Economics Don’t Make a Lick-of-Sense

[errolanderson]

Here we are, economically speaking. Central banks have kicked-the-can so many times and over-abused the word ‘stimulus’ SO MUCH that now the wheels are starting to fall off-the-wagon (IMO). The U.S. Fed had printed 40 percent more dollars this year alone than in all of history combined.

Just think about that . . . . Is that a rational decision or simply panic of last resort?

Now what’s happening; the ‘volacity of money’ is failing. In other words, a dollar printed today is a whole lot less effective ‘stimlating the economy’ than a dollar printed a year ago.

The gig is up and this now shows the stark failure of Keynesian economics and the protect Wall Street at all cost mentality. Print money till the cows come home and everything will be alright they say.

Inflate, inflate until markets deflate. Free money and too much money have consequences. Excessive debt at inflated values. That’s where our markets are today (IMO). The biggest artifical bubble in history and the volacity of money is failing.

Now, central banks want to get out of the money printing business (called tapering) and hike rates through 2022, because the economy is in recovery and praise the man called Keynes. Meanwhile, the debt bomb is lit.

Economics that don’t make a lick of sense . . . .

[shtferbrains]

My first encounter with the theory of inflation was when in my early teens i read a civil war novel. It identified one of the reasons the south lost the war was the money had no value so when the soldiers got paid the lost the will to fight more went home.
The way they described the low value of the money was you could buy johnycake from street venders and they took your dollar and layed it on the cake and cut the piece that size.
At that time that money was considered near worthless.

How much cake will a dollar buy today?

Inflation even 2% creeps up on us. What we are seeing today may make the soldiers and many other go home.

I'm no economist but I don't think the country that prints the money the fastest wins.

[Old Cowzilla]

Gonna be a crash landing but don't see anybody wanting to stop it. Even bank of Canada bosses get fired when they raise this issue. Don't see any of my neighbors building bunkers or showing any fiscal restraint. P.S. sold 2 pieces of 20 year old steel for more than I paid for it and that's after 20 years off wear and tear and depreciation. And the phone is still ringing !

[errolanderson]

Gonna be a crash landing but don't see anybody wanting to stop it. Even bank of Canada bosses get fired when they raise this issue. Don't see any of my neighbors building bunkers or showing any fiscal restraint. P.S. sold 2 pieces of 20 year old steel for more than I paid for it and that's after 20 years off wear and tear and depreciation. And the phone is still ringing !

Real estate is at high risk (IMO). If the housing market breaks, it might sound like thunder. China is already breaking. This factor being totally downplayed.

Japan’s poor economic data wasn’t mentioned as a factor for Friday’s washout. Just Covid apparently.

U.S. mortgage rates are again easing. U.S. treasury yields are easing puzzling market watchers.

[shtferbrains]

Where will all those people go that have to walk from mortgages they can't afford?
Who eats all that devalued real estate?
Government printing more money cant fix it.

[Old Cowzilla]

Where will all those people go that have to walk from mortgages they can't afford?
Who eats all that devalued real estate?
Government printing more money cant fix it.

Folks will walk away from unpaid homes and move into apartments where renters where kicked out for unpaid rent. Renters will move home to mom or dads or share rent space with friends or could likely end up living on the street. Banks will take small hit on record profits and ask for gov bailout to ease the horrible pain the suited guys are going through.***********

[flea beetle]

So if all this happens, will interest rates finally be left to go up like they should have been allowed to do years ago?

[Old Cowzilla]

I think if this happens people will buy devalued houses but a lot higher int. rate that will cost them a little less just enough to make keep working to make payments. Banks will own some houses untill market recovers a bit. You can't find houses to live in this area because of strong demand regardless of age or condition.

[TOM4CWB]

I think if this happens people will buy devalued houses but a lot higher int. rate that will cost them a little less just enough to make keep working to make payments. Banks will own some houses untill market recovers a bit. You can't find houses to live in this area because of strong demand regardless of age or condition.

Just watching BBC

The average age of truck drivers is 65…

Consumer confidence is way down…

Inflation is transitory… until it is baked in… wages rise to cover increased prices…

But people don’t want to work… socialism is paying people not to work…

Climate change is telling people not to travel or be active..

The Pandemic is telling people not to leave home… to hunker down … not socialize … the vaccines are not the answer… all across the EU the new Variant Omicron is perhaps not stopped by double Vax… Christmas lockdown…? …Booster Vax being pushed…perhaps modify Vax…

Everyone must wear N95 masks… need to buy time…

Government regulations are increase ing exponentially… borrowing exponentially…

Birth rates in the western world are below population replacement levels…

Immigration is required to fill the job market…

We are short of computer chips… equipment…

This is not over by a long shot… Israel is banning all foreign people for 14 days… some one had a booster who perhaps has the new variant now… this began only 2 days ago… rich countries are hoarding the vaccines… less than 10% are vaxed in the 3rd world…

France and Britain are feuding… Russian troops massing on Ukrainian border…

A wild time… on top of everything else economically…

Cheers

[shtferbrains]

Last time we had poor leadership.

Nixon/Ford/Carter had the US on the ropes.

We had Treudau1.

Protests and riots monopolized the news.

This time Progressives are calling the tune.

Who is the next Ronald Reagan? Make people believe in themselves again.

[farming101]

Just watching BBC

The average age of truck drivers is 65…

Consumer confidence is way down…

Inflation is transitory… until it is baked in… wages rise to cover increased prices…

But people don’t want to work… socialism is paying people not to work…

Climate change is telling people not to travel or be active..

The Pandemic is telling people not to leave home… to hunker down … not socialize … the vaccines are not the answer… all across the EU the new Variant Omicron is perhaps not stopped by double Vax… Christmas lockdown…? …Booster Vax being pushed…perhaps modify Vax…

Everyone must wear N95 masks… need to buy time…

Government regulations are increase ing exponentially… borrowing exponentially…

Birth rates in the western world are below population replacement levels…

Immigration is required to fill the job market…

We are short of computer chips… equipment…

This is not over by a long shot… Israel is banning all foreign people for 14 days… some one had a booster who perhaps has the new variant now… this began only 2 days ago… rich countries are hoarding the vaccines… less than 10% are vaxed in the 3rd world…

France and Britain are feuding… Russian troops massing on Ukrainian border…

A wild time… on top of everything else economically…

Cheers