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Mass Money Debauchery; Got Portfolio?
Topic Started: Oct 30 2016, 12:44 PM (186 Views)
Catseye
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Pisa-Carp
Although I understand this, I don't have the education to judge how seriously you should take it. But it seems like necessary reading for especially anyone who has a portfolio.

I kind of think it's an oversimplification, and a lot has to happen before a 'great crackup'. But :shrug: . . .
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From Economic Prism (excerpted): http://economicprism.com/mass-money-debauchery/

The present day offers the opportunity for many incredible experiences. Perhaps one of the most rewarding of all is bearing witness to the final days before the greatest economic crackup the world's ever known. Not since Nero clipped coins in 64 A.D. and fiddled as Rome burned has there been such an intolerable collection of dingleberries in imperial office.

John Maynard Keynes wrote: "There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency."

Here we are, nearly 100 years later, and the currency has been near fully debauched. What's more, the basis of society has been completely overturned. Gawping at the Presidential debate earlier this week made this all too apparent.

Two hominids, panting at the watering hole, squawking and shrieking over who gets to divvy up and dole out the peanuts. One wants to transfer wealth from the rich via payments to the poor. The other wants to rebuild the nation's crumbly airports and bridges using money from somewhere.

To Trump's credit, he did point the spotlight on the economy and the Fed [and] made a sincere attempt to bring the Fed's destructive feedback loops to the people's attention.

"Now, look, we have the worst revival of an economy since the Great Depression. And believe me: We’re in a bubble right now. And the only thing that looks good is the stock market, but if you raise interest rates even a little bit, that's going to come crashing down . . . When they raise interest rates, you're going to see some very bad things happen, because the Fed is not doing their job."

Unfortunately, what Trump's talking about -- specifically, debauching the currency -- is largely not understood. Because, as Keynes elaborated, "The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."

Cheap credit, courtesy of the Fed, has pushed financial markets far beyond what the real economy can sustain.

In short, the Fed serves no worthy purpose. Given the current arrangement it is painfully clear they should have raised rates years ago.

The Fed's policies of mass money debauchery have not stimulated the economy. To the contrary, they've stimulated a financial system that's so lopsided that markets will convulse when rates start to rise.

This means your investment portfolio of bonds, stocks, and real estate will get destroyed. What then?




Edited by Catseye, Oct 30 2016, 01:00 PM.
"How awful a knowledge of the truth can be." -- Sophocles, Oedipus Rex
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Larry
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Mmmmmmm, pie!
The Dodd Frank Act has made it almost impossible for small businesses to get financing, and placed a huge burden on smaller banks that almost paralyzes them.

I've said it for several years now - get your money out of the stock market, and get your money out of banks.
Of the Pokatwat Tribe

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Catseye
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Yeah, sending Christopher Dodd and Barney Frank in to protect the public is like sending cirrhosis in to protect the liver.
"How awful a knowledge of the truth can be." -- Sophocles, Oedipus Rex
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Aqua Letifer
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ZOOOOOM!
Be curious to hear what jon would have to say about this.
I cite irreconcilable differences.
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Steve Miller
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Bull-Carp
Larry
Oct 30 2016, 12:58 PM
The Dodd Frank Act has made it almost impossible for small businesses to get financing,

I've never had any trouble. :confused:
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Larry
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Mmmmmmm, pie!
You would if you were trying to start out today.
Of the Pokatwat Tribe

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Steve Miller
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Bull-Carp
Larry
Oct 30 2016, 12:58 PM
The Dodd Frank Act has made it almost impossible for small businesses to get financing,

I've never had any trouble. :confused:
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Jolly
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Geaux Tigers!
The ROI on good farmland has outpaced the ROI of a S&P 500 ETF for many years. About 30 or 40 to be a bit more precise.

So, to say real estate will be worthless is a bit disingenuous...
The main obstacle to a stable and just world order is the United States.- George Soros
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jon-nyc
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Cheers
Larry
Oct 30 2016, 12:58 PM
I've said it for several years now - get your money out of the stock market, and get your money out of banks.
Yes, you've been saying that since the S&P was at 675.

You used to say buy gold. I take it you're not giving out that advice anymore?

In my defense, I was left unsupervised.
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Larry
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Mmmmmmm, pie!
Sure I am. I still buy it. I just don't buy it the way you may think I do...
Of the Pokatwat Tribe

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