Jim Willie "UST bonds The Monster Spleen"

http://www.kitco.com/ind/willie/oct062011.html

"The spleen (from Greek σπλήν - splēn[1]) is an organ found in virtually all vertebrate animals with important roles in regard to red blood cells (also referred to as erythrocytes) and the immune system.[2] In humans, it is located in the left upper quadrant of the abdomen. It removes old red blood cells and holds a reserve of blood in case of hemorrhagic shock while also recycling iron. "

i guess the spleen does have a purpose.

but i don't quite understand the metaphor.

what does the Spleen have to do with Treasuries ?

T-Bonds soak up some liquidity, they also provide the new "life blood" for deficit spending (auctions)

not a perfect analogy by JW, but pretty close actually.

he is correct, this is the last bubble, when this one pops, the system is done for...

In most mammals but not so much in humans, the spleen is an expansile/capacitive bag-like filter that can both store and release blood volume on demand and act as an ertswhile blood filter, removing senescent red cells. Also, the spleen has important humoral immunomodulatory functions. The treasuries metaphor has some merit. If treasures are in a bubble like an engorged spleen, the latter develops pathologic internal resistance to flow (capital), as blood (money/credit) pools inside the spleen (treasuries) in lieu of circulating in the peripheral to supply oxygen to the tissues (small businesses, consumers). FED purchases of treasuries and interest rate targeting (Operation Twist) essentially shunt arterial blood into the spleen, further starving the tissues. The Wall Street banks are blood sucking leeches attached to the spleen. They have adapted themselves as pure parasites and require continuous blood from the spleen to survive. Splenic blood pressure must continually rise (declining interest rates) to feed the parasites. When the interest rate zero bound is reached the spleen has reached maximum blood volume and will either explode/hemorrhage (deflation) or collapse/contract (rising interest rates) and release it's blood into the circulation and cause malignant hypertension (hyperinflation).

With that metaphor mamboni, I can see why some always remind us the ruptured and deflation path is inevitable.

Quote:

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Originally Posted by mamboni

In most mammals but not so much in humans, the spleen is an expansile/capacitive bag-like filter that can both store and release blood volume on demand and act as an ertswhile blood filter, removing senescent red cells. Also, the spleen has important humoral immunomodulatory functions. The treasuries metaphor has some merit. If treasures are in a bubble like an engorged spleen, the latter develops pathologic internal resistance to flow (capital), as blood (money/credit) pools inside the spleen (treasuries) in lieu of circulating in the peripheral to supply oxygen to the tissues (small businesses, consumers). FED purchases of treasuries and interest rate targeting (Operation Twist) essentially shunt arterial blood into the spleen, further starving the tissues. The Wall Street banks are blood sucking leeches attached to the spleen. They have adapted themselves as pure parasites and require continuous blood from the spleen to survive. Splenic blood pressure must continually rise (declining interest rates) to feed the parasites. When the interest rate zero bound is reached the spleen has reached maximum blood volume and will either explode/hemorrhage (deflation) or collapse/contract (rising interest rates) and release it's blood into the circulation and cause malignant hypertension (hyperinflation).

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Amazing analogy!