"The central banker rats are cornered"

derryb

"The pre-occupation with consumer spending dominates the distorted attention span. In a healthy system, the focus would be on capital spending instead."

"The FedFunds rate has been under 0.5% for three years, yet neither the USEconomy nor the US housing market have recovered."

"The USFed is waiting for the Euro Central Bank to take action. The key is the EuroCB debasing its Euro currency in the next move, which will give the USFed permission to debase its USDollar currency in its next move."

Jim Willie continues to remind us that PMs are the place to be

roadrunner

Superb Willie article covering a multitude of key topics. I found his analysis of the "positive" durable goods report to be excellent.

roadrunner

57loaded

yeah Jim hit a slam.

thanks for the link

grabba

That is probably the best article I have read that puts everything in one place and is easy to read and understand. Thanks for sharing!

wpr102

Curious whether you guys think whether hitting the brick wall will come gradually over a period of years, or whether one day modern finance will just collapse?

renman95

<< <i>Curious whether you guys think whether hitting the brick wall will come gradually over a period of years, or whether one day modern finance will just collapse? >>



You can't gradually "hit a brick wall." jmho

I think it will be like running a marathon and your body shuts down at mile 22.

gecko109

<< <i>

<< <i>Curious whether you guys think whether hitting the brick wall will come gradually over a period of years, or whether one day modern finance will just collapse? >>



You can't gradually "hit a brick wall." jmho

I think it will be like running a marathon and your body shuts down at mile 22. >>




What mile are we presently at?

derryb

<< <i>Curious whether you guys think whether hitting the brick wall will come gradually over a period of years, or whether one day modern finance will just collapse? >>


Unless debt, both public and private, is greatly reduced, modern finance will just collapse. Two ways to reduce it (1) forgive it, or a percentage of it or (2) tighten credit and make it harder to grow. Reduce its ability to grow and then you can focus on reducing it. Raising the debt ceiling recently only encourages its growth.

Debt is the root of all current economic woes. Unpaid or unfunded debt is the result of promises that cannot be kept, whether the promises were made for personal lifestyle or political votes. Remove the ability to make promises that can't be kept, both public and private, and the economy can begin to heal. Continue to try to solve the problem with more debt and the brick wall will one day suddenly appear and rioting Americans will be watched on television by the Greeks and British.


<< <i>What mile are we presently at? >>


Doesn't matter, they keep moving the finish line (raising debt ceilings, pumping money into losing banks, etc.). The only solution for the guys who don't want to lose votes or their big bonus is to keep kicking the can down the road. Warning: Cul-de-sac somewhere ahead.

johnny9434

nice article

Coyn

The only way to keep the system going is to pump more money into the system and let it flow down to the working man and the spenders. They have been trying this for 3 years. However, the big guys have got a choke on the system at the top and the money dont flow down anymore. Whatever is created to "pump up" the system is simply siphed off by the elite who are amassing huge amounts of cash. This is no help at all to keeping the system flowing.

It's corrupt, broken and no longer working. Jim always calls it right.

morgansforever

Any chance this is all designed collapse?

derryb

<< <i>Any chance this is all designed collapse? >>


I believe it was all designed, but got out of hand. Collapse is getting a wee bit too close to the bankers.

morgansforever