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Aha! Alien Britney is a Marxist!!! I knew it!

Yes, but so what? As I keep saying, it doesn't matter how many links there are in the value chain; whether it's zero or twenty. If my carrot project results in a net increase in productivity, there is obviously no instantaneous inflation and/or bubble, by construction. [B] Firstly, nothing...

Eh... what's up, doc? Do you hate wittle gway wabbits? (see what I did there). Why you say that? Maybe I have invented the ultimate genetically modified carrot?

It doesn't matter to me how much I will increase the volume of carrots, as long as the yield on my carrot project exceeds the interest costs I am incurring. It's a completely different question whether the ultimate benefit to society from a marginal increase in carrot production is worth the...

I have seen estimates suggesting that various PFI projects represent approximately an additional GBP 100bn of govt liabilities. This is a relatively conservative figure.

But won't I also be increasing the volume of carrots in circulation? Which, in turn, would imply that carrot prices will actually go down... Moreover, if my carrot production is marginally efficient, the total effect, including the rise in prices due to printing, will be to lower aggregate prices.

Erm, I think we know how these games normally end... I don't think there's anything they can do here, apart from convincing the mkt that they'll be able to do what's necessary.

Why do you say that? If I borrow money to build a farm and grow carrots, how does that necessarily result in price inflation/asset bubbles?

Indeed, but he's not the first by a long shot... Today I was reading some of the earlier work that the ECB paper I attached refers to. Some of these papers are from the last century :). The key thing is that the NCB carry out some OMOs, but not all, by a long shot. Moreover, the NCBs are...

Yes, I've actually read this piece from Fels a couple of days back. It's a bit short, to be honest. Moreover, in various follow-up discussions, he's gone to great lengths to stress that the breakup of the EMU is not their central scenario and they're just exploring the outliers.

Well, yes, in theory the national central banks (NCBs) are the ones actually printing (and receiving the seigniorage income). However, the flip side is that the NCBs contribute capital to the ECB. ECB is also the entity distributing all income to the NCBs. Moreover, banks (i.e. the monetary...

Misthos, I think we got ourselves one of them evil currency manipulators right here :)!

I think we all need to be thinking more of how to prevent you from talking more nonsense, senor... :)

But that's the thing, the Irish, the Portuguese and the Spanish seem to be doing the right thing. They aren't the Greeks, they ARE paying the piper, albeit too slowly for you. Why aren't you willing, at least, to give them time to deal with their problems? Moreover, the EuroZone will overhaul...

I think I see your point... At any rate, I am obviously a liar, since I have done nasty things like ladders, but I claim temporary insanity :).

Absolutely true dat... Still, I personally have a strong, enduring and all-consuming preference: I would always be a buyer of cheap gamma rather than a seller of expensive gamma. Possibly because I appreciate the value of the implicit unquantifiable liquidity option. [B] No condors, as...

Guess so... If, to you, being short puts and being long the underlying looks and feels like the same risk, pls accept my sincere congratulations. Such intestinal fortitude as you possess is something I can only dream of, which is why I am NEVER short gamma.

Firstly, according to anecdotal evidence, at the moment it's not looking that horrible. For instance, Ireland's exports have done quite well; car sales are up 75% as a result of the scrappage scheme; manufacturing PMI is rising and, most importantly, the exchange rate is working wonders for...

That's actually the main point to me... The EuroZone, unlike the US, is not running a trade deficit, which means that, effectively, Germany is exporting to the rest of the EuroZone countries. So it's not like Germany, by agreeing to the bailout, is paying a lot for nothing. They're paying to...

Theoretically maybe... In practice, if you have ever been properly short gamma during a blowup, you'd know that it's emphatically NOT the same risk (unless, of course, you're Warren Buffet and effectively have an unlimited amount of change jingling in your pockets; or you don't mark-to-mkt for...