(Crazy) economy news

[Skybird]

The big bet.


http://translate.google.com/translat..._12369393.html

[Skybird]

Andreas Untzerberger from Austria writes in his blog and the Auistrian "Börsenkurier"

Even if we seem to have gotten used to it, the unrestrained printing of money by many central banks remains the greatest threat to our economic future. It has been running on a large scale every year since 2008 and has accelerated again rapidly since the outbreak of the Corona crisis.

Since 2008, the total assets of all central banks in the euro area, Great Britain and the USA have increased sixfold on average! And since March alone, growth has accelerated again, for example at the ECB from 4.6 to 6.3 trillion. That is threatening - even if many are currently hoarding money out of fear and therefore the negative consequences will not occur as long as they do so. But the amount of goods and services in any case has not increased at nearly the same rate. Or even shrinking since March. Ultimately, this must lead to enormous inflation - as in the interwar period after a couple of "Roaring Twenties", when a similar attempt was made to make the costs of war disappear by printing money and creating money in the books.

What is particularly frightening is that almost none of the money created goes into real investments that could later turn out to be profitable. The main ports of destination for the flow of money are:

-Bonds from deficit states (which channel an ever larger part of the budget into the unproductive welfare system);
-Real estate (whose prices are skyrocketing);
-Gold (detto);
-Electric cars and wind turbines (which are supposed to be beneficial to the climate, but certainly do not lead to additional added value);
-Stock exchanges (where it is uncertain how much of this will go into real productivity gains),
-the barely disguised nationalization of companies (such as in aviation, although it will not recover for a long time);
-and subsidies to non-sustainable company structures (which are able to mobilize strong lobbies, supervisory boards and trade unions).

A clever economist recently compared that to politically correct language manipulation, which, however, cannot cause the genders to become one and the same. Nevertheless, it seems extremely unlikely that any politician in Europe or the USA will soon admit that there can be no central bank trick that could prevent the loss of prosperity caused by the crises from necessarily reaching the people.

Many have long suspected this fact and are therefore desperately looking for ways to cushion these losses for their own families.

https://www.andreas-unterberger.at/2...-gelddruckens/

[Skybird]

Insidious Tax: Preparing the Ground for Higher Inflation

http://translate.google.com/translat..._12420508.html

Radical forces are pushing for their goals to be achieved quickly through tough intervention. They have already arrived in monetary policy (theory). For example, in the form of “modern monetary theory” or “MMT” for short). According to her, the state should print the money it needs itself instead of collecting taxes or borrowing from banks. At its core, the MMT boils down to withdrawing the state loan from any market valuation. In practice, the central bank would become a subdivision of the Ministry of Finance - a situation that was common in many places up until the 1970s, and which repeatedly resulted in high, sometimes very high inflation

A foreseeable sacrifice is probably the free society, the free market economy (or what is left of it). If civil and entrepreneurial freedoms are increasingly restricted in favor of the state, the political zealots, the radicals, receive a tailwind. And with that, the danger increases that the destructive effects of inflation will be used for political purposes - to overthrow civil society.

[Skybird]

https://translate.google.com/transla...kensystem_bebt

But what is the way out then? As I see it, the absolute debt of almost 300,000 billion, which means a relative debt of almost 400 percent of global GDP, sooner or later inevitably leads to a collapse of the financial system, because such a mountain of debt cannot realistically be removed. What does that actually mean?
First, it is said that in the last decades in which this mountain of debt has arisen, we have created huge sums of money that are not sufficiently offset by real values. Second, it means that there has been no economically profitable use for a good part of these funds, but that the debtors have wasted the money and will be unable to serve the creditors. Therefore, the mountain of debt will have to be removed by a huge wave of bankruptcies.


It has always been so , as the excellent analysis of credit history over the past 800 years by economists Carmen M. Reinhart and Kenneth Rogoff shows. Nobody knows when that will happen, because prognoses never work in complex systems, you could just as easily try to predict when you will fall in love again. But if the scenario described above occurs, bankruptcies of up to 30 percent of all companies with corresponding mass unemployment can be expected; on the way there, the banking system collapses under the pressure of write-offs and becomes insolvent and illiquid itself, and payment transactions then fail.


Whether this scenario occurs suddenly or gradually, as the G30 paper implicitly suggests, which suggests making the bankers the " inner party " of the new financial socialism, does not matter. Because sooner or later the states will be forced to nationalize the banking system and introduce sovereign money as in the GDR. The state determines the amount of money and distributes loans to the companies. Many see it as inevitable that this will happen because of the huge financial difficulties. One of the main demands of Karl Marx in the “Communist Manifesto” would then be fulfilled.

[Skybird]

Gamestop - don't stop the game!

https://translate.google.com/transla...as-Empire.html

To protect the established sharks, the system meanwhile has started to play foul against private investors:

https://translate.google.com/transla...r-Anleger.html

[Skybird]

The FED fiddles while the Dollar burns.


https://www.zerohedge.com/markets/do...t-last-forever

[Skybird]

Paper value owners must watch out because they have build their dream castle on quick sand. Gold holders must watch out due to the danger of state criminals installing another prohibition. Stock holders must watch out because of companies imploding are not value and the stock ownership cannot be hidden from the state: penalties on stocks can be installed like on any other known property, in many forms, mostly "taxes" and trading fees. After the second world war, Germany for example had land and house owners with debt-free property being plundered with state-installed mortgages of up to 50%, and stocks being obviously devalued for as obvious reasons.

No matter what our strategies are and were, stocks or ETFs or cash or bonds or diversification or bitcoins or gold or land/house property: WE ALL ARE IN HIGH DANGER. The whole system is to suffer a core meltdown.

https://www.zerohedge.com/markets/crazy-days-money

One reason bitcoin holders see bitcoin becoming the new money is the gold prices’ muted response to increasing monetary debasement, compared with that of bitcoin. It is also argued that when investors would previously hedge fiat debasement by buying gold, they are now buying bitcoin.
There may be some truth in the deflection of buying from gold into bitcoin. But the argument fails when it is realised that the vast majority of buyers of bitcoin anticipate selling for a profit in the buyers’ base currency. - [Ha! I am telling this since years!] - The similarity is not with physical gold, but with investing in mines, ETFs and paper gold.
The real reason for gold’s underperformance is the establishment’s long-established antipathy towards it, something that should serve as a warning to hodlers of bitcoin. To regard gold as sound money is to turn one’s back to Keynesian macroeconomics, something the US Government, with its interest of promoting and retaining dollar hegemony has actively discouraged. In order to absorb demand for physical gold it has fostered the growth of paper markets, which can be expanded by the bullion banks at will. This policy goes beyond precious metals and includes base metals and other industrial raw materials as well, allowing the dollar to retain a more stable value measured against them than would otherwise be the case.

[Rockstar]

This is over a month old but it may not be over just yet, Joe Foster Portfolio Manager, VanEck International Investors Gold Fund thinks there maybe risk of hyper inflation and gold could go as high as $3,400 an ounce this year.

https://www.kitco.com/news/video/show/Outlook-2021/3160/2021-01-08/Hyperinflation-is-real-risk-gold-price-to-climb-as-high-as-$3400

[Skybird]

Gold prices soaring has been predicted since years, and while it went up a bit, it failed to do so at the ammounts predicted. States and central banks will not allow it to happen, since it would be a most obvious non-confidence vote for the paper currencies Dollar and Euro and all the other illusory payment tokens.

I take it for granted that the prices for gold get very heavily manipulated to keep them in check. That last but not least also means manipulation of demand bny strategically buying and selling huge deposits of gold, and paper market destraction operations, to call them this way. At leats in the West. Russia for exmaplek seems to play it much more serious , so do a number of Asien states. They try to disconnect from the dollar and indeed hold their gold, most of it, even increase it.

Before they let it go that high in price, they will prohibit private ownerhsip. Solidarity, social justice and the common good and all those phrases, you know. Hyperinflation as the ounsihement for sutpid finance politics must be taken by all, even by those trying to save themsleves by beign more intelligent and rosnsibkle: by trying to get prepared. It cannot be that these do not show their solidarity with the stupids and escape the havoc: by havign been prepared by their own means ans repsnsiblity. Self-responsibility? Where would it lead if we allow self-responsibility...??

If the price would not be manipulated, I am quite certain it would stand already somewhere between 7000 and 14000 Dollars - if not even significantly more.

Instead, they allowed many other paper stuff bubbles to form up again, and the property market is hopelessly overheated. They are the price for keeping "trust" in paper currency. In the US, people live to much wider degrees on credit, than over here, and if you tlak of saving, you almopst get aliughed at. But Corona maybe will end that. Many private households are drownign in different debts of theirs for different credit card companies. those holding mortages for small homes and not ebing able tom pay them - good night.

The high prices wealthier people accept to pay for certain stocks and property, only illustrate one thing: how desperately everybdoy seeks for a way to preserve his savings and converting his paper currency "welath" into somethign material of real welath (=bartering power), and not beeing punished for owning paper currency by having to pay "negative interest". As if something like negative interest could even exist. By the meaning of the term "interest", it must always be positive. Interests are positive by defintion. Else they are no interests.

All these things have been pushed (perverted) to way too clever standards. We are too clever. And its our witty, super-bright cleverness that will destroy us.


The times are near when many people will learn the bitter lesson that paper currency and cryptocurrency will not by them stuff to eat, and stuff of real value. Because then nobody will give away something for nothing.

I admit I am very worried, and afraid. A lot of savings will be lost, with all the consequences for your and my higher age savings and life expectancy cuts. And no ordinary man will escape from it - only those at the top of the food chain who are responsible for this decades-long mulling of penultimate desaster. The hyperinflation of the 20s last century, was regional, becasue the potics causign it were regional. Today these things havbe been piushed to global dimensions, and so the desaster will unfold globally. Thats why I wnat pltlkicians beign keot at an ultra-short line, and am agaunst big state and super-national political organisations. I somebody messes it up on this scale, the entire planet is affected, not just one region. Power to the local regions! And keep it there! And keep any taxes there, too! And make any relation between state and citizen a law contract that can be sued for in case of violation! Hold polticla amdinstrators perosnally accountable with their private wealth and property! Do not accept decision-makers exemtping themselves from the consequences of their decisions! Same for corporation managers!



"I take the political responsibility" today is just an empty phrase that means nothing.The yget away with whatever it was. Thjey cna keep their wins and gains. They miust not comepnsate, they must not fear court punsihement, and they can even return from another direction, and continue. "They are accepting resposibility?" They explicitly refuse to do so.

[Rockstar]

More on gold

[3catcircus]

Originally Posted by Skybird

Gold prices soaring has been predicted since years, and while it went up a bit, it failed to do so at the ammounts predicted. States and central banks will not allow it to happen, since it would be a most obvious non-confidence vote for the paper currencies Dollar and Euro and all the other illusory payment tokens.

I take it for granted that the prices for gold get very heavily manipulated to keep them in check. That last but not least also means manipulation of demand bny strategically buying and selling huge deposits of gold, and paper market destraction operations, to call them this way. At leats in the West. Russia for exmaplek seems to play it much more serious , so do a number of Asien states. They try to disconnect from the dollar and indeed hold their gold, most of it, even increase it.

Before they let it go that high in price, they will prohibit private ownerhsip. Solidarity, social justice and the common good and all those phrases, you know. Hyperinflation as the ounsihement for sutpid finance politics must be taken by all, even by those trying to save themsleves by beign more intelligent and rosnsibkle: by trying to get prepared. It cannot be that these do not show their solidarity with the stupids and escape the havoc: by havign been prepared by their own means ans repsnsiblity. Self-responsibility? Where would it lead if we allow self-responsibility...??

If the price would not be manipulated, I am quite certain it would stand already somewhere between 7000 and 14000 Dollars - if not even significantly more.

Instead, they allowed many other paper stuff bubbles to form up again, and the property market is hopelessly overheated. They are the price for keeping "trust" in paper currency. In the US, people live to much wider degrees on credit, than over here, and if you tlak of saving, you almopst get aliughed at. But Corona maybe will end that. Many private households are drownign in different debts of theirs for different credit card companies. those holding mortages for small homes and not ebing able tom pay them - good night.

The high prices wealthier people accept to pay for certain stocks and property, only illustrate one thing: how desperately everybdoy seeks for a way to preserve his savings and converting his paper currency "welath" into somethign material of real welath (=bartering power), and not beeing punished for owning paper currency by having to pay "negative interest". As if something like negative interest could even exist. By the meaning of the term "interest", it must always be positive. Interests are positive by defintion. Else they are no interests.

All these things have been pushed (perverted) to way too clever standards. We are too clever. And its our witty, super-bright cleverness that will destroy us.


The times are near when many people will learn the bitter lesson that paper currency and cryptocurrency will not by them stuff to eat, and stuff of real value. Because then nobody will give away something for nothing.

I admit I am very worried, and afraid. A lot of savings will be lost, with all the consequences for your and my higher age savings and life expectancy cuts. And no ordinary man will escape from it - only those at the top of the food chain who are responsible for this decades-long mulling of penultimate desaster. The hyperinflation of the 20s last century, was regional, becasue the potics causign it were regional. Today these things havbe been piushed to global dimensions, and so the desaster will unfold globally. Thats why I wnat pltlkicians beign keot at an ultra-short line, and am agaunst big state and super-national political organisations. I somebody messes it up on this scale, the entire planet is affected, not just one region. Power to the local regions! And keep it there! And keep any taxes there, too! And make any relation between state and citizen a law contract that can be sued for in case of violation! Hold polticla amdinstrators perosnally accountable with their private wealth and property! Do not accept decision-makers exemtping themselves from the consequences of their decisions! Same for corporation managers!



"I take the political responsibility" today is just an empty phrase that means nothing.The yget away with whatever it was. Thjey cna keep their wins and gains. They miust not comepnsate, they must not fear court punsihement, and they can even return from another direction, and continue. "They are accepting resposibility?" They explicitly refuse to do so.

It isn't our witty super brightness. It's that the people involved in politics and the markets are not as smart as they think they are - but they have the emotional cunning to convince people otherwise.

[Skybird]

Hey Super-Uschi - is' wohl nix mit Kuschel-Kuschel, eh?

https://translate.google.com/transla..._12995334.html

Will keiner mit uns schmusen? Oooooohhhh...!

[Rockstar]

Originally Posted by Skybird

Gold prices soaring has been predicted since years, and while it went up a bit, it failed to do so at the ammounts predicted. States and central banks will not allow it to happen, since it would be a most obvious non-confidence vote for the paper currencies Dollar and Euro and all the other illusory payment tokens.

I take it for granted that the prices for gold get very heavily manipulated to keep them in check. That last but not least also means manipulation of demand bny strategically buying and selling huge deposits of gold, and paper market destraction operations, to call them this way. At leats in the West. Russia for exmaplek seems to play it much more serious , so do a number of Asien states. They try to disconnect from the dollar and indeed hold their gold, most of it, even increase it.

Before they let it go that high in price, they will prohibit private ownerhsip. Solidarity, social justice and the common good and all those phrases, you know. Hyperinflation as the ounsihement for sutpid finance politics must be taken by all, even by those trying to save themsleves by beign more intelligent and rosnsibkle: by trying to get prepared. It cannot be that these do not show their solidarity with the stupids and escape the havoc: by havign been prepared by their own means ans repsnsiblity. Self-responsibility? Where would it lead if we allow self-responsibility...??

If the price would not be manipulated, I am quite certain it would stand already somewhere between 7000 and 14000 Dollars - if not even significantly more.

Instead, they allowed many other paper stuff bubbles to form up again, and the property market is hopelessly overheated. They are the price for keeping "trust" in paper currency. In the US, people live to much wider degrees on credit, than over here, and if you tlak of saving, you almopst get aliughed at. But Corona maybe will end that. Many private households are drownign in different debts of theirs for different credit card companies. those holding mortages for small homes and not ebing able tom pay them - good night.

The high prices wealthier people accept to pay for certain stocks and property, only illustrate one thing: how desperately everybdoy seeks for a way to preserve his savings and converting his paper currency "welath" into somethign material of real welath (=bartering power), and not beeing punished for owning paper currency by having to pay "negative interest". As if something like negative interest could even exist. By the meaning of the term "interest", it must always be positive. Interests are positive by defintion. Else they are no interests.

All these things have been pushed (perverted) to way too clever standards. We are too clever. And its our witty, super-bright cleverness that will destroy us.


The times are near when many people will learn the bitter lesson that paper currency and cryptocurrency will not by them stuff to eat, and stuff of real value. Because then nobody will give away something for nothing.

I admit I am very worried, and afraid. A lot of savings will be lost, with all the consequences for your and my higher age savings and life expectancy cuts. And no ordinary man will escape from it - only those at the top of the food chain who are responsible for this decades-long mulling of penultimate desaster. The hyperinflation of the 20s last century, was regional, becasue the potics causign it were regional. Today these things havbe been piushed to global dimensions, and so the desaster will unfold globally. Thats why I wnat pltlkicians beign keot at an ultra-short line, and am agaunst big state and super-national political organisations. I somebody messes it up on this scale, the entire planet is affected, not just one region. Power to the local regions! And keep it there! And keep any taxes there, too! And make any relation between state and citizen a law contract that can be sued for in case of violation! Hold polticla amdinstrators perosnally accountable with their private wealth and property! Do not accept decision-makers exemtping themselves from the consequences of their decisions! Same for corporation managers!



"I take the political responsibility" today is just an empty phrase that means nothing.The yget away with whatever it was. Thjey cna keep their wins and gains. They miust not comepnsate, they must not fear court punsihement, and they can even return from another direction, and continue. "They are accepting resposibility?" They explicitly refuse to do so.

'
You are so right, in fact I'll add pretty much everything in the market can be manipulated especially with news. Just like GME, gold prices can move up or down on news alone. Right now it's said gold stocks are dropping on account of the vaccine roll out and economy predictions. The drop is no doubt triggering automatic stop lose and you can be certain someone is scooping up those shares. Where there is sellers there are buyers.

This could play right into the next big headline, the multi-trillion dollar stimulus package! Which may very well send gold right back up over $2000 again. And all those weak hands will be kicking themselves for selling when they did.

[Skybird]

Buy anonymous, do not let the state know you own something. What it knows you own it can and sooner or later will steal from you.

Do not buy what somebody wants to sell to you, it most likely is not worth much, thats why he wants to sell it. Do not sell what the other wants to buy from you, it probably means it is precious.

Do not expect the other to be stupid or to act stupidly. If later it turns out he was, thats an enjoyable bonus only!


And gold, gold always means physical gold, never paper gold. And physical gold is not investment to generate profit (that why accoriding arguments against it do not bite, the speaker has a paper selling agenda or does not know what he is talking of). Holding physical gold is a safety, the attempt to keep and protect what is yours. The purpose is that it is there - and more it must not do. Generating interest or profit is not why you buy gold. If things go well, it can be a side-effect. But it should never be the intention. Because history shows that gold also can move counter-intuitively and against the expected logic.

[Skybird]

https://www.zerohedge.com/economics/...lation-horizon

In the U.S., for example, the quantity of money, measured by M2, has increased by a whopping 26% in a single year. This is the largest annual increase since 1943.
[...]
If production capacity becomes limited at the same time due to, for example, damage from war or from large-scale corporate bankruptcies by other causes, consumption increases faster than production. In practice, there is more money chasing fewer products, and prices start to rise very rapidly. Moreover, politicians and bureaucrats tend not to be very skilled in the efficient management of businesses and they permit public pressure to influence their decisions. This leads to wasteful investments, falling productivity and unprofitable enterprises.
[...]
If a fast inflation emerges, central banks will eventually be forced to raise rates, almost certainly toppling over-leveraged, zombified firms and over-indebted, zombified European nations. Total chaos in the financial markets would obviously follow with world descending into recession or depression.

Weimarer Republic. 90s Russia.