QE3?

[andyfuller]

Ditto Britain - Right now, we could really do with the money Blair spent on invading and occupying Iraq...

And the money we are spending on Libya. Cheers for the link btw.

[Iron]

Indeed. It's strange that it's taking so long - surely it shouldn't take months and months for America, Britain and its NATO allies to defeat Gaddafi's regime...

Re: The link - You're welcome.

Jeff

And the money we are spending on Libya. Cheers for the link btw.

[andyfuller]

Indeed. It's strange that it's taking so long - surely it shouldn't take months and months for America, Britain and its NATO allies to defeat Gaddafi's regime...

But we aren't there to defeat Gaddafi

[superfrank]

Do you have a link for that chart? Would like to pass it to my brother.

this one? http://3.bp.blogspot.com/_9ZzZquaXrR8/T ... hology.png

[nomadic]

IMHO, the best place for America to start saving money is in its military expenditure.

Completely agree. When the federal budget numbers are filtered to remove spending on Social Security and Medicare/Medicare (programs that have their own dedicated taxes) and interest on the existing debt, the current federal spending is about $2 trillion per year in total. Of that amount, $700 billion is military spending (more than 10x what the UK spends as the #3 country in the world in military spending).

So essentially 35% of all income tax revenue collected (individual + corporate) gets "invested" into assets and services that produce no yield - in fact, if/when those assets are actually deployed, whatever is on the receiving end usually ceases to exist... so not only do those assets not produce any positive yield, their use usually leads to negative changes in productivity, not even just simply a zero yield.... certainly some level of defense spending is necessary, and it is difficult to say exactly what is the right amount... but I have a really hard time believing that "right" amount is anywhere even close to 35%... even half that would seem to already be overkill...

[Iron]

CHART OF THE DAY: WEALTH EFFECT

http://pragcap.com/chart-of-the-day-wealth-effect

[Iron]

Robert Peston writes on Twitter that: 'What's happening on US stock markets looking increasingly like a Minsky moment. Shares being dumped as we head for the close.'

This is what a Minsky moment is: http://en.wikipedia.org/wiki/Minsky_moment

I'm not sure what follows a Minsky moment, but it's probably not a recovery...

Jeff

[nomadic]

I'm not sure what follows a Minsky moment, but it's probably not a recovery...

Referencing the chart superfrank posted on Saturday, I would think a "Minsky Moment" is most likely part of a "capitulation" phase (although not necessarily)...

[Iron]

Apparently the reason the FTSE drifted this afternoon was because of rumours that QE3 is in the pipeline.

Hurrah! We're all saved!

Jeff

[Iron]

I like economist Nouriel Roubini's comment on Twitter:

'Stranded shaken markets are rallying this morning only because they are hoping that helicopter ben will come to their rescue today...'

Jeff

[superfrank]

All as predicted, gotta start backing my own judgement!

Sat Jun 04, 2011 12:39 pm

This is how I reckon it will play out...
- more weak economic data as QE2 wears off through the summer.
- oil and equities under pressure and some sharp falls similar to what happened in 2008.
- political pressure mounts as people demand that "something must be done" (crybaby capitalists as Gerald Celente calls them).
- the govt. and FED cave in and QE3 begins (maybe not called QE this time, for political reasons, but essentially the same thing - cheap/free money).

[Iron]

The Dow is beginning to steam heavily.

Robert Peston has twittered: 'Wall Street falling fast. Fed Reserve does little to stimulate US economy. And there is serious dissent among governors'.

Jeff

[Iron]

Reuters have Tweeted: 'Fed promises to keep rates low for at least 2 years'.

I'm sure Mervyn will be most grateful...

Jeff

[superfrank]

The FED really are a pathetic bunch of corrupt tossers.

[Iron]

Looking at America's checkbook: What the U.S. makes and spends

http://am.blogs.cnn.com/2011/08/12/look ... nd-spends/