U.S. Economy: Retail Sales Climbed in August

[asterism]

Double digit for ten years? PRAISE JESUS!

How would that help anything, especially if it's forced?

 

[KissMy]

It's John Williams shadowstats chart updated 2 days ago. The Fed is pouring money into the system buying up 10 year treasuries. Banks have to do something else with their money now.

The Jackson Hole Summit featured the Fed asserting that they would buy 10 year bonds IF the situation called for it, right?

And even if they did how does that force banks to lend?

You are leaving out far more than you are saying.

Banks were borrowing short term money at near zero & buying 10 year bonds making 3.5% on money that was not even theirs. They were in no way interested in lending money when they could do nothing & make big bucks. Now they have lend to business, people or carry trade in order to make money.

The Fed just prints up a bunch of money & buys up all the bonds from 1 month to 10 year duration at near zero rates driving the bankers away. This will cause a lot more inflation than just the overnight rates.

 

[loosecannon]

It's John Williams shadowstats chart updated 2 days ago. The Fed is pouring money into the system buying up 10 year treasuries. Banks have to do something else with their money now.

The Jackson Hole Summit featured the Fed asserting that they would buy 10 year bonds IF the situation called for it, right?

And even if they did how does that force banks to lend?

You are leaving out far more than you are saying.

Banks were borrowing short term money at near zero & buying 10 year bonds making 3.5% on money that was not even theirs. They were in no way interested in lending money when they could do nothing & make big bucks. Now they have lend to business, people or carry trade in order to make money.

The Fed just prints up a bunch of money & buys up all the bonds from 1 month to 10 year duration at near zero rates driving the bankers away. This will cause a lot more inflation than just the overnight rates.

that sounds like a reasonable explanation and extremely extreme.

But it may have unintended consequences. Like "what if the carry trade sops up all that liquidity?".

Thanks.

 

[loosecannon]

Double digit for ten years? PRAISE JESUS!

How would that help anything, especially if it's forced?

We as a nation are all in debt, inflation helps make servicing and repaying debt easier because the money you use to repay that debt is worth less than the money you borrowed.

It also drives down wages without changing their numeric value, so people don't notice it as much. As an exporting nation we desperately need lower domestic wages.

 

[Charles_Main]

Some 723,000 workers have been added to payrolls so far in 2010.

I remember when a million jobs added in a quarter with 6% unemployment was considered bad by the press. What changed?

The presses friends took over in DC.

 

[KissMy]

Double digit for ten years? PRAISE JESUS!

How would that help anything, especially if it's forced?

We as a nation are all in debt, inflation helps make servicing and repaying debt easier because the money you use to repay that debt is worth less than the money you borrowed.

It also drives down wages without changing their numeric value, so people don't notice it as much. As an exporting nation we desperately need lower domestic wages.

Most of us are not in debt. Responsible know how to live within their means. I don't care how much you make, if you don't learn that inflation will not help you. The most successful singer of all time Michael Jackson died $400 million in debt. Inflating to make repaying debt easier is a stupid idea. Educate people on working & living within their means.

 

[loosecannon]

How would that help anything, especially if it's forced?

We as a nation are all in debt, inflation helps make servicing and repaying debt easier because the money you use to repay that debt is worth less than the money you borrowed.

It also drives down wages without changing their numeric value, so people don't notice it as much. As an exporting nation we desperately need lower domestic wages.

Most of us are not in debt. Responsible know how to live within their means. I don't care how much you make, if you don't learn that inflation will not help you. The most successful singer of all time Michael Jackson died $400 million in debt. Inflating to make repaying debt easier is a stupid idea. Educate people on working & living within their means.

we are all in debt at the county, state and federal level if not underwater in mortgage and personal debt.

And even if we escape the personal debt we are still bound at the hip to a nation that is deeply mired in personal debt.

Since we have to manage all of this debt and it is reaching critical proportions inflation is a far, far better alternative than insolvency.

Or not.

Inflation definitely makes repaying debt easier, or possible.

 

[KissMy]

We as a nation are all in debt, inflation helps make servicing and repaying debt easier because the money you use to repay that debt is worth less than the money you borrowed.

It also drives down wages without changing their numeric value, so people don't notice it as much. As an exporting nation we desperately need lower domestic wages.

Most of us are not in debt. Responsible know how to live within their means. I don't care how much you make, if you don't learn that inflation will not help you. The most successful singer of all time Michael Jackson died $400 million in debt. Inflating to make repaying debt easier is a stupid idea. Educate people on working & living within their means.

we are all in debt at the county, state and federal level if not underwater in mortgage and personal debt.

And even if we escape the personal debt we are still bound at the hip to a nation that is deeply mired in personal debt.

Since we have to manage all of this debt and it is reaching critical proportions inflation is a far, far better alternative than insolvency.

Or not.

Inflation definitely makes repaying debt easier, or possible.

If we print money & pay off debt (Monetize Debt) then we will not be able to afford to buy anything, retire, travel, eat or heat our homes.

Government & people do not stop overspending just because their debt gets wiped out. They just spend more. Erasing debt is without cutting spending & balancing budgets is the worse case scenario.

That was the thinking of Obama & ACORN when taught people how to game the system, get loans, live free until evicted. From their warped perspective that was social justice.

A study by Freddie Mac, confirming earlier Federal Reserve and FDIC studies, contradicts race discrimination arguments for CRA. The study found that African-Americans with annual incomes of $65,000-$75,000 have on average worse credit records than whites making under $25,000. This showed that the difficulty in qualifying was not because of race but bad credit records. Accordingly, the Federal Reserve Bank of Dallas entitled a paper "Red Lining or Red Herring?"

"City Journal warned that the Clinton administration had turned CRA into 'a vast extortion scheme against the nation's banks,'committing $1 trillion for mortgages and development projects, most of it funneled through the community organizers."

 

[asterism]

Double digit for ten years? PRAISE JESUS!

How would that help anything, especially if it's forced?

We as a nation are all in debt, inflation helps make servicing and repaying debt easier because the money you use to repay that debt is worth less than the money you borrowed.

It also drives down wages without changing their numeric value, so people don't notice it as much. As an exporting nation we desperately need lower domestic wages.

More inside baseball, manipulating secondary factors. Inflation stifles wealth creation. The debt isn't the problem, it's the net worth that is the problem.

 

[loosecannon]

Most of us are not in debt. Responsible know how to live within their means. I don't care how much you make, if you don't learn that inflation will not help you. The most successful singer of all time Michael Jackson died $400 million in debt. Inflating to make repaying debt easier is a stupid idea. Educate people on working & living within their means.

we are all in debt at the county, state and federal level if not underwater in mortgage and personal debt.

And even if we escape the personal debt we are still bound at the hip to a nation that is deeply mired in personal debt.

Since we have to manage all of this debt and it is reaching critical proportions inflation is a far, far better alternative than insolvency.

Or not.

Inflation definitely makes repaying debt easier, or possible.

If we print money & pay off debt (Monetize Debt) then we will not be able to afford to buy anything, retire, travel, eat or heat our homes.

Government & people do not stop overspending just because their debt gets wiped out. They just spend more. Erasing debt is without cutting spending & balancing budgets is the worse case scenario.

That was the thinking of Obama & ACORN when taught people how to game the system, get loans, live free until evicted. From their warped perspective that was social justice.

A study by Freddie Mac, confirming earlier Federal Reserve and FDIC studies, contradicts race discrimination arguments for CRA. The study found that African-Americans with annual incomes of $65,000-$75,000 have on average worse credit records than whites making under $25,000. This showed that the difficulty in qualifying was not because of race but bad credit records. Accordingly, the Federal Reserve Bank of Dallas entitled a paper "Red Lining or Red Herring?"

"City Journal warned that the Clinton administration had turned CRA into 'a vast extortion scheme against the nation's banks,'committing $1 trillion for mortgages and development projects, most of it funneled through the community organizers."

Look: since governments can't be trusted to spend within their means two options are available:

First you could print fiat currency to cover deficits and accept the currency depreciation

second you could privatize the central bank and actually and unbelievably have to repay that private central bank when you select deficit spending and serve that debt until it is repaid. That is crazy!

Third you could do the unthinkable which is to do BOTH!

Guess what? WE do both!

Of the 3 choices accepting inflation is the best option.

IF it was possible to trust governments not to borrow that would be better yet, but you can't. Our constitution even specifies a right of the government to do so.

 

[asterism]

We as a nation are all in debt, inflation helps make servicing and repaying debt easier because the money you use to repay that debt is worth less than the money you borrowed.

It also drives down wages without changing their numeric value, so people don't notice it as much. As an exporting nation we desperately need lower domestic wages.

Most of us are not in debt. Responsible know how to live within their means. I don't care how much you make, if you don't learn that inflation will not help you. The most successful singer of all time Michael Jackson died $400 million in debt. Inflating to make repaying debt easier is a stupid idea. Educate people on working & living within their means.

we are all in debt at the county, state and federal level if not underwater in mortgage and personal debt.

And even if we escape the personal debt we are still bound at the hip to a nation that is deeply mired in personal debt.

Since we have to manage all of this debt and it is reaching critical proportions inflation is a far, far better alternative than insolvency.

Or not.

Inflation definitely makes repaying debt easier, or possible.

First, before introducing a plan that makes repaying debt easier it would help to actually have a focus on not adding to that debt. Otherwise inflation just increases that debt.

Second, insolvency means not being able to service debt. We're a far far way from that place so the negative effects of inflation aren't worth the cost of paying it down.

 

[asterism]

we are all in debt at the county, state and federal level if not underwater in mortgage and personal debt.

And even if we escape the personal debt we are still bound at the hip to a nation that is deeply mired in personal debt.

Since we have to manage all of this debt and it is reaching critical proportions inflation is a far, far better alternative than insolvency.

Or not.

Inflation definitely makes repaying debt easier, or possible.

If we print money & pay off debt (Monetize Debt) then we will not be able to afford to buy anything, retire, travel, eat or heat our homes.

Government & people do not stop overspending just because their debt gets wiped out. They just spend more. Erasing debt is without cutting spending & balancing budgets is the worse case scenario.

That was the thinking of Obama & ACORN when taught people how to game the system, get loans, live free until evicted. From their warped perspective that was social justice.

A study by Freddie Mac, confirming earlier Federal Reserve and FDIC studies, contradicts race discrimination arguments for CRA. The study found that African-Americans with annual incomes of $65,000-$75,000 have on average worse credit records than whites making under $25,000. This showed that the difficulty in qualifying was not because of race but bad credit records. Accordingly, the Federal Reserve Bank of Dallas entitled a paper "Red Lining or Red Herring?"

"City Journal warned that the Clinton administration had turned CRA into 'a vast extortion scheme against the nation's banks,'committing $1 trillion for mortgages and development projects, most of it funneled through the community organizers."

Look: since governments can't be trusted to spend within their means two options are available:

First you could print fiat currency to cover deficits and accept the currency depreciation

second you could privatize the central bank and actually and unbelievably have to repay that private central bank when you select deficit spending and serve that debt until it is repaid. That is crazy!

Third you could do the unthinkable which is to do BOTH!

Guess what? WE do both!

Of the 3 choices accepting inflation is the best option.

IF it was possible to trust governments not to borrow that would be better yet, but you can't. Our constitution even specifies a right of the government to do so.

Well then it seems paying off the debt by any means just isn't going to work. Ergo, no cheering for inflation.

 

[loosecannon]

More inside baseball, manipulating secondary factors. Inflation stifles wealth creation. The debt isn't the problem, it's the net worth that is the problem.

yeah well, the same slight of hand that hopes tax cuts will spur future econ growth and tax receipts and that underlies our entire monetarist economy assumes that wealth will be generated from today's debt.

It is the same basic premise as that of stocks, investments, capitalism.

I don't support it, but our entire economy from tip to toe is based on debt as the driving force behind investment and growth. Every kind of debt included.

Debt is the ultimate cause of inflation.

 

[loosecannon]

If we print money & pay off debt (Monetize Debt) then we will not be able to afford to buy anything, retire, travel, eat or heat our homes.

Government & people do not stop overspending just because their debt gets wiped out. They just spend more. Erasing debt is without cutting spending & balancing budgets is the worse case scenario.

That was the thinking of Obama & ACORN when taught people how to game the system, get loans, live free until evicted. From their warped perspective that was social justice.

Look: since governments can't be trusted to spend within their means two options are available:

First you could print fiat currency to cover deficits and accept the currency depreciation

second you could privatize the central bank and actually and unbelievably have to repay that private central bank when you select deficit spending and serve that debt until it is repaid. That is crazy!

Third you could do the unthinkable which is to do BOTH!

Guess what? WE do both!

Of the 3 choices accepting inflation is the best option.

IF it was possible to trust governments not to borrow that would be better yet, but you can't. Our constitution even specifies a right of the government to do so.

Well then it seems paying off the debt by any means just isn't going to work. Ergo, no cheering for inflation.

Once you are too far in debt, inflation is the only remedy.

Besides inflation is the correction that recessions occur to correct. If you don't make the correction the recession either persists or gets deferred to loom larger at a later date.

 

[Charles_Main]

Some 723,000 workers have been added to payrolls so far in 2010

Wow and it only cost 800 billion dollars. Sweet.

and wants to spend at least $50 billion as part of a six-year program to improve transportation infrastructure and create jobs.

A yes the wonderfully efficient way of creating jobs. More federally funded Jobs paying Prevailing union wage until the jobs are done.

He seriously can not think of a way to spend 50 Billion dollars that will create real lasting Private sector job growth rather than spending another 50 Billion He claims is "paid for" To fund more temporary construction work?

Or better yet. just fucking stop spending for a tad and CHILL! Jesus.

Throwing money at Problems is not the only god damn way to lead for fucks sake.

 

[Toro]

? Looks like markets think quantitative easing inflation is speeding up, not necessarily job creation. Have you seen the new high gold & silver made today? We are still at an inflection point with no catalyst & the yield curve is being smashed. WTF is up with Nucor's single stock flash crash today? Stocks are not headed higher at a faster rate than true inflation.

But most of the global data says we are gonna slow down. It's too bad. But it looks we have another dip to endure.

I've been looking for a negative GDP print in the fourth quarter followed by some sort of stimulus, probably from the Fed. The Fed may be thinking the same thing, which is why there may be rumors of another trillion dollar QE.

I don't know if the market is going up because of a turn in jobs or QE. Or if it is just bouncing in a trading range. But after being short until yesterday thinking the market is going to get worse, I have to be honest and look at what the market is saying.

 

[antagon]

Private sector jobs have been growing at a clip of about 100k a month this year.

There has been a divergence between the household survey and nonfarm payrolls. There are many divergences in the data sets. That means we are at an inflection point in the economy. Either we are going to accelerate or decelerate. I thought we were going to decelerate but the stock market is acting like we are going to speed up.

? Looks like markets think quantitative easing inflation is speeding up, not necessarily job creation. Have you seen the new high gold & silver made today? We are still at an inflection point with no catalyst & the yield curve is being smashed. WTF is up with Nucor's single stock flash crash today? Stocks are not headed higher at a faster rate than true inflation.

along sector lines, Barrons has semi conductors flat for the rest of the year, software seems to be okay, but tech. is slowing down...that will think affect x-mas sales drastically as well. Gold is going to 1500, by May if that long, , deflation scares be damned.

nothing affects xmas sales.


ever.

 

[antagon]

Some 723,000 workers have been added to payrolls so far in 2010

Wow and it only cost 800 billion dollars. Sweet.

and wants to spend at least $50 billion as part of a six-year program to improve transportation infrastructure and create jobs.

A yes the wonderfully efficient way of creating jobs. More federally funded Jobs paying Prevailing union wage until the jobs are done.

He seriously can not think of a way to spend 50 Billion dollars that will create real lasting Private sector job growth rather than spending another 50 Billion He claims is "paid for" To fund more temporary construction work?

Or better yet. just fucking stop spending for a tad and CHILL! Jesus.

Throwing money at Problems is not the only god damn way to lead for fucks sake.

i think infrastructure projects are a great idea, ASAP. i'd say quantifying government expenditure directly against job creation is not a great idea, especially if you are going to turn around and scoff at sustainability of employment from the same spending.

 

[Douger]

This will be the final BUMP for the stock market before the collapse.

 

[antagon]

More inside baseball, manipulating secondary factors. Inflation stifles wealth creation. The debt isn't the problem, it's the net worth that is the problem.

yeah well, the same slight of hand that hopes tax cuts will spur future econ growth and tax receipts and that underlies our entire monetarist economy assumes that wealth will be generated from today's debt.

It is the same basic premise as that of stocks, investments, capitalism.

I don't support it, but our entire economy from tip to toe is based on debt as the driving force behind investment and growth. Every kind of debt included.

Debt is the ultimate cause of inflation.

it's based on money and politics. debt is the outcome of the two.