Booms and busts are normal. But the feds — claiming to moderate the business cycle by countercyclical fiscal and monetary policy choices — actually make them worse.
I remember an economics professor, proudly studied under Keynes, it was a business cycle course. Keynes was a genius; he was prescient enough to get the Treaty of Versailles right; his theories were common sense, they worked. Economist became obsessed with them, carried them too far, made government intervention into almost 40% of the economy.
The military industrial complex started because of Britain’s experience after WW1, three million men returning to the labor market… economic disruption.
The great thinkers had a solution after WW2 in the US, continue to spend government money producing arms, the GI bill and pent-up consumer demand. It took on a life of its own and became an evil corrupting dragon.
I visited Miami last weekend. I was surprised that people had mellowed, drove reasonably courteous, overall, they were pleasant.
How do you live in Miami? When I was a student there, in 1960, houses around The U went for 20k, now 3 million. A 40k house in Pinecrest might now be 10 million that’s 35k in taxes.
Keynesian prosperity makes people crazy, that and human hubris. The system is totally corrupting.
I don’t know how people manage to live anywhere, the bubble is like a volcano building intense pressure internally; it going to blow like Mount Vesuvius, and we are all going to be buried in the ash. It will be a wonder to future generations.
Yes Bill, I’m currently being experimented on by our medical system that is “Practicing Medicine” on me. Very similar how our Deep State Elite have been “Practicing Corruption” on us all for decades. Those top 1% are all in the family and we are considered useless breathers and are 100% expendable. But now that I fully understand, I have great faith in our future with the current choices for President in these most United States. It’s almost like those who chose the Snoop Dog as the face of America in the Olympics, made the same choice for us Americans for leader of our “Free World”🤔. Trump, a typical NY Liberal turned American by a few conservative ideas(but the true damage he did is irreversible), or a communist hired in every job she has worked due to her Sex, Color and excellent bedroom performance, recently hired as VP by a demented, immoral, corrupt old white man, now hired the same old demented, immoral, corrupt figure as her VP to make our new DEI nation look democratic. Yes Bill, just like the faith I hold in our current Obamacare medical system, the faith I hold for America’s future is fleeting.
Steve, the world (at least the western world) as gone to sh*t and seems to be accelerating. This will continue until it blows up. As Bill as pointed out in the past - the system can't fix the system and, frankly, voting is just another way to keep the system rigged and us minions thinking we can make a different. What BS and propaganda. Both presidential choices are ridiculous and neither will change the game and most likely accelerate it. When the western financial system blows its top (and it appears nearer than one might imagine) there will be chaos as a new/different system comes into existence. Did ya all see what just happened in Birmingham, England? Our elites are fools with hubris in overdrive. What to do? What to do? I think I'll just try to enjoy today.
Agree my friend, and I’ve been enjoying each day for years now, knowing we are never promised tomorrow. I have my family as well educated and prepared as we can be, but my plans have changed due to health issues. I may have finally found a real doctor who actually cares and seems to be doing the right thing. It’s amazing how we middle class are being destroyed by our corrupt health care system with no word from our corrupt media. The stories I hear from good hard working Americans going through this insanity is heartbreaking. Losing everything they worked for their entire lives just to try to survive, while the absolutely most unproductive and even Illegal citizens get everything for free. Yes Ol, there will be a price to pay for our allowing such evil to thrive in the west, unfortunately, good will suffer too🤔
As one of the prole ya all’s; yes (to Birmingham) and doing my best [with available OSInt] to monitor the pushback & resistance movement, civil disobedience and unrest sit reps.
And on that last note, it is useful to know where the rotten apples are in the barrel. Ergo, veep DP candidate, Walz is a man who says, “In Minnesota, we’ve got a golden rule: mind your own damn business.”
Walz is the same man also created a toll-free number to call so Minnesotans could rat out their neighbors during the Covid-19 government-mandated private-sector shutdown.
GF: Why don’t you tell us all the wonderful news about Vance and Trump. You are getting so negative. You read the same info that the rest of do. You can always find something if you look hard enough. And yes I know Vance was in the service. So was Waltz who was a decorated Green Beret.
Since I do not do the Facebook thingy; do this for me and report back to me here on your detailed fact checked findings on the following:
"On May 16th, 2005, [Walz] quit, betraying his country, leaving the 1-125th Field Artillery Battalion and its Soldiers hanging; without its senior Non-Commissioned Officer, as the battalion prepared for war," wrote retired Command Sergeants Major Thomas Behrends and Paul Herr in a 2018 letter posted to Facebook.
Dorothy, Gov Walz is a poor facsimile in governmental leadership, State policies and practices, and general overall governance in Minnesota. Here is a specific example:
Overview of the 2020 Riots in Minnesota wherein widespread protests escalated into civil unrest which was poorly dealt with and mutual aid was inadequate which led to riots and across various cities, particularly in the major metropolitan cities of Minneapolis and St. Paul.
Injuries and Fatalities
Injuries: During the course of the protests and subsequent riots, numerous individuals sustained injuries. Estimates suggest that over 600 people were injured, including both protesters and law enforcement personnel.
Fatalities: There were reports of at least two fatalities directly linked to the violence during the riots, although it is important to note that these numbers may vary based on different sources.
Property Damage Costs
Business Damage: According to various assessments, property damage from the riots was extensive. A report from the Minnesota Department of Employment and Economic Development estimated that around 1,500 businesses were damaged or destroyed. The total cost for business damages was estimated to be between $500 million to $1 billion.
Residential Damage: Residential properties also suffered significant damage. Estimates indicate that approximately 300 homes were damaged or destroyed, with repair costs ranging widely but potentially totaling around $100 million.
Public Infrastructure Damage: Public infrastructure was not spared either; damage to public property (including parks, roads, and municipal buildings) incurred costs estimated at around $15 million.
Insurance Claims: Uninsured or Denied Claims
Many businesses faced challenges with insurance claims following the riots:
A survey conducted by local chambers of commerce indicated that a significant percentage of businesses (around 40%) reported being underinsured or having their claims denied due to exclusions related to civil unrest or looting.
This resulted in many businesses facing substantial financial losses without adequate compensation, contributing further to economic distress in affected communities.
Monetary Losses and Restitution Costs
The cumulative monetary losses incurred by both public entities and private citizens are staggering:
Total estimated losses from all damages (businesses, residences, public infrastructure) could range from approximately $800 million to $1.2 billion, factoring in uninsured losses as well.
Additionally, restitution costs for rebuilding efforts have been projected at several hundred million dollars over time as communities work towards recovery.
Duration of Rioting Under Governor Tim Walz’s Leadership
The rioting began on May 26, 2020, following George Floyd’s death and continued sporadically until early June 2020. The most intense period lasted approximately 10 days, with ongoing protests continuing for weeks thereafter but with varying levels of intensity.
In summary:
Injuries: Over 600
Fatalities: At least 2
Business Damage: $500 million - $1 billion
Residential Damage: Approximately $100 million
Public Infrastructure Damage: Around $15 million
Uninsured/Denied Claims: About 40% of businesses affected
Total Estimated Losses: $800 million - $1.2 billion
Bottom line brother, you can’t fix stupid and you definitely can’t change the minds of the mentally ill, because like the entire Democratic Party today, the damage is irreversible. And before sweet Dorothy responds, Yes Dorothy, like the mentally challenged democrat child shooter who was “registered Republican” there are many thousands of other RINOs who pretend to help change elections in primaries, but make no mistake, they are anything but conservative…
GF: While your exposing all these allegations, why don’t you do the same for Mr. Trump, except his are not allegations. Walz is not running for President and as we all know, the VP does not make major decisions. Rioting can start under anyone’s tenure. It seems it’s a way of life these days.
Shut your mouth policy, where bythe expanded non transparent all political operatives (elites) no better not reason truth with consequences…more fluff with government principalities on transcendent pie in the sky mandates and regulations.
SL: You have too much hate in your heart, which isn’t good for your health. Writing things that are totally untrue about Kamala or her new running mate just because Republicans want to tear down any opponent (that’s Trump’s style) that may be running. Maybe you need to read more factual information before you start demeaning candidates. Having Trump win would be a disaster. Getting us out of our economical problems would be a miracle.
Sorry sweet Dorothy, but as most democrats in America, you again have conveniently mistaken “hate” for disgust. I have many democrats as friends who I like, but am horrified and disgusted with those few who continue to follow and agree with the destruction of America. Biden and Harris put another 7 trillion to push America over the edge, and I’m sure Trump will add another 7 to it. But at least we won’t spend trillions more taking care of millions of illegals as Biden did. You can go back to sleep now dear 😴😴
Altschule: Thanks, I know you are right. Maybe it’s just the Irish in me. I will always fight or defend for the truth, which you don’t get much from Trump or his followers.
Please Altshule, we all have seen enough of your nonsense writing about “Hate” placing all Jews in your hate category. Anyone with a quarter brain can see right through your BS, except Dorothy that is🤔
I love Bill's style, refreshing. But I wonder what % of the stock market the little people actually own. I know the Big Three (BlackRock, Vanguard, Fidelity) own about 30-40%. And there are other large funds involved as well. Do we really know how few men actually control the markets?
So it’s not really who owns what percent of what… it’s who controls the ETFs. That is Blackrock, Vanguard and their ilk. You see when you buy something from an ETF, you’re only buying a tracking stock. You don’t really own anything in the company. However, those who control the ETF do have shares and voting rights… And that’s how they control everything.
The bank of Japan "trying to correct its 'error'. " Remember that's coming from the mainstream media, Bloomberg. 35T in debt might suggest there was no error, that's not counting medicare and soc. security either. Referring to the Fed chart: If one was to assume the Fed has always done its job then 1990 would not have been high or low with its Net Worth. So should the Net Worth now be 9 times higher? What is the economy's difference mesured in gold?
As long as the stock market is rising, regardless of the dollar value measuring that rise, it seems the amateurs believe they want to play that game. But the Dow measured in gold appears to suggest they are actually losing.
It seems that high and rising precious metals prices, gold and silver in particular, would militate against the FOMO psychology in the equity and bond markets, acting as both cause and effect(IMO) of the FOMO NO MO trend. Since strong gold and silver prices are also no friend of USD hegemony and will be a symptom of a USD collapse if and when the time comes, it becomes clear why the FOMC would have a strong inclination to manipulate(restrain) gold and silver prices and limit their competitive allure versus Wall Street and the USD.
Paper gold and silver are completely manipulated. Very soon you’ll see paper metals and physical metals diverging because people will just simply refuse to give up the physical for what they’re offering on paper.
The stock market will never crash again, here is why, one push of the button and billions upon billions, massive amounts of honky dory funny helicopter money gets infused across all sectors of the market uplifting the red date line and making it green again.
It’s very simple indeed, if the markets are not sustaining themselves, and it looks like more than a 20% dip is on the way, simply open the side portal door next to the mainframe mother board and switch the button to green, immediately the computers will start buying up a plethora of top company stocks, like the magical 7! Bing bang boom, we are back in business.
You don’t think so?
Ok, try and crash the market then, test me, you’ll fail, I guarantee you, the market will never fall below 40% of its average high, never, and you can take that to the bank Gummy.
The Son of Fred, The American Savior, President Donald Trump has cemented victory! Long Live The King! MAGA! Oh yeah! Wooo!
Not all BPR readers/subscribers worldwide save, invest or spend using greenbacks.
Currently, as you already know, all fiat confetti paper money faces challenges not too different from Weimar Republic’s papiermarks. It's called Gresham's Law.
Excellent work! This was one of your best. Makes you wonder how it has become so skewed and if the FOMC started out that way. Not to mention how and what chaos happens if it was abandoned now?
If you look at the data going back over many years you’ ll see that the returns on 3 month and 6 month treasury notes lead the Fed’s rate setting. Currently the Fed funds rate is 5.5% whilst 3 month treasuries have fallen to 5.25% and 6 month treasuries to 5%.
Last October, all these rates were the same. So it’s time for the Fed to catch up with the market.
Look at the record. In 2007 it started to play catch up and carried right on to the bottom in 2009.
They’re still behind the curve. They need to get ahead if they want to make an impact- 4.75% to 5%. But they don’t on past form . They just follow along with a bit of a lag.
Bill, I remember when a country sets their currency's exchange rate by decree rather than allowing it to find it's value in the marketplace there is always an alternate black market for their currency. Is there a black market rate somewhere for the true value of the cost of money. We are at around 5% interest rate, but what do you think prime really is? I would like to hear from your readers as well cause they are a sharp bunch.
My figuring looking back into the 90s one who earned 35K a year compared to today say 63k a year in CAD terms appears substantial. In the 90s I recall a price of a gallon of transmission fluid about .5/hr labour rate approx. Today its 1.5/hr substantial and thats to say nothing of taxes. So whats the value looking ten years out, assuming the rate of dilution continues. In addition today salaries are not reflective of all salaries some less some more including prices of different products, overall the losses are real and the average is getting crushed. Imho
I remember an economics professor, proudly studied under Keynes, it was a business cycle course. Keynes was a genius; he was prescient enough to get the Treaty of Versailles right; his theories were common sense, they worked. Economist became obsessed with them, carried them too far, made government intervention into almost 40% of the economy.
The military industrial complex started because of Britain’s experience after WW1, three million men returning to the labor market… economic disruption.
The great thinkers had a solution after WW2 in the US, continue to spend government money producing arms, the GI bill and pent-up consumer demand. It took on a life of its own and became an evil corrupting dragon.
I visited Miami last weekend. I was surprised that people had mellowed, drove reasonably courteous, overall, they were pleasant.
How do you live in Miami? When I was a student there, in 1960, houses around The U went for 20k, now 3 million. A 40k house in Pinecrest might now be 10 million that’s 35k in taxes.
Keynesian prosperity makes people crazy, that and human hubris. The system is totally corrupting.
I don’t know how people manage to live anywhere, the bubble is like a volcano building intense pressure internally; it going to blow like Mount Vesuvius, and we are all going to be buried in the ash. It will be a wonder to future generations.
Yes Bill, I’m currently being experimented on by our medical system that is “Practicing Medicine” on me. Very similar how our Deep State Elite have been “Practicing Corruption” on us all for decades. Those top 1% are all in the family and we are considered useless breathers and are 100% expendable. But now that I fully understand, I have great faith in our future with the current choices for President in these most United States. It’s almost like those who chose the Snoop Dog as the face of America in the Olympics, made the same choice for us Americans for leader of our “Free World”🤔. Trump, a typical NY Liberal turned American by a few conservative ideas(but the true damage he did is irreversible), or a communist hired in every job she has worked due to her Sex, Color and excellent bedroom performance, recently hired as VP by a demented, immoral, corrupt old white man, now hired the same old demented, immoral, corrupt figure as her VP to make our new DEI nation look democratic. Yes Bill, just like the faith I hold in our current Obamacare medical system, the faith I hold for America’s future is fleeting.
Steve, the world (at least the western world) as gone to sh*t and seems to be accelerating. This will continue until it blows up. As Bill as pointed out in the past - the system can't fix the system and, frankly, voting is just another way to keep the system rigged and us minions thinking we can make a different. What BS and propaganda. Both presidential choices are ridiculous and neither will change the game and most likely accelerate it. When the western financial system blows its top (and it appears nearer than one might imagine) there will be chaos as a new/different system comes into existence. Did ya all see what just happened in Birmingham, England? Our elites are fools with hubris in overdrive. What to do? What to do? I think I'll just try to enjoy today.
Agree my friend, and I’ve been enjoying each day for years now, knowing we are never promised tomorrow. I have my family as well educated and prepared as we can be, but my plans have changed due to health issues. I may have finally found a real doctor who actually cares and seems to be doing the right thing. It’s amazing how we middle class are being destroyed by our corrupt health care system with no word from our corrupt media. The stories I hear from good hard working Americans going through this insanity is heartbreaking. Losing everything they worked for their entire lives just to try to survive, while the absolutely most unproductive and even Illegal citizens get everything for free. Yes Ol, there will be a price to pay for our allowing such evil to thrive in the west, unfortunately, good will suffer too🤔
Stay strong brother. 🙏
I have 2 good friends who are having open heart (widowmaker) bypass surgery next week.
Their diagnostics and treatment options took awhile to determine, and what exactly they were candidates when it came to various treatment options.
Best Regards,
Mark
Thank you my friend! Best wishes to you and your friends 🙏
As one of the prole ya all’s; yes (to Birmingham) and doing my best [with available OSInt] to monitor the pushback & resistance movement, civil disobedience and unrest sit reps.
And on that last note, it is useful to know where the rotten apples are in the barrel. Ergo, veep DP candidate, Walz is a man who says, “In Minnesota, we’ve got a golden rule: mind your own damn business.”
Walz is the same man also created a toll-free number to call so Minnesotans could rat out their neighbors during the Covid-19 government-mandated private-sector shutdown.
GF: Why don’t you tell us all the wonderful news about Vance and Trump. You are getting so negative. You read the same info that the rest of do. You can always find something if you look hard enough. And yes I know Vance was in the service. So was Waltz who was a decorated Green Beret.
Good Lord, Dorothy, where do you get this tripe????
Walz (yes, it's Walz, not Waltz) was NEVER a Green Beret. He served in a field artillery unit in the Army National Guard.
Maybe if you had "looked hard enough" you could have discovered that for yourself.
You're a case, you know that.
Since I do not do the Facebook thingy; do this for me and report back to me here on your detailed fact checked findings on the following:
"On May 16th, 2005, [Walz] quit, betraying his country, leaving the 1-125th Field Artillery Battalion and its Soldiers hanging; without its senior Non-Commissioned Officer, as the battalion prepared for war," wrote retired Command Sergeants Major Thomas Behrends and Paul Herr in a 2018 letter posted to Facebook.
Dorothy, Gov Walz is a poor facsimile in governmental leadership, State policies and practices, and general overall governance in Minnesota. Here is a specific example:
Overview of the 2020 Riots in Minnesota wherein widespread protests escalated into civil unrest which was poorly dealt with and mutual aid was inadequate which led to riots and across various cities, particularly in the major metropolitan cities of Minneapolis and St. Paul.
Injuries and Fatalities
Injuries: During the course of the protests and subsequent riots, numerous individuals sustained injuries. Estimates suggest that over 600 people were injured, including both protesters and law enforcement personnel.
Fatalities: There were reports of at least two fatalities directly linked to the violence during the riots, although it is important to note that these numbers may vary based on different sources.
Property Damage Costs
Business Damage: According to various assessments, property damage from the riots was extensive. A report from the Minnesota Department of Employment and Economic Development estimated that around 1,500 businesses were damaged or destroyed. The total cost for business damages was estimated to be between $500 million to $1 billion.
Residential Damage: Residential properties also suffered significant damage. Estimates indicate that approximately 300 homes were damaged or destroyed, with repair costs ranging widely but potentially totaling around $100 million.
Public Infrastructure Damage: Public infrastructure was not spared either; damage to public property (including parks, roads, and municipal buildings) incurred costs estimated at around $15 million.
Insurance Claims: Uninsured or Denied Claims
Many businesses faced challenges with insurance claims following the riots:
A survey conducted by local chambers of commerce indicated that a significant percentage of businesses (around 40%) reported being underinsured or having their claims denied due to exclusions related to civil unrest or looting.
This resulted in many businesses facing substantial financial losses without adequate compensation, contributing further to economic distress in affected communities.
Monetary Losses and Restitution Costs
The cumulative monetary losses incurred by both public entities and private citizens are staggering:
Total estimated losses from all damages (businesses, residences, public infrastructure) could range from approximately $800 million to $1.2 billion, factoring in uninsured losses as well.
Additionally, restitution costs for rebuilding efforts have been projected at several hundred million dollars over time as communities work towards recovery.
Duration of Rioting Under Governor Tim Walz’s Leadership
The rioting began on May 26, 2020, following George Floyd’s death and continued sporadically until early June 2020. The most intense period lasted approximately 10 days, with ongoing protests continuing for weeks thereafter but with varying levels of intensity.
In summary:
Injuries: Over 600
Fatalities: At least 2
Business Damage: $500 million - $1 billion
Residential Damage: Approximately $100 million
Public Infrastructure Damage: Around $15 million
Uninsured/Denied Claims: About 40% of businesses affected
Total Estimated Losses: $800 million - $1.2 billion
Duration of Rioting: Approximately 10 days
Bottom line brother, you can’t fix stupid and you definitely can’t change the minds of the mentally ill, because like the entire Democratic Party today, the damage is irreversible. And before sweet Dorothy responds, Yes Dorothy, like the mentally challenged democrat child shooter who was “registered Republican” there are many thousands of other RINOs who pretend to help change elections in primaries, but make no mistake, they are anything but conservative…
GF: While your exposing all these allegations, why don’t you do the same for Mr. Trump, except his are not allegations. Walz is not running for President and as we all know, the VP does not make major decisions. Rioting can start under anyone’s tenure. It seems it’s a way of life these days.
Shut your mouth policy, where bythe expanded non transparent all political operatives (elites) no better not reason truth with consequences…more fluff with government principalities on transcendent pie in the sky mandates and regulations.
SL: You have too much hate in your heart, which isn’t good for your health. Writing things that are totally untrue about Kamala or her new running mate just because Republicans want to tear down any opponent (that’s Trump’s style) that may be running. Maybe you need to read more factual information before you start demeaning candidates. Having Trump win would be a disaster. Getting us out of our economical problems would be a miracle.
Sorry sweet Dorothy, but as most democrats in America, you again have conveniently mistaken “hate” for disgust. I have many democrats as friends who I like, but am horrified and disgusted with those few who continue to follow and agree with the destruction of America. Biden and Harris put another 7 trillion to push America over the edge, and I’m sure Trump will add another 7 to it. But at least we won’t spend trillions more taking care of millions of illegals as Biden did. You can go back to sleep now dear 😴😴
SL: Feel better?
Altschule: Thanks, I know you are right. Maybe it’s just the Irish in me. I will always fight or defend for the truth, which you don’t get much from Trump or his followers.
We don't get much from you either, Dot. Your post about Walz is a case in point. Maybe you should sit this one out.
Please Altshule, we all have seen enough of your nonsense writing about “Hate” placing all Jews in your hate category. Anyone with a quarter brain can see right through your BS, except Dorothy that is🤔
SL: You got that right!
Expansive, Insightful and Honest….The “ILL EATS” will hate this article.
Nice Work Bill!! 👌
I love Bill's style, refreshing. But I wonder what % of the stock market the little people actually own. I know the Big Three (BlackRock, Vanguard, Fidelity) own about 30-40%. And there are other large funds involved as well. Do we really know how few men actually control the markets?
So it’s not really who owns what percent of what… it’s who controls the ETFs. That is Blackrock, Vanguard and their ilk. You see when you buy something from an ETF, you’re only buying a tracking stock. You don’t really own anything in the company. However, those who control the ETF do have shares and voting rights… And that’s how they control everything.
The bank of Japan "trying to correct its 'error'. " Remember that's coming from the mainstream media, Bloomberg. 35T in debt might suggest there was no error, that's not counting medicare and soc. security either. Referring to the Fed chart: If one was to assume the Fed has always done its job then 1990 would not have been high or low with its Net Worth. So should the Net Worth now be 9 times higher? What is the economy's difference mesured in gold?
As long as the stock market is rising, regardless of the dollar value measuring that rise, it seems the amateurs believe they want to play that game. But the Dow measured in gold appears to suggest they are actually losing.
It seems that high and rising precious metals prices, gold and silver in particular, would militate against the FOMO psychology in the equity and bond markets, acting as both cause and effect(IMO) of the FOMO NO MO trend. Since strong gold and silver prices are also no friend of USD hegemony and will be a symptom of a USD collapse if and when the time comes, it becomes clear why the FOMC would have a strong inclination to manipulate(restrain) gold and silver prices and limit their competitive allure versus Wall Street and the USD.
Paper gold and silver are completely manipulated. Very soon you’ll see paper metals and physical metals diverging because people will just simply refuse to give up the physical for what they’re offering on paper.
Excellent!
The stock market will never crash again, here is why, one push of the button and billions upon billions, massive amounts of honky dory funny helicopter money gets infused across all sectors of the market uplifting the red date line and making it green again.
It’s very simple indeed, if the markets are not sustaining themselves, and it looks like more than a 20% dip is on the way, simply open the side portal door next to the mainframe mother board and switch the button to green, immediately the computers will start buying up a plethora of top company stocks, like the magical 7! Bing bang boom, we are back in business.
You don’t think so?
Ok, try and crash the market then, test me, you’ll fail, I guarantee you, the market will never fall below 40% of its average high, never, and you can take that to the bank Gummy.
The Son of Fred, The American Savior, President Donald Trump has cemented victory! Long Live The King! MAGA! Oh yeah! Wooo!
Good one!
If it is okay (for purposes of a BPR comment), a dual monarchy. Another King, in parallel.
👑 Cash 💰 is king 👑
Keep some powder dry.
It is possible that there will be some epic bargains that will come available.
Have some cash available to buy depreciated assets when they are on sale in the bargain basement of the future.
GF: But,but we don’t know how long the dollar will be king. If I had to guess..not much longer.
“Cash” Dorothy.
Not all BPR readers/subscribers worldwide save, invest or spend using greenbacks.
Currently, as you already know, all fiat confetti paper money faces challenges not too different from Weimar Republic’s papiermarks. It's called Gresham's Law.
In case a graphic illustration is helpful
https://www.bullionvault.com/gold-news/files/06252012-gold-price-in-weimar-marks.png
GF: The history of the Weimar Republic problems were interesting. But 1923 was a long time ago. But who knows, history can often repeat itself!
Excellent work! This was one of your best. Makes you wonder how it has become so skewed and if the FOMC started out that way. Not to mention how and what chaos happens if it was abandoned now?
What does FOMO or FOMO NO NO mean ?
fear of missing out = FOMO
no more = NO MO’
Based on that chart, tell me the system isn’t rigged.
If you look at the data going back over many years you’ ll see that the returns on 3 month and 6 month treasury notes lead the Fed’s rate setting. Currently the Fed funds rate is 5.5% whilst 3 month treasuries have fallen to 5.25% and 6 month treasuries to 5%.
Last October, all these rates were the same. So it’s time for the Fed to catch up with the market.
Look at the record. In 2007 it started to play catch up and carried right on to the bottom in 2009.
Andrew, If the Fed didn't set the rate, what do you think it would be right now?
It looks as though the market is telling the Fed what the rate should be - between 5 and 5.25% currently. But the Fed is slow on the uptake.
As of August 6, the Fed funds rate was 5.33%.
They’re still behind the curve. They need to get ahead if they want to make an impact- 4.75% to 5%. But they don’t on past form . They just follow along with a bit of a lag.
Crystal
Bill, I remember when a country sets their currency's exchange rate by decree rather than allowing it to find it's value in the marketplace there is always an alternate black market for their currency. Is there a black market rate somewhere for the true value of the cost of money. We are at around 5% interest rate, but what do you think prime really is? I would like to hear from your readers as well cause they are a sharp bunch.
My figuring looking back into the 90s one who earned 35K a year compared to today say 63k a year in CAD terms appears substantial. In the 90s I recall a price of a gallon of transmission fluid about .5/hr labour rate approx. Today its 1.5/hr substantial and thats to say nothing of taxes. So whats the value looking ten years out, assuming the rate of dilution continues. In addition today salaries are not reflective of all salaries some less some more including prices of different products, overall the losses are real and the average is getting crushed. Imho
Looking at the price of gold over the last couple decades plus, suggests 16-18% for a positive rate of return ? Maybe higher? Lower?
For my own amusement, I looked for transmission fluid & struck out here (true prices as measured in gold) - http://pricedingold.com/2024/08/05/weekly-update-2-aug-2024/
There is a fairly comprehensive dropdown menu of choices anyone can kill time checking
Thanks for the link. Interesting website by Mr. Vollum.
Thanks
Very clear!
FOMO NO MO FED UH OH DON’T YA KNOW. BUENO Bill.
They want to engineer every day to be an up day. But at the same time, they take away good days for buying.
I guess you can't win when you're battling against the banksters.