Exporting Speculative Debt
source: http://theautomaticearth.blogspot.com/2011/02/february-25-2011-exporting-speculative.html
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- Schnookums
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You know that information has officially entered the mainstream financial world when the Wall Street Journal writes about it. George Melloan recently wrote an article entitled The Federal Reserve is Causing Turmoil Abroad", in which he stated that the tsunami of debt-dollars unleashed via quantitative easing over the last year has caused food and energy prices to skyrocket in countries around the world. This price inflation has, in turn, chewed through the disposable incomes of those with the least income to spare, which is now a majority of the population in many countries, and has led to social and political unrest/revolution.
However, he did not use the term "debt-dollars" and, in fact, he did not even refer to debt in the article. So while it is comforting to know that some people in the mainstream financial world are finally starting to connect a few crucial dots, it it still true that these people are missing the bigger picture those dots comprise. The Federal Reserve has indeed printed money and helped drive up commodity prices throughout the global economy, but none of this price "inflation" is achieved without its trusty sidekicks, the major investment banks (hedge funds), and their weapon of choice, leverage.....
Read on at:
http://theautomaticearth.blogspot.com/2011/02/february-25-2011-exporting-specula...
However, he did not use the term "debt-dollars" and, in fact, he did not even refer to debt in the article. So while it is comforting to know that some people in the mainstream financial world are finally starting to connect a few crucial dots, it it still true that these people are missing the bigger picture those dots comprise. The Federal Reserve has indeed printed money and helped drive up commodity prices throughout the global economy, but none of this price "inflation" is achieved without its trusty sidekicks, the major investment banks (hedge funds), and their weapon of choice, leverage.....
Read on at:
http://theautomaticearth.blogspot.com/2011/02/february-25-2011-exporting-specula...
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- tags:
- Fraud, Inflation, Investing, Monetary Policy, 1 more
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toyotabedzrock
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That is not why commodity prices are high.
The problem is that a rule governing the futures markets was lifted. It was a rule designed to prevent just what is happening now.
Very simply they allowed the futures market to place bids for the entire price of the product instead of 20%.
Futures markets exist to help producers overcome times of low production and to keep the market stable.
What we have now is everyone trying use the futures market like they use the stock market. It was not designed for this purpose.
- 1 year ago
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toyotabedzrock
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Schnookums
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We are the World's best supplier of debt......it's almost as if it was by design.
- 1 year ago
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Schnookums
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Dagum
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Schnookums:
...maybe it is...
- 1 year ago
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Dagum
