tag:blogger.com,1999:blog-4490468598422095060.post3580274665753757975..comments2024-03-17T07:55:12.096-07:00Comments on FOFOA: The Bermuda Triangle of CurrencyFOFOAhttp://www.blogger.com/profile/17152544684132776239noreply@blogger.comBlogger25125tag:blogger.com,1999:blog-4490468598422095060.post-53901216238099275012009-06-27T19:30:37.780-07:002009-06-27T19:30:37.780-07:00It seems like the income of the entire country has...It seems like the income of the entire country has dropped like a stone and continues to fall. Demonstrated by the 20% increase in welfare payments last month. <br /><br />While the money supply is expanding, the purchasing power of the market has reduced, thus the diagrams are hard to match against the real situation - because although the prices of consumables remain stable, people can afford Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-81552154650117683232009-06-13T23:44:26.154-07:002009-06-13T23:44:26.154-07:00Well, on a semantical level I don't really agr...Well, on a semantical level I don't really agree that "limiting" and "not relevant" both work, since if it isn't relevant it would just be ignored (and not used in any capacity).<br /><br />I think the distinction is important, because "limiting" might suggest that shedding light on what you're getting into (analyzing the fall) is what Austrian theory is Andrewhttps://www.blogger.com/profile/05880766233561917340noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-37124923503345480952009-06-12T14:02:19.246-07:002009-06-12T14:02:19.246-07:00Andrew,
"Not relevant" is correct. &qu...Andrew,<br /><br />"Not relevant" is correct. "Simple" is also correct. "Limiting", to my discussion, yes.<br /><br /><i>"Is it the Austrian explanation itself you find limiting, or rather the mindset of certain people?"</i> <br /> <br />It is both. I was trying to follow Einstein's advice: "everything should be made as simple as possible, but FOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-43163375787736059182009-06-12T13:37:53.157-07:002009-06-12T13:37:53.157-07:00Ya, I know you think similarly and didn't figu...Ya, I know you think similarly and didn't figure you were trying to poopoo the Austrian school. Thanks for taking the time to respond, interesting to read.<br /><br />Is it the Austrian explanation itself you find limiting, or rather the mindset of certain people? For example, the weather is complex. If someone looks at a thermometer and sees that it's 78 degrees and then takes this to Andrewhttps://www.blogger.com/profile/05880766233561917340noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-25461448744488735992009-06-11T11:26:57.308-07:002009-06-11T11:26:57.308-07:00...Cash (and reserves held at the Fed) have become......Cash (and reserves held at the Fed) have become the reserves of the system ever since gold stopped being the reserve. My argument is that the Fed has dramatically increased those reserves. This is the beginning of Weimarization. Everything else (that is normally used to correlate inflation to CPI price inflation) is simply liquid assets. But the problem with this view is that in a collapseFOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-69645753619832345772009-06-11T11:21:46.969-07:002009-06-11T11:21:46.969-07:00Hello Andrew,
Welcome!
You are correct. I guess...Hello Andrew,<br /><br />Welcome!<br /><br />You are correct. I guess I didn't throw out enough disclaimers like "no offense to the Austrians", "I count myself as one", etc...<br /><br />The Austrians have the best and most concise definition of inflation. In fact, I agree that it is the true definition of inflation. But this fact alone confuses the whole discussion FOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-56119486331558628682009-06-11T01:51:04.346-07:002009-06-11T01:51:04.346-07:00I'm not sure I really understand your disagree...I'm not sure I really understand your disagreement with the Austrian definition of inflation/deflation. The definition, at least as I take it, is talking about strictly the money supply.<br /><br />If the money supply is expanded, an Austrian will call this inflation. If it's contracted, he'll call it deflation. You can, i.e., have inflation of the money supply while not necessarilyAndrewhttps://www.blogger.com/profile/05880766233561917340noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-11069030327590381392009-06-10T11:10:24.454-07:002009-06-10T11:10:24.454-07:00Must see video.
Jim Grant of Grant's Interest...<a href="http://market-ticker.denninger.net/archives/1106-The-Fed-Bankrupt.html" rel="nofollow">Must see video</a>.<br /><br />Jim Grant of Grant's Interest Rate Observer compares Ben Bernanke to Gideon Gono on CNBC!FOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-69957270614369747582009-06-09T14:50:34.628-07:002009-06-09T14:50:34.628-07:00Siege,
Eerie timing you have.
I was just reading...Siege,<br /><br />Eerie timing you have.<br /><br />I was just reading Martijn's quotes from an article asking why Obama isn't doing the right thing? (they are at the bottom of the previous post's comments). <br /><br />I was just thinking about how the entire system right now is built on lies, and how truth is like Kryptonite to such a system. So Obama is being advised to keep FOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-15700279199185351482009-06-09T14:34:14.129-07:002009-06-09T14:34:14.129-07:00Hi FOFOA,
Ever had one of those 'oh shite'...Hi FOFOA,<br /><br />Ever had one of those 'oh shite' moments when you realize just how quickly the lies of gubbermint could unravel? Take a look at this chart Denninger found...<br /><br />http://market-ticker.denninger.net/archives/1101-EMPIRICAL-PROOF-Obama-Stimulus-FAIL.htmlSiegenoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-45553609039313135912009-06-09T14:25:42.117-07:002009-06-09T14:25:42.117-07:00Thanks Jimmpy!
This is the third time I've se...Thanks Jimmpy!<br /><br />This is the third time I've seen this story pop up on the radar. 3 times usually means "pay attention".<br /><br />The story gets deeper each time. Something strange is going on.<br /><br />This guy has an unusually large portion (50%?) of a US$7bn fortune tied up in one bank? HSBC? Takes a loss of roughly half of that investment? Then decides to exit FOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-70954609042034181032009-06-09T13:46:40.767-07:002009-06-09T13:46:40.767-07:00Hello FOFOA,
Maybe, another dot to add to your co...Hello FOFOA,<br /><br />Maybe, another dot to add to your collection.<br /><br />http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=294207&version=1&template_id=48&parent_id=28<br /><br />Just trying to helpJimmpyhttps://www.blogger.com/profile/08932826163006146866noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-52656863137852917782009-06-09T13:00:30.181-07:002009-06-09T13:00:30.181-07:00True or False: U.S. Economic Stats Lie
TEASER:
...<a href="http://finance.yahoo.com/banking-budgeting/article/107167/true-or-false-us-economic-stats-lie?mod=bb-budgeting" rel="nofollow">True or False: U.S. Economic Stats Lie</a> <br /> <br />TEASER:<br /><i>"If Williams is right, unemployment is over 20%, gross domestic product is shrinking by 8% and consumer prices are jumping by nearly 7%. His forecasts border on apocalyptic. The FOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-82376065285777138672009-06-09T00:07:02.504-07:002009-06-09T00:07:02.504-07:00One more Thought....
If gold passes $1000 permane...One more Thought....<br /><br />If gold passes $1000 permanently, OR... if COMEX implodes and physical pricing takes over, this will remove MASSIVE amounts of real cash from the banking system. This is what they fear.<br /><br />FOFOAFOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-55344599044737135942009-06-08T23:43:24.332-07:002009-06-08T23:43:24.332-07:00(Cont...)
John is very much on our topic in that ...(Cont...)<br /><br />John is very much on our topic in that piece, but he is talking about one thing (currency collapse vs. stability) and looking at something else (MZM, a measurement with a correlation to inflation). <br /><br />Here is a good (short) critique of the MZM measurement by <a href="http://www.gold-eagle.com/gold_digest_03/shostak121903.html" rel="nofollow">Frank Shostak</a> of theFOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-7540574085373959422009-06-08T23:37:40.229-07:002009-06-08T23:37:40.229-07:00Hello Christian,
Thank you for your comments. I...Hello Christian, <br /><br />Thank you for your comments. I always respond to well considered comments and questions. Your's are definitely well considered!<br /><br />This particular discussion topic can explode out of control like the Zimbabwe money supply if we are not careful. So I have distilled your comments down to three points which I will respond to...<br /><br />1.) That MZM showsFOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-47995224586483006512009-06-08T19:56:24.246-07:002009-06-08T19:56:24.246-07:00(in addition to the other points i made in last co...(in addition to the other points i made in last comment)......there was something else i would like to mention...i beleive commercial banks excess reserves (kept at the fed).....are included in the monetary base chart.....as we know.. A large number of banks in the 3'rd Q of 2008 applied to become commercial banks.....which could be a additional reason for the uptick in monetary base shortly Christiannoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-21578786004179452022009-06-08T19:28:14.343-07:002009-06-08T19:28:14.343-07:00i like a few of the concepts/perspectives you touc...i like a few of the concepts/perspectives you touch on in the article but i think you got one IMPORTANT THING WRONG...<br /><br />First thou.. i like how you say the only thing hyperinflation has in common with inflation is the wording "inflation"......<br /><br />Second seeing things in terms of stable currency/collapse is also a simply yet needed IMO way of looking at things.......Christian Pickettnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-78222829003270297302009-06-08T16:57:42.959-07:002009-06-08T16:57:42.959-07:00I agree with all of you. I believe, like you,that ...I agree with all of you. I believe, like you,that U.S. creditors would not tip the cart for fear of losing the value of their dollar holdings. But, we can't lose sight of the FOREX. There are a lot of players there who could, cumulatively cause the appearance of an exodus. I believe that the FOREX trades $ 3 trillion a day. <br />Also, there are some indications that COMEX and other PM myselfhttps://www.blogger.com/profile/02718510726885350595noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-38041523639872777582009-06-08T12:42:03.931-07:002009-06-08T12:42:03.931-07:00Hello Siege,
You phrase your 2nd world exit strat...Hello Siege,<br /><br />You phrase your 2nd world exit strategy as a hypothetical one, but it sounds eerily like a description of what is actually happening right now. <br /><br />I think our currency collapse will be a purely psychological event given the proper setup (which is already in place). Hyperinflation will be exacerbated by the government's knee-jerk reaction. <br /><br />Just FOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-79806918999248749322009-06-08T12:00:20.695-07:002009-06-08T12:00:20.695-07:00This last point is a major one... as a 2nd world c...This last point is a major one... as a 2nd world creditor nation, I'd not cause a collapse. I'd try to support the 1st world (with words and actions and very little money) while I extracted every drop of value I could from USD holdings and minimized my losses. I doubt any creditor nation will intentionally cause a collapse as it limits the value received in recovery. Assuming other 2ndSiegenoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-9838002409702578242009-06-08T11:59:55.288-07:002009-06-08T11:59:55.288-07:00Hi FOFOA,
Your model is a nice improvement on bas...Hi FOFOA,<br /><br />Your model is a nice improvement on basic theories too many subscribe to. I'm interested to see how (and if) purchasing power parity would fit in. I think hyperinflation is held at bay by a belief that US dollars buy X, when in reality the volumes held by foreign debt holders never can. I don't mean to hijack your thread; I've been considering your model and Siegenoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-51641276407377144152009-06-08T06:45:25.025-07:002009-06-08T06:45:25.025-07:00Dear FOFOA,
I agree about psychology, but who'...Dear FOFOA,<br /><br />I agree about psychology, but who's?<br />How to weight the America vs rest of<br />globe? We are like the cukhold I'm <br />afraid, always last to know...Matt Cnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-47905757916551032242009-06-08T01:08:01.488-07:002009-06-08T01:08:01.488-07:00Indeed enlighted piece with the psychology attache...Indeed enlighted piece with the psychology attached to it. <br /><br />Remind me of the METATRON'S CUBE<br /><br />http://www.youtube.com/watch?v=ZOqg5bPZ0HE<br /><br />Inside the small box where this monetairy infla- deflation phenomen circles around. <br /><br />So here with this piece you come out of the small box and wider your view, so more the fundamental points are becomming clear and Shantihttps://www.blogger.com/profile/00961567177091565100noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-87992243550067285002009-06-07T20:10:18.548-07:002009-06-07T20:10:18.548-07:00Consider too, that this game we play is almost obl...Consider too, that this game we play is almost obligatory. Imagine trying to exist without using the house “chips.” We are forced to play the game almost from the day we are born until after we die (our funeral must be paid for with house “chips”). Oh, and if we attempt to avoid using the house “chips” by bartering, guess what? The house comes along and demands a tax on the fair market value (Dave Eriqathttp://daveeriqat.wordpress.com/noreply@blogger.com