Credit deflation and the reflation cycle to come (part 5)

[Long time lurking]

The leader of the free world 

 

[Noallegiance]

38 minutes ago, Long time lurking said:

The leader of the free world 

 

C3PJoe

[Funn3r]

36 minutes ago, Long time lurking said:

The leader of the free world 

 

I should say this is entirely normal though surely. When a head of state visits somewhere, especially if it is a foreign country, then a yuge team of his or her people get there beforehand to scope it out then create a plan. Then the VIP arrives and is carefully steered round according to a pre-arranged timetable. When the Queen used to go on her walkabouts I am sure she had an equerry saying "The guy with the hat is the President of Bongoland, remember it's a breach of protocol if he offers you his hand to shake so he will salute instead, then it's OK for you to say "Hew Naice to Meetchu." And so on. 

[Long time lurking]

Buy more UST`s

[Long time lurking]

8 minutes ago, Funn3r said:

I should say this is entirely normal though surely. When a head of state visits somewhere, especially if it is a foreign country, then a yuge team of his or her people get there beforehand to scope it out then create a plan. Then the VIP arrives and is carefully steered round according to a pre-arranged timetable. When the Queen used to go on her walkabouts I am sure she had an equerry saying "The guy with the hat is the President of Bongoland, remember it's a breach of protocol if he offers you his hand to shake so he will salute instead, then it's OK for you to say "Hew Naice to Meetchu." And so on. 

Call me cynical but he`s in the USA and there's eight people and an excavator 

Edited March 28, 2023 by Long time lurking

[Funn3r]

Just now, Long time lurking said:

Call me cynical but he`s the USA and there's eight people and a excavator 

There are still 500 secret service snipers and a few dozen of those blacked-out window jeep things. They leave nothing to chance. Assuming he actually is the president and it's not all fake.

[King Penda]

2 hours ago, belfastchild said:

Already have. During covid. Over here.
Every adult got a credit card with 100 quid on it to spend only in 'local' shops. Of course tesco got wind and asked to be included in the local bit. Fine but people then went in and bought 100 quids worth of amazon vouchers from next to the till.

Shop local it was called.

I said to everyone at the time (and posted here) it could be used as part of a bigger trial. Of course it was month and months late, the first batch sent out didnt work etc etc.

A system is aready up and running for those on benifits look 30 quid appeared today .I get to choose where it’s spent . Sadly I had to screen shot the code numbers and foward to mum 

[King Penda]

46 minutes ago, Long time lurking said:

Call me cynical but he`s in the USA and there's eight people and an excavator 

Well he is clinically brain dead

[Loki]

Just now, King Penda said:

Well he is clinically brain dead

I'd rather listen to the excavator 

BRMMMMMMMCHUGGA

[sancho panza]

Are we heading for a Minsky moment? Bit of a whooshing sound from small banks in the US.

Irving Fisher where for art thou?

 

Accompanying the run from small banks?

https://wolfstreet.com/2023/03/28/the-most-splendid-housing-bubbles-in-america-march-update-biggest-monthly-price-drops-now-in-las-vegas-san-francisco-seattle-phoenix-dallas-denver/

Edited March 28, 2023 by sancho panza

[CannonFodder]

11 hours ago, belfastchild said:

Another good point to tout 'When Money Dies' and wiemar hyperinflation. Just replace the new mark (and its various iterations) with digital currency.

Anyone notice the Nationwide giving 5% cashback on using their debit card to purchase food for 3 months?
Certain retailers. Including Tesco, Lidl ... Fortnum and Mason.

 

oh and cant edit a previous post where I said mortgage in 2005 when I meant 1995 but still sort of makes sense.

Great book

In the epilogue, they tal about people who had cleared off with inflation their mortages.

The gov came back and reversed the mortgages, said they were paid off with unfair advantage 

Inflating away debt not allowed for the little people.

[sancho panza]

[DurhamBorn]

https://www.thejakartapost.com/business/2023/02/28/united-tractors-shares-rise-10-on-doubling-of-net-profit.html

This is the biggest holding in SEDY now ,selling machinery to move coal around,how do you all sleep at night .

Mind you the fund has pivoted to China a lot more 24% and Taiwan at 13% to Brazil at 21%.Im balancing myself with more holdings in Latin America.

Edited March 29, 2023 by DurhamBorn

[wherebee]

12 hours ago, Funn3r said:

That's why the fast food chain had to go with their second choice of name

No, they could use Burger King because Andrew wasn't going to be the monarch.

[Barnsey]

 

 

 

Edited March 29, 2023 by Barnsey

[afly]

11 hours ago, King Penda said:

A system is aready up and running for those on benifits look 30 quid appeared today .I get to choose where it’s spent . Sadly I had to screen shot the code numbers and foward to mum 

What app is that KP? would love to know how its funded

[belfastchild]

12 hours ago, Funn3r said:

I should say this is entirely normal though surely. When a head of state visits somewhere, especially if it is a foreign country, then a yuge team of his or her people get there beforehand to scope it out then create a plan. Then the VIP arrives and is carefully steered round according to a pre-arranged timetable. When the Queen used to go on her walkabouts I am sure she had an equerry saying "The guy with the hat is the President of Bongoland, remember it's a breach of protocol if he offers you his hand to shake so he will salute instead, then it's OK for you to say "Hew Naice to Meetchu." And so on. 

Yes. Ive done this a lot for visiting politicians, a listers etc.
Everything is usually on a time frame so tell them where to go, where to stand, who they are meeting, tell them where the cameras are, point out people in the crowd or some other shite theyve forgotten then tell them when to go.
They then go to someone else and they do exactly the same thing somewhere else.

[Lightscribe]

https://www.wsj.com/articles/new-shell-ceo-faces-big-dilemma-should-the-company-pump-more-oil-9fa35497?st=v3zy1g50xh61jb4

 

BREAKING NEWS: Should an oil company produce more oil?

Next week we probe further around the moral hazards of melting glaciers and whether ice should be sold to Eskimos and peruse the pressing question of whether climate change is making the sky blue.

[AlfredTheLittle]

8 minutes ago, afly said:

What app is that KP? would love to know how its funded

Your tax, and the inflated amount you're paying in rent.

[No One]

16 hours ago, DurhamBorn said:

Exactly,debt is cut in half when inflation goes up 50% when people are getting 3%pa coupons.In reality this cycle is simply moving capital from one place to another.No need to reset anything.Food has reset 50% already,energy will settle at 100%,just the leads and lags,savings and labour lag.

You think it's bad in the UK, with benefits and public pensions, wait till you see the state Spain is in.

 

Quote

Faced with an ageing population and ballooning costs, Madrid has opted to increase contributions rather than cut benefits.

 

12ft | Spain’s fix for pension shortfall: make younger people pay | Financial Times

I'll take some snippets, but let me give you a tl;dr. Spain runs a distributive pension system. It takes from workers to give it to the retired, there is not investment into bonds or stocks. Spain demographically is an inverted pyramid with the boomers about to hit retirement, and the public pension system is linked to inflation. 

There was an attempt to raise the retirement age and introduce a haircut back in 2015 but that failed.

Quote

Having repealed 2013 reforms that had become politically intolerable for cutting the benefits of today’s retirees, Spain’s Socialist-led government will on Thursday ask lawmakers to approve a new package that demands more from younger generations.

José Luis Escrivá, Spain’s pensions minister, said the measures would move away from “the traditional paradigm of pension reform”, describing the French effort to raise the retirement age as an old-school approach.

Adopting measures eschewed by France, Spain will pull new money into the pensions pot from companies and employees — especially the highest-paid — then use it to reduce injustices such as the punitive impact of missed contributions on women who gave up jobs to look after children.

So the answer is get the young to pay for it. 

Anyone that knows anything about Spain's labour force knows there is massive underemployment of anyone under 35, and that pay has been stagnant since 2008.

If I where a young Spaniard I would seriously consider emigrating, because the government is going to milk them dry for every Euro of labor.

 

 

[HousePriceMania]

This probably means something...

 

 

[DoINeedOne]

15 minutes ago, No One said:

You think it's bad in the UK, with benefits and public pensions, wait till you see the state Spain is in.

 

12ft | Spain’s fix for pension shortfall: make younger people pay | Financial Times

I'll take some snippets, but let me give you a tl;dr. Spain runs a distributive pension system. It takes from workers to give it to the retired, there is not investment into bonds or stocks. Spain demographically is an inverted pyramid with the boomers about to hit retirement, and the public pension system is linked to inflation. 

There was an attempt to raise the retirement age and introduce a haircut back in 2015 but that failed.

So the answer is get the young to pay for it. 

Anyone that knows anything about Spain's labour force knows there is massive underemployment of anyone under 35, and that pay has been stagnant since 2008.

If I where a young Spaniard I would seriously consider emigrating, because the government is going to milk them dry for every Euro of labor.

 

 

Interesting I was reading a report about French care homes yesterday, apparently, 1 in 4 inhabitants in France are over 60, and by 2040 it be nearly 1 in 3

Edited March 29, 2023 by DoINeedOne

[Plan-b]

4 minutes ago, No One said:

So the answer is get the young to pay for it. 

It's always been like this, Same as it ever was in the west.

If you think it's bad in Spain now go back in history to the days of Franco. The Spanish are harsh on their citizens and it could get much worse thats why they are very compliant the alternative is not worth it.

More recently look at Barcelona's independence protests/riots they were brutally put down not much heard on that lately.

Franco murdered untold thousands and remained in power until 1975 part of his legacy and attitude still remains with the Madrid elites.

https://www.theguardian.com/world/2021/oct/09/spain-bodies-franco-victims-dictator-mass-graves

 

[Barnsey]

One more...

Ducks lining up

[Virgil Caine]

17 hours ago, DurhamBorn said:

Exactly,debt is cut in half when inflation goes up 50% when people are getting 3%pa coupons.In reality this cycle is simply moving capital from one place to another.No need to reset anything.Food has reset 50% already,energy will settle at 100%,just the leads and lags,savings and labour lag.

Debt will be liquidated and asset values reallocated by  inflation, by bankruptcies in a recession or most likely both simultaneously in a stagflationary environment . The process is already underway. The market is far better at sorting out the redistribution than governments or institutions such as central banks.