Fed/Government in Panic Mode

[SabreHorn]

It's easy to blame politicians, but always remember that they're doing our bidding.

Who was the last politician to represent the people in his district rather than big pharma and corporate giants, or their own selfish interests? The old adage that the President of Mexico is limited to stealing ONLY $1 billion a year during his six year term is alive and well (if modified) once each passes inside the beltway in DC.

To answer my own question, Phil Gramm was perhaps the smartest man to ever serve in Congress. He sought what was best for The State of Texas not what was best for Phil & Wendy. Ask him a question and he would spend an hour giving you a detailed answer that you could understand. None since and few before.

 

[Monahorns]

Stable?

52 Week Low 3,895.51
52 Week High 13,829.07

Yes. There are 2 problems with those numbers. First, bitcoin isn't widely enough used to show the stability a normal currency would. As more people use it regularly that will go away. Also, tax law and in other ways bitcoin is treated as an asset not a currency. When/if that changes you will get more stability.

Second, in one sense those numbers don't really mean anything because those are based on the $. Part of what you are seeing is people's distrust of the dollar and banking system not any problem inherent with bitcoin.

 

[Chop]

"When will the investors lose confidence and stop buying bonds and notes?"

Something that's worked in our favor in the past is foreign money pouring in to buy U.S. bonds and notes. As precarious as our situation appears, it's even worse in many other countries. We're the dog that wags the tail and are viewed as relatively safe.

US T-bills >>> Paraguay, Thailand, or Albania T-bills

 

[Musburger1]

It's easy to blame politicians, but always remember that they're doing our bidding. They racked up trillions in debt because we want a government that we aren't willing to pay for. They impose economic hardship, because we want them to do things that impose economic hardship. They bailout their buddies with our money (or more accurately our grandkids' inflated money), because we don't want to deal with the hassle of those buddies failing (lost jobs, tanked markets, etc.). Politicians are an easy target, but this is ultimately on us.

The assumption is that your vote makes a difference; that there exists on the ballot a candidate which represents some portion of the populace.
If the citizenry has influence in the electoral process, that influence must be used well before voting day. By that time, it’s too late.

I can’t believe that Donald Trump nor Joe Biden are what most people are looking for. In the case of Biden, I suggest he was more “selected” than elected. To run for national office, it’s virtually impossible to gain traction without both large financial support from powerful lobbies and backing by MSM. Trump was an exception and a virtual coup was launched to remove him. We have neither democracy nor a representative Republic. If we ever did, we don’t now.

 

[Musburger1]

"When will the investors lose confidence and stop buying bonds and notes?"

Thats what we have now. That’s where the Federal Reserve steps in and bails out corporate debt and buys sovereign debt to keep interest rates manageable.

 

[Chop]

Watchout for loopholes.

Nancy Pelosi spoke via phone with Jim Carmer and said there's "real optimism that we could get something done" as she explained that she and Mnuchin had agreed to include the House language adding oversight to $500 billion in aide to corporations to ensure that the money won't be spent on stock buybacks and executive comp.
Pelosi also said she had been willing to compromise by granting immunity to companies making masks and other equipment.
​

Even I can see the loophole. A corporation could decide to start making a few masks and then be exempt from the rule.

Example: Tesla just entered the ventilator business along with other auto makers. But it’s still an electric car and battery company that happens to do some small portion of the ventilator market—for now. Tesla stock ran up well over 300% + in late 2019 in an absurd speculative bubble. The bubble burst and it’s way, way down (up a bit from the bottom the last few days). You can bet Musk and crew are chomping at the bit to do stock buybacks and manipulate the shares back up again in a speculative bubble.

 

[Musburger1]

Example: Tesla just entered the ventilator business along with other auto makers. But it’s still an electric car and battery company that happens to do some small portion of the ventilator market—for now. Tesla stock ran up well over 300% + in late 2019 in an absurd speculative bubble. The bubble burst and it’s way, way down (up a bit from the bottom the last few days). You can bet Musk and crew are chomping at the bit to do stock buybacks and manipulate the shares back up again in a speculative bubble.

Good catch.

 

[Chop]

Yeah. If such a loophole makes it into the final bill, then just like that, most of the big financial firms, banks, insurance cos., and funds will get into the mask and ventilator business in some small way and commence massive stock buybacks with our $. The markets will love it...

 

[Chop]

Frankly, I wish both the GOP and the Dems would knock it off, cut the crap, and focus on the task at hand rather than sneaking in things to prop up their favored people or companies.

 

[Dionysus]

Second, in one sense those numbers don't really mean anything because those are based on the $. Part of what you are seeing is people's distrust of the dollar and banking system not any problem inherent with bitcoin.

Over time the dollar peg may become less meaningful, as you suggest, and it then becomes a matter of purchasing power. A unit of account is still needed though.

Another strong argument for bitcoin (or some natively digital currency) is that while gold has a strong 5,000 year history, we live in a digital age now. Are people buying gold taking physical custody of it? Probably very few. Gold is not easy to transport, especially in larger quantities, and can be confiscated. It’s not easily divisible and you can’t transfer it digitally.

I expect that Millennials and future generations will view gold as an analog relic and move away from it as a monetary commodity.

 

[iatrogenic]

The assumption is that your vote makes a difference; that there exists on the ballot a candidate which represents some portion of the populace.
If the citizenry has influence in the electoral process, that influence must be used well before voting day. By that time, it’s too late.

I can’t believe that Donald Trump nor Joe Biden are what most people are looking for. In the case of Biden, I suggest he was more “selected” than elected. To run for national office, it’s virtually impossible to gain traction without both large financial support from powerful lobbies and backing by MSM. Trump was an exception and a virtual coup was launched to remove him. We have neither democracy nor a representative Republic. If we ever did, we don’t now.

What would your ideal candidate support?

 

[iatrogenic]

Over time the dollar peg may become less meaningful, as you suggest, and it then becomes a matter of purchasing power. A unit of account is still needed though.

Another strong argument for bitcoin (or some natively digital currency) is that while gold has a strong 5,000 year history, we live in a digital age now. Are people buying gold taking physical custody of it? Probably very few. Gold is not easy to transport, especially in larger quantities, and can be confiscated. It’s not easily divisible and you can’t transfer it digitally.

I expect that Millennials and future generations will view gold as an analog relic and move away from it as a monetary commodity.

True, gold is heavy. Do you see any problems trading electronic impulses on a computer?

 

[Dionysus]

Do you see any problems trading electronic impulses on a computer?

Nothing is perfect, but to some degree we all rely on “trading electronic impulses on a computer” every day with pretty good results, no? Internet infrastructure works well and things can be built on it.

Unless the world’s governments and central banks dramatically change course and implement responsible monetary policies (I wrote that with a straight face), it seems wise to consider Plan B.

 

[AC]

True, gold is heavy. Do you see any problems trading electronic impulses on a computer?

Market demand will drive whether Gold drives up faster or Bit Coin. Logistics has nothing to do with it. People under 40 will choose Bit Coin by overwhelming margins. I'm 52 and I am going to invest where I think the majority will go and I want my money in there before they move.

 

[iatrogenic]

Nothing is perfect, but to some degree we all rely on “trading electronic impulses on a computer” every day with pretty good results, no? Internet infrastructure works well and things can be built on it.

Unless the world’s governments and central banks dramatically change course and implement responsible monetary policies (I wrote that with a straight face), it seems wise to consider Plan B.

Well if we are already doing it, why change?

What is a responsible monetary policy? How would Bitcoin handle the current situation?

 

[Mr. Deez]

The assumption is that your vote makes a difference; that there exists on the ballot a candidate which represents some portion of the populace.
If the citizenry has influence in the electoral process, that influence must be used well before voting day. By that time, it’s too late.

I can’t believe that Donald Trump nor Joe Biden are what most people are looking for. In the case of Biden, I suggest he was more “selected” than elected. To run for national office, it’s virtually impossible to gain traction without both large financial support from powerful lobbies and backing by MSM. Trump was an exception and a virtual coup was launched to remove him. We have neither democracy nor a representative Republic. If we ever did, we don’t now.

Most may not want Trump or Biden, but they aren't willing to vote for anyone else. That's on us. Nobody is forcing it.

 

[Dionysus]

Well if we are already doing it, why change?

Maybe I misunderstood your post, but I thought you were suggesting that “computer impulses” (referring to cryptocurrency) were as problematic as anything else.

What is a responsible monetary policy?

I don’t know but 23 trillion in debt and perpetual QE doesn’t seem to be a great strategy.

How would Bitcoin handle the current situation?

My crystal ball is in the shop this week.

 

[iatrogenic]

Maybe I misunderstood your post, but I thought you were suggesting that “computer impulses” (referring to cryptocurrency) were as problematic as anything else.

I don’t know but 23 trillion in debt and perpetual QE doesn’t seem to be a great strategy.

My crystal ball is in the shop this week.

Relax my man, someone figured it all out. Kind of a bitcoin spinoff with a finite supply of platinum cabbage:

Progressives on Saturday welcomed news that Rep. Rashida Tlaib is calling on the U.S. Treasury to exercise its power to issue platinum coins to fund the coronavirus recovery, calling the move an example of thinking outside the box and celebrating the universality of her proposal to give everyone in America cash payments.

"I fully support the House Financial Services Committee Democrats #COVID19 economic response proposal," the Michigan Democrat tweeted Saturday. "I also want to encourage leadership to consider my truly universal relief proposal on behalf of #13thDistrictStrong."
"This is a really ambitious and creative plan from Rep. Tlaib taking advantage of ideas that financial experts began exploring during the debt crisis showdowns of the Obama years," tweeted HuffPost reporter Zach Carter.

The "Automatic BOOST to Communities Act" (pdf) would deliver a $2,000 pre-paid debit card to every American, with $1,000 being paid monthly after that until a year after the coronavirus crisis ends. Tlaib proposes to pay for the cost of the program by calling on the Treasury to use its authority under federal law to issue two trillion dollar platinum coins. The move would not add to the debt.

 

[Musburger1]

What would your ideal candidate support?

My ideal candidate would disband the federal reserve, scale down our overseas empire, shrink or dissolve the 17 intelligence agencies, dismantle the Utah data center, and end the homeland security agency.

Advocating any of the above would subject such a candidate to a barrage of attacks from both the bureaucratic/political establishment and its lapdog press. Witness how Tulsi Gabbard, who actually served in Iraq and is still an active member of the army reserves, was labeled an Assad lover, Putin agent, and shunned from appearances other than Tucker Carlson. Totally ridiculous accusations. but none the less effective in marginalizing her message.

My beef isn’t that there is no one that thinks the way I do. My problem is that the current two party system has effectively squeezed out other parties from the system, and the two respective parties are controlled by corporate/deep state entities (Republican) or corporate/deep state/ and left wing loon entities (Democrats). BY the time Election Day arrives there is no where to go.

 

[Austin_Bill]

I got out of the money business before Bitcoin took off as a viable currency source, but isn't the value of bitcoin predicated on the strength of the world black market? I know for years drug traffickers would do massive transactions in bitcoin. Same with Arms dealers and anyone wanting to do major transactions under the radar.

 

[Monahorns]

My ideal candidate would disband the federal reserve, scale down our overseas empire, shrink or dissolve the 17 intelligence agencies, dismantle the Utah data center, and end the homeland security agency.

Mus, you just described Jacob Hornberger who is trying to get the LNC nomination.

 

[huisache]

1) if voting made any difference they would have outlawed it years ago---old anarchist saying

2) the political parties are doing with the emergency bill what they do with everything----guaranteeing that their pigs get the best of the slop

3) If there is nothing you can do about getting raped you might as well just lie back and enjoy it----noted Aggie philosopher king Claytie Williams.

4) we got better elected officials back in the day when only white male property owners had the franchise. Consider the arc from Washington and Jefferson to Clinton, W, Obama and President Bonespurs.

5) I hear Woody Allen's memoir has some of his best comedy material since his early movies.

 

[Mr. Deez]

Relax my man, someone figured it all out. Kind of a bitcoin spinoff with a finite supply of platinum cabbage:

Progressives on Saturday welcomed news that Rep. Rashida Tlaib is calling on the U.S. Treasury to exercise its power to issue platinum coins to fund the coronavirus recovery, calling the move an example of thinking outside the box and celebrating the universality of her proposal to give everyone in America cash payments.

"I fully support the House Financial Services Committee Democrats #COVID19 economic response proposal," the Michigan Democrat tweeted Saturday. "I also want to encourage leadership to consider my truly universal relief proposal on behalf of #13thDistrictStrong."
"This is a really ambitious and creative plan from Rep. Tlaib taking advantage of ideas that financial experts began exploring during the debt crisis showdowns of the Obama years," tweeted HuffPost reporter Zach Carter.

The "Automatic BOOST to Communities Act" (pdf) would deliver a $2,000 pre-paid debit card to every American, with $1,000 being paid monthly after that until a year after the coronavirus crisis ends. Tlaib proposes to pay for the cost of the program by calling on the Treasury to use its authority under federal law to issue two trillion dollar platinum coins. The move would not add to the debt.

And of course you'll notice the idiot from Huffington Post using ball-licking verbiage like "ambitious"and "creative" to describe it - and the "it" is basically legalized counterfeiting. It's lunacy. When was the last time a journalist used that kind of language to describe anything from a Republican?

 

[Joe Fan]

My bad, evidently it's gun control they are trying to throw in.