Saturday, January 31, 2009

Zimbabwe Ben Sleeps.

The monetary base was $1,742,684 million on 14 January 2009 and $843,841 million on 10 September 2008, a 106.52% increase in 18 weeks, which compounds to a 713% annual rate. The Fed's money machine is slowing down. Again, what are the deflationistas talking about?


Anonymous said...

"what are the deflationistas talking about?"

Oh let see, home prices are still falling, HELOC are not coming back, NIJA loans are not coming back, rising foreclosures, rising unemployment, rising inventory, high consumer debt loads, stagnant income, falling shipments, delveraging, rising bankruptcies, rising savings, insolvent global banking system, 40% of the worlds wealth going up in a puff of smoke, derivatives, credit card lenders cutting limits, people with good credit are not borrowing and the one who have bad credit can't get a loan. Money and credit are not the same thing, Ben is pissing in the ocean of bad debt at this point. This is about a 3-4 generational event caused by a massive credit bubble that has now bust that will cause prices to overshoot on the downside,
Hyperinflation is coming but that is still a few years away, until then cash is king. There is a possibility that the government may cause the bond market to blow up due to excessive supply, driving interest rates higher, crashing the stock market and the dollar if Ben tries to hold down the long end of the curve resulting in a currency collapse all at the same time. Boom

Junior said...

Anonymous said... "Ben is pissing in the ocean of bad debt at this point"

...and Obama's team of tax-impaired Rubin fanboys are the ones holding his dick for him to make sure he doesn't drip.

Waiting patiently for the bond market to give. Also waiting for my CA tax refund check but hey, let's not hold our breath...

Junior said...

Now I get it! ZB was simply taking a nap and resting up for THE BIG ONE.

It makes perfect sense.