Comments on: BDS and now FDS?

By: The Asian Badger

The Asian Badger — Wed, 30 Apr 2008 06:21:08 +0000

Thanks, Steve, for bringing my attention to your post tonight.

Speaking as someone who has no “FDS” but rather says “How can I profit from these morons?”,(hey, someone has to pay the stupid penalty, I might as well be a payee of the stupid penalty) the FDS has been with us since Greenspan came to office. He never had the guts of Voelker (smarts, yes…guts, no) to raise rates to protect the US$.

WTF, works for me….short the dollar and buy anything but US$.

The “main” Presidents overseeing Greenspan, Clinton and BushII, have been busy protecting their legacy and going along as long as the economy is booming. Well, as Sun Tzu once said “In time of war, prepare for peace, in times of peace, prepare for war.”

The US$ is now just debased. The mortgage crisis (and resulting idiotic “rescue” proposed by Congress) only exacerbates the situation.

Add the mandates of putting our basic food into our gas tanks and VOILA….you gotta big problem. Also, don’t forget, the public thinks you can just reverse this stuff in 90 days or less. Ain’t going to happen. We’re in for a long tough road. It took Voelker, what? About two to three years to see the results of his guts?

Until Bernanke RAISES rates, and, until we let the mortgage chips fall where they may (defaulters will just move back into apartments and thus increase demand for apartments while the price of homes/condos fall, thus creating demand among QUALIFIED homebuyers and as usual, the market sorts it out) we’re going to be in trouble.

The U.S. should tie itself to gold and peg it to about….call it US$500/oz. (Less…around US$400/oz would be better but that’s a longer term goal.)

By: Shoebox

Shoebox — Wed, 30 Apr 2008 00:21:03 +0000

Geez, I guess that would discourage any run on banks!

By: dad29

dad29 — Tue, 29 Apr 2008 22:28:05 +0000

On the other hand, Shoebox, have you heard that the FRB has ordered 200 black helicopters w/60mm cannons?

By: Shoebox

Shoebox — Tue, 29 Apr 2008 15:22:44 +0000

Dad29, How did I know I’d hear from you on this??? :)
As usual we’re in violent agreement. the FDS meme has folks starting to believe that the FED controls all economic impacts not only in the US (it doesn’t) but throughout the world. It’s simpleton thinking like FDS, looking for “who to blame” that allows citizens not to think and deal with what are sometimes difficult choices i.e. cut the spending???

By: steveegg

steveegg — Tue, 29 Apr 2008 14:00:39 +0000

Come on, dad29, you can do better than that. I let just about any vulgarity fly.

By: dad29

dad29 — Tue, 29 Apr 2008 13:52:31 +0000

When the Fed stopped publishing M3 a couple of years ago, it was a warning sign. And your observation that the USD/Euro has been falling for a long time is correct–so happens that the slide started when M3 numbers disappeared (or thereabouts.)

But let’s be real. The “FDS” you mention is most likely created and fed by a Congress which is perfectly happy to have us think that FISCAL policy (Congressional drunken-sailor spending) has nothing to do with it–that only MONETARY policy (the Fed) runs the financial world.

In all likelihood, the trouble is a combination of both. The Fed’s loosey-goosey “helicopter dollars in there” approach was complemented by Congressional/Presidential spending WAAAAAYYYYYYY beyond the means of the US.

A pox on both their houses (which is the only printable quote I can think of…)