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Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

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Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#21

Post by est31 »

jonfw wrote: post #5
logicslave wrote: post #3

One interesting fact I learned the other day: IBM did 140 billion in stock buy backs in the last decade. They have a 100 Billion dollar market cap. I think that is a bit of what we have going on right now. A system propped up by injected cash, which works for now because everyone plays along. Most of this injected money goes into the pockets of the rich, who are the ones holding the assets that the FED is bailing out…

You're not giving the whole picture if you don't mention that IBM's market cap has seen very significant decline over that time period. IBM has been producing insane cash-flow over this period and their strategy was to pay out dividends/buybacks rather than to invest in new markets Is IBM even getting bailout money? What does IBM have to do with the bailouts?

And dividends/buybacks are a reasonable choice. It moves the choice of whether to invest into new markets to the investors instead of dictating it from above. Companies like Google are blown out of proportion in comparison to the part that actually makes the money, all in order to find the next toothbrush product that may never come. The core Google products barely changed in the last 5 years, yet the employee count almost doubled. Great for the engineers who get the cushy 200k comp jobs, but not great for investors.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#22

Post by Fjolsvith »

zaroth wrote: post #14
Fjolsvith wrote: post #9

Earlier quoted context omitted.

Gotta tell you guys that the Fed is going to get restructured. Basically its going to declare bankruptcy and stiff the central banks to whom it is indebted. Trump is looking to nominate Judy Shelton to the Federal Reserve as she is the one who will do the restructuring. [1] How is he able to do this? “The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, usin…

Your Bloomberg link is 404, but here is a copy of the editorial; https://finance.yahoo.com/news/feds-cure-risks-being-worse-1...

Fixed. Thanks.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#24

Post by _curious_ »

Fjolsvith wrote: post #9
strict9 wrote: post #2

> 30.2% of US GDP How much further can they go? 26 million or so recent unemployment applications and the stock market is not off much from recent all time highs. This is more concerning than the initial falling knife mid-March.

Gotta tell you guys that the Fed is going to get restructured. Basically its going to declare bankruptcy and stiff the central banks to whom it is indebted. Trump is looking to nominate Judy Shelton to the Federal Reserve as she is the one who will do the restructuring. [1] How is he able to do this? “The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, usin…

"... With no federal debt to pay interest on, personal income taxes are going away. The whole wealth transfer mechanism of the central bank system gets cut off."

"2nd Edit: Also, notice how the IRS dealine for filing and pay has been delayed, for the first time in history? Because Trump ordered it. The IRS isn't even pursuing collection actions on old taxes owed. The filing deadline is going to get moved again to the end of the year, mark my words."

Why do you hold these views on taxation?

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#25

Post by Consultant32452 »

DSingularity wrote: post #20

This is one of two last-resorts mechanisms by which the U.S. will maintain its hegemony. It may suck, but it is way better than the alternative.

What's the other last resort? WWIII? It seems that's brewing too.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#26

Post by aaaxyz »

est31 wrote: post #21
jonfw wrote: post #5

Earlier quoted context omitted.

You're not giving the whole picture if you don't mention that IBM's market cap has seen very significant decline over that time period. IBM has been producing insane cash-flow over this period and their strategy was to pay out dividends/buybacks rather than to invest in new markets Is IBM even getting bailout money? What does IBM have to do with the bailouts?

And dividends/buybacks are a reasonable choice. It moves the choice of whether to invest into new markets to the investors instead of dictating it from above. Companies like Google are blown out of proportion in comparison to the part that actually makes the money, all in order to find the next toothbrush product that may never come. The core Google products barely changed in the last 5 years, yet the employee count…

Also great for all the managers and VPs who get to put on their CV that they managed a team of n engineers that worked on X to increase Y key metric by an insignificant amount or that they created a new product that will get the can in 9 months

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#27

Post by adventured »

onlyrealcuzzo wrote: post #12
jonfw wrote: post #5

Earlier quoted context omitted.

You're not giving the whole picture if you don't mention that IBM's market cap has seen very significant decline over that time period. IBM has been producing insane cash-flow over this period and their strategy was to pay out dividends/buybacks rather than to invest in new markets Is IBM even getting bailout money? What does IBM have to do with the bailouts?

Part of what allows a company to have insane cashflow is issuing corporate bonds at artificially low prices because the Treasury is manipulated by the Fed.

That doesn't inherently follow at all. It very much depends on the company in question. IBM has a very profitable business and has for the past decade.

They're paying around mid 2.x% interest on their debt ($1.3b interest expense last fiscal year). You can double that rate, and IBM can safely handle the cost. They can afford to pay far higher interest rates on their debt while still producing excellent profitability.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#28

Post by neltnerb »

Fjolsvith wrote: post #9
strict9 wrote: post #2

> 30.2% of US GDP How much further can they go? 26 million or so recent unemployment applications and the stock market is not off much from recent all time highs. This is more concerning than the initial falling knife mid-March.

Gotta tell you guys that the Fed is going to get restructured. Basically its going to declare bankruptcy and stiff the central banks to whom it is indebted. Trump is looking to nominate Judy Shelton to the Federal Reserve as she is the one who will do the restructuring. [1] How is he able to do this? “The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, usin…

Why would going to a gold backed currency imply that debt would be wiped out? I can see the machiavellian reasoning for spending trillions of debt financed dollars if you know you're going to default, but I don't get how the gold standard helps.

I could believe that Trump wants to do one or both, but I don't see them as connected in a coherent way.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#29

Post by fallingfrog »

Here’s how I see this going (obviously just a guess): the entire corporate financial system is now unprofitable without being bailed out with zero interest loans every 10 years. This time around, the recovery will be slow, 10 years, then another, bigger bubble will form, that will pop and get bailed out again, but the next time around it will cause fast rising inflation. The fed will have to choose between either allowing hyperinflation to happen, which will crash the dollar, or saving the dollar by jacking up interest rates but allowing a second Great Depression to occur. I think they’ll choose the latter. At that point, the right wing, funded by the desperate corporate state which needs to stem the rising tide of labor activism, will blame coastal elite liberals and immigrants for their problems and there will be some kind of fascist coup, followed potentially by war, (but probably not). This will be right at the same time as lots of mass movement of people due to climate change is happening. If a war does happen it will be because of tensions caused by people flooding across various borders. I cannot see any further ahead than that.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#30

Post by [deleted] »

neltnerb wrote: post #28
Fjolsvith wrote: post #9

Earlier quoted context omitted.

Gotta tell you guys that the Fed is going to get restructured. Basically its going to declare bankruptcy and stiff the central banks to whom it is indebted. Trump is looking to nominate Judy Shelton to the Federal Reserve as she is the one who will do the restructuring. [1] How is he able to do this? “The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, usin…

Why would going to a gold backed currency imply that debt would be wiped out? I can see the machiavellian reasoning for spending trillions of debt financed dollars if you know you're going to default, but I don't get how the gold standard helps. I could believe that Trump wants to do one or both, but I don't see them as connected in a coherent way.

[deleted]
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