Podcast: Play in new window
Merkel (The Turtle) rules out eurobonds for ‘as long as I live’
Does she think, as American Indians would say ” Its a good day to die ” or sleep on it
and think. ’Maybe tomorrow will be a better one.’ (After all Sleep is the Brother of Death)
Dear Mr. Mystic:
Whether or not it is true, Willie Sutton (an infamous American bank robber of the last century) is reported to have said he robbed banks “because that’s where the money is.” Whether or not it is true, Germany has been identified as the place “where the money is” in Euroland.
I think I shall start referring to the Eurozone (ex Germany) as “Suttonville”, as the logic seems analogous.
Socialism is so heartwarming an idea (until “they” come knocking for YOUR STUFF).
…a bit of good news???
…DEFLATION REMAINS A BIGGER THREAT THAN HIGH INFLATION
(Still a minority view….but the one that makes the most sense to me)
You are looking better. Feeling so?
Can you Explain to me what Deflation will look like ?
You cannot have deflation if the money supply is increasing unlesss the value of your currency is rising even faster !? But where do you measure all this from ? What’s the baseline ?
I think the “look and feel” will depend on how numerous variables play-out (time lapse to deleverage the system being one of them), so there is no simple answer. Also, the impact will be interpreted differently, based on your level of indebtedness and/or your ability to access credit. (If you’ve got cash or access to credit, there will be bargains to be had).
But in general:
1. Widespread access to credit/money remains encumbered or becomes increasingly difficult;
2. Wealth creators (and other business ventures) remain defensive (payrolls remain lean or contract);
3. Ability to pay/ purchase remains encumbered (demand is always present, the ability to “execute” is not);
4. Default rates remain escalated or rise;
5. Industrial production contracts;
6. Commodity prices remain under pressure or fall;
7. Prices for manufactured goods and services remain under pressure or fall;
8. Banking sector profitability (and stability) remains tenuous; and,
9. Tax revenues remain encumbered or contract (limiting non-debt based solutions).
goto step 1.
There are countless subplots that can be inserted as well. The loop will continue until overall systemic debt levels become sustainable again.
Tack-on demographics (the West is getting old); unfunded social welfare obligations (the old folks won’t let this one slide); deindustrialization of Western economies; and, real or created energy resource constraints, and I see deflationary scenarios to the horizon (assuming the powers-that-be can maintain “order”. If they can’t, it’s anyone’s guess what happens.)
I don’t think of it as `socialism` …… I think of it as `civilization`.
I have the Maugeri piece open on my `energy1` tab ………. It looks like a pile of poo to me. Same old, same old …….. mixing up `reserves` (stock) and `supply` (flow). (I really wonder why they do it~!?)
I don’t even think about people who fear inflation any more.
I still feel tired a lot of the time.
Have you been following Izi Kaminska’s `abundance` posts on Alphaville (I am struggling to understand them)~!?
Nick – Please read some of this article.
You’ve got a double whammy going on IMO. Clearly to some degree this economics stuff is indeed depressing and surely even more so for Europeans than us Americans. ( Plenty bad enough even here for those who are more aware than most. )
Throw on top the after affects of by-pass surgery – no damn wonder you’re still feeling tired a lot of the time.
Yes, I read in ……… oh, something on line; that 60% of by-passers get depression.
I feel no sign of it (but told Mrs. Mystic, so she could watch out for it).
We could not imagine why it should be so …………. after all, the buggers just saved your life~!?
Although I visit FTA semi-regularly, I have not been following her posts specifically. Is the series worth a read? If so, I will!
I’ll say no.
If you had ………. fair enough, but I can’t recommend a special effort.
Have a go at this instead – http://cfapodcast.smartpros.com/web/live_events/Annual/Pettis/index.html
What a stunningly intelligent talk. Thank you for the link! I hope everyone will take the time to watch it. I caught very little ”backfilling with bullshit” in his views and presentation. He genuinely seems to “get it”. I found his comments about the “people” ultimately paying the debts particularly lucid. “Something” never comes from “nothing”. Therefore, when “something” is needed, the need must be filled by the folks who have “something”. Expropriation (for the greater good of course) is best utilized in an obscure manner…(best not to “jazz” the masses that have “something” to protect.
It is one of those `things` that I cannot embed into a posting. (and I doubt many people would follow a link (even with a mega-mystic recommendation)).
I have been making myself officially poorer and poorer every year for five years now.
A very prudent strategy; one that I too have been practicing.
I think that the German’s will hang on until there is a transformed Europe. It might fall apart first and become a big enough problem that it transforms Europe faster than everyone thought. So that means higher US dollar or gold or both until all the shit happens ??