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Fiscal Cliff

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explod said:
Dan Norcini, a Chicago pit trader is starting see see red. His opening statement yesterday.
Click to expand...

Makes you wonder how it's all going to end, and more importantly when. Fed will obviously get more and more creative with ways to flush 'money' through the system, no doubt stopping just short of transferring a few thousand per family straight into bank accounts for a spend up.

The end of ever expanding credit is near(or not).
 
young-gun said:
Makes you wonder how it's all going to end, and more importantly when. Fed will obviously get more and more creative with ways to flush 'money' through the system, no doubt stopping just short of transferring a few thousand per family straight into bank accounts for a spend up.

The end of ever expanding credit is near(or not).
Click to expand...

They have already created ways to get money velocity into the system -

- Federal regulators on Monday reached an $8.5 billion settlement with ten banks over foreclosure abuses stemming from the so-called robo-signing scandal, a deal that government officials say is expected to help more than 3.8 million borrowers.

- Bank of America will pay $3.6 billion to Fannie Mae as well as repurchase certain mortgage loans made from 2000 through 2008 for $6.75 billion, a move it said would cut its fourth-quarter pretax income by about $2.7 billion.

- Companies using Fed created funds to pay dividends instead of out of earnings

- Companies using Fed created funds for share buy-backs - The 19 largest U.S. banks must submit by Monday their plans to return capital to shareholders as part of an annual Fed-supervised exercise.....

- Banks using excess funds to trade 'risky' things eg JP Morgan & the whale episode

- Auto loans from the Government - record car sales - bringing forward sales from the future

- Student loans from the Government, approaching $1TRILLION now - free money, not expected to be repaid?

etc etc

And the ultimate indication that they have hit the wall -

1221_TP.Coin_.jpg

“It sounds silly but it’s absolutely legal,” Rep. Jerrold Nadler (D-New York) tells New York Capital this week. “There is specific statutory authority that says that the Federal Reserve can mint any non-gold or -silver coin in any denomination, so all you do is you tell the Federal Reserve to make a platinum coin for one trillion dollars, and then you deposit it in the Treasury account, and you pay your bills.”

http://www.watchonlinesimpsons.com/watch/S9E20-the-trouble-with-trillions

simpsons trillion dollar bill.png
 
Uncle Festivus said:
They have already created ways to get money velocity into the system -

- Federal regulators on Monday reached an $8.5 billion settlement with ten banks over foreclosure abuses stemming from the so-called robo-signing scandal, a deal that government officials say is expected to help more than 3.8 million borrowers.

- Bank of America will pay $3.6 billion to Fannie Mae as well as repurchase certain mortgage loans made from 2000 through 2008 for $6.75 billion, a move it said would cut its fourth-quarter pretax income by about $2.7 billion.

- Companies using Fed created funds to pay dividends instead of out of earnings

- Companies using Fed created funds for share buy-backs - The 19 largest U.S. banks must submit by Monday their plans to return capital to shareholders as part of an annual Fed-supervised exercise.....

- Banks using excess funds to trade 'risky' things eg JP Morgan & the whale episode

- Auto loans from the Government - record car sales - bringing forward sales from the future

- Student loans from the Government, approaching $1TRILLION now - free money, not expected to be repaid?

etc etc

And the ultimate indication that they have hit the wall -

View attachment 50344

“It sounds silly but it’s absolutely legal,” Rep. Jerrold Nadler (D-New York) tells New York Capital this week. “There is specific statutory authority that says that the Federal Reserve can mint any non-gold or -silver coin in any denomination, so all you do is you tell the Federal Reserve to make a platinum coin for one trillion dollars, and then you deposit it in the Treasury account, and you pay your bills.”

http://www.watchonlinesimpsons.com/watch/S9E20-the-trouble-with-trillions

View attachment 50345
Click to expand...

Why limit it to $1 Trillion?

Why not make a $100 Trillion coin??

US would be swimming in wealth then....
 
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