Monday, April 18, 2016

Zero Hedge — "This Will All Blow Up In The Fed's Face," Schiff Warns "Trump's Right, America Is Broke"

"The United States, no matter how high inflation gets, we'll do our best to pretend it doesn't exist or rationalize it away because we have a lot more debt. America is broke, if you look at Europe and Japan even though there is some debt there, overall those are still creditor nations. The world still owes Europe money, the world still owes Japan money, but America owes more money than all of the other debtor nations combined. Trump is right about that, we are broke, we're flat broke, and we're living off this credit bubble and we can't prick it. Other central banks may be able to raise their rates, but the Fed can't."
Zero Hedge
"This Will All Blow Up In The Fed's Face," Schiff Warns "Trump's Right, America Is Broke"
Tyler Durden

Piling on.

TIME
The United States of Insolvency
Jim Grant

Deficit hysteria and debt fetishism are back, along with fed up with the Fed.

Is this a moron fest or information war, or some of both?

14 comments:

Matt Franko said...

Get Schiff over to Levy pronto!!!!

Matt Franko said...

"Other central banks may be able to raise their rates, but the Fed can't."

We'll see... SPs headed for 2100 imo Fed just looking largely at the market indexes/asset prices for guidance... (they're baseless....)

If we can get above 2100 or better yet new highs then they will probably start to raise and it will become self reinforcing via the fiscal flows...

Six said...

Matt, I think you need to get on board with the "debt is too high" crowd. They want to cut spending ... lower flows ... less reserve balances ... and voila, no more ZIRP!

Matt Franko said...

I'm not saying raising interest rates is the "best policy"... I'm saying it will "help" generally as USD savers will see an increase in leading USD flows thus raising that cohort's (and it is a LARGE cohort) incomes...

I'm making PREDICTIVE statements which IF they turn out to be true, should add technical credibility to our analysis here...

This is how you gain technical credibility over time.... not going all around saying "its the second leg down!" and then it doesnt ever happen... or something else causes some economic chaos at some point and then you take credit for "predicting it".... that's no different than Schiff type analysis...

Tom Hickey said...

It's the GFC (global financial crisis). We are already in the second leg down. The US was the first leg.

Matt Franko said...

If they start raising rates it will be a second leg UP....

Tom Hickey said...

Most Americans think economy is 'getting worse'
Jeff Cox| CNBCcom
Thursday, 14 Apr 2016

Despite the seemingly endless stream of Wall Street economists who believe the U.S. is about to snap out of its malaise, most Americans think the economy is bad and getting worse, according to several recent surveys.

One of the more glaring examples of how strong pessimism has become is Gallup's U.S. Economic Confidence Index. The measure gauges the difference between respondents who say the economy is improving or declining. The most recent results are not good.

Fully 59 percent say the economy is "getting worse" against just 37 percent who say it is "getting better." That gap of 22 percentage points is the worst since August, according to Gallup, which polled 3,542 adults. The index carries a sampling error of plus or minus 2 percentage points.

Tom Hickey said...

Russia and Brazil have high rates and both economies are in the tank. I guess their rates are not not high enough?

Simsalablunder said...

"most Americans think the economy is bad and getting worse, according to several recent surveys."

Gnawing off the door frames isn't satisfying enough? Spoiled brats…

Simsalablunder said...

"Get Schiff over to Levy pronto!!!!"

To slow. It'll take 7 years.
Send Schiffs writings to Times Magazine today and you can blame Bill tomorrow.

Calgacus said...

Matt:I'm not saying raising interest rates is the "best policy"... I'm saying it will "help" generally as USD savers will see an increase in leading USD flows thus raising that cohort's (and it is a LARGE cohort) incomes.

MMT "top-enders" - they should wear top hats :) - don't disagree. As Wray has said, with low rates, the Fed is mistaking a brake pedal for an accelerator.

TofuNFiatRGood4U said...

Rates can also become too high. Rates in Russia now, and in the US in 1980, retarded the economy's recovery. (This is why the Russaan CB head is regarded as an Atlanticist.)

There are other ways the government can inject money into the economy, and still leave rates at zero, and so avoid yet-another-round of someone losing (in this case, less-sophisticated, over-leveraged late-comers).

Roger Erickson said...

Being endorsed by ignoramuses helps only at WalMart.

Matt Franko said...

"Russia and Brazil have high rates and both economies are in the tank. "

Oil price Tom...

"most Americans think the economy is bad and getting worse,"

Savers getting squat with the ZIRP and oil price collapse skewing the poll results....