Tuesday, November 05, 2013

Things that can not go on forever - will not.

Source Here.

If this chart doesn't scare the pants off you - I don't know what will. Only two times in 200+ years have interest rates been this low. Now and during the great depression. We are already five years into the cycle. Prepare while you still have time.


  1. It's an interesting observation, but maybe it can go on forever. The super low interest rates have been weird. It should have been massively inflationary but it hasn't been. given the revelations that the entire planet is been bugged for the last 10 years, wouldn't it be possible to use that information advantage to destroy massive amounts of currency that's been given to the banks. We know that they destroy billions in seized currency each year with the war on drugs. If one of the super banks were given a free pass to trade on tips they were given, you could rip off the Chinese, all in the name of protecting national interests. Weird that the banks got away with murder, weird that they can continue to hive them $80 billion dollars each month with lower gas prices as the result and weird how they were spying on companies, trade partners and economic interests. Df

  2. It can not go on forever. The reason it hasn't been inflationary is because the banks sucked up a lot of that money in capitol requirements. People are hoarding money. People will contunue to hoard money until they feel like the world is not going to blow up. And there are still too many goods and services. Even Japan is now seeing inflation. Print enough money - you will get there. How are you going to believe that 5 years in the new norm when you have more than 200 hundred years telling you the opposite?

    People can make you believe stuff for a little while, but the world returns to the mean eventually.

    It's interesting you mention insider trading. I'm not too upset about being spied on because anything outside of your house has pretty much been fair game the whole time I've been alive. I can control what I want to have spied on. But insider trading by snoopers...that is an interesting angle and something I've thought about before. Who knows what kind of data they are scooping up?

  3. Clinton legalized insider trading when they're done with derivative contracts. He also did a way with the capital requirements. Its enough to make you wonder if thats when mass surveillance started. The telcos have exemptions from lawsuits in exchange for cooperation. Maybe this is why you can rig libor and no one goes to jail. The banks set up there own deal. This way we can keep selling currency while stealing it back in frauds that are impossible to detect. If you did have access to an NSA device and a license to insider trade, you could make billions per day on the information advantage and if your goal was to remove money from circulation, you could keep printing forever or at least until people figured it out.