Comments on: Currency wars and the Fed: Inflation and a new monetary system

By: Phil Veerkamp

Phil Veerkamp — Fri, 07 Dec 2012 20:57:04 +0000

. . . of Timmy’s reflation QE . . .

By: Phil Veerkamp

Phil Veerkamp — Fri, 07 Dec 2012 20:55:06 +0000

Catherine – a very minor PS to the recent conversation. I argue that today we see a mini reenactment of the ’08 derivative bubble burst. Others probably see a generic market correction. I’m speaking of the “Apple crash”. A huge percentage of Timmy’s deflation QE 1,2,3 went looking for a home. Much went to the sidelines out of unclear direction and for safety. Much went into stocks in an attempt to “buy low” or find the next big deal. What’s kool? APPLE! This week some Timmy’s QE money went back to “money heaven” and is now happily reunited with its ’08 ancestors. It would be so sweet to know that Timmy was deep into Apple . . . not likely . . .

By: Phil Veerkamp

Phil Veerkamp — Wed, 05 Dec 2012 17:44:49 +0000

We could even create money to satisfy certain debts without putting that money into circulation in an inflationary manner. – Catherine, isn’t that the essence of Timmy’s QE1, 2, 3 . . . .? There is a part of me that suspects a “managed deflation” is being attempted. When the real-estate derivative bubble burst in ’08 and Paulson asked for 700 billion to prevent total deflation I suspect that it would have been better to just “give” it to him. Instead, politicians insisted on managing the cure because it was argued that 700 B was ridiculous in the hands of “one man”.

By: Catherine

Catherine — Wed, 05 Dec 2012 16:52:19 +0000

Fractional reserve banking is not something unique to the US and the Fed, it is how almost all large countries manage their money. China adjusts the percentage of reserve required as a way to help manage inflation. We could even create money to satisfy certain debts without putting that money into circulation in an inflationary manner.

By: ZGR 12/5/2012 | Zephyr Global Report

ZGR 12/5/2012 | Zephyr Global Report — Wed, 05 Dec 2012 07:11:23 +0000

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By: Phil Veerkamp

Phil Veerkamp — Tue, 04 Dec 2012 22:52:57 +0000

Ms Hodson’s final article was rolling along passably well until the last paragraph. The inclusion of G. Edward Griffin’s assertion, “That’s the progression that they — those astride and in control of the international monetary system — that’s what they want to see happen.” Nobody – repeat – NOBODY is in control of the international monetary system. The system is temporarily managed, manipulated, steered with varying degrees of success through varying periods of stability. But the money function is an exponential function that in the long run IS UNMANAGEABLE. All exponential functions eventually explode. Isn’t it interesting that the ancients seemed to know this with their admonitions against lending with interest. That is why I sometimes use the word “beast” metaphorically in referring to, " A = P(1+r/n)^nt. "