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Ann Barnhardt on ZIRP

jmski52jmski52 Posts: 22,947 ✭✭✭✭✭
So, what ZIRP, or zero interest rate policy, which is what the evil Federal Reserve has done since 2008, is to effectively declare that our money is worthless – completely independent of the whole gold standard/fiat currency argument. That isn’t even what we’re talking about here. Money has no time value. Think about that. Your human capacity to produce has no time value.

Loan someone all of the money that you earned working for the last year. Let them use that money for a year. When it is time to pay it back, you will get exactly what you started with back, MINUS ONE YEAR OF YOUR LIFE and all of the productivity and innovation that could have happened in that year using that money.
Q: Are You Printing Money? Bernanke: Not Literally

I knew it would happen.

Comments

  • This for DerryB,

    An Excerpt from Ann Barnhardt, one of your favorites:

    "This is intentional. The objective of ZIRP is NOT to stimulate the economy. The objective of ZIRP is to grind the economy to a halt so that there is no private investment or entrepreneurship - only fascistic government raping of the public coffers and exponentially increasing public dependence on the government.

    Hello? What do you think all of this solar panel bee-ess is about? Do you think that has ANYTHING to do with energy production or "global warming?" Give me a break. It is looting – pure, unadulterated LOOTING. "

    She does not mention the messiah "Obamanation" but the text reads right out of his miguided playbook. Bernanke clearly and undeniably played the cards for his lord and his perceived
    master.

    Bush may have appointed him originally, but that unconservative nut believed in open borders, and also appointed that sell out Roberts of Supreme court infamy. Bush was no conservative, and I was not saddend to see the Bush regime come to an end.

    With Ryan on the ticket, and Mitt showing an appreciation of the conservative movement, it is of paramount importance to ensure their election.

    NumbersUsa, FairUs, Alipac, CapsWeb, and TeamAmericaPac
  • derrybderryb Posts: 37,014 ✭✭✭✭✭


    << <i>This for DerryB,

    An Excerpt from Ann Barnhardt, one of your favorites:

    "This is intentional. The objective of ZIRP is NOT to stimulate the economy. The objective of ZIRP is to grind the economy to a halt so that there is no private investment or entrepreneurship - only fascistic government raping of the public coffers and exponentially increasing public dependence on the government.

    Hello? What do you think all of this solar panel bee-ess is about? Do you think that has ANYTHING to do with energy production or "global warming?" Give me a break. It is looting – pure, unadulterated LOOTING. "

    She does not mention the messiah "Obamanation" but the text reads right out of his miguided playbook. Bernanke clearly and undeniably played the cards for his lord and his perceived
    master.

    Bush may have appointed him originally, but that unconservative nut believed in open borders, and also appointed that sell out Roberts of Supreme court infamy. Bush was no conservative, and I was not saddend to see the Bush regime come to an end.

    With Ryan on the ticket, and Mitt showing an appreciation of the conservative movement, it is of paramount importance to ensure their election. >>


    thanks. with all due respect politics and presidential elections are irrelevant with PMs, the path has been paved by both flavors. Note that she does not blame it on a politician.

    Exit bunker, enter Matrix. LOL

  • DrBusterDrBuster Posts: 5,414 ✭✭✭✭✭
    deleted.
  • derrybderryb Posts: 37,014 ✭✭✭✭✭
    the object of ZIRP is twofold:
    - stimulate consumer borrowing (debt)
    - keep interest on sovereign debt as low as possible. Last year's US interest debt was over $454 billion.

    Exit bunker, enter Matrix. LOL

  • jmski52jmski52 Posts: 22,947 ✭✭✭✭✭
    As strong as my political leanings might be, I tried to limit my thread inputs to policy or philosophy, and how those inputs affect gold & silver as money. My point in posting this exerpt was to provide food for thought about the current monetary policy, which leads me to some other conclusions about how to deal with it.

    If people are gonna hijack threads, I'll simply watch.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • cohodkcohodk Posts: 19,242 ✭✭✭✭✭
    Your human capacity to produce has no time value

    Is she insane? First she talks about fiat currency, then tries to reinforce her opinion with comparison to a labor currency.


    Ms. Barnhardt, human capacity to produce always has and always will have value, no matter the time.

    But to counter her point--Loan someone your gold for the last year and get back LESS than what you started with minus one year of your life...........

    Im sensing LOTS of emotion from these newsletter writers and very little logic. Interesting.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • jmski52jmski52 Posts: 22,947 ✭✭✭✭✭
    Loan someone your gold for the last year and get back LESS than what you started with minus one year of your life...........

    She wasn't proposing to do that, and I don't know of anyone who would. Do you?
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 37,014 ✭✭✭✭✭


    << <i>Im sensing LOTS of emotion from these newsletter writers and very little logic. Interesting. >>


    good observation. I suspect many of them are passionate in their understanding of the economic mess and cannot understand why the generally population will not wake up to what has been happening. You have to admit, most people think the FED will take care of our economic problems and they put blind trust and faith in our economic leadership.

    Exit bunker, enter Matrix. LOL

  • cohodkcohodk Posts: 19,242 ✭✭✭✭✭


    << <i>Loan someone your gold for the last year and get back LESS than what you started with minus one year of your life...........

    She wasn't proposing to do that, and I don't know of anyone who would. Do you? >>



    So why would she propose loaning someone dollars?
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • cohodkcohodk Posts: 19,242 ✭✭✭✭✭


    << <i>

    << <i>Im sensing LOTS of emotion from these newsletter writers and very little logic. Interesting. >>


    good observation. I suspect many of them are passionate in their understanding of the economic mess and cannot understand why the generally population will not wake up to what has been happening. You have to admit, most people think the FED will take care of our economic problems and they put blind trust and faith in their economic leadership. >>



    I believe I have written many times that I do not agree with the FEDs actions, however I see the newsletter folk interjecting more emotion, opinion and conjecture than usual.

    Perhaps a bit more fact and less hyperbole would sway my position. Beware the boastful man.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • jmski52jmski52 Posts: 22,947 ✭✭✭✭✭
    So why would she propose loaning someone dollars?

    She didn't propose that either. Her example was to illustrate why nobody would.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 37,014 ✭✭✭✭✭


    << <i> I see the newsletter folk interjecting more emotion, opinion and conjecture than usual. Perhaps a bit more fact and less hyperbole would sway my position. Beware the boastful man. >>


    Well, they are in competition to sell newsletters and I assume most of the subscribers are driven by the fear that is created from the writings. At the end of the day it boils down to who is providing the most accurate information.

    Exit bunker, enter Matrix. LOL

  • cohodkcohodk Posts: 19,242 ✭✭✭✭✭


    << <i>So why would she propose loaning someone dollars?

    She didn't propose that either. Her example was to illustrate why nobody would. >>



    Interesting, as it seems to be the person benefitting would be the borrower? So why is everyone in such a rush to pay down their debt? Maybe the FED isnt so stupid?
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • jmski52jmski52 Posts: 22,947 ✭✭✭✭✭
    Interesting, as it seems to be the person benefitting would be the borrower?

    Yes, that IS the point she's making. And yes, that is why the banks aren't lending; instead they just add free money into their books. Nice for this year's bonuses for their great performance and managing skills, I s'pose.

    So why is everyone in such a rush to pay down their debt?

    "Everyone" isn't in such a rush. I'm not.

    Maybe the FED isnt so stupid?

    The Fed is dumping bad assets onto the taxpayers, and Congress is allowing it. It has nothing to do with stupidity on anyone's part other than Congress. It's either stupidity on their part, or just plain criminal. I'm leaning towards the later.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • OverdateOverdate Posts: 7,039 ✭✭✭✭✭
    << Im sensing LOTS of emotion from these newsletter writers and very little logic. Interesting. >>

    Barnhardt has a website, but no subscription newsletter, as far as I know.

    My Adolph A. Weinman signature :)

  • cohodkcohodk Posts: 19,242 ✭✭✭✭✭


    << <i><< Im sensing LOTS of emotion from these newsletter writers and very little logic. Interesting. >>

    Barnhardt has a website, but no subscription newsletter, as far as I know. >>



    Is there a difference?

    And why is her opinion so vaunted?
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 37,014 ✭✭✭✭✭


    << <i>

    << <i><< Im sensing LOTS of emotion from these newsletter writers and very little logic. Interesting. >>

    Barnhardt has a website, but no subscription newsletter, as far as I know. >>



    Is there a difference?

    And why is her opinion so vaunted? >>


    Because as a financial professional she is fedup with the greed and corruption that plagues her industry.

    Exit bunker, enter Matrix. LOL

  • renman95renman95 Posts: 7,037 ✭✭✭✭✭


    << <i>Interesting, as it seems to be the person benefitting would be the borrower?

    Yes, that IS the point she's making. And yes, that is why the banks aren't lending; instead they just add free money into their books. Nice for this year's bonuses for their great performance and managing skills, I s'pose.

    So why is everyone in such a rush to pay down their debt?

    "Everyone" isn't in such a rush. I'm not.

    Maybe the FED isnt so stupid?

    The Fed is dumping bad assets onto the taxpayers, and Congress is allowing it. It has nothing to do with stupidity on anyone's part other than Congress. It's either stupidity on their part, or just plain criminal. I'm leaning towards the later. >>



    Yupski, we'd like to think they're stupid but in actuality they are very smart hoping we sheeple don't wise up and call them on it...just keep eating at the trough. And when we do call them on it they just ignore us. Nothing seems to stick to them...teflon elitists.
  • Recently, I spoke to a wealthy elderly gentleman who stated, " I hate paying interest" 8 months later I still think about that statement.

    On another note, Ann Barnhardt recently said, to buy gold coins, because bullion is easier to deflate. I would welcome some comments on this topic. Let's get down and dirty and discuss should people be buying bullion or coins?

    Or, does it matter?
  • derrybderryb Posts: 37,014 ✭✭✭✭✭


    << <i>Recently, I spoke to a wealthy elderly gentleman who stated, " I hate paying interest" 8 months later I still think about that statement.

    On another note, Ann Barnhardt recently said, to buy gold coins, because bullion is easier to deflate. I would welcome some comments on this topic. Let's get down and dirty and discuss should people be buying bullion or coins?

    Or, does it matter? >>



    Gold coins, here's why
    Barnhardt is referring to the ability to deflate (control) the spot price of gold via numerous methods while gold collector coins will maintain collector premiums.

    Exit bunker, enter Matrix. LOL

  • ZIRP transfers wealth from the elderly to the young. Hope the young put it to good use.
  • JustacommemanJustacommeman Posts: 22,850 ✭✭✭✭✭
    Wow what a thread

    1) I like Ann Barnhardt a lot. Smart cookie
    2) I don't subscribe to everything she says
    3) Obama or Romney? Why does it matter. Both crappy choices. I couldn't vote for either of them.Never. Phew
    4) The GOP will be better served if Romney loses. Why? see point 5 and 6
    5) The GOP really does not want to win this election. 2013-16 will be a BAD time to be President.
    6) The GOP will be better served to try for the WH in 2016 with a fresh candidate and facing a new Dem and the hopes of gaining a two term GOP President
    7) the 2016 election will be FUN. 2012, not so much.
    8) I really need to see that 2016 movie

    MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • MJ,

    Double Ditto to 1-8.

    This week is super busy fun:
    Mon- cash in CD, buy gold.
    Tues-Work in office
    Wed-take youngest son to doctor
    Thurs-start picking up out of town guests
    Fri- rehearsal and dinner
    Sat- oldest son getting married

    OPA!

    Keep stacking my friends and rest well tonight.
  • cohodkcohodk Posts: 19,242 ✭✭✭✭✭


    << <i>Wow what a thread

    1) I like Ann Barnhardt a lot. Smart cookie
    2) I don't subscribe to everything she says
    3) Obama or Romney? Why does it matter. Both crappy choices. I couldn't vote for either of them.Never. Phew
    4) The GOP will be better served if Romney loses. Why? see point 5 and 6
    5) The GOP really does not want to win this election. 2013-16 will be a BAD time to be President.
    6) The GOP will be better served to try for the WH in 2016 with a fresh candidate and facing a new Dem and the hopes of gaining a two term GOP President
    7) the 2016 election will be FUN. 2012, not so much.
    8) I really need to see that 2016 movie

    MJ >>



    Agreed 100%.

    How did PMs perform in the last recession, notably 2008?
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 37,014 ✭✭✭✭✭


    << <i>How did PMs perform in the last recession, notably 2008? >>


    if your talkin' the real estate pop, PMs took a beating but not as bad as most other investment classes. Seems most everyone went to the safety of the dollar until the uncertainty was sorted out. This time around, thanks to FED actions, I don't think it will be viewed as the safehaven it was then. Maybe PMs are on deck this inning?

    Exit bunker, enter Matrix. LOL



  • << <i>Wow what a thread

    1) I like Ann Barnhardt a lot. Smart cookie
    2) I don't subscribe to everything she says
    3) Obama or Romney? Why does it matter. Both crappy choices. I couldn't vote for either of them.Never. Phew
    4) The GOP will be better served if Romney loses. Why? see point 5 and 6
    5) The GOP really does not want to win this election. 2013-16 will be a BAD time to be President.
    6) The GOP will be better served to try for the WH in 2016 with a fresh candidate and facing a new Dem and the hopes of gaining a two term GOP President
    7) the 2016 election will be FUN. 2012, not so much.
    8) I really need to see that 2016 movie

    MJ >>



    # 8 is highly recommended. Once seen there will be an immediate change in regards to your #3 answer.
    NumbersUsa, FairUs, Alipac, CapsWeb, and TeamAmericaPac
  • According to most of your ditto's to MJ's 1-8 (the only one I fully agree with is number 8, it may help wipe the fog away from your eyes and your mind)

    I'll just say your politically NUTS !! If a die hard libertarian can talk to the empty chair and say directly "It's time for a change" " It's time to let him go"

    And the appointments of two rabid socialsts to the Supreme Court and more possibles if re-elected. I think each of you need to seriously consider your country and your families and not be so apathetic.

    I do not support the RNC because of their extreme pushback on the tea party candidates, but the tea party candidates have taken the seats without their support. I fund Candidates directly and have for the past 6 years. We came really close to taking Harry Reid out and if a few more apathetic individuals would get involved and do more than bloviate then we could turn this thing around November 6th 2012.

    Romney is the Man for the Times and we need to back him and drop the apathy. You each have succumbed as most usually do to the mainstream media. You may think you are above it but its got control of you and the proof is in your APATHY !!
    NumbersUsa, FairUs, Alipac, CapsWeb, and TeamAmericaPac
  • JustacommemanJustacommeman Posts: 22,850 ✭✭✭✭✭


    << <i>MJ,

    Double Ditto to 1-8.

    This week is super busy fun:
    Mon- cash in CD, buy gold.
    Tues-Work in office
    Wed-take youngest son to doctor
    Thurs-start picking up out of town guests
    Fri- rehearsal and dinner
    Sat- oldest son getting married

    OPA!

    Keep stacking my friends and rest well tonight. >>



    Congrat's!!!!! MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • ARCOARCO Posts: 4,396 ✭✭✭✭✭


    << <i>So, what ZIRP, or zero interest rate policy, which is what the evil Federal Reserve has done since 2008, is to effectively declare that our money is worthless – completely independent of the whole gold standard/fiat currency argument. That isn’t even what we’re talking about here. Money has no time value. Think about that. Your human capacity to produce has no time value.

    Loan someone all of the money that you earned working for the last year. Let them use that money for a year. When it is time to pay it back, you will get exactly what you started with back, MINUS ONE YEAR OF YOUR LIFE and all of the productivity and innovation that could have happened in that year using that money.
    >>



    I think she conflates Labor with capital. Loaning someone a year's worth of saved capital for one year (assuming zero interest) is merely losing the "time value" of one year worth of capital. One's labor is out there plugging away earning whatever potential that labor is worth in the marketplace.

    Money most definitely is not "worthless", but capital has lost its earning power unless leveraged or speculated with using much more specialized techniques (like buying alarm contracts or real estate leases, buying and flipping homes in Phoenix etc etc).

    I know many people whose capital is earning great returns, but they are putting that money at much greater risk for those returns. They are buying / building businesses that they are familiar with. They are investing / speculating in much more esoteric and less secure investments.

    ZIRP takes away the ability for your average person to make money off of saved capital in any of the traditionally "safe" investments.

    Tyler
  • jmski52jmski52 Posts: 22,947 ✭✭✭✭✭
    ZIRP takes away the ability for your average person to make money off of saved capital in any of the traditionally "safe" investments.

    In other words, it's kinda like destroying the social contract that most retirees have spent their entire lives working for.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • ARCOARCO Posts: 4,396 ✭✭✭✭✭


    << <i>ZIRP takes away the ability for your average person to make money off of saved capital in any of the traditionally "safe" investments.

    In other words, it's kinda like destroying the social contract that most retirees have spent their entire lives working for. >>



    It absolutely is theft of capital (stored labor). The very rich can employ professional money managers (hedge funds, or other financial experts) to maintain returns, but the retired and others with less capital are forced to spend and deplete that stored labor now to survive financially.

    Fiat currency is owned by the Central bank Franchise / cartel. What they giveth, they can take away. With ZIRP, the central bank is taking away the ability of all others to employ capital for monetary gain and they are keeping that privilege solely for themselves; for the central bank - fractional reserve banking franchise.
  • I like the term "stored labor", could someone tell me where it is stored at?

    What it really means is that one generation printed a bunch of pieces of paper that says that the next generation must work and give them the products of thier labor in exchange for this paper. The national debt is nothing but promises the retirees made to each other and passed out that the newborns are supposed to make good on.

    The national debt will never get paid, the system will crash and in the end the idea that you can promise yourself someones future labor is not realistic.
  • derrybderryb Posts: 37,014 ✭✭✭✭✭


    << <i>The national debt will never get paid, the system will crash and in the end the idea that you can promise yourself someones future labor is not realistic. >>


    Maybe at some point an international collection agency can collect pennies on the dollar, but then again it will only be worth pennies.

    Exit bunker, enter Matrix. LOL

  • PokermandudePokermandude Posts: 2,713 ✭✭✭
    http://stores.ebay.ca/Mattscoin - Canadian coins, World Coins, Silver, Gold, Coin lots, Modern Mint Products & Collections
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