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Outstanding Interview CNBC Tues Nov 9th 12:18pm EST
- Thread starter limitdown
- Start date
A decent clip.
The idea that America was somehow victimized by emerging markets is complete horseshit.
US Fortune 100 lobbied and bribed Congress to vote MFN status for China and WTO ascension for the rest of the Asian currency "manipulators".
That Congress only sits up now to vilify China for engaging in mercantile trade policies they not only allowed, but condoned, is just posturing ahead of the inevitable backlash from the sea of unemployed, at home.
The CNBC crew are obviously taken with Greenspanian market theology - asset inflation drives paper wealth and consumption. While the relationship holds in good times, I'm not convinced it's as effective in bad, as Fisher eluded too. The problem is overwhelming consumer debt. While inflated assets spur new borrowing, once borrowers max out, paper wealth may not do much good. Banks are cautious, the market is weak, the economy is weak, and consumers are overleveraged. This is not the time to expect another frenzied credit orgy. It will happen, and it might very well be helped along by an inflated market. But this recovery will take time. Consumers must work off their debts. And therein lies the real problem = deflation. All this talk of inflated asset values to "help the consumer" is more Wallstreet marketing hype to rationalize QE2 for banks. Just like the ECB bailout was for "Greece". Horseshit! It was a backdoor bailout to German and French banks long Greek debt. The natural corrective process to any inflationary bust is a long, sustained period of repayment, debt destruction, and deflation. That bankrupts the Financial Sector, Wallstreet and Bernacke know it, hence this endless propaganda job to spin QE1+2 as a bailout to consumers. Lies. It's another bailout for Wallstreet. And the downsides are obvious = higher commodities.
The idea that America was somehow victimized by emerging markets is complete horseshit.
US Fortune 100 lobbied and bribed Congress to vote MFN status for China and WTO ascension for the rest of the Asian currency "manipulators".
That Congress only sits up now to vilify China for engaging in mercantile trade policies they not only allowed, but condoned, is just posturing ahead of the inevitable backlash from the sea of unemployed, at home.
The CNBC crew are obviously taken with Greenspanian market theology - asset inflation drives paper wealth and consumption. While the relationship holds in good times, I'm not convinced it's as effective in bad, as Fisher eluded too. The problem is overwhelming consumer debt. While inflated assets spur new borrowing, once borrowers max out, paper wealth may not do much good. Banks are cautious, the market is weak, the economy is weak, and consumers are overleveraged. This is not the time to expect another frenzied credit orgy. It will happen, and it might very well be helped along by an inflated market. But this recovery will take time. Consumers must work off their debts. And therein lies the real problem = deflation. All this talk of inflated asset values to "help the consumer" is more Wallstreet marketing hype to rationalize QE2 for banks. Just like the ECB bailout was for "Greece". Horseshit! It was a backdoor bailout to German and French banks long Greek debt. The natural corrective process to any inflationary bust is a long, sustained period of repayment, debt destruction, and deflation. That bankrupts the Financial Sector, Wallstreet and Bernacke know it, hence this endless propaganda job to spin QE1+2 as a bailout to consumers. Lies. It's another bailout for Wallstreet. And the downsides are obvious = higher commodities.
Quote from SWScapital:
We are forcing EM`s to unpeg via our printing. It is the ultimate stealth protectionist move. And it will bring back production to the USA. If the current admin can just add a little bit more business friendly tax motiviation(in the works now) the DXY will be on like donkey kong...
Bonds already tipping the hand.
unofficial strong dollar policy
...watch Oil drop (yeah)
and all those oil based producers too!!!!!!
Quote from achilles28:
A decent clip.
All this talk of inflated asset values to "help the consumer" is more Wallstreet marketing hype to rationalize QE2 for banks.
hence this endless propaganda job to spin QE1+2 as a bailout to consumers. Lies. It's another bailout for Wallstreet.
And the downsides are obvious = higher commodities.
an additional spin was all the lies told to sell the notion of midterm elections and some correction based on change being good...
either way,
we were sold once, and now sold twice, both bills of goods, or as the expression implies, lies.
profound comments, thanks for contributing
Quote from limitdown:
Fisher was interviewed
just to paraphrase some of his outstanding comments:
.. parabolic moves end in parabolic corrections, and this is the bubble of all bubbles,
.. its going to be worse than the bubble collapse of 2000
.. we should have bought other country's debts instead of our own "worthless" paper
anyone else saw that interview?
Yes, it was a good interview and he's been on CNBC before and was also insightful. If the U.S. dollar continues to devalue because of QE2 and commodity prices rise, then it reduces the consumer's purchasing power which is an indirect tax on the people.
so far on this thread we have rolled the veil back and seen:
1) actions by Geithner / Bernake and the Federal Reserve / Treasury with their own agenda towards interest rates, exchange rates and economic policy
2) stealth strong dollar policy moves
3) stealth weak dollar moves through devaluation, manipulation and an attempt to competitively price American good / services globally
4) stealth bailout for Wall Street, and another expansion of the deficit irrespective of the advertised claims by the political pundits / candidates and parties
5) what else?
1) actions by Geithner / Bernake and the Federal Reserve / Treasury with their own agenda towards interest rates, exchange rates and economic policy
2) stealth strong dollar policy moves
3) stealth weak dollar moves through devaluation, manipulation and an attempt to competitively price American good / services globally
4) stealth bailout for Wall Street, and another expansion of the deficit irrespective of the advertised claims by the political pundits / candidates and parties
5) what else?
Quote from SWScapital:
We are forcing EM`s to unpeg via our printing. It is the ultimate stealth protectionist move. And it will bring back production to the USA. If the current admin can just add a little bit more business friendly tax motiviation(in the works now) the DXY will be on like donkey kong...
Bonds already tipping the hand.
Forced to unpeg much?
"Ben Bernanke's trashing of the dollar is just a devious ploy to force a real exchange rate revaluation on the Chinese"
http://www.zerohedge.com/article/al...are-engaged-game-global-chicken-whose-downsid