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ROUBINI: QE3 Has Begun (Are we zimbabwe yet? More money printing)
Business Insider ^ | August 4th | Nouriel Roubini

Posted on 08/04/2011 6:55:32 AM PDT by Halfmanhalfamazing

On Twitter, Nouriel Roubini declares that the latest currency interventions from Switzerland and Japan represent the start of QE3, ultimately ending in more Fed easing.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Breaking News; Business/Economy; News/Current Events
KEYWORDS: 98percent; bernanke; fedbashing; money; moneyprinting; printing; qe3; roubini; thefed; theqe3; weimarrepublic
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1 posted on 08/04/2011 6:55:35 AM PDT by Halfmanhalfamazing
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To: Halfmanhalfamazing

Hyperinflation?


2 posted on 08/04/2011 6:56:55 AM PDT by Marty62 (Marty60)
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To: Halfmanhalfamazing

at least something is happening.


3 posted on 08/04/2011 6:57:02 AM PDT by _a_0_0_
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To: _a_0_0_

I’d rather that nothing happen. Weimar, here we come.


4 posted on 08/04/2011 6:57:45 AM PDT by Halfmanhalfamazing ( Media doesn't report, It advertises. So that last advertisement you just read, what was it worth?)
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Weimar Republic:


5 posted on 08/04/2011 6:58:38 AM PDT by Halfmanhalfamazing ( Media doesn't report, It advertises. So that last advertisement you just read, what was it worth?)
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To: Halfmanhalfamazing

Well, it isn’t helping the DJIA this morning.


6 posted on 08/04/2011 7:00:07 AM PDT by John W (Natural-born US citizen since 1955)
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To: _a_0_0_

... there are times when doing nothing is the best choice.

I would prefer something else.


7 posted on 08/04/2011 7:01:32 AM PDT by himno hero
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To: Halfmanhalfamazing; sickoflibs

is that a loaf of bread, or just kindling for the woodstove ???


8 posted on 08/04/2011 7:02:09 AM PDT by Gilbo_3 (Gov is not reason; not eloquent; its force.Like fire,a dangerous servant & master. George Washington)
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To: Halfmanhalfamazing
I’d rather that nothing happen. Weimar, here we come.

I don't buy the Weimar thesis, but wdik?

9 posted on 08/04/2011 7:02:32 AM PDT by _a_0_0_
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To: Halfmanhalfamazing

Nour was right...once. His time is done now.

QE3 won’t work this time.


10 posted on 08/04/2011 7:03:55 AM PDT by RexBeach (Mr. Obama can't count.)
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To: Halfmanhalfamazing

NOW do you folks understand why it was SO IMPORTANT that they pass ANY bill allowing FED borrowing, so the FED could prop up the Stock Markets to prevent Obama looking bad, like they did at the close of business yesterday?

What’s a few trillion in taxpayers dollars, compared to THE GLORY OF OBAMA? Eat Your Peas!!!


11 posted on 08/04/2011 7:05:18 AM PDT by tcrlaf (PREFRONTAL LOBOTOMISTS FOR OBAMA2012!)
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100 billion zimbabwean dollars, and the amount of eggs it would buy.


12 posted on 08/04/2011 7:05:41 AM PDT by Halfmanhalfamazing ( Media doesn't report, It advertises. So that last advertisement you just read, what was it worth?)
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To: Halfmanhalfamazing

I was wondering how they were able to come up with $240 billion in a single day. That’s more than we borrowed in all of 2006.


13 posted on 08/04/2011 7:07:35 AM PDT by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
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To: Marty62

I’d say government and Fed Reserve actions are certainly pointing us toward that ultimate outcome. Of course they will swear that they can prevent it.......just like all those other governments said in countries that suffered the results.


14 posted on 08/04/2011 7:08:42 AM PDT by OB1kNOb (We are past the end of the beginning and now going into the beginning of the end.)
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To: Halfmanhalfamazing
100 billion zimbabwean dollars, and the amount of eggs it would buy.

That was last month. This month, you can get half an egg for that amount.

15 posted on 08/04/2011 7:10:18 AM PDT by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
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Five hundred billion Yugoslavian dinars


16 posted on 08/04/2011 7:10:37 AM PDT by Halfmanhalfamazing ( Media doesn't report, It advertises. So that last advertisement you just read, what was it worth?)
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To: Halfmanhalfamazing
Pre-Market Selloff Intensifying: Dow Off 130, Europe Getting Killed

DJIA off 187 as I post.

17 posted on 08/04/2011 7:11:38 AM PDT by blam
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Sweeping money out of the streets in Hungary


18 posted on 08/04/2011 7:13:02 AM PDT by Halfmanhalfamazing ( Media doesn't report, It advertises. So that last advertisement you just read, what was it worth?)
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It's not worth a continental


19 posted on 08/04/2011 7:15:04 AM PDT by Halfmanhalfamazing ( Media doesn't report, It advertises. So that last advertisement you just read, what was it worth?)
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To: Halfmanhalfamazing

Of course, this was inevitable.

Roubini has been very accurate.


20 posted on 08/04/2011 7:15:19 AM PDT by LowTaxesEqualsProsperity
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To: Halfmanhalfamazing
How about.......

100 TRILLION DOLLARS!?

21 posted on 08/04/2011 7:16:10 AM PDT by DCBryan1 (Forget the Lawyers....first kill the journalists! - Die Ritter, die sagen, nee)
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To: Halfmanhalfamazing
Having thought QE3 was six weeks off (two days ago) and Congress would have to vote (for or against QE3) I admit I was wrong. Dang, these time-lines are being moved forward at breakneck speed by the people in control of other people's money. How long before America's money is near worthless? At the speed of the advancement, speculation would say not to speculate?
22 posted on 08/04/2011 7:19:26 AM PDT by no-to-illegals (Please God, Protect and Bless Our Men and Women in Uniform with Victory. Amen.)
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To: DCBryan1

We have to stop them from doing this to our children!


23 posted on 08/04/2011 7:19:45 AM PDT by Halfmanhalfamazing ( Media doesn't report, It advertises. So that last advertisement you just read, what was it worth?)
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To: _a_0_0_
at least something is happening.

Yeah....0bamageddon

24 posted on 08/04/2011 7:20:50 AM PDT by spokeshave (Obamas approval ratings are so low, Kenyans are accusing him of being born in the USA.)
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To: _a_0_0_
I don't buy the Weimar thesis, but wdik?

When Germany couldn't pay its war debt...it printed money. Our only way out is to intentionally crash the world system. This will lead to war...they are hoping for debt forgiveness. Silly liberals.

WE will need very, very strong leaders in 2013. Let us pray for wisdom in our nation's elections.

25 posted on 08/04/2011 7:21:10 AM PDT by EBH ( The GOP is the new third party.)
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To: Halfmanhalfamazing

We won’t. Our time for stopping them is long past.

It is time to go through what is being laid before us.


26 posted on 08/04/2011 7:24:19 AM PDT by EBH (God Humbles Nations, Leaders, and Peoples before He uses them for His Purpose)
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To: Halfmanhalfamazing

They are doing this to their children as well.

really evil people.


27 posted on 08/04/2011 7:24:55 AM PDT by Texas resident (Hunkered Down)
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To: tcrlaf
pass ANY bill allowing FED borrowing

The Fed doesn't borrow money -- it prints it.

Then, the government borrows that and pays interest to the Fed for its trouble. It's easy once you get the hang of it.

28 posted on 08/04/2011 7:29:25 AM PDT by BfloGuy (The final outcome of the credit expansion is general impoverishment. -- L. Von Mises)
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To: Halfmanhalfamazing

AT the time of this post, DOW is down 184 and gold is in record territory once again.


29 posted on 08/04/2011 7:29:42 AM PDT by AAABEST (Et lux in tenebris lucet: et tenebrae eam non comprehenderunt)
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To: EBH
This will lead to war...they are hoping for debt forgiveness. Silly liberals.

I too doubt there will be a jubilee (Old Testament word - debt forgiveness), thus the other opinion is left.

30 posted on 08/04/2011 7:36:52 AM PDT by no-to-illegals (Please God, Protect and Bless Our Men and Women in Uniform with Victory. Amen.)
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To: Hoodat
$240 Billion is pretty close to what Geithner raided from federal/military savings accounts since June, when we actually hit the debt limit of $14.3 Trillion

Since June Timmy has been “borrowing” money from federal/military retirement savings

See, when the debt bill was signed we were actually already over $14.5 TRILLION in debt

I should be relieved he put back the $200 Billion in our savings accounts.......I hope

31 posted on 08/04/2011 7:53:34 AM PDT by silverleaf (All that is necessary for evil to succeed, is that good men do nothing)
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To: tcrlaf

Not to mention Europe is very close to imploding worse than 2008, and guess who has to ride in to salvage the system?

We US taxpayers may be looking at the increase in our debt ceiling actually being TARP 2/3 and 4


32 posted on 08/04/2011 7:57:56 AM PDT by silverleaf (All that is necessary for evil to succeed, is that good men do nothing)
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To: _a_0_0_

The Weimar thesis is absolutely correct. The Weimar Republic’s turbo-inflation was a direct result of the German financing of World War I. Whereas the British were able to externalize their war debt (and also bundle the debt of their allies France and Russia) by selling bonds on the New York market, the Germans were frozen out of that market. The Germans wound up “selling” their staggering war debt to themselves, mostly in the form of short-term two to five year notes. Having lost the war, there was nobody around who wanted to buy their notes and as a result, the Weimar Republic had to monetize the notes as they came due in the early 1920’s. And so they inflated the currency to write it off the books; signs of this inflation were apparent in the German economy as early as 1916.

When our average annual deficit was around $400 billion, there was enough excess capital on the world markets to absorb that much debt, and China, Japan and Saudi Arabia were purchasers. However, when 0bama’s congress quadrupled the annual deficit to $1.6 Trillion, there wasn’t enough money in the world to absorb the debt. Thus, we had to “sell” it to ourselves, thus internalizing and now monetizing it.

In other words, over the last five years we went from the British model of finance to the German one. And it is no coincidence that we have QE2 ending shortly before we reached the debt limit, and it’s no coincidence that QE3 is beginning as we begin another round of “borrowing” now that the government has several trillion dollars more to play with. Also, if you look at the amounts of money involved in the various QE versions, it happens to coincide with the amount of money needed to cover the deficits that the foreign markets won’t or can’t absorb.

The only advantage we have over Weimar is that with the advent of electronic transactions, we don’t actually use the paper anymore so you can keep the wheelbarrow in the garage and not take it to the bank.


33 posted on 08/04/2011 8:05:33 AM PDT by henkster (Ethanol belongs in a beer can, not a gas tank.)
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To: Halfmanhalfamazing

*


34 posted on 08/04/2011 8:06:51 AM PDT by PMAS
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To: EBH
We're going to need control of both houses of Congress and the White House in order to have any hope of stopping this spending-and-debt train from plunging off the cliff. Even then, we'll have to deal with RINO’s who refuse to see catastrophe staring them in the face.

We're in deep trouble here as a nation, and need to stop this spending and borrowing binge NOW. Congress will have to cut 40% from the federal budget, and the president will have to take the lead here. Entitlements will need to be reformed sooner rather than later. It will be bitter medicine, to be sure, but the country will survive and be much stronger in the end.

We also need to find out where all this money is really going. The fact that the deficit has gone from $400 billion to $1.6 trillion in only three years is just plain crazy.
Who got that money? Where did it go?

35 posted on 08/04/2011 8:16:30 AM PDT by Deo volente (God willing, America will survive this Obamination.)
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To: _a_0_0_; EBH

“I don’t buy the Weimar thesis”

A major instigator of WWII and “Weimar” hyperinflation was that Germany owed more than it could sanely repay. We’re setting up for the same situation, with no alternatives.

Consider that near-100% taxation would _still_ require deep (>30%) spending cuts across the board just to stop the hemorrhaging and begin long-term debt elimination, we may be able to tread water for a while but there is no satisfactory exit strategy. Reality is: we can’t raise taxes enough to pay the bills, we can’t cut spending enough to balance the budget without the peasants revolting, and there is no viable combination/compromise of both.

The solution for such a situation, as Weimar found out and we’re about to, is:
1. Hyperinflation: satisfy all commitments in letter (if not spirit) by just printing money. We owe $15T and rising fast, so the only letter-of-law-and-contract solution is to print more currency. The gov’t owes you a dollar? here’s a dollar; it won’t buy a loaf of bread like you expected when we made the contract, it will only buy a slice now, but that’s your loss for agreeing to fiat currency instead of X-backed currency.
2. War: the “have not” creditors and entitlees will revolt for the agreed-on currency being devalued, and the “haves” will resist the confiscation of their wealth. War is the only outcome. Either the government dissolves, leaving creditors & welfare recipients unpaid and anarchy ensues until “might makes right” & “by right of conquest” ensues, or the government entrenches and kills creditors & confiscates existing wealth by force.

Anything wrong with this thesis? I hope so.


36 posted on 08/04/2011 8:19:02 AM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: Deo volente
The fact that the deficit has gone from $400 billion to $1.6 trillion in only three years is just plain crazy.

Far more crazy: the debt went up $400 billion yesterday. $0.4T, one day flat.

37 posted on 08/04/2011 8:21:03 AM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: OB1kNOb

Anyone that has been shopping in the last month have seen prices skyrocketing. Gas is back up. The economy is stalled. UE continues with no end in sight.

Obamageddon is upon us.


38 posted on 08/04/2011 8:25:14 AM PDT by Marty62 (Marty60)
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To: ctdonath2
A major instigator of WWII and “Weimar” hyperinflation was that Germany owed more than it could sanely repay.

Right. But that can be said about more than Germany. Simple analogies are probably a little too much so.

39 posted on 08/04/2011 8:27:48 AM PDT by _a_0_0_
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To: ctdonath2
A major instigator of WWII and “Weimar” hyperinflation was that Germany owed more than it could sanely repay. We’re setting up for the same situation, with no alternatives.

It's probably more often the case than not. Adam Smith wrote this in the 18th century (posted here):

when national debts have once been accumulated to a certain degree, there is scarce, I believe, a single instance of their having been fairly and completely paid... ...the liberation of the public revenue, if it has ever been brought about all, has always been brought about by a bankruptcy; sometimes by an avowed one, but always by a real one, though frequently by a pretended payment.

40 posted on 08/04/2011 8:32:14 AM PDT by _a_0_0_
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To: _a_0_0_

Yes, that can be said about more than Germany.

Greece is on that verge.
Zimbabwe went that route.
Numerous other countries have done the same: facing overwhelming debts and insufficient revenue, inflate the currency, confiscate wealth, and kill creditors.

Please show me how I’m wrong here.
Please. I don’t want to go down that path, but don’t see any other way, as the most mundane sufficient tax-and-cut will instigate revolt from all corners, and short of that the growing interest will soon overwhelm all possible revenue.


41 posted on 08/04/2011 8:34:27 AM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: ctdonath2

weimar’s been done already. think progressive! AntiChrist?


42 posted on 08/04/2011 8:40:49 AM PDT by _a_0_0_
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To: henkster
You nailed it!

Most folk do not realize that the debacle is already accelerating; and from a point where the present dollar is worth only a tad more than a 1930 penny. (See Gold & Money In America, II.)

William Flax

43 posted on 08/04/2011 8:41:14 AM PDT by Ohioan
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To: tcrlaf

I think you’re confusing your “FED’s”.


44 posted on 08/04/2011 8:44:38 AM PDT by 9YearLurker
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To: Marty62

“Obamageddon is upon us.”

Yes, it’s a global economic Barackolypse.


45 posted on 08/04/2011 8:44:46 AM PDT by MikeSteelBe (Austrian Hitler was as the Halfrican Hitler does.)
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To: Halfmanhalfamazing

Soros has gotta be lovin’ this

When ever millions of American citizens are losing millions of $ with the stock market, he is making billions.


46 posted on 08/04/2011 9:20:19 AM PDT by Syncro (Sarah Palin, the unofficial Tea Party candidate for president--Virtual Jerusalem)
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To: RexBeach

QE has never worked, as has been predicted.


47 posted on 08/04/2011 9:25:47 AM PDT by Protoss
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To: Protoss

Correct-a-mundo!

“Hey, bartender, another round of QE for everyone in the joint!”


48 posted on 08/04/2011 9:30:31 AM PDT by RexBeach (Mr. Obama can't count.)
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To: _a_0_0_

It will be done on a much larger scale, and much more nuanced, than Weimar.

This is why I’ve been suggesting the Obama might sell (*cough*) Taiwan to China in lieu of debt repayment. Maybe the Korean peninsula too. We’ll have to make massive cuts to Defense, you see, so the Navy will be scaled back and herded into the Pacific, and the world’s most heavily guarded border won’t be...and what’s a few trillion dollars between friends...


49 posted on 08/04/2011 11:07:19 AM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: henkster
The only advantage we have over Weimar is that with the advent of electronic transactions, we don’t actually use the paper anymore so you can keep the wheelbarrow in the garage and not take it to the bank.

Well, at least there's that....
50 posted on 08/04/2011 11:12:00 AM PDT by robertwalker62
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