Tricks and treachery are the practice of fools, that don't have brains enough to be honest. -Benjamin Franklin
Sincerity makes the very least person to be of more value than the most talented hypocrite. -Charles Spurgeon
it only really collapses when the masses lose 'faith' in the dollar.
when the general public realizes it's a fancy demonstration of modern printing technology, and little more ... and the bond market demands a reasonable interest rate on US bonds - one that accounts for inflation, e.g. 10%, which would make the interest payments $1.5 Trillion a year - un-payable - then, game over.
imagine if the US had to pay even 4% or 7% like European countries, to finance their debt ...
i think that willingness to loan to the US gov. at rates below the inflation rate - when that stops - BIG PROBLEM.
Retired Director Morris Waxler says the FDA did not do their job for 15 years - and is not now.
HelpStopLASIK.com
Mamboni,
the Federal Reserve does this "cancel old paper" and withdraw already issued US Currency all the time. They are called "Repo's or Repurchases" and are executed between themselves and the banks, mutual funds, hedgefunds, and wealthy individuals who buy directly from the ongoing Federal Auctions all the time.
If you recall, I think it was ZERO that made a big deal out of QEIII announcement covering both MBS paper AND Treasury Paper purchases of approx $40B per month to infinity. Using a 10:1 rehypothecation, that works out to about $1T of sopped up fraudulent MBS "impaired assets" per QUARTER.
A lot of people I think missed that last "purchase category" but Fitt's didn't.
It's a very complete circle "issue and replace, or issue and cancel " ... one that has been going on for literally decades since the FR was created. It's part of the way they have justified their existence all these years...generating transaction fees as a middle man, when our original system was designed to be between banks and the US Treasury, with similar circuitious machinations.
I used to have in my possession a "handout" listing all the types of FR transactions and whether they were adding money to, or subtracting money from, or cancelling by pairing up matching transactions. I can't lay my hands on it at the moment. It was a handout back in my pre-grad college business course work. I'm guessing there is a young buck or two on this forum who has it marked as a "rav fav on his iPad" Maybe one of them will step up and "share" and clarify.
2 options:
raise interest rates and blow up the debt ridden american consumer
or
print money and send our currency in to the abyss.
either way, it's catastrophic.
(i stole that, let's see who knows who said it. it's ultimately very true).
Patience comes to those who wait.....calculate distance, drop, wind speed, relax and gently commit.
Once the economist's neurons and dendrites are fully programmed (usually for life), economists serve as robotic broadcasting devices explicitly designed to hide the political nature of the economy from the public. In other words, the economist serves no function in society except to protect the ruling elites from public scrutiny while they loot the planet. Jay Hanson
Tens of thousands of home owners could have their mortgage paid by banks if interest rates continue to fall unless their terms and conditions are changed, experts said.
The bizarre situation - where banks actually end up paying customers for having a home loan – could emerge as a result of plunging interest rates, they explained.
It affects borrowers with tracker mortgages, who have seen their monthly mortgage repayments shrink after the Bank of England cut interest rate by three percent in as many months.
The majority of borrowers with a tracker deal pay the bank rate, plus a percentage on top. But some deals available just over a year ago allowed borrowers to pay the bank rate minus a percentage.
If the bank rate falls much further - and there are widespread predictions of a zero rate - these borrowers could be paying 'negative interest' on their mortgage.
Peter O'Donovan, of independent financial advisers Bestinvest, said: "It is possible that we may be heading towards a very surreal situation where lenders may end up having to pay borrowers as they head into negative interest.
http://www.telegraph.co.uk/finance/p...-by-banks.html
Tricks and treachery are the practice of fools, that don't have brains enough to be honest. -Benjamin Franklin
Sincerity makes the very least person to be of more value than the most talented hypocrite. -Charles Spurgeon
yeah, sure, Jim knows a lot about gold and gold markets.
but i like the pictures of his animals.
http://www.jsmineset.com/wp-content/...001_thumb6.jpg
he says those are some of his daughter's animals, in Africa.
Retired Director Morris Waxler says the FDA did not do their job for 15 years - and is not now.
HelpStopLASIK.com
Yours truly finds this Donovan quote rather odd, and quite telling frankly. One should note this is being dished up courtesy of the London Financial Times.Here's why it's "odd."Peter O'Donovan, of independent financial advisers Bestinvest, said: "It is possible that we may be heading towards a very surreal situation where lenders may end up having to pay borrowers as they head into negative interest.
I've personally sold real estate in the past (homes and farmland) at negative interest rates (also called teaser rates) in order to help a young family to get into my home after I'd already moved out and into another place. Of course, it was always accompanied by a 5 year balloon payment. So, said buyer "either would get caught up and pay me" OR I'd get the real estate back. All the while, I at least collected SOME interest on my former home, and at the same time it was NOT vacant, which would invite vandalism, etc., lowering my equity. So, the thought of banks "paying borrowers" is not a foreign one, nor one to be dreaded. The dread for the homeowner is the inevitable and always disclosed BALLOON payment. They had to sign a separate piece of paper stating that they understood at the time of signing that they were in this negative interest rate deal with me, as an owner.
The part I find quite telling is that this concept is being postured as some "new mortgage wrinkle" package.
In my mind, that is only "a wrinkle" in the eye of the inexperienced reader. In otherwords, this particular scenario --as I suspect many other current headlines-- is being packaged for the unawakened, and part of the overall "scare mongering" currently running rampant among the sheeple who has never sold RE this way.
While this is a possibility, the reality is, the bankers have NOT disclosed what the "catchup/balloon payment" gig will look like. I do not expect the banks to tolerate this negative interest rate payment scenario for long. I suspect, there is some "fine print" clause which will be involved, to "kick out said mortagee" or "lease back" etc. One doesn't have to feel sorry for the banks in ANY interest rate scenario.
Afterall, aren't they holding millions of properties currently who have NO owners, and no inhabitants. Doesn't seem to be hurting their "profitability" since the bankers are still making money hand over fist at the overnight Fed Discount Window, and just allowing the properties to sit vacant until "things change." Heck, they are even demolishing properties upon which they hold mortgages. How's THAT for a wrinkle? LOL
Jis' sayin'
mick silver (28th September 2012)