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New Martenson Report ready

Sunday, November 30, 2008, 8:29 AM

Executive summary:

The Fed has engaged on a path of “quantitative easing” (defined in Part II of this report), which has only been tried by Japan, where it was met with limited success. Success rests on the hopeful, but possibly flawed, assumption that cheap money will lead to renewed borrowing.

Understanding the mechanism and implications of this requires an appreciation of the credit markets, what they are, and how they operate. In Part I we will discuss the credit markets and the extent to which the government is now a credit market participant.

In Part II we will examine the Fed’s chosen strategy of fighting the collapse in lending activity with the tool of quantitative easing, and what this could mean for you.

Link to: A crisis is a terrible thing to waste

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10 Comments

cannotaffordit's picture
cannotaffordit
Status: Gold Member (Offline)
Joined: Jun 12 2008
Posts: 273
Re: New Martenson Report ready

 NEVERMIND.  Boy, do I feel stupid.  It was the browser I was using.  Switching browsers did the trick, ( from Safari to Firefox) but I've always read the site with Safari before.  ?????

Ben

Hi Chris or Eric,

For some reason, the charts - Figures 1-4 - do not show when I open the report. Just the blank square where hey are supposed to be, with a question mark in the center.  I've never had this problem before.  Were these created in some format(?) that is different this time.  It's a little hard to follow the text without the charts.

Thanks,

Ben 

Gwentan's picture
Gwentan
Status: Member (Offline)
Joined: Sep 25 2008
Posts: 8
Re: New Martenson Report ready

An anecdote:

I went to pay some cheques into my bank. For the first time ever the young man behind the counter asked me how I was, what I was in town for and generally tried to engage me in conversation. I was reticent to talk as I just wanted to get the cheques paid in and leave.

When he had paid the cheques in and just before I turned to leave the counter he asked if I wanted a mortgage. It was a clumsy piece of sales. The main message I took was that this young man had been asked to approach every customer to see if he could get new mortgage business. The manager would not be asking a member of staff to do this unless a more senior manager was not putting pressure on to sell mortgages. If there was a cue of people wanting this money then the young man would not have been trying to sell it to everyone that entered the bank.

Ultimately what this says to me is that there is money available but  people no longer want it, or cannot afford it no matter how low the interest rate that may be on offer. I think this anecdote relates to part of what Chris was getting at in his report about real world demand/appetite for debt ie it is very low and it is likely to get lower!

Erik T.'s picture
Erik T.
Status: Diamond Member (Offline)
Joined: Aug 5 2008
Posts: 1234
This is SUCH a good time to read The Creature from Jekyll Island

Chris:

Brilliant report, chief! I really enjoyed it and can't wait to read part II. (And in case anyone is wondering, I don't see the Martenson Reports any sooner than other subscribers do).

All:

I feel inspired to encourage everyone to read The Creature from Jekyll Island, if you haven't already. I think everyone is aware that this site includes both an Essential Articles page and an Essential Books page. But if you're like me, it's easy to brush over these important resources. Reading full-length books is far less of an adrenaline-stimulator than reading very current writing like that found here in the Martenson reports.

But I've just (finally, after ordering it 6 months ago) begun reading G. Edward Griffin's The Creature from Jekyll Island. If you want a really thorough explanation of the history of the Fed and how it works, including a prediction that everything happening now would happen, this is a fantastic book. I particularly enjoyed Chapter 2, The Name of the Game is Bailout. If I'd read this two years ago, I'd have thought this author was a kooky conspiracy theorist. He promotes this (previously absurd) notion that the whole point of the Fed was to set up a cartel whose purpose was to allow banks to operate recklessly, but to assure that they all failed together so that it would be necessary for the taxpayers to absorb the burden of a systemic collapse.

This was written long before the current crisis, but it perfectly anticipates everything going on now. If you want some background to better understand everything Chris is writing about, this book is excellent. There is also a video available by the author, which is really just a pretty high-level summary of what the book is about.

I'm going to make it a priority to read everything on the essential books page, and encourage others to consider doing the same. If you're going to buy from Amazon.com, please use the link on the Essential Books page so that ChrisMartensonl.com gets credit for referring you!

Erik Townsend
Business Manager
PeakProsperity.com

 

 

malcolmkettering's picture
malcolmkettering
Status: Member (Offline)
Joined: Nov 1 2008
Posts: 2
Re: New Martenson Report ready
Gwentan wrote:

Ultimately what this says to me is that there is money available but  people no longer want it, or cannot afford it no matter how low the interest rate that may be on offer.

I agree. To me this is the 800 lb. elephant in the room, or in the Paulson press conferences as it were. No one is positing the theory that the US consumer just might be burned out, full up, out of gas, whatever, and that they no longer want/need/can buy anything new. Reading the news, seeing foreclosures around them, they are paralyzed with fear about taking on new debt, and after the decade-long buying binge, are realizing that the SUV, laptop, big screen TV, iPhone, etc., that they already have, will suffice for now. In parallel there's also got to be some saturation point whereby just about everyone has a TV they like, a granite kitchen, a couple of nice cars, etc., and there's really just no other big ticket items to buy. No big ticket = no borrowing = no US economy.

James Wandler's picture
James Wandler
Status: Martenson Brigade Member (Offline)
Joined: Aug 11 2008
Posts: 219
Re: This is SUCH a good time to read The Creature from ...
ErikTownsend wrote:

I'm going to make it a priority to read everything on the essential books page, and encourage others to consider doing the same. If you're going to buy from Amazon.com, please use the link on the Essential Books page so that ChrisMartensonl.com gets credit for referring you!

Erik,

Ironically, I started reading Financial Reckoning Day on the weekend and I made the same resolution to read all of the Essential Books.  And yes, The Creature From Jekyll Island is next on my list. 

All the best,

James

castlewp's picture
castlewp
Status: Gold Member (Offline)
Joined: Oct 7 2008
Posts: 304
Re: This is SUCH a good time to read The Creature from ...

Another great read that should be essential reading is "Crossing The Rubicon" by Michael Ruppert.  Amazing predictions and analysis.

joe2baba's picture
joe2baba
Status: Martenson Brigade Member (Offline)
Joined: Jun 17 2008
Posts: 807
Re: This is SUCH a good time to read The Creature from ...

if everyone would read the creature we would only have one thread going here. it would be END THE FED NOW.

you can go to www.endthefed.us

this issue trumps everything, peak oil, global warming, investing and drops of water in fenway park..............oh IMHO.

i cant believe there are people on this site who have not read it, and everything else on the essential book list.

alohabob's picture
alohabob
Status: Member (Offline)
Joined: Oct 30 2008
Posts: 1
Re: New Martenson Report ready

Aloha Chris and all,

Thank you all so much for all your efforts, insights, and throught provoking commentary.

One point that I don't understand;  what incentive does a lender have for making a loan of more than a few months term, given a lender's expectation of inflation and deflating asset values?   Wouldn't they be much more inclined to move cash into hard assets, especially if they're available from a distressed marketplace?

It's difficult for me to see a lack of willing borrowers because I don't think (american) culture changes that fast.   I suspect that today, there are very nearly as many people eager to expand their debt, as there were two years ago.

bob

ckessel's picture
ckessel
Status: Martenson Brigade Member (Offline)
Joined: Nov 12 2008
Posts: 486
Re: This is SUCH a good time to read The Creature from ...

Eric,

Another critical read is "Debt Virus" by Jaikaran. It is shorter and does not have the historical background that Griffen presents but it is very well written and understandable. Also, it may be more palatable to folks who have a difficult time with conspiracy theories!

 I have not noticed any links to Griffens website but I assume that the efforts of those who subscribe to the concepts presented on this website would have a similar value set to those on Griffens. Is there any effort underway to align groups with similar goals and purposes?

I have had a lot of success in communicating to people in my community. We are in a small mostly rural county in CA with a population of just under 60,000. Looking forward to getting the DVD's. Thanks for all that you, CM and staff are doing to help educate our population.

wdstk46's picture
wdstk46
Status: Bronze Member (Offline)
Joined: Nov 17 2008
Posts: 59
Re: New Martenson Report ready

I am using Safari with no problems.  The images are just JPEGs.  I think something else is going on with your settings.  I hope this helps.

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