Spiegel: Central banks around the world are pumping trillions into the economy. The goal is to stimulate growth, but their actions are also driving up prices in the real estate and equities markets. The question is no longer whether there will be a crash, but when.
MONOPOLY MONEY.
Yes, the price of your house is going up, but the value isn’t. It’s the value of your money that is going down. And banks and governments keeping making up more money out of thin air.
Electric car manufacturer Tesla has gained 300 percent in market value in the same period.
“It is a complete joke,” says hedge fund manager Spitznagel.
–
But, some good news,
when it gets cold outside,
the electric car will keep your garage and home extremely warm..
The bubble is too big to burst.
When politicos and even central bankers start arguing that a little inflation is needed to ‘jump start’ the economy you know we are doomed. Not only can inflation not be controlled by money supply but the untold reality is that it is being used to devalue debt. It is another form of taxation. 2013 was a great investment year so party on!
The financial presstitutes have so much at stake that getting the real truth is a challenge.
When politicos and even central bankers start arguing that a little inflation is needed to ‘jump start’ the economy you know we are doomed.
They’ve been arguing that a long time. Peeaire Trudeau said a little inflation was good for the economy.
Yup. Inflation is government confiscation of savings, period. They get away with it because 1) It’s quiet – they don’t have to send people door to door with guns to grab it, and 2) Most people are too uneducated to understand it.
One of the reasons, no doubt, that the founders voted against giving the federal government the authority to issue paper money during the Constitutional Convention in 1787. Until the Constitution was ‘re-interpreted’, of course.
a bit off topic but could lead to world wide economic chaos. Germany requested the return of it’s gold from the u.s. fed last year. the u.s. fed could not return the amount required but also could not the return the original gold with the german stamp on it. this should be serious cause for concern. the fact that our dollar is trading well below the u.s. dollar should also cause concern. the u.s. has not recovered from the so called sub prime crisis. the fed has been pumping 85 billion a month for years into the bond and stock markets. their dollar has been inflated dramatically and yet our strong economy has not pushed our dollar up against the u.s. dollar. there is definitely manipulation going on. there will always be modest inflation but that is not what has been happening. if you have any money invested the value of that money has depreciated by 5 to 6%. the cost of living numbers produced by the government are bogus and always have been.
Interesting, though, a bushel of wheat isn’t much different in price than it was in the early 70’s. Which probably makes farmers about the most efficient businesses in the world. Same with cattle.
For instance, a bushel of wheat and a barrel of oil were about the same price in the early 70’s.
“Germany requested the return of it’s gold from the u.s. fed last year. the u.s. fed could not return the amount required but also could not the return the original gold with the german stamp on it.”
You remember those twin towers that used to stand in Manhattan and got incinerated in 2001?
The basement of that place had the gold of many nations in it.
Apparently gold melts like butter when it’s pure.
German should be making the demands from Saudi Arabia.
Is the coming crash a bug or a feature of deliberate inflation (quantitative easing)?
I used to consider that gold was sort of the speed of light, a fixed standard that all currencies were valued relative to. that seems to have gone out the window.
we should be in hyperinflation such as in the late seventies , early 80s , but that doesn’t seem to have come about.
Zimbabwe Mon.
I think a used electric car hooked up to one of those idiot solar electric systems might be a handy thing to have around. For when the grid crashes, not to drive around in. That’s a nice big battery bank in one of those things, keep the furnace and the fridge going for a couple of days before you have to fire up the generator.
I may look into that. It was frickin’ cold here at Chez Phantom when the propane ran out the other day. I try to learn from mistakes. Other people’s mistakes by preference, my own if necessary.
There is always a crash somewhere down the road. I can’t be bothered to try to predict them.
I think the best defense is owning equity in boring solid dividend-paying companies. They represent about as close to true wealth as you can get in this world.
True wealth cannot be created or maintained without character, knowledge and skill.
You are absolutely right about that.
Don’t tell our ignorant resident troll.
Re: “Jump-starting the economy”
I’ll make a simplistic analogy here – If you have to jump-start your car it’s a sure bet that you haven’t maintained it – the battery might need replacement, the charging system defective or you forgot to turn something off. A jump-start is just a temporary solution – you’ll need another and another until the underlying cause is repaired. Ignoring the warning indicators is not your best option.
yes as long as you can charge the battery it does require that thing we refer to as electricity