or electronic means or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media, to republish full articles, or for any commercial use (which includes any site where advertising is displayed.)

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.

Considering sending spam? Read this first.

2022-05-11 07:00 by Karl Denninger
in Interviews , 292 references Ignore this thread
Interview w/RLA - Come And Get It!
[Comments enabled]

From the intro:

"Congress has defrauded the American public by claiming we could issue this credit created from deficit spending by the United States Federal Government and sequesters it overseas. Our guest this week on the Retirement Lifestyle Advocates radio program, Karl Denninger, talks with your host Dennis Tubbergen about how the Biden administration has overplayed its hand by confiscating Russia’s dollar assets. Similar policies may have worked in places like Iraq, Iran, and other small nations, but in Russia, we’ve taken the largest industrial producer of things like potash, fertilizers, rare earths, and copper and destroyed all links to sales in US dollars. It’s a fascinating conversation you do not want to miss."

I always find it amusing that people think the government (or Fed) can "print money."

That's impossible.  Money is what you receive after you perform some act that has value to another person.  It is the exchange of value that marks what you receive as money

Government, however (including The Fed) can print credit.  Credit is a promise to do something of value tomorrow.  Unfortunately when the entity doing the promising is the government -- or The Fed -- that promise is ephemeral because the entity issuing the promise won't be the party that has to fulfil it and you can't force anyone to perform to their potential.

Commodities, particularly inputs to agriculture, are in trouble -- which of course means food inflation.

Come and get it folks!

Go to responses (registration required to post)

User: Not logged on
Login Register Top Blog Top Blog Topics FAQ
User Info Interview w/RLA - Come And Get It! in forum [Market-Ticker]
Posts: 1249
Incept: 2009-06-14

Report This As A Bad Post Add To Your Ignored User List
issue this credit created from deficit spending by the United States Federal Government and sequesters it overseas

Trying to picture that. Does it mean issue credit domestically and have it spent outside the US, thereby exporting the inflation?

If so,

* Short term profit
* Long term loss of ability to build stuff
* Loss of trust from trading partners who essentially get little from their products & services

(Haven't listened yet - logging the Q before I do)
Posts: 98
Incept: 2021-09-12

Report This As A Bad Post Add To Your Ignored User List
Interesting timing on this Ticker. I spent a good part of yesterday afternoon talking to a former coworker of mine about current world events. Younger guy, around 30 who has moved from far left to middle right in the 5 years that we have known each other. He gets it now and I enjoy talking to him even with the age difference.

That being said after the obligatory *****, Ukraine, corporate policies bull**** discussions we moved on to the economy and inflation and where I think we are heading. So far so good. He was his usual self which means he asked a lot of very good and pertinent questions. Disagreed a bit just to keep me off balance a little. Until... I started in on what is going to happen once we can no longer sequester dollars overseas and they start to be repatriated. Dead silence. Nothing. I could hear the confusion through the silence. He didn't understand the concept nor did he understand how badly the ramifications of this are going to be.

After a while the subject was dropped and we closed out the call. While I fully expect a bunch of questions to come my way today the fact that this man who I consider extremely bright and is extremely inquisitive has no way to process this because it has never been discussed before with him either at home or at school does not bode well. If he, who is way above average intelligence wise, does not get it then what about the average and below average people that Mr. Carlin warned us about?

My friend will eventually get it but the fact that the subject is totally foreign to him leaves me with a very very bad feeling that we are fighting a losing battle with very few troops.

Happy hump day everyone. Sigh.

Posts: 825
Incept: 2021-04-13

Akron Ohio FEMA region 5
Report This As A Bad Post Add To Your Ignored User List
Always a great pleasure to hear you speak and teach Karl. Id love to buy you a beer someday to show my gratitude. Things arent looking well for our way of life now is it??

The whole world is one big ****ing scam
Why are you giving a vulgarity warning here? Our genial host is an advocate of both skull****ing and sodomy via rusty chainsaw. Credit to Rollformer
Posts: 396
Incept: 2013-02-13

Washington state
Report This As A Bad Post Add To Your Ignored User List
Stoic, this concept is just outside of everyones experience. Theyve had no reason to know or understand it. First, folks have to understand the difference between inflation and increased prices. That concept knocks out about 97% of the population by itself alone. Increasing prices or increasing wages are as normal as the sun rising in the morning and no one ever questions them. If they own a house that keeps increasing in value, then most think theyre just Smart.

The only way things change is for the consequences to play through. They will, but its not a battle to change folks minds and do something different.
Posts: 238
Incept: 2010-01-10

Giant Side of Texas
Report This As A Bad Post Add To Your Ignored User List
In addition to diesel in the agricultural sector, repair parts are hard to come by. My neighbor has a $600,000 cotton stripper that farted and fell last fall. JD loaded it on a truck and hauled it to Lubbock and it is setting there, waiting for repair parts to arrive from somewhere in the far east. Fortunately, he had not released his existing equipment back to JD so he is not blown out of the water. He bought $9,000 gallons of diesel last winter so has enough fuel to get by this year. His fertilizer was hedged so he does not have that expense, but is sweating his second delivery after planting. His growth stimulators have not arrived from Germany but according to his supplier are on a boat. He is sweating that because there is a point in time after the plants break through this has to be put down. Add in the lack of rain on the southwestern edge of the Llano Estacado, and things are appearing to be bleak.
Of course, a week of rain between now and the end of the month and optimism will be raised.
How this guy sleeps at night is a wonder. He has millions bet on it raining, inputs arriving on time, and his banker keeping the wheels greased.

Blessed, Grateful and Living a Dream
Posts: 20
Incept: 2021-09-16

Baltimore, MD
Report This As A Bad Post Add To Your Ignored User List
great interview as usual

take it from a farm boy from NW Tennessee: it's pronounced "pot-ash"

Posts: 158
Incept: 2021-11-01

Report This As A Bad Post Add To Your Ignored User List
I know Nutrien (formed by merger of Agrium and Potash Corp) is headquartered in Saskatoon. They are the worlds largest producer of Potash, third largest for phosphorous and they also produce nitrogen. Potash prices have risen about 13% AND other components approaching all time highs. I dont know their export profile but if scarcity in Europe is allowing pricing power then slo Joe has a small correct point that Putins war is partly driving food inflation. Not anywhere close to gas and diesel though.
Posts: 234
Incept: 2021-09-02

Report This As A Bad Post Add To Your Ignored User List
"but in Russia, weve taken the largest industrial producer of things like potash, fertilizers, rare earths, and copper and destroyed all links to sales in US dollars"

It's both hilarious and a little sad (MPAI, I know, but still) how many dopes there are out there running wild with the "Russians have thrown away 30 years of better relations with the West!" because how could anyone in the modren world exist without our, ummm, err, ****ty "reboots" of 40 year old TV shows?

Of course, the same dopes are also convinced that it's the Russian economy that's being wrecked for decades by sanctions, because again, how can anyone live without our vital exports of, umm, err, financial folderol?

You can't fix stupid, but maybe the vex will help cut down the numbers a bit.

Posts: 1249
Incept: 2009-06-14

Report This As A Bad Post Add To Your Ignored User List
Listened slowly.

* Spend what you don't tax, inflation shows up immediately somewhere.
* If foreigners accumulate the currency you didn't tax but spent, it neutralizes the effect, but it is their risk.
* Once they stop sopping, domestic impact starts.

Whether it means inflation, or interest rate countermeasures + deflation is less to me. We know expensive food causes civil unrest and expensive houses did not so much.
Posts: 137
Incept: 2021-09-13

Not so Maryland
Report This As A Bad Post Add To Your Ignored User List
Another great interview Karl.

Just doin' the best I can.
Login Register Top Blog Top Blog Topics FAQ