Bernanke Doesn't Realize America Is Facing A Brand New Type Of Credit Crisis

[Twisted Titan]

Bernanke Doesn't Realize That America Is Facing A Brand New Type Of Credit Crisis

The Fed is desperately trying to incent banks to lend more money by reducing the yield on cash and reducing risk.

But it's clear now that lack of lending isn't the problem: lack of desire for credit is.

Yesterday, two credit surveys were released by the Federal Reserve that told readers roughly the same thing: Americans now hate debt.

How did this happen? Only 3 years ago, Americans were in love with their credit cards, holding massive mortgages, and finding new ways to take out loans for reckless purchases.

Then, bang, the crisis hit and everyone is tapped out and retrenching.

While some may see this as a responsible turn by Americans, it is evidence of the paradox of thrift, where consumers prefer to pay down debt and save rather than spend. And if people and businesses aren't spending, the economy isn't growing, and job growth can't take hold.





14 slide presentation:


http://www.businessinsider.com/america-is-facing-a-new-credit-crisis-because-no-one-wants-any-debt-2010-11

[Horn]

Will the real HT, please standup? :-X

[Hatha Sunahara]

This seems to be the front line of the class war. We can all see how the creditors and the courts and the rest of the government have built up institutions to enslave us. Also we are all waking up to the idea that it is all done with our consent because we all have to 'sign on the dotted line' to become a slave in the system.

This is a demonstration of people power. An awakening of the spirit and a major expansion of consciousness. An awareness that we don't need all the crap they want to sell us and want us to go into debt for. A lot of people say TPTB have prepared for this. TPTB think we are cattle, and have no self control. They expect us to behave that way. Do you think they have prepared themselves if we act differently? I don't.

The next sign that we are regaining our freedom is that few of us believe the Mainstream Media (MSM). Have TPTB prepared themselves for losing control of our minds?

Is this a slave revolt? The government is trying to radically increase our 'collective debt' so they can enslave us with taxes, but they seem to be doing that ineptly--by spending borrowed money to prop up the banking system. Perhaps a tax revolt is coming next.

Hatha

[Horn]

Crystalline post there, Hatha.

And rush that last sentence.

[Hatha Sunahara]

Well, thank YOU, Horn.

On some level, mostly unconscious, I've known since I was maybe six or eight years old that the system was trying to enslave me. I spent a lot of time since then trying to minimize that slavery. I may not know what freedom is, but I sure as hell know what slavery is. Most people are waking up to that now. It's hard to grasp that slavery unless you know how the money system works, and who benefits most from it.

Hatha

[Twisted Titan]

I may not know what freedom is, but I sure as hell know what slavery is.

+100000000000000000000000000000

[Horn]

With the demand side starving, the promised inflation still eludes me.

Unless some intravenous food stamp & shelter raised injections are on the legislative books.

[Ponce]

I will fight not for what I want but for what I have..........

[Filthy Keynes]

With the demand side starving, the promised inflation still eludes me.

Unless some intravenous food stamp & shelter raised injections are on the legislative books.


FOFOA had a good article about this a few months ago. He explained that the extreme deflation that is scaring the Fed is the same as Hyperinflation. In fact, he points out that hyperinflation has already happened - but it has not been consummated yet. We are in the lull before we feel it's effects. What will trigger the effects will be extreme deflation which will cause the "dollar" to either evaporate into nothingness (if the Fed does nothing), or to grow so big that it consumes the entire universe and then becomes nothingness (if the Fed engages in QE).

Hyperinflation is NOT ("super-inflation"). Hyperinflation is the inability of the medium of exchange to fulfill it's role as a medium of exchange.

If they allow deflation to take hold then nobody will have any money - so people will INVENT THEIR OWN money. This is a horror scenario for the government because it means that people will transact without having to pay taxes.

If they print more money to fill the void of deflation then the money will become worthless - so people will INVENT THEIR OWN money. This is a horror scenario for the government because it means that people will transact without having to pay taxes.

Jim Rickards points out that if the Fed buys Treasuries from China it will lead to hyperinflation. If the Fed tries to reverse by selling treasuries (to raise the interest rates) they Fed will go bankrupt since the bonds will become worth less than the assets the Fed owns.

[Horn]

or to grow so big that it consumes the entire universe and then becomes nothingness (if the Fed engages in QE).


Is that before, or after the Holidays? :conf:

[Filthy Keynes]

or to grow so big that it consumes the entire universe and then becomes nothingness (if the Fed engages in QE).


Is that before, or after the Holidays? :conf:




I was watching a nature program the other day about the "universe" etc. They said that 200 billion stars can be viewed from earth (night sky). So that means within two months Ben Bernanke will print up more dollars than there are stars in the sky - all within a sixty day period!

Think about that the next time you are out for a walk and your wife tells you how pretty the stars are.

[Horn]

Think about that the next time you are out for a walk and your wife tells you how pretty the stars are.


Thanks for that, keynes.

Now I'm having pictures in my head of a romantic evening @ Bernie's... :-\

[Ponce]

OK amigos, I posted something here and now is goneeeeeeeee, even if it was a "stupid" post someone should had told me that it was being delited and the why of it..........if you (who ever it is) don't want me here say so and I'll get the hell out of here........I was before I came here and will remain the same after I leave.

[Horn]

I will fight not for what I want but for what I have..........


You have no other posts here.

[Neuro]

If they allow deflation to take hold then nobody will have any money - so people will INVENT THEIR OWN money. This is a horror scenario for the government because it means that people will transact without having to pay taxes. yeah how do you tax someone who works for food and shelter?

[cthulu]

If they allow deflation to take hold then nobody will have any money - so people will INVENT THEIR OWN money. This is a horror scenario for the government because it means that people will transact without having to pay taxes. yeah how do you tax someone who works for food and shelter?


With a barrel of a gun, my friend, with a barrel of a gun....

[Neuro]

If they allow deflation to take hold then nobody will have any money - so people will INVENT THEIR OWN money. This is a horror scenario for the government because it means that people will transact without having to pay taxes. yeah how do you tax someone who works for food and shelter?


With a barrel of a gun, my friend, with a barrel of a gun....

I understand that this is the basic reality of taxation in all it's forms. But for someone who just earns the food he is eating and the warm place he gets to sleep in, you can't really tax him anything, because he doesn't own anything of value...

[Gaillo]

OK amigos, I posted something here and now is goneeeeeeeee, even if it was a "stupid" post someone should had told me that it was being delited and the why of it..........if you (who ever it is) don't want me here say so and I'll get the hell out of here........I was before I came here and will remain the same after I leave.


Ponce,
I'm confused by this post... I took a look at your posting log, and see no posts in this thread that have been deleted... as a moderator I can see those too.
Are you certain you didn't post something and have a server timeout or hit the wrong button (maybe preview instead of post) :conf:

Nobody is censoring you... the moderators here always post a reason if we delete a post or thread.

[7th trump]

If they allow deflation to take hold then nobody will have any money - so people will INVENT THEIR OWN money. This is a horror scenario for the government because it means that people will transact without having to pay taxes. yeah how do you tax someone who works for food and shelter?


With a barrel of a gun, my friend, with a barrel of a gun....

I understand that this is the basic reality of taxation in all it's forms. But for someone who just earns the food he is eating and the warm place he gets to sleep in, you can't really tax him anything, because he doesn't own anything of value...

If you understand the principals of Social Security when before 1935 everyone worked and pretty much kept what they earned, but since Social Security what ever you do is considered "employment" as defined at 26USC 3121(b) and that makes eating and working for a dry warm place to sleep taxable.

[Horn]

If they allow deflation to take hold then nobody will have any money - so people will INVENT THEIR OWN money. This is a horror scenario for the government because it means that people will transact without having to pay taxes. yeah how do you tax someone who works for food and shelter?


With a barrel of a gun, my friend, with a barrel of a gun....

I understand that this is the basic reality of taxation in all it's forms. But for someone who just earns the food he is eating and the warm place he gets to sleep in, you can't really tax him anything, because he doesn't own anything of value...


Then you go after the producers of what he consumes, Its a constant game of shuffle with blood coming out of stones.

[Book]

Ponce,
I'm confused by this post...



http://lh6.ggpht.com/_uHw6vVBedco/Scp35g1dKMI/AAAAAAAACoI/ZI16Xntexz8/s800/senile-agitation-control.jpg.jpeg

:D

[Still Barbaro]

This is a very telling OP article.

The problem is not the lack of credit itself but the lack of desire to have and use credit (to paraphrase).

This is a step in a good direction, but it will mean the current American economic model will have to adapt.

[Silver Shield]

QE2 is not really about reinvigorating the consumer...

It is about funding the spender of last resort, the government...

From the lender of last resort, the Fed.

They could reall give a shit about us.

[Twisted Titan]

QE2 is not really about reinvigorating the consumer...

It is about funding the spender of last resort, the government...

From the lender of last resort, the Fed.

They could reall give a sh*t about us.


I agree

QE2, 3,4 is DEATH SPIRAL ECONOMICS all they are doing is delaying death long enough to pass off your dollars for something of worth.

T

[StreetsOfGold]

I may not know what freedom is, but I sure as hell know what slavery is.

+100000000000000000000000000000


NEVER side with *HELL*

[gunDriller]

China doesn't need America.

they are smart & hardworking

http://www.youtube.com/watch?v=Ps0DSihggio&feature=player_embedded

and they have assimilated nearly every manufacturing technology on earth into their culture, and are every bit as capable creatively as Americans.

Rush refers to them as the Chicoms, but i'm not sure if the Chinese government is any more oppressive than the US.

they are doing what any GIM-er type common sense person would do, they're using their FRN's to buy PMs.

but they have a lot more FRN's.

i believe China is currently the world's #1 producer of gold.

yet - they are a net importer.

i think they are quietly tiptoeing out of their dollar holdings, as are many other nations.


people realizing they don't need US $ - i guess that's a credit crisis, among other things.

hmmm ... if they - the Chinese - can master manufacturing technology to the extent they have, the Chinese could also manufacture - FRN's. :o

[JDRock]

...he KNOWS EXACTLY what were headed for, HELL, he's helping the tribe CAUSE IT!

[Hatha Sunahara]

Why don't we just create our own money?

When the dollar crashes we're going to need a medium exchange. The same people who gave us the FRN will be there to give us the new 'currency'. What will they do if we all reject it? They can only control us if we use their money.


Hatha

[Twisted Titan]

Why don't we just create our own money?

When the dollar crashes we're going to need a medium exchange. The same people who gave us the FRN will be there to give us the new 'currency'. What will they do if we all reject it? They can only control us if we use their money.


Hatha





They wont reject it.

They will actually beg for it.

Only one in a million will understand that its a trap.

Those are pretty good odds to keep a con going.