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Old 06-18-2020, 02:48 PM
 
Location: Heart of flyover America
648 posts, read 256,699 times
Reputation: 1226

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Quote:
Originally Posted by Hoonose View Post
How does simply creating a pile of cash effect you or me?
Every unit of currency is borrowed into existence. It is a debt, that all of us are ultimately on the hook for.
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Old 06-18-2020, 04:30 PM
 
10,550 posts, read 4,585,562 times
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Quote:
Originally Posted by Taggerung View Post
Every unit of currency is borrowed into existence. It is a debt, that all of us are ultimately on the hook for.

Our Fed created many $T's post 2008 crash. Not one of those dollars was debt, and not one was paid off/back by our taxpayers. Resulting in no practical general US price inflation or USD value reduction. Mainly because the money was temporary and not placed into our general circulation.

Bernanke explained it, as did Greenspan.

https://www.marketplace.org/2020/04/...-extra-credit/

Greenspan: "We can guarantee cash benefits as far out and at whatever size you like" ~ Mike Norman Economics

And certainly Trump and Mnuchin understand it.
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Old 06-18-2020, 04:53 PM
 
204 posts, read 90,990 times
Reputation: 539
Jeremiah Babe is currently in security. You can find his website here. Anyway, it doesn't matter whether he's a realtor or in security. He offers good information and your dismissive attitude is unwarranted. I'm not going back-and-forth with you but good luck during the coming financial depression...Bye....!

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Old 06-18-2020, 05:21 PM
 
9,622 posts, read 10,238,909 times
Reputation: 8426
Quote:
Originally Posted by Propop View Post
Jeremiah Babe is currently in security. You can find his website here. Anyway, it doesn't matter whether he's a realtor or in security. He offers good information and your dismissive attitude is unwarranted. I'm not going back-and-forth with you but good luck during the coming financial depression...Bye....!
According to his Linkedin page he's still a realtor. You doomers take the cake.

I mean you are probably tight. The real estate thing is most likely deep cover and this guy is really both an ex-special operator/high intensity security pro/sniper/close combat/jiu jitsu expert and legit-economist on the QT. That makes way more sense.
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Old 06-18-2020, 05:36 PM
 
Location: Heart of flyover America
648 posts, read 256,699 times
Reputation: 1226
Quote:
Originally Posted by Thatsright19 View Post
And if there’s insatiable demand for the USD overseas?
There is not actually any "insatiable demand" for dollars at all... what there is, rather, is a massive amount of dollar-denominated debt. A collapse of debt would mean a collapse of demand for dollars.
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Old 06-18-2020, 06:38 PM
 
10,550 posts, read 4,585,562 times
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Quote:
Originally Posted by Taggerung View Post
There is not actually any "insatiable demand" for dollars at all... what there is, rather, is a massive amount of dollar-denominated debt. A collapse of debt would mean a collapse of demand for dollars.

The world needs massive amounts of freely exchangeable, safe and stable sovereign currency and its related debt paper to go about with its business and financial needs on a day to day basis. There is simply no other currency out there that meets those ongoing demands. A collapse of the USD and its debt would mean physical destruction with serious loss of productivity, safety, stability and rule of law of our nation. An asteroid hit or loss of a world war. Not because our national debt rises every year to satisfy the ever growing demands of the world.
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Old 06-18-2020, 06:44 PM
 
3,568 posts, read 2,257,353 times
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Quote:
Originally Posted by Taggerung View Post
There is not actually any "insatiable demand" for dollars at all... what there is, rather, is a massive amount of dollar-denominated debt. A collapse of debt would mean a collapse of demand for dollars.
Um if someone is willing to hold a dollar denominated debt...that means they’re expecting dollars and there’s demand to earn and receive dollars.

And every debt is also an asset. So why would those holding dollar denominated assets stop accepting dollars?

The client creates the security he’s purchasing by the very act of purchasing. The only way to prevent the dollar from growing weak is to strengthen it. The dollar deserves that strength because otherwise it will lose that strength. Dollars are bought so they don’t have to be sold. This is what the dollar system is. The dollar is the standard other central banks float in proportion to. This is why since 1971 dollar debt and trade deficits exploded. Through benign neglect we locked them into the dollar trap. Do you have confidence in the leader of the free world? You exert more power as a debtor...because our money is their asset basis. World trade is a game where the u.s produces dollars and the rest of the world produces things dollars can buy. It’s a form of empire more slick than the British ever dreamed off. Real resources and labor for paper.

And you’ll notice opecs oil is priced exclusively in USD. This means the Usd is backed by the value of the entire oil reserves of opec.More value than all the gold ever mined. There was also more liquidity as oil drives the world unlike some shiney metal. Those who challenge this arrangement...gadaffi and saddam...Iran...well..

Those who attack the usd, will be cut off from it. It’s the most powerful non nuclear instrument of us power.

Any attack on the usd is an attack on the us military. They each feed each other’s strength. The Soviet Union locked itself into a spending war with the worlds reserve currency...and how did that work out?

“Control energy and you control continents. Control food and you control the people. Control money and you control the world” Henry Kissinger

Last edited by Thatsright19; 06-18-2020 at 07:16 PM..
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Old 06-18-2020, 07:08 PM
 
1,666 posts, read 386,550 times
Reputation: 1800
There is big demand for U.S. dollars abroad, primarily from central banks, which the Fed satisfies thru its liquidity swap program.

The real problem I see is whether an economy running on Fed fumes will be able to withstand the looming tsunami of corporate bankruptcies in the coming months.
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Old Yesterday, 11:51 AM
 
Location: Guadalajara, MX
7,507 posts, read 3,648,559 times
Reputation: 14305
Quote:
Originally Posted by Propop View Post
Well...if you still think your 401K and pension is safe and that there's going to be a great recovery soon....I have a bridge to sell you to the moon.
May I ask what you have done in your own personal finance universe to take advantage of the sage wisdom of this real estate agent and private security agent? Have you eschewed the stock market? Buried gold coins in your back yard? Stocked up on cans of beans and ammo?

It's a detail one rarely hears from "coming collapse" types, have they been doing anything concrete or do they just prefer to warn others? If we do get a serious bear market I'm sure we'll hear from all the folks who missed a 300% runup in the stock market to wag their fingers at everyone who just lost 30%.
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Old Today, 05:29 PM
 
9,291 posts, read 8,121,175 times
Reputation: 7761
The Federal Reserve is creating a lot of the demand for dollar assets artificially through dollar swaps arrangements with foreign central banks.
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