The Debt Party is Over . . . .

[checking]

GDR

I thought someone would take a stab at answering where you should invest your mad money.
My inclination is 1948 Canadian silver dollars, but watch out for the forged Chinese ones.

[errolanderson]

Ugly, ugly Asian markets overnight . . . U.S. stocks also under heavy fire.

Crude fallout? . . . Gold rallying.

[biglentil]

Ugly, ugly Asian markets overnight . . . U.S. stocks also under heavy fire.

Crude fallout? . . . Gold rallying.

Pot stocks clobbered too. Very very simple really, reversing quantitative easing is deflating the everything bubble. The fed took its foot off the gas pedal because its staring down the barrel of an overheated asset bubble and high inflation. Its an economy built on 47 years of funny money, the can can no longer be kicked down the road and the chickens are coming home to roost. The average fiat currency has a 40yr lifespan, with gross abuse of the printing press its surprising that its lasted thus far. Its not the fault of just one administration, though if I had to pin it on one, it would be Nixon who abandoned Bretton Woods gold standard in 1971.

Im out on crude stocks as economies fail won't be much need for it. Sure fuel will go to the moon when hyperinflation rages but an electronic certificate for Exxon won't do much good. Don't worry Trudeau spared Canada's last 77 ounces gold and sold the rest.

[AlbertaFarmer5]

Pot stocks clobbered too. Very very simple really, reversing quantitative easing is deflating the everything bubble. The fed took its foot off the gas pedal because its staring down the barrel of an overheated asset bubble and high inflation. Its an economy built on 47 years of funny money, the can can no longer be kicked down the road and the chickens are coming home to roost. The average fiat currency has a 40yr lifespan, with gross abuse of the printing press its surprising that its lasted thus far. Its not the fault of just one administration, though if I had to pin it on one, it would be Nixon who abandoned Bretton Woods gold standard in 1971.

Im out on crude stocks as economies fail won't be much need for it. Sure fuel will go to the moon when hyperinflation rages but an electronic certificate for Exxon won't do much good. Don't worry Trudeau spared Canada's last 77 ounces gold and sold the rest.

Why do you think that the can can't be kicked any longer? Not arguing, just asking, since I've heard this before, and it was successfully kicked substantially further than anyone thought possible every time.

[ajl]

The main reason that the can can't be kicked any longer is stagflation. That is what forced rates higher in the early 80's and what is doing it again today. Hence rate rise today. Anybody who thinks Canuckistan has a strong economy with a 50 per barrel WCS discount has gotta get off the cannabis. Sure the economy is more than just energy but not much more.

[foragefarmer]

Ajl

'Anybody who thinks Canuckistan has a strong economy with a 50 per barrel WCS discount has gotta get off the cannabis. Sure the economy is more than just energy but not much more. "

This is what CNR stated in the 3rd quarter report

"CN Rail said revenue from moving petroleum and chemicals climbed 25 percent in the three months ended Sept. 30, while revenue from grains and fertilizers rose 15 percent."

I guess management at CNR forgot to contact you for your expert analysis on the Canadian economy before reporting 3rd quarter earning!

You still living in Canada? I thought you were buying that CRP land in Montana.

[biglentil]

The main reason that the can can't be kicked any longer is stagflation. That is what forced rates higher in the early 80's and what is doing it again today. Hence rate rise today. Anybody who thinks Canuckistan has a strong economy with a 50 per barrel WCS discount has gotta get off the cannabis. Sure the economy is more than just energy but not much more.

Debt levels have soared since 2008, yet GDP has remained relatively stagnant even with negative real interest rates. Asset prices have exploded, but so has cost of living. Wages have remained flat. Thats not growth, standard of living has been falling. The market cannot bear an interest rate rise. QE was supposed to be temporary measure and now the market is waking up to the fact that it must be permanent. That really puts the fed in between a rock and a hard place.

[errolanderson]

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.

[Rareearth]

Deflation, really?

That’s like asking teachers and nurses to take a wage cut. Never mind asking farmers to accept a carbon tax.

[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?