Comments on: THE ONE CHART THAT SCARES RICHARD RUSSELL http://pragcap.com/the-one-chart-that-scares-richard-russell Sun, 12 Feb 2012 11:38:21 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Michael http://pragcap.com/the-one-chart-that-scares-richard-russell/comment-page-1#comment-12310 Michael Tue, 02 Mar 2010 05:53:16 +0000 http://pragcap.com/?p=17253#comment-12310 I read most of the first article (long and I just got back from Vegas...wow its depressing there). All of the second and the third. First one was pretty good. Last two, really needed some work imo. Second one stated near the beginning that there was no way China could not buy US Treasuries. Well that has been proven false the last 2 months same with Japan (sold in Jan). The third article claims in point 5, that the dollars value has not fallen. That is completely false. A dollar from 1913 had 96% more purchasing power then a dollar today. Easily looked up fact. The US dollar has steadily gone down, until recently, gone down vs the Euro over time. Its not that things cost more then back in the day. Food is cheaper then ever (and worse for you), clothing is cheaper. Cars are cheaper in dollar terms when taking into account inflation. Inflation just robs from savers. I prefer logical money...aka sound money. I also am not a fan of central planners being mega banks (aka the Federal Reserve) who just make a mint off of us peons. We've had more recessions/depressions since the Federal reserve then any time before it. We've suffered from higher and higher rates of inflation. For nearly a 100 years in this countries past we had less then 1% inflation over that WHOLE period. But we also boomed and people became wealthier. Wealth, real value to their lives. Today and for the last decade the average wage of an American has gone down, not up. Anyways sorry for the delays. Got stuck at that job then had vacation. I read most of the first article (long and I just got back from Vegas…wow its depressing there). All of the second and the third. First one was pretty good. Last two, really needed some work imo.

Second one stated near the beginning that there was no way China could not buy US Treasuries. Well that has been proven false the last 2 months same with Japan (sold in Jan).

The third article claims in point 5, that the dollars value has not fallen. That is completely false. A dollar from 1913 had 96% more purchasing power then a dollar today. Easily looked up fact. The US dollar has steadily gone down, until recently, gone down vs the Euro over time. Its not that things cost more then back in the day. Food is cheaper then ever (and worse for you), clothing is cheaper. Cars are cheaper in dollar terms when taking into account inflation. Inflation just robs from savers.

I prefer logical money…aka sound money. I also am not a fan of central planners being mega banks (aka the Federal Reserve) who just make a mint off of us peons. We’ve had more recessions/depressions since the Federal reserve then any time before it. We’ve suffered from higher and higher rates of inflation. For nearly a 100 years in this countries past we had less then 1% inflation over that WHOLE period. But we also boomed and people became wealthier. Wealth, real value to their lives. Today and for the last decade the average wage of an American has gone down, not up.

Anyways sorry for the delays. Got stuck at that job then had vacation.

]]> By: Paul http://pragcap.com/the-one-chart-that-scares-richard-russell/comment-page-1#comment-12263 Paul Mon, 01 Mar 2010 01:36:33 +0000 http://pragcap.com/?p=17253#comment-12263 By buying the portfolio of assets at the 100% face value. You are right, there has to be a high return associated with these toxic assets which you would get by buying these toxic assets for pennys on the dollar. By buying the portfolio of assets at the 100% face value. You are right, there has to be a high return associated with these toxic assets which you would get by buying these toxic assets for pennys on the dollar.

]]> By: Paul http://pragcap.com/the-one-chart-that-scares-richard-russell/comment-page-1#comment-12262 Paul Mon, 01 Mar 2010 01:32:38 +0000 http://pragcap.com/?p=17253#comment-12262 Inflation / Deflation seems to be a very discussed topic. What I see happening is deflation with OUR ASSETS - stocks, bonds, real estate, etc., and inflation on consumer goods - gas, food, toothpaste, etc. due to this monetary inflation caused by printing and buying dollars by our government. So in short, what you own becomes less valuable (i.e. your assets), while at the same time the things you needs to live on (i.e. food, gas, etc) get more expense. Sounds like being between a rock and a hard place to me... Inflation / Deflation seems to be a very discussed topic. What I see happening is deflation with OUR ASSETS – stocks, bonds, real estate, etc., and inflation on consumer goods – gas, food, toothpaste, etc. due to this monetary inflation caused by printing and buying dollars by our government.

So in short, what you own becomes less valuable (i.e. your assets), while at the same time the things you needs to live on (i.e. food, gas, etc) get more expense.

Sounds like being between a rock and a hard place to me…

]]> By: skully http://pragcap.com/the-one-chart-that-scares-richard-russell/comment-page-1#comment-12260 skully Sun, 28 Feb 2010 23:50:41 +0000 http://pragcap.com/?p=17253#comment-12260 I disagree, this is the last thing the fed would want at this time. Surely the last thing they would want is a terrorist act or some thing that prevents them from getting into work, because that would disrupt their ability to go and try and do their job? I am not saying that is the last thing they would want but I feel those things are more last than the bond market declining. JMHO. I disagree, this is the last thing the fed would want at this time. Surely the last thing they would want is a terrorist act or some thing that prevents them from getting into work, because that would disrupt their ability to go and try and do their job?

I am not saying that is the last thing they would want but I feel those things are more last than the bond market declining.

JMHO.

]]> By: lpalau http://pragcap.com/the-one-chart-that-scares-richard-russell/comment-page-1#comment-12182 lpalau Fri, 26 Feb 2010 15:43:14 +0000 http://pragcap.com/?p=17253#comment-12182 How can you increase risk (by buying MBO and "toxic-assets") and not increase return? How can you increase risk (by buying MBO and “toxic-assets”) and not increase return?

]]> By: TPC http://pragcap.com/the-one-chart-that-scares-richard-russell/comment-page-1#comment-12062 TPC Wed, 24 Feb 2010 08:24:30 +0000 http://pragcap.com/?p=17253#comment-12062 They're good reads. Have a good night. They’re good reads. Have a good night.

]]> By: Michael http://pragcap.com/the-one-chart-that-scares-richard-russell/comment-page-1#comment-12061 Michael Wed, 24 Feb 2010 06:55:26 +0000 http://pragcap.com/?p=17253#comment-12061 I'm going to have to read those links tomorrow, have to be at work around 4:30am to change out a refer unit at a Safeway tomorrow and its 11pm now. But I just got this in an email (I'm behind) and its ironic: http://consultingbyrpm.com/blog/2010/02/are-consumer-prices-collapsing.html Sorry for not linkifying it, didn't realize how late it is. I’m going to have to read those links tomorrow, have to be at work around 4:30am to change out a refer unit at a Safeway tomorrow and its 11pm now. But I just got this in an email (I’m behind) and its ironic:

http://consultingbyrpm.com/blog/2010/02/are-consumer-prices-collapsing.html

Sorry for not linkifying it, didn’t realize how late it is.

]]> By: TPC http://pragcap.com/the-one-chart-that-scares-richard-russell/comment-page-1#comment-12060 TPC Wed, 24 Feb 2010 06:51:11 +0000 http://pragcap.com/?p=17253#comment-12060 Michael, I'm just telling you the facts. Please read the following and feel free to let me know what you think: http://www.newdeal20.org/?p=6338 http://mpettis.com/2010/02/what-the-pboc-cannot-do-with-its-reserves/ http://www.huffingtonpost.com/l-randall-wray/the-federal-budget-is-not_b_457404.html Michael, I’m just telling you the facts. Please read the following and feel free to let me know what you think:

http://www.newdeal20.org/?p=6338

http://mpettis.com/2010/02/what-the-pboc-cannot-do-with-its-reserves/

http://www.huffingtonpost.com/l-randall-wray/the-federal-budget-is-not_b_457404.html

]]> By: Michael http://pragcap.com/the-one-chart-that-scares-richard-russell/comment-page-1#comment-12059 Michael Wed, 24 Feb 2010 06:37:46 +0000 http://pragcap.com/?p=17253#comment-12059 Awesome. I apparently missed a " or >, go me! I appologize, thought I looked it over. But I guess only 5-6 minutes on a reply and review gets you a few mistakes now and again. Awesome. I apparently missed a ” or >, go me! I appologize, thought I looked it over. But I guess only 5-6 minutes on a reply and review gets you a few mistakes now and again.

]]> By: Michael http://pragcap.com/the-one-chart-that-scares-richard-russell/comment-page-1#comment-12058 Michael Wed, 24 Feb 2010 06:36:07 +0000 http://pragcap.com/?p=17253#comment-12058 You said hyper inflation I did not. I was relaying the federal governments released numbers that show inflation during the last 2 years even with energy and food removed. Which is unrealistic. But its still positive inflation during the entire period. Unless the government numbers which are pushed down already are wrong. I also understand fiat money quite well thanks. Each auction the price for the US to get further and further into debt is going up. I guess that is false too right? Yeilds are not going up to new records each week? Oh sorry, the US Treasury numbers says they are. If every penny saved last year in the US was used to buy US debt issued by the Treasury, we would still have to borrow over 600 billion from other people. If you look at the recent US Treasury auctions, according to the US Treasury the Fed (SOMA) made up more fake money to buy 11% of it. Foriegn government purchased the least amount in years (if not ever I forgot which it was, either way I don't call it good). The auction nearly failed until an undisclosed entity purchased all the remaining debt, approx 40% of that days auction. Which was by most accounts, the Fed again though we'll never really know. Corporations also purchased a new record low amount too and what they have is mostly moving to 2 year treasuries not 10+ year like they used to do. But of course, I'm clueless and you're all knowing. Again you just said your opinion about inflation. But if you look at the core CPI from the GOVERNMENT they say there is inflation (granted low and I never mentioned hyper, only you have). Incase you don't believe me the numbers (history and current) can be found here: www.bls.gov/cpi/ No China funds our debt. According to the <a href="http://www.thefreedictionary.com/funding" title="dictionary" rel="nofollow">, I used the term correctly. They supply us the money which in turn we spend on their "products" and a few other countries. China doesn't have to buy our debt, as the last 2 months have shown. They flat out didn't, infact they sold it. Again for your convience you just flat out ignored this easily verified fact. And just stated your opinion as fact (or the word of God?) I read the article you posted a few weeks back and I didn't discredit it, I just felt Casey’s was more believable to me. I fear future high inflation (below 20% like we had in the early 80s) more then a temporary deflationary period either now or in the near future. I am, likely obvious by now a austrian economics guy as I like things to make logical sense. I see Japan now (last 20 years) and stagflation of the 70s as proof that keynesian economics failed completely. Japan is once again in a recession and they're going to pump more cash into the system to get them out... Zombie banks sounds like a great way to go. Though I think we're there already. I prefer sound, real money. Instead of losing 95% of MY wealth to inflation in under 100 years (thank you Federal Reserve) and most of it in the last 40 years. You said hyper inflation I did not. I was relaying the federal governments released numbers that show inflation during the last 2 years even with energy and food removed. Which is unrealistic. But its still positive inflation during the entire period. Unless the government numbers which are pushed down already are wrong.

I also understand fiat money quite well thanks. Each auction the price for the US to get further and further into debt is going up. I guess that is false too right? Yeilds are not going up to new records each week? Oh sorry, the US Treasury numbers says they are.

If every penny saved last year in the US was used to buy US debt issued by the Treasury, we would still have to borrow over 600 billion from other people. If you look at the recent US Treasury auctions, according to the US Treasury the Fed (SOMA) made up more fake money to buy 11% of it. Foriegn government purchased the least amount in years (if not ever I forgot which it was, either way I don’t call it good). The auction nearly failed until an undisclosed entity purchased all the remaining debt, approx 40% of that days auction. Which was by most accounts, the Fed again though we’ll never really know. Corporations also purchased a new record low amount too and what they have is mostly moving to 2 year treasuries not 10+ year like they used to do.

But of course, I’m clueless and you’re all knowing. Again you just said your opinion about inflation. But if you look at the core CPI from the GOVERNMENT they say there is inflation (granted low and I never mentioned hyper, only you have). Incase you don’t believe me the numbers (history and current) can be found here: http://www.bls.gov/cpi/

No China funds our debt. According to the , I used the term correctly. They supply us the money which in turn we spend on their “products” and a few other countries. China doesn’t have to buy our debt, as the last 2 months have shown. They flat out didn’t, infact they sold it. Again for your convience you just flat out ignored this easily verified fact. And just stated your opinion as fact (or the word of God?)

I read the article you posted a few weeks back and I didn’t discredit it, I just felt Casey’s was more believable to me. I fear future high inflation (below 20% like we had in the early 80s) more then a temporary deflationary period either now or in the near future.

I am, likely obvious by now a austrian economics guy as I like things to make logical sense. I see Japan now (last 20 years) and stagflation of the 70s as proof that keynesian economics failed completely. Japan is once again in a recession and they’re going to pump more cash into the system to get them out… Zombie banks sounds like a great way to go. Though I think we’re there already. I prefer sound, real money. Instead of losing 95% of MY wealth to inflation in under 100 years (thank you Federal Reserve) and most of it in the last 40 years.

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