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New Martenson Report ready

Sunday, December 7, 2008, 10:15 PM

Part II of the prior Martenson Report is now ready.

A Crisis Is a Terrible Thing To Waste (Part II) - Quantitative Easing

Conclusion:


The Fed has begun a very aggressive program of money printing (that goes by the fancy name “quantitative easing”) and shows every indication of continuing this program into the indefinite future. Chances are that the Fed will err to the inflationary side with this program, raising the prospect of serious inflation emerging at some point over the next year.

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4 Comments

Lemonyellowschwin's picture
Lemonyellowschwin
Status: Platinum Member (Offline)
Joined: Apr 22 2008
Posts: 561
Re: New Martenson Report ready

Just when I needed a major information fix from Chris, he comes through with flying colors.  Wow, and thanks.

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

Chris can you say more about this section of the report?

 "The twin risks of bad instrumentation and an inflationary bias lead to the very high possibility that you and I will face significant inflation in the near future. I would expect to see the first signs of this 6-12 months out (Jul – Dec of 2009), with my personal guess lying towards the later end of that range."

If there is going to be inflation does that mean that people/busineses will have money in their pockets and will be chasing products and services which means the suppliers can push prices up? That sort of suggests people are back in credit and back out on the high street or the equivalent for businesses. OR are you talking about inflation of a different sort? If so what is the mechanism of how that works and feeds through into actual prices experienced by people.

 Thanks

 

 

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
The Fed and their pyramid scheme

Chris Martenson wrote:

...as you know from watching the Crash Course,
is that our monetary and banking systems require continual expansion of
the money/credit supply. A persistent deflationary period, defined as
“too little credit/money created,” is not a viable option.

The continual expansion will grow exponentially until there are not enough new willing and worthy borrowers to meet the periodic principle and interest payments. Are we at this "end-point" and is “quantitative easing” simply a way to artificially extend the life of the system in absence of an adequate amount of new borrowers?

If this is the case, then we are postponing the inevitable and aren't we simply mortgaging our futures to extend a "debt based money system with interest" that has fundamentally failed or more specifically, had to fail by design?

My suspicion is that by extending the system, the banks and Fed can move more toxic debt from their balance sheets to ours, "we the people." After things fail, they will be able to seize whatever collateral we might have and to enslave us by perpetual debt. It looks like a pyramid scheme from the start.

If what I am saying is true, there can only be one lasting solution - End the Fed and eliminate all interest on the creation of our money and end all interest on any loans. After all, if the money is created out of thin air, what risk is anyone taking to justify interest?

Note: There are many ways to compensate lenders; for example fees, dividends, rent and/or leasing.

 

 

 

malpert's picture
malpert
Status: Member (Offline)
Joined: Oct 9 2008
Posts: 18
Re: New Martenson Report ready

The Fed must come forth and provide a specific objective for quant easing.  It should be evident that "the provision of liquidity" is insufficient explanation for such a significant policy.

The FOMC states its target rate.  Its objective is to dictate the rate at which banks can borrow overnight.

What then is the objective of quant easing? 

2% yield on the 10 year?

4% 30 year fixed rate prime mortgages? 

Indeed, this is powerful information.  It is certainly info that could generate great profits for its bearer.   

 

 

 

 

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