Make no mistake we are in a depression.

[verrip1]

Much ado about nothing. Time to move on.

[maui1]

You would never threaten me?...would you?...because you know "I" have the means to......... find you and do bad things to you...you know that don't you? [image]

frank- was this comment meant for me?

[verrip1]

Good try, maui1. No cigar. It was obviously meant for me. Rule of proximity, doncha know.

Everybody's sure awfully touchy today.

Thank goodness I'm here to ensure that calmer heads prevail.

[decoy409]

Here is some great advice from the pack above,,

'Please consider relaxing that trigger finger.'

Like,100,000 clicks worth.


And it is hilarious! Say,here is a idea! Please keep clicking on the 'end of the world thread' so it goes over 200,000! I want to laugh harder along with others,and there is nothing wrong with a 'squeal' of great comedy!

Make no mistake we are headed straight at the iceberg and as far as 'Make No Mistake We Are In Recession' will soon have to be changed to 'Depression', I see INFLATION is up another 1.5 percent for the previous month.

Oh that's right,there is no INFLATION.

[verrip1]

Decoy, I've found that when one is excitable and reactionary, a good cure is to breathe slowly and deeply while keeping the eyes closed.

Inhale through the mouth slowly ... and deeply ... fill your lungs with the wonderful air.

Don't hold it in, smoothly transition to a slow exhale through the nose ... until just before you would have to push to get more air out.

Then repeat two more times.

Everything will seem much better and calmer.

[kman]

Verrip......Ete fia siva?

[kman]

He could blow anytime!!!

[maui1]

sorry..........just wanted to make sure i didn't miss the challenge, if there was one.

[decoy409]

And I found that enticement did not turn out so well. After all,that is one of the most oldest tricks in the book. May I suggest putting the old truck pic back up with the smoker. That was a good one and very funny as well for those in the know.
;D

See propaganda or rumour has always been just that. A great side tracker.

[verrip1]

Oh, I enjoy changing avatars. I left that old one on far too long. I'll check the old image stash and see what I can come up with.

[verrip1]

Jun 27, 2011 11:23:15 GMT -5 kman said:

Verrip......Ete fia siva?

Ia manuia!!!

[bimetalaupt]

Jun 27, 2011 11:29:43 GMT -5 @maui1 said:

sorry..........just wanted to make sure i didn't miss the challenge, if there was one.

maui1,
Did you see the report from the BIS econometric group that we need to slow down the economic growth of the world? The world is growing so fast that we will be supporting run away inflation??
DEPRESSION BY DEFINITION HAS ALWAYS HAD DEPRESSED PRICES.. SEE BARRA TABLE,...

Time to ?? He is not talking about the EU or USA...Must be time to invest in basic needs like water and wine??? SO much for QE3.. But the Federal Reserve said they will not reduce the balance sheet.. Like the Drunk said I SAID WILL DRINK NO MORE BUT I DID NOT SAY I WILL DRINK ANY LESS" It is time to put some more money behind the banking system.

Just a thought,
Bi Metal Au Pt

Attachments:

[bimetalaupt]

Jun 27, 2011 11:29:43 GMT -5 @maui1 said:

sorry..........just wanted to make sure i didn't miss the challenge, if there was one.

maui1,
BUT FEDERAL RESERVE TALKING ABOUT QE2.5.. KEEPING THE MONEY FLOWING..

Fed May Buy $300 Billion in Treasuries After QE2

he Federal Reserve will remain the biggest buyer of Treasuries, even after the second round of quantitative easing ends this week, as the central bank uses its $2.86 trillion balance sheet to keep interest rates low.

While the $600 billion purchase program, known as QE2, winds down, the Fed said June 22 that it will continue to buy Treasuries with proceeds from the maturing debt it currently owns. That could mean purchases of as much as $300 billion of government debt over the next 12 months without adding money to the financial system.

The central bank, which injected $2.3 trillion into the financial system after the collapse of Lehman Brothers Holdings Inc. in September 2008, will continue buying Treasuries to keep market rates down as the economy slows. The purchases are supporting demand at bond auctions while President Barack Obama and Republicans in Congress struggle to close the gap between federal spending and income by between $2 trillion and $4 trillion.

“I don’t think the Fed wants to remove accommodation in any way, shape or form,” said Matt Toms, the head of U.S. public fixed-income investments at Atlanta-based ING Investment Management, which oversees more than $500 billion. “It’s quite natural for them to reinvest cash,” he said. “That effectively maintains the accommodative stance.”

Mortgage Debt

A total of $112.1 billion of the Fed’s government bond holdings will mature in the next 12 months, 7 percent of the $1.59 trillion in Treasuries held in its system open market account, known to traders as SOMA. Replacing those securities will require the Fed to buy an average of $9.4 billion of Treasuries a month through June 2012.

The Fed also held $914.4 billion of mortgage-backed debt and $118.4 billion of debentures, the debt of government sponsored enterprises Fannie Mae and Freddie Mac, as of June 22. UBS AG, Citigroup Inc., Bank of America Corp., JPMorgan Chase & Co. and Royal Bank of Canada say $10 billion to $16 billion will mature each month, depending on the pace of prepayments.

In a Bloomberg survey of 58 economists June 14-17, 79 percent said Fed Chairman Ben S. Bernanke will sustain the central bank’s balance sheet at current levels until the fourth quarter, compared with 52 percent in April. The Fed said June 22 its goal is to hold assets at $2.654 trillion.

Treasury 10-year yields fell to the lowest since Dec. 1 today, down from this year’s high of 3.77 percent on Feb. 9. On June 24, the two-year yield came within one basis point of the record low, set November 2010, reaching 0.32 percent.

Frustrated Fed

The yield on the benchmark 10-year note declined to 2.84 percent today, the least since Dec. 1, before settling at 2.86 percent. The 3.125 percent security due in May 2021 traded at 102 1/4 at 7:13 a.m. in New York, Bloomberg Bond Trader prices showed. Two-year yields were at 0.34 percent after reaching 0.32 percent last week, the lowest since Nov. 4.

Bernanke said at a press conference June 22 that progress bringing down the 9.1 percent U.S. unemployment rate was “frustratingly slow.”

Fed officials said the economy will expand 2.7 percent to 2.9 percent this year, down from forecasts ranging from 3.1 percent to 3.3 percent in April. It was the second time this year Fed officials lowered growth estimates. Gross domestic product expanded 3.1 percent last year.

Policy makers said they expect the world’s largest economy to grow 3.3 percent to 3.7 percent in 2012, according to their central tendency forecasts. In April, their predictions ranged from 3.5 percent to 4.2 percent.

Fear Factor

Fed officials predict an average unemployment rate of 8.6 percent to 8.9 percent in the final three months of 2011, compared with 8.4 percent to 8.7 percent projected in April. Their estimate for unemployment at the end of 2012 was in a range of 7.8 percent and 8.2 percent, compared with 7.6 percent to 7.9 percent in April.

While the Fed didn’t start a third round of quantitative easing, as some traders speculated was needed, Treasuries could gain on weakening of the economy or the European sovereign debt crisis.

“What always moves the market is fear and greed, and there’s a huge amount of fear on the economy,” said David Brownlee, head of fixed income at Sentinel Asset Management in Montpelier, Vermont, which manages $28 billion. “That’s where you want to have Treasuries.”

The conflict between Obama’s administration and Congress over increasing the government’s borrowing limit could lead to higher yields, as Moody’s Investors Service and Standard & Poor’s said they may consider cutting the nation’s AAA credit rating unless progress is made next month.

Debt Ceiling

Vice President Joe Biden’s bi-partisan deficit-reduction group has been meeting since May 5 to reach a compromise that would trim long-term deficits by as much as $4 trillion and clear the way for a vote in Congress to raise the $14.29 trillion debt ceiling. Treasury Secretary Timothy F. Geithner has said the U.S. risks defaulting if the limit isn’t increased by Aug. 2.

The 10-year Treasury note’s yield will reach 4 percent by June 2012, according to the median of 64 forecasters in a Bloomberg News survey. The last time it reached 4 percent was April 2010. Should that happen, investors would lose 5 percent on their investment, Bloomberg data show.

“Up until now, our assumption was that the risk is virtually zero of them ever missing an interest payment,” Steven Hess, Moody’s senior credit officer, said in an interview June 21. “If they actually miss a debt payment, then it’s a fundamental change.”

Just a thought,
Bi Metal Au Pt

Attachments:

[decoy409]

'Did you see the report from the BIS econometric group that we need to slow down the economic growth of the world?'

Well you best do something about the population factor and growth in order to accomplish the above.

[maui1]

Fed May Buy $300 Billion in Treasuries After QE2

he Federal Reserve will remain the biggest buyer of Treasuries, even after the second round of quantitative easing ends this week, as the central bank uses its $2.86 trillion balance sheet to keep interest rates low.

i knew the fed could not stop the buying...........there is no one else that will.

did you see the post awhile back for the gov't to sell bonds (like ww2 war bonds) and pay a good interest rate, say 5 or 6%.

this would reward good behavior and not the bad that we have been supporting in the past few years.

this would create a boom, in savings, cash flow, and credit for the gov't.

if the gov't is going print money, print it for 'good behavior' not bad.

this should be a basic understanding if you want a positive future outcome, parent or gov't.

[bimetalaupt]

Jun 27, 2011 11:52:31 GMT -5 decoy409 said:

'Did you see the report from the BIS econometric group that we need to slow down the economic growth of the world?'

Well you best do something about the population factor and growth in order to accomplish the above.

Decoy409,
I did in fact find the articular in the FT about inflation and need to raise interest rate per BIS.. also call for more capital for the 50 largest banks..

Bi Metal Au Pt


Financial Times

* Global economic growth must slow to curb inflationary pressure around the world, the Bank for International Settlements has warned, saying that there was little or no slack left for rapid non-inflationary expansion; central banks need to begin raising interest rates quickly to ensure that an inflationary spiral does not emerge, the BIS said in its annual report.

* Lloyds Banking Group’s exposure to the riskiest kind of mortgages is more than double that of any of its top five rivals, data published last week by the Bank of England showed. The state-backed bank has more than a quarter of its its mortgages lent out at 90% loan to value or above. By contrast RBS and Santander have just 12% of these loans.

* Central bankers and regulators have agreed to impose an extra capital charge of 1% to 2.5% of risk-adjusted assets on the largest banks in a bid to protect them from the big losses that could trigger another financial meltdown.

* The former HSBC chairman Stephen Green broke his silence to urge the banks to honour their pledge to increase lending to small and medium-sized businesses.

* British Sky Broadcasting’s earnings are set to double in five years.

* The European Union’s executive body is set to propose expanding its revenue-raising powers – including the introduction of EU-wide taxes – in its budget to be unveiled this week.

* Investors in the US government bond market could face losses of up to $100 billion if the largest economy loses its triple A rating, according to a research arm of McGraw-Hill, the parent of Standard & Poor’s.

* José Graziano da Silva, the father of Brazil’s much-praised Zero Hunger programme, has been elected the next head of the UN’s Food and Agriculture Organisation.

* Banca Popolare di Milano shareholders approve a €1.2 billion capital increase demanded by the central bank but denied its request for a governance overhaul.

* High-tech manufacturing businesses are in a position to expand, but economic concerns and a lack of funds or skilled staff are deterring many from doing so, says General Electric.

* Mid-sized hedge funds experienced the largest net asset growth in 2010, at 37%, according to a Citigroup survey.

[domeasingold]

WTF, I've been out of town. If Verrip threatened me with something as weak as "Eat my shorts". I would probably gag on them anyhow.
What's the big deal? If he said he would use a flamethrower on my shorts, well that's a different story.

[Aman A.K.A. Ahamburger]

* Global economic growth must slow to curb inflationary pressure around the world, the Bank for International Settlements has warned, saying that there was little or no slack left for rapid non-inflationary expansion; central banks need to begin raising interest rates quickly to ensure that an inflationary spiral does not emerge, the BIS said in its annual report.

Great find !! K4U! How about that? Confirmation on the math and money. Increase in m1,2,3=inflation . It looks like we might actually start seeing some real inlation wxyz, finally. ;D

How about a little interest rate hike scare in the housing market?

[bimetalaupt]

Jun 28, 2011 0:33:29 GMT -5 Aman A.K.A. Ahamburger said:

* Global economic growth must slow to curb inflationary pressure around the world, the Bank for International Settlements has warned, saying that there was little or no slack left for rapid non-inflationary expansion; central banks need to begin raising interest rates quickly to ensure that an inflationary spiral does not emerge, the BIS said in its annual report.

Great find !! K4U! How about that? Confirmation on the math and money. Increase in m1,2,3=inflation . It looks like we might actually start seeing some real inlation wxyz, finally. ;D

How about a little interest rate hike scare in the housing market?

A++,
Thank-you for your kind words..K4Utoo.. From the Bank for International Settlements ( BIS) the address and ES for the annual report... Well they missed the CDS and CDO problem in 2007 so they are now going to overshot on the solve side by adding a reductionist amount of Tier1 Capital to the top 50 banks in the world. Reductionist amount,.. ie Like ING and Citi they will have to sell off assets to make the threshold and that means less lending and more AAA bonds!!
Just my thoughts,
Bi Metal Au Pt
Building a stable future
26 June 2011

Over the past year, the global economy has continued to improve. In emerging markets, growth has been strong, and advanced economies have been moving towards a self-sustaining recovery. But it would be a mistake for policymakers to relax. From our vantage point, numerous legacies and lessons of the financial crisis require attention. In many advanced economies, high debt levels still burden households as well as financial and non-financial institutions, and the consolidation of fiscal accounts has barely started. International financial imbalances are re-emerging. Highly accommodative monetary policies are fast becoming a threat to price stability. Financial reforms have yet to be completed and fully implemented. And the data frameworks that should serve as an early warning system for financial stress remain underdeveloped. These are the challenges we examine in this year's Annual Report.

Full text (PDF 17 pages, 1525 kb)

Again I posted the Barra Chart of depressions.. Most were started with a Financial crash..

Attachments:

[Aman A.K.A. Ahamburger]

Well they missed the CDS and CDO problem in 2007 so they are now going to overshot on the solve side by adding a reductionist amount of Tier1 Capital to the top 50 banks in the world. Reductionist amount,.. ie Like ING and Citi they will have to sell off assets to make the threshold and that means less lending and more AAA bonds!!

It's about time that safe banking was enforced, and who doesn't love some AAA rated bonds? ;D

I hear you about the lending, however, I feel that there are banks out there that want to lend, but people are still waiting for the price of houses to drop. If payments(interest) starts going up, then the price of a house goes up, even at the same value.

While the banks keep hoarding to protect themselves against the CDO/CDS mess, we could eventually see something similar to what is going on in china. There is apparently a huge built up demand from young couples and individuals that want to buy a home, but because banks aren't lending homes sales, aside from muti milion dollar homes, have fallen 70%. A boom in the shadows?

[Aman A.K.A. Ahamburger]

"Measures to cool the economy are creating massive pent up demand in a number of sectors. For the past year and a half, transactions in the residential real estate market have essentially come to a stop. Aside from multi-million dollar mega mansions whose prices are soaring, sales volumes are down 70 percent in Shanghai and prices are remaining flat or even dropping as stringent measures and reduced access to credit freeze the market.

If restrictions are eased, another bull market in the real estate sector will appear"

www.cnbc.com/id/43543617?__source=yahoo|headline|quote|text|&par=yahoo

[Aman A.K.A. Ahamburger]

Jun 28, 2011 1:14:16 GMT -5 bimetalaupt said:

Jun 28, 2011 0:33:29 GMT -5 Aman A.K.A. Ahamburger said:

Great find !! K4U! How about that? Confirmation on the math and money. Increase in m1,2,3=inflation . It looks like we might actually start seeing some real inlation wxyz, finally. ;D

How about a little interest rate hike scare in the housing market?

A++,
Thank-you for your kind words..K4Utoo.. From the Bank for International Settlements ( BIS) the address and ES for the annual report... Well they missed the CDS and CDO problem in 2007 so they are now going to overshot on the solve side by adding a reductionist amount of Tier1 Capital to the top 50 banks in the world. Reductionist amount,.. ie Like ING and Citi they will have to sell off assets to make the threshold and that means less lending and more AAA bonds!!
Just my thoughts,
Bi Metal Au Pt
Building a stable future
26 June 2011

Over the past year, the global economy has continued to improve. In emerging markets, growth has been strong, and advanced economies have been moving towards a self-sustaining recovery. But it would be a mistake for policymakers to relax. From our vantage point, numerous legacies and lessons of the financial crisis require attention. In many advanced economies, high debt levels still burden households as well as financial and non-financial institutions, and the consolidation of fiscal accounts has barely started. International financial imbalances are re-emerging. Highly accommodative monetary policies are fast becoming a threat to price stability. Financial reforms have yet to be completed and fully implemented. And the data frameworks that should serve as an early warning system for financial stress remain underdeveloped. These are the challenges we examine in this year's Annual Report.

Full text (PDF 17 pages, 1525 kb)

Again I posted the Barra Chart of depressions.. Most were started with a Financial crash..

It's interesting when you think about those numbers on that chart. There have been many finical crashes since the 40's, yet no depressions. Now if we could only teach everyone to manage their money and invest like the good investors around here, we wouldn't have to worry about crashes anymore either..

[maui1]

3.5 million homes foreclosed since 2007

right now 1.5 million homes are 90 days past due or later

right now 9 million homes are past due 30 days to 90 days

since 2008, 90% of all home loans are being done by our gov't

everyday, we move closer to judgment day, that has only been delayed with the gov't veil of stimulus.

[maui1]

Even after QE2 ends in 3 days time, the Fed will continue buying up to $300b of securities over the next year (even without QE3). From Bloomberg:

The Federal Reserve will remain the biggest buyer of Treasuries, even after the second round of quantitative easing ends this week, as the central bank uses its $2.86 trillion balance sheet to keep interest rates low.

While the $600 billion purchase program, known as QE2, winds down, the Fed said June 22 that it will continue to buy Treasuries with proceeds from the maturing debt it currently owns. That could mean purchases of as much as $300 billion of government debt over the next 12 months without adding money to the financial system.

$300 billion purchased over 12 months works out to $25b per month. While QE2 was in effect, that total was closer to $100b a month.

Not enough?

Back in April, blogger Tyler Durden said QE2.5 won't be nearly enough to fund the deficit.

So putting it all together: assuming no QE3, and just continued rolling and transforming MBS in UST purchases, means that the Fed will have about $12 billion in average UST purchases per month from maturity extension, and about $20 billion from MBS prepays. This is at best one quarter of the amount the Fed monetizes per month currently and is largely inadequate to continue funding the US deficit. Also, should the 10 Year rate jump to over 5%, QE Lite will halt indefinitely, meaning the only source of dry powder for future monetization will be rolling maturity extensions, which are about one tenth of current monthly funding needs.

In essence, the U.S. has been funding a sizable portion of government spending with QE2, to the tune of $900 billion since it began in Nov. 2010.

QE2.5 won't do the trick, when it comes to monetizing the deficit. So unless spending is cut to the tune of $600b or more (Boehner's proposal sought $40b, I believe), something else is gonna give. This is why QE3 is a lot more likely than most analysts think...

Note: some are calling the recent IEA strategic oil reserve release QE2.5, but that moniker is taken. And it doesn't really apply.

[decoy409]

Well maui1,look no further than the people of Greece today retaliating with further defense. And the vast majority are the youth. They have watched and seen what has become and now they have professed no more. Looks just like elsewhere on the globe.
So now what? Are we headed back to war?

[decoy409]

Bruce,yeah,yeah,things are wildly swinging now,and I don't think that is such a good thing of course.

'Decoy409,
I did in fact find the articular in the FT about inflation and need to raise interest rate per BIS.. also call for more capital for the 50 largest banks..

Bi Metal Au Pt


Financial Times

* Global economic growth must slow to curb inflationary pressure around the world, the Bank for International Settlements has warned, saying that there was little or no slack left for rapid non-inflationary expansion; central banks need to begin raising interest rates quickly to ensure that an inflationary spiral does not emerge, the BIS said in its annual report.'

[maui1]

So now what? Are we headed back to war?

economic war? yes

killing war? economic war has lead to killing wars in the past.

[decoy409]

And the hamburger helpers of the party continue to spill ridiculas claims such as EMPLOYMENT. When some wake up and start discussing LOST NUMBERS such as those that are no loner counted,turned down,etc. that's when a tad of respect can be formed.

[usaone]

The baby boomers retiring at a clip of 10k a day will keep the labor force low for the next decade or so.

[decoy409]

Your right! You do need EDUCATION!