The Debt Party is Over . . . .

[grassfarmer]

....... Sure the economy is more than just energy but not much more.

On the contrary it's an awful lot more - the entire fuel and electricity production and distribution totals less than 10% of Canada's GDP. These are 2012 figures but you get the idea.

[biglentil]

Pension fund blowout is next up in the batter’s box . . . Like former Fed chair Paul Volcher stated this week. “We are in a hell of a mess” Unfunded U.S. pension funds now bankrupting many states.

Printing money has run-its-course (IMO). Central bank power is now greatly diminished since 2008. To me, deflation is the threat, not inflation. Central bankers can’t even say the word ‘deflation’ as their policies are bent on inflationary Keysian economics that have become increasingly ineffective.

Nothing was learned by governments from the 2008 housing crash. In fact cheap easy credit, bailouts, and crony capitalism have made things many times worse. If central banks keep on raising rates, the asset bubble will pop (or arguably has popped already) triggering a liquidity crisis. Defaults will surge and we could see a credit crisis that makes Lehman Brothers of 2008 look like picnic. The patient has been on morphine(cheap credit) for far too long going cold turkey could prove fatal.

How much deflation did we see as a result of the 2008 crisis? Next to none and what did fall in price (housing and oil)was very short lived. Things are also different now the money supply has more than tripled and debt levels sky high. Price inflation has not kept up to growth of money supply. Except with respect to housing and farmland.

There may be a flight to safety but the USD has significantly lost its appeal and value for many.

[errolanderson]

Big lentil, excellent points . . . .

My view is central bankers have already shot-their-shells. Printing money in 2018 now has a far less of an impact to markets than printing money in 2008 (IMO). Central bankers are talking up their battle with inflation when there is very little to battle. But investors need to be comforted by our economic leaders that inflation is alive ‘n well. It’s not, in my view.

QE has been a colossal failure making the overall risk to markets greater now than in 2008. This is now coming-to-roost in markets right now (IMO).

Tomorrow (Friday) is looking ugly, Asian markets falling, Dow futures tumbling tonite. The asset and debt bubble built by QE are at-risk. Consumers can il-afford any inflationary pressures. Consumerism itself is at-risk.

My two-bits worth . . . .

[Oliver88]

Where are you parking your $ ??

[biglentil]

Sums up 99% of the population unfortunately. Unaware of the trainwreck which approaches.

[foragefarmer]

Did your wife buy you the blue shorts?

[hobbyfrmr]

Did your wife buy you the blue shorts?

No, that’s me 🙂

[biglentil]

Did your wife buy you the blue shorts?

Your flexibility amazes me foragefarmer! But how do you stick your foot in your mouth and have your head up your own ass all at the same time?

[foragefarmer]

Big lentil


That's hilarious, I pissed my pants laughing! Good one.

On behalf of me, thank your wife for taking her time to find that picture and posting it on Agriville. It was worth the wait.

I do have to apologize to you, I should have never presumed that you being part of the 99% doesn't mean you are incapable of buying your own shorts! That's just mean.


P.S.

Thanks for providing a photo of the family holiday vacation. I see it was on a beach in Florida. It was nice of you to have included SF3. I see he's right in the front in his grey shorts. You know how it is, it's always about him!