Author Topic: Shreddi's socialst belief trap  (Read 32 times)

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Metron

  • ||*~the propinquity of moving electrons~*||
Shreddi's socialst belief trap
« on: January 17, 2020, 08:26:18 pm »
Our socialistic slackwit is at it again over in Ballgrab, time to tee it up and blast out some links, tee hee..

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I did explain this previously but I guess I'll have to dumb it down to white trash level so you will understand.

Loving the naked emotion, sans the slightest pretense at scholarly scrutiny!

 ::)

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Remember when you first got hooked on opioids? Maybe you had another quadruple bypass and needed them to cope with the pain, or maybe you got them from one of your buddies down at the over-80s bowling league and those little suckers made you feel you were 78 again. Well, the American economy is like that, except it's addicted to cheap money. What was a necessary temporary measure to jolt the economy back into life and make the banks start lending again after 2008 never actually stopped. It's hard to reason with an addict because they don't realise they have a problem until it's too late.

QE, one of the great economic misnomers, refers to the Fed actually juicing the institutional traffic whilst leaving the money supply relatively inert:

https://www.marketwatch.com/story/you-better-believe-the-fed-is-doing-quantitative-easing-and-here-are-the-beneficiaries-2019-11-20

Balance-sheet expansion is like printing money — but for financial institutions only. It does affect the monetary base (excess reserves plus currency in circulation), which is the narrowest definition of money supply (M0). It basically causes asset-price inflation without causing uncontrolled broad money supply growth, which is why has it has not (yet) resulted in hyperinflation (see chart).

And frankly it's stagflation we have to be concerned with, not hyper-flation.

https://seekingalpha.com/article/4296333-feds-new-not-qe-program-looks-good-specifics

"QT" or reverse QE is now history. The Fed is finally in pro-growth mode, but it promises to do so responsibly.

For the first time in a long time, I have nothing critical to say about Fed policy, just so it delivers on its promises.

May the Fed never overdo the money printing, as it did with QE 3, so that it never again shrinks its balance sheet again in a major way.


But wait, with the pseudo-American banksters playing a soft growth game, wither all those other players around the globe and their addiction to "easy money"...

Let's see if the game basically proves out elsewhere, shall we:

https://www.zerohedge.com/news/2018-12-16/ecbs-quantitative-easing-failure

The main reason why the ECB quantitative easing program has failed is that it started from a wrong diagnosis of the eurozone’s problem. That the European problem was a demand and liquidity issue, not due to years of excess.

The ECB had been receiving tremendous pressure from banks and governments to implement a similar program to the US’ quantitative easing, forgetting that the eurozone had been under a chain of government stimuli since 2009 and that the problem of the euro-zone was not liquidity, but an interventionist model.

The day that the ECB launched its quantitative easing program, excess liquidity stood at 125 billion euro. Since then it has ballooned to 1.8 trillion euro.


Oh how interesting, so WE are not the only nation with a funny money opioid crisis, in fact we actually seem to be playing the easing game with a far sharper and less florid policy pen.

A Never-Ending Government Stimulus
With public spending averaging over 46% of GDP, an annual deficit of over 1.7% on average, and 86% debt, talking about austerity is like eating a box of cakes and calling it “diet”.

The tax burden in this period has been raised throughout the EU (with honorable exceptions, such as Ireland) with an average tax wedge of 45% for workers and 40% on companies.

The United States, at the peak of the crisis, spent 43% of GDP (the EU, 50%) and dropped it to 34%, and that with 21% of the budget in 2009 dedicated to defense.


45% off the top is a helluva deep state haircut, innit Shreddi dear?

Between 2001 and 2008, money supply in the euro-zone doubled.

2) Two massive sovereign bond repurchase programs with Trichet as ECB President, interest rates down from 4.25% to 1% since 2008. Poor Trichet. Trichet purchased more than 115 billion euros in sovereign bonds.

3) An additional mega stimulus from the ECB, in addition to the TLTRO liquidity programs with Draghi, which has taken sovereign bonds to the lowest yields in history and purchased almost 20% of the total debt of some major states.

The problem of the European Union has never been a lack of stimuli, but an excess of them.

As government expenditure and unproductive investments multiplied, overcapacity remains at levels of 20% and the constant errors of interventionism leave the euro-zone after the biggest monetary experiment in its history with the same high tax wedge and obstacles to the productive sectors.

The end of the ECB QE leaves the euro-zone in a weaker position than it was in 2011. Because fiscal space has been exhausted and the ECB, with its balance sheet at 41% of the euro-zone GDP and ultra-low interest rates, has also exhausted its monetary tools.

The end of QE does not just show the failure of the ECB’s policy. It highlights the failure of governments’ economic policies.

Governments should implement growth-oriented reforms lowering taxes and attracting capital. Many will not. Most will likely decide, again, that they need to spend more. Fail, repeat.


https://www.theguardian.com/business/2019/mar/08/the-verdict-on-10-years-of-quantitative-easing

Ten years ago this week, Threadneedle Street dropped borrowing costs to the lowest level in the Bank’s 324 years of existence and embarked on the bond-buying programme of QE, never before tested in Britain.

The decision has been credited with preventing the recession from turning into the second Great Depression, but its side-effects have meant rising inequality. The policy of government austerity, also imposed now for almost a decade, has damaged living standards and paved the way for the Brexit vote.

With interest rates still close to rock bottom and the money printing machine still running, Britain also lacks adequate firepower to fight the next downturn, despite economists warning it could be on the immediate horizon.


And the result, as addiction always proves to its slaves:

https://www.theguardian.com/business/2019/jun/11/quantitative-easing-qe-recession

Again, however, one must consider the alternative. If central banks shun QE in the next downturn, the resulting output collapse will be more severe. Populist politicians, arguing that mainstream leaders and their appointees are not reliable stewards of the economy, will have more evidence to invoke and more anger to channel when they campaign for office. With populists heading more governments, budget deficits will be larger, not smaller. Instability will be greater, not less.

The critics of QE are right to warn of unintended consequences. But shunning QE may have unintended consequences as well. The critics should be careful what they wish for.


Iow - your own "sceptered jewell" is on borrowed time and money and can't ever leave the easy money pub without an implosion.

Huh...we see it's NOT Just the US that's "an addict" it's all the rest of the bankster empire as well. And be very clear, politics (socialist or capitalist, or a hybrid of the two) is just a whipping post for the masses to wail on whilst they're looted by the elites, period!

[quopte]Trump - like a typical con man - doesn't want you to realise what's happening under the table. It's a pyramid scheme and he's another Madoff, where everything seems fine on the surface as long as there's new money coming in. Trump does nothing to develop new industries, which take time and commitment to nurture, he props up old ones.[/quote]

Make them fail and everyone gets hurt Shreddi dear. The unseen hand of the market is a far less personalized implement.

You see we had an administration that focused on promoting "ner industries" - you recall that don't you my dear?

https://www.bostonherald.com/2019/03/27/obamas-green-new-deal-was-a-billion-dollar-bust/

By every objective criteria confirmed by every independent investigation, the avalanche of green dollars in Obama’s first term was a colossal waste of money. In all, Obama (and George W. Bush before him) spent some $100 billion on giveaways to wind and solar power producers, electric cars and for weatherizing homes and buildings. It was arguably one of the largest corporate welfare experiments in American history, enriching an industry and its investors. Most of this money went for research to speed up commercial applications of green energy or was pipelined into bank accounts of individual companies.

The most infamous of these was, of course, Solyndra, the solar energy company that received $530 million of taxpayer handouts and was touted many times by Obama, and Vice President Joe Biden, as the next big thing in green energy. It never produced any energy to speak of before it went bankrupt.


https://en.wikipedia.org/wiki/A123_Systems

On October 16, 2012, A123 filed for bankruptcy protection under Chapter 11. The filing listed assets of $459.8 million and liabilities of $376 million.[26][27] The company also stated that its automotive assets would be purchased by Johnson Controls, a supplier to A123, for $125 million.[28] On January 28, 2013, Wanxiang America purchased the preponderance of A123's assets out of bankruptcy for $256.6M and created A123Systems, LLC.[2][8] The government business was sold to US firm Navitas Systems for $2.25m

https://en.wikipedia.org/wiki/Fisker_Karma

Government investment[edit]
In 2010, the United States Department of Energy awarded Fisker a US$529 million green-energy loan, primarily to assist the company in transitioning the Karma, which is assembled in Finland, into the American markets. Fisker collected nearly US$200 million until February 2012, when the government froze the loan, because the company was failing to meet the government's milestones.


You see dear, this is what happend when gubmint picked market winners - they FAILED!

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Like a typical fat corporate leech he's out to skin the typical worker and hand it over to the rich - neo-liberal economics 101. Unfortunately the average American is too moronic to realise they are being robbed, as long as they have a bit of cash to spunk away on more useless shit.

Define "useless shit".

Does it include products which people choose to purchase?

Do a great many of them reside within the domestic/non-global economy?

https://www.wnd.com/2019/07/trump-tariffs-and-tax-reform-wins-for-average-americans/

Fortune Magazine, July 2019, states: "A big tax cut sets America apart." Fortune points out that Organization for Economic Cooperation and Development countries tax workers (income and payroll) at about 36 percent. Prior to the tax reforms of Trump, American workers paid income and payroll taxes of about 31.8 percent (4.2 points less than the OECD average). After the tax reforms, average American workers now pay about 29.6 percent (2.2 point reduction and 6.4 less than the OECD average).

What did we get for that tax reduction? Wages for average American workers increased 3.2 percent year over year as the U.S. economy grew even more, much more than the economies of Europe and Asia, much more than inflation at 1.9 percent. Wages increased more than inflation for the first time in more than a decade. Obama never did that.


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You don't even known what socialism is. Your country is being propped up by a shell game organised by the state and you have the nerve to lecture other people about socialism?

And what is YOUR country being "propped up by" dear?

I believe we covered that above.

Uh huh...

https://www.theguardian.com/commentisfree/2019/jan/25/socialism-rich-oil-gas-capitalism

Britain is doing socialism for the rich again – this time for oil and gas

British people are coughing up £24bn to help big oil. It’s yet another example of the illusion that is modern capitalism.

Because so many employers refuse to pay their workers a wage on which they can live – most Britons languishing below the poverty line are in work – the state has to spend billions of pounds a year on in-work benefits. Private landlords charging rip-off rents are subsidised by about £9bn a year by the state. The backbone of 21st-century British capitalism – finance – was famously bailed out by the state after it plunged the economy into turmoil, and banks benefit from numerous other subsidies, too: such as their implicit “too big to fail” subsidy worth billions, and the state insurance of all bank deposits.

Rail companies receive more subsidies than they did when the industry was publicly owned. According to the National Audit Office in 2016, the Treasury spends about £225bn – or about £3 in every £10 of government money – on private or voluntary providers. The list goes on.


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The difference with socialism is that it is intended to benefit a broad section of people, not just a narrow band of plutocrats, which is the case in America right now.

Intentions mean little where actuals are concerned.

You may intend to pay your bills and then you may decide not to, the intent is irrelevant.

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If people really paid attention they would be stringing people up in the streets but you're all so beaten down and apathetic, pathetically grateful for the crumbs that fall off the rich man's table, that you'll almost certainly never wake up.

So we're beaten down now?

Perhaps you've not heard of Antifa and their active and violent street presence?

https://reason.com/2019/06/29/antifa-andy-ngo-mob-milkshake-violence/

https://www.westernjournal.com/antifas-violent-weekend-portland-touch-mayor-posts-relaxing-date-night-photo/

https://www.realclearpolitics.com/2019/07/05/how_antifas_apologists_fell_in_love_with_street_violence_479482.html



No...we're not "beaten down and apathetic" by any stretch, that's projection from the land of the serf, slaves to the doddering and spendy royals, cucks to the EU, conquered more times than any "empire" on the planet.

Realithy it is Shreddi dear, and a giant slice of humble pie for you to wash down with your tea and clotted cream.

 ;D


Metron

  • ||*~the propinquity of moving electrons~*||
Re: Shreddi's socialst belief trap
« Reply #1 on: January 17, 2020, 08:34:43 pm »
But wait, there's more spite for Yanks from todays's Pud warrior:

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I'd settle for them being educated in the first place, never mind re-educated. I don't see many Trump supporters asking how this 'booming' economy came about or what Mr Tangerine Man did to engineer it. It's pretty clear that it's the Fed pumping liquidity into the market giving a false picture of the economy.

But ekshually it's not, structurally speaking:


https://www.marketwatch.com/story/you-better-believe-the-fed-is-doing-quantitative-easing-and-here-are-the-beneficiaries-2019-11-20
Balance-sheet expansion is like printing money — but for financial institutions only. It does affect the monetary base (excess reserves plus currency in circulation), which is the narrowest definition of money supply (M0). It basically causes asset-price inflation without causing uncontrolled broad money supply growth, which is why has it has not (yet) resulted in hyperinflation (see chart).


https://seekingalpha.com/article/4296333-feds-new-not-qe-program-looks-good-specifics

"QT" or reverse QE is now history. The Fed is finally in pro-growth mode, but it promises to do so responsibly.

For the first time in a long time, I have nothing critical to say about Fed policy, just so it delivers on its promises.

May the Fed never overdo the money printing, as it did with QE 3, so that it never again shrinks its balance sheet again in a major way.



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Sooner or later all those idiots who have taken out loans they can't afford - and the rest of us - will end up carrying the can for it all, but until then I don't see Sanders or anyone else convincing a large enough section of the population that it's all been a con job. The crash of 2008 is ancient history to them and stuff like this gets repeated in an endless loop. As long as there is money to be made, and enough suckers to take the bait, this will carry on.

This may come as an awful surprise to you, but...the economy goes in cycles - and said cycles are mostly decoupled from partisan culpability.



Oh lookie, it also applies to the banksters' personal fifedom - Switzerland!



 8)

Metron

  • ||*~the propinquity of moving electrons~*||

Metron

  • ||*~the propinquity of moving electrons~*||
Re: Shreddi's socialst belief trap
« Reply #3 on: March 25, 2020, 09:40:02 pm »