In July 2020, the real yield on Fed Funds loans was NEGATIVE 6%. And that was after 40 years of declining yields. The Fed was giving away money...and paying people to take it.
Let's face it. There is no hope of changing the course of the USS Titanic. CONgress and the presidency are controlled by lobbyists and special interests who don't give a rat's ass about the future of our country. They have life rafts ready for their escape when we hit the iceberg.
Are people here like me actually attacking you or just presenting a different point of view? For example, you believe that we must financially support Israel and I believe that we should not be burdening future generations with more debt in order to send money to a country that not only provides it citizens with national health care but also has a Debt/GDP ratio half of ours. That's not an attack. It's just a point of view.
Jim, yes, always try to put the odds in your favor, but remember: ultimately, there is no "safety", just as there is no "justice", "fairness", "equality", or any other of our mental band-aids intended to deal with human insecurities. Best always. PM
I agree. But for me MAX SAFETY MODE offers a quiet place to sit back and watch the world go by. I am pass the point in life where I rush for the next big gain. Cash and a lot of P.M.'s makes life very quiet. You Paul, and Patrick below are both coeerct.
I ran across this statement by FC this morning. I thought it applicable to Bill's comments today:
"Interest payments surpassing the defense budget should be a massive wake-up call. If Congress doesn’t cut spending drastically, skyrocketing yields will bankrupt the nation.”
Since our current president has, like his first term, exacerbated our national debt -- not the least for having attacked a nation no threat to us, now a "tar baby" from which he can't extract us -- a day of reckoning is edging ever closer.
Iran is not a direct threat to mainland USA but, after it was attacked by the US and by Israel, it certainly has become one to its neighbors and evermore to Israel.
Frankly, better had we aided Iran's indigenous rebels in their enduring quest to overthrow Iran's vicious theocracy.
And I'm surprised your admiration of our current president has blinded you from the simple fact that, of all the too-many presidents who indulged in deficit financing, Trump surpassed them all in his first term and is on his way to surpass even that sad achievement in his second.
Stating this fact is not TDS nor is simple criticism of our current president's deportment (e. g., siccing the Justice Department on a former US Olympic contender for having removed a floating piece of debris from the Reflecting Pool)
You guys are missing the point here. Trump is attacking China by making them pay market price for their oil, Venezuela and Iran are the same story. Iran is simply the mechanism. While at the same time putting pressure on communist forces. The EU may not be communist, not so sure since their "leaders" won't leave office when voted out, so you decide are they communist? And immigration is another view of their direction, same as Obama and Biden but opposite Trump. The US could play mister nice guy but China steals IP and then runs US companies out of business with cheap prices. For example silicon metal use in solar and computers, ran Dow Corning out of the solar business after steal IP on the processes. I'm sure Trump has heard from many CEOs what China is doing. Not to mention fentanyl. Wake up this is high integrity warfare! Trump isn't using the honor system and either is the EU.
Official FED/government policy is a "target" rate of 2% inflation per year. So "they" say. Using the Rule of 72, even with "benign", "positive", "stimulative" and implicitly necessary inflation of 2% annually, prices will double in 36 years (72/2=36). Another way of looking at it is this: "We have a target rate of inflation at 2%, because we can't do anything 100% honestly, upfront, and of its own virtue, and therefore, we need a permanent fudge factor." This is not only insidious but also offensive. And everybody nods in solemn agreement, as if Wisdom has bestowed its grace blessedly upon the assembly...
Bill loves to dismiss Nixon as the Devil Incarnate for closing the "gold window" and single-handedly ushering in financial (and therefore also cultural) Armageddon, by doing so. Nixon was merely acknowledging reality, something many of us still have yet to be able to muster. Welcome to the Fourth Turning. Best always. PM
The Feds have announced that it has decided…to decide later. What a beauty. That’s not monetary policy, that’s a weather forecast written by a fortune cookie. President Trump introduces the new Fed Chairman. “Meet Chairman Warsh,” and everyone applauded politely. Trump asks: “What will interest rates do?”
Warsh clears his throat. “Yes Mr. President”
Trump: “Yes… what?”
Warsh “Exactly Mr. President.”
The entire Cabinet nods.
Remember the tariffs?
The Administration announced them with marching bands, fireworks, and commemorative coffee mugs. “We shall eliminate the trade deficit!”
Three months later…imports returned, prices rose. Consumers stare at grocery receipts like archaeologists deciphering ancient curses. But Trump smiles, and says: “This proves the plan is working.”
Consumers: “How?”
Trump: “We’re still talking about it,” and trims the ribbon at another press conference. Ribbon-cutting has become the nation’s fastest-growing industry.
If GDP slows, the Administration says that we’re entering a period of strategic moderation, then the translator leans toward the reporters and says, “He means… slower.”
I enjoy financial television. They always have dramatic music.
Markets are uncertain, well, that’s the one thing markets have never been uncertain about. They’re very committed to uncertainty.
The bond market is fascinating. For forty years people kept buying bonds, then suddenly…gravity remembered it had a job.
I like the phrase: “The market is pondering,” it sounds very intelligent. Like the market has retired to a cabin to reflect on existence. Meanwhile, It’s just twelve million people hitting the sell button at once.
Trump mentioned that US believes in the laws of economics, investments, saving accounts, and the future of children. That’s encouraging. He says it the same way a pirate says he believes in parking regulations, in other words, we voted against gravity.
Thunderous applause from the Cabinet.
Six months later…the market falls through the basement, Will Harper receives a formal apology.
I may be dumber than a bag of hammers but how is Iran a direct threat to the US? They do not have the capability of attacking the US. And off we had listen to Washington and Jefferson we wouldn't have numerous bases in the Mideast which have been attacked by Iran only after Trump and Netanyahu attacked them.
As I read your question I was filled with a building dread. I was afraid that one of our fellow readers would trot out a favorite: "We have to fight them over there, so that we don't have to fight them over here."
Do you blame them? Have you no sense of history? The CIA overthrew the democratically elected Iranian government in 1953 and installed a brutal dictator. Then the US backed the Iraqi invasion of Iran which resulted in over a million Iranian casualties. Just recently Trump and Netanyahu bombed Iran during negotiations and killed over 160 schoolgirls. Imagine if that happened to the US? What would the response be? Turn the other cheek?
The communists are a major threat to our democracy! Recently they spent $34 million to get rid of a Congressman who was trying to save our country, trying to expose the communist led Epstein blackmail operation which had compromised many in DC. Oh, that wasn't the commies it was AIPAC and Mossad (JD Vance just said Mossad was probably behind Epstein).
The reference was to Massive. And why the hell does everyone running for office have to swear allegiance to Israel? What about the US? I've repeatedly asked this question: why are we sending taxpayer money to a country with a Debt/GDP ratio half of ours and a national health care system while many Americans struggle with medical bills and insurance costs? There are plenty of rich Israelis vacationing throughout the world. Can't they pay more in taxes to fund their government instead of relying on welfare from US taxpayers?
The disappointing trade numbers aren't surprising. The trade deficit is the mirror image of capital inflows. As long as the U.S. runs low national saving (especially large fiscal deficits) relative to investment, foreign capital has to finance the gap. Tariffs don't change that accounting identity; higher national saving is what ultimately narrows the trade deficit.
Unfortunately if Trump were impeached JD "the Shape Shifter" Vance takes over.Vance was placed in power by Peter Theil and the Tech Bros to facilitate their complete takeover of the government. Vance goes on Joe Rogan to curry favor and announces that Mossad/CIA we're behind the Epstein blackmail operation. He then returns to DC and does nothing about it.
How about listening to Washington's advice to avoid foreign entanglements? Why bring up the communists? Iran is not a communist country and doesn't have the means to strike the US. And if you're worried about external threats maybe you should take a look at Donnie's deal with Saudi Arabian to give them tbe ability to enrich nuclear fuel. Weren't most of the 9/11 hijackers Saudis?And speaking of communists it was our crooked politicians and greedy corporations who sent our manufacturing base to China so the greedy bastards could increase their profits. Damn, even billionaire Donnie had his Bibles printed in China just to make an extra buck.
Let's face it. There is no hope of changing the course of the USS Titanic. CONgress and the presidency are controlled by lobbyists and special interests who don't give a rat's ass about the future of our country. They have life rafts ready for their escape when we hit the iceberg.
Patrick. Ease up mate . These comment sections are for everyone and entertaining - generally.
Be shorter and more succinct and they might get read.
Good one James, this screaming idiot has got to go.
He is a fool.
Are people here like me actually attacking you or just presenting a different point of view? For example, you believe that we must financially support Israel and I believe that we should not be burdening future generations with more debt in order to send money to a country that not only provides it citizens with national health care but also has a Debt/GDP ratio half of ours. That's not an attack. It's just a point of view.
It looks to me that staying in the MAX SAFETY MODE for now is the best recipe for a good nights sleep.
Jim Marshall
Jim, yes, always try to put the odds in your favor, but remember: ultimately, there is no "safety", just as there is no "justice", "fairness", "equality", or any other of our mental band-aids intended to deal with human insecurities. Best always. PM
I agree. But for me MAX SAFETY MODE offers a quiet place to sit back and watch the world go by. I am pass the point in life where I rush for the next big gain. Cash and a lot of P.M.'s makes life very quiet. You Paul, and Patrick below are both coeerct.
Jim
Worrisome times.
I ran across this statement by FC this morning. I thought it applicable to Bill's comments today:
"Interest payments surpassing the defense budget should be a massive wake-up call. If Congress doesn’t cut spending drastically, skyrocketing yields will bankrupt the nation.”
Since our current president has, like his first term, exacerbated our national debt -- not the least for having attacked a nation no threat to us, now a "tar baby" from which he can't extract us -- a day of reckoning is edging ever closer.
JImm, what times aren't worrisome? I'm coming up on 74 and don't ever recall times that weren't worrisome in one degree or another. Best always. PM
Patrick, We differ.
Iran is not a direct threat to mainland USA but, after it was attacked by the US and by Israel, it certainly has become one to its neighbors and evermore to Israel.
Frankly, better had we aided Iran's indigenous rebels in their enduring quest to overthrow Iran's vicious theocracy.
And I'm surprised your admiration of our current president has blinded you from the simple fact that, of all the too-many presidents who indulged in deficit financing, Trump surpassed them all in his first term and is on his way to surpass even that sad achievement in his second.
Stating this fact is not TDS nor is simple criticism of our current president's deportment (e. g., siccing the Justice Department on a former US Olympic contender for having removed a floating piece of debris from the Reflecting Pool)
Jimm , I wouldn't be replying to or reading what this idiot Mr G is screaming about if I were you.
😂😂😂👏
You guys are missing the point here. Trump is attacking China by making them pay market price for their oil, Venezuela and Iran are the same story. Iran is simply the mechanism. While at the same time putting pressure on communist forces. The EU may not be communist, not so sure since their "leaders" won't leave office when voted out, so you decide are they communist? And immigration is another view of their direction, same as Obama and Biden but opposite Trump. The US could play mister nice guy but China steals IP and then runs US companies out of business with cheap prices. For example silicon metal use in solar and computers, ran Dow Corning out of the solar business after steal IP on the processes. I'm sure Trump has heard from many CEOs what China is doing. Not to mention fentanyl. Wake up this is high integrity warfare! Trump isn't using the honor system and either is the EU.
Opinions are not facts
Yes he might succeed, and ihave a very close Persian friend who is hoping he does. But i believe he is as likely to start WWIII.
Good points but good discourse is nice discourse
Touché
Official FED/government policy is a "target" rate of 2% inflation per year. So "they" say. Using the Rule of 72, even with "benign", "positive", "stimulative" and implicitly necessary inflation of 2% annually, prices will double in 36 years (72/2=36). Another way of looking at it is this: "We have a target rate of inflation at 2%, because we can't do anything 100% honestly, upfront, and of its own virtue, and therefore, we need a permanent fudge factor." This is not only insidious but also offensive. And everybody nods in solemn agreement, as if Wisdom has bestowed its grace blessedly upon the assembly...
Bill loves to dismiss Nixon as the Devil Incarnate for closing the "gold window" and single-handedly ushering in financial (and therefore also cultural) Armageddon, by doing so. Nixon was merely acknowledging reality, something many of us still have yet to be able to muster. Welcome to the Fourth Turning. Best always. PM
The Feds have announced that it has decided…to decide later. What a beauty. That’s not monetary policy, that’s a weather forecast written by a fortune cookie. President Trump introduces the new Fed Chairman. “Meet Chairman Warsh,” and everyone applauded politely. Trump asks: “What will interest rates do?”
Warsh clears his throat. “Yes Mr. President”
Trump: “Yes… what?”
Warsh “Exactly Mr. President.”
The entire Cabinet nods.
Remember the tariffs?
The Administration announced them with marching bands, fireworks, and commemorative coffee mugs. “We shall eliminate the trade deficit!”
Three months later…imports returned, prices rose. Consumers stare at grocery receipts like archaeologists deciphering ancient curses. But Trump smiles, and says: “This proves the plan is working.”
Consumers: “How?”
Trump: “We’re still talking about it,” and trims the ribbon at another press conference. Ribbon-cutting has become the nation’s fastest-growing industry.
If GDP slows, the Administration says that we’re entering a period of strategic moderation, then the translator leans toward the reporters and says, “He means… slower.”
I enjoy financial television. They always have dramatic music.
Markets are uncertain, well, that’s the one thing markets have never been uncertain about. They’re very committed to uncertainty.
The bond market is fascinating. For forty years people kept buying bonds, then suddenly…gravity remembered it had a job.
I like the phrase: “The market is pondering,” it sounds very intelligent. Like the market has retired to a cabin to reflect on existence. Meanwhile, It’s just twelve million people hitting the sell button at once.
Trump mentioned that US believes in the laws of economics, investments, saving accounts, and the future of children. That’s encouraging. He says it the same way a pirate says he believes in parking regulations, in other words, we voted against gravity.
Thunderous applause from the Cabinet.
Six months later…the market falls through the basement, Will Harper receives a formal apology.
I may be dumber than a bag of hammers but how is Iran a direct threat to the US? They do not have the capability of attacking the US. And off we had listen to Washington and Jefferson we wouldn't have numerous bases in the Mideast which have been attacked by Iran only after Trump and Netanyahu attacked them.
As I read your question I was filled with a building dread. I was afraid that one of our fellow readers would trot out a favorite: "We have to fight them over there, so that we don't have to fight them over here."
...how many times must I remind you Cartero...
the government you ignorantly claim is not a threat...
Approves of giant murals on billboards and sides of skyscrapers reading "Death to America".
Do you blame them? Have you no sense of history? The CIA overthrew the democratically elected Iranian government in 1953 and installed a brutal dictator. Then the US backed the Iraqi invasion of Iran which resulted in over a million Iranian casualties. Just recently Trump and Netanyahu bombed Iran during negotiations and killed over 160 schoolgirls. Imagine if that happened to the US? What would the response be? Turn the other cheek?
...that's irrelevant.
The point is they are indeed a threat...
-
Even if their scorn would be justified, what would you suggest?
"Wow you mad crazy Mullahs, we're so sorry about that whole Shah thingy,
I mean, we know you guys in the 1950's were headed towards communism...
So the McArthy's and Regans simply wanted to put a stop the contagion.
-
In America communism was just not trendy, like it is today.
As a matter of fact, back then our military actually hunted and killed communists.
It was a different time, a different era...
-
You are obviously only considering one POV of a multifaceted problem...
The communists are a major threat to our democracy! Recently they spent $34 million to get rid of a Congressman who was trying to save our country, trying to expose the communist led Epstein blackmail operation which had compromised many in DC. Oh, that wasn't the commies it was AIPAC and Mossad (JD Vance just said Mossad was probably behind Epstein).
Andy Levin is a anti-Israel agitator... he held a seat in the House.
He is a liberal Democrat.
The ousting was political.
Not so sure Cartero understand this...
The reference was to Massive. And why the hell does everyone running for office have to swear allegiance to Israel? What about the US? I've repeatedly asked this question: why are we sending taxpayer money to a country with a Debt/GDP ratio half of ours and a national health care system while many Americans struggle with medical bills and insurance costs? There are plenty of rich Israelis vacationing throughout the world. Can't they pay more in taxes to fund their government instead of relying on welfare from US taxpayers?
The disappointing trade numbers aren't surprising. The trade deficit is the mirror image of capital inflows. As long as the U.S. runs low national saving (especially large fiscal deficits) relative to investment, foreign capital has to finance the gap. Tariffs don't change that accounting identity; higher national saving is what ultimately narrows the trade deficit.
Yep - more fiat currency is the answer!
My view - impeach Trump NOW!
Unfortunately if Trump were impeached JD "the Shape Shifter" Vance takes over.Vance was placed in power by Peter Theil and the Tech Bros to facilitate their complete takeover of the government. Vance goes on Joe Rogan to curry favor and announces that Mossad/CIA we're behind the Epstein blackmail operation. He then returns to DC and does nothing about it.
You'll get your chance soon enough. Best always. PM
Did you forget McCain - so glad he is gone! Probably didn't want to hear that either. My views you wouldn't want to hear either.
“And stocks?
Where is the gravity there?”
Ain’t THESE the trillion-dollar questions?
Well the KOSPI is off 70%.
“When a market is near an all-time high, the upside is mostly on the downside, if you know what we mean.”
Amen, Mr. Bonner. We do indeed know what you mean.
How about listening to Washington's advice to avoid foreign entanglements? Why bring up the communists? Iran is not a communist country and doesn't have the means to strike the US. And if you're worried about external threats maybe you should take a look at Donnie's deal with Saudi Arabian to give them tbe ability to enrich nuclear fuel. Weren't most of the 9/11 hijackers Saudis?And speaking of communists it was our crooked politicians and greedy corporations who sent our manufacturing base to China so the greedy bastards could increase their profits. Damn, even billionaire Donnie had his Bibles printed in China just to make an extra buck.
Little bit off topic but with today’s news of US treasury supporting Yen. What are the chances they are manipulating the gold market 🤔
We are are definitely going into the wild frontier. Best I can recall, pioneers got arrows in their back....
Ease up mate. Short and particular is best. No one has need to visit monologues and effective message is lost. If in fact it’s read. Too long mate.