Posted by: graemebird | January 19, 2012

US Inflation About To Surge.

I’m basing this caveated prediction on a single article, and I don’t quite have the quantitative information to be fully clear on this.

This single article contains an immense amount of evidence that the long expected increase in US inflation is now more or less imminent. Unofficial estimates of inflation are around the 11% level. If everything in the article is true, and significant on a quantitative level, we would have to expect a large increase in US inflation. The article however doesn’t provide enough numbers to be fully clear on all this. The last part of the article is more positive in reality and not just in Kapner’s take on it.

THE CRITICAL THEORETICAL IMPORTANCE OF THE RONALD DUFFY ANECDOTE

That last story about the fellow buying the laser. If all the new lending was akin to that last story, then the conclusion one would draw might be quite different. I’ll have a lot more to say about this laser story. Because on the face of it, that last loan to Ronald Duffy, would seem to be a “text-book example” of excellence in bank lending. And were it this sort of lending that fractional reserve lead to, I would not be able to make a convincing case, to honest laymen, that fractional reserve was a bad thing. It still WOULD BE a bad thing mind you. But it would be very difficult to make that case. The other case study to do with the Classic Cars has some aspects of lending excellence to it.  But its not as clear a case as the Ronald Duffy loan.  So this will be a tip to the banksters, and its not going to get any better than that from me, because I’d basically want to see the 1000 most influential of these guys drop dead.   Yet having said so,  it mystifies me, when the bankers (getting their subsidised finance from the central banks) have all this power, and unjust enrichment …… well then why with this historic opportunity, could they not make a good fist of it???????  Why could the banksters not see the fortunate opportunity they have, and keep the unjust enrichment for themselves going a lot longer. Why could they not avoid, what at this point appears to be their inevitable demise  …. by taking those trillions of subsidised loans ……. and applying them with excellence in bank lending????

Fucking beats me. I guess that Blankfein, Dimon and the others are just too fucking useless, moronic, incompetent, anti-intellectual,  and hard-wired towards wealth destruction, to follow this sort of path. Developing excellence in lending, for their ill-gotten and subsidised funds, would be a problem from the point of view of them grasping too much of the pie to themselves. But it would be much less of a problem then the current situation, insofar as wholesale wealth-destruction was concerned.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Another alternative to a surge to galloping inflation is that international investors will once again show themselves to be incompetent wealth-destroyers, and instead of a large acceleration in inflation, in the near term, there will be a new round of basically insane, but massive buying of US debt. If there is another bubble in US bond-buying, US exporters will be further damaged, but its at least a potential way of these guys kicking the (galloping-inflation) CAN-DOWN-THE-ROAD just a little bit longer. But aside from that possibility Suzanne Kapner’s article points to a strong pickup in inflation, whereas she misunderstands what is going on and thinks that the trends she sites imply a positive outlook for economic progress in the US. In reality no such positive outlook exists. The US economy has essentially been collapsing slowly since the year 2000, and that trend will continue. But now with higher inflation rates.”

I’ll cut and paste the article straight at first, and let people go through it to try and think about why I am claiming that pretty much everything said in this article, points to a surge in US inflation.  Then later I might post the whole article a second time, breaking it up with my explanation and commentary.  We have known for a long time that the US was staring into galloping inflation, but the capacity of these people to kick that can down the road, is something I’ve always been amazed at. Anyway, here is the article:

By SUZANNE KAPNER

Big U.S. banks are reopening the lending spigot amid signs that an improving economy is spurring companies and individuals to borrow more.

[CITI]

On Tuesday, Citigroup Inc. and Wells Fargo & Co. recorded their strongest loan-growth numbers since the financial crisis. The figures confirm a warming trend highlighted Friday byJ.P. Morgan Chase & Co.

The lending gains mark a change from the past few years, when lackluster figures opened the banks to criticism from politicians and others that the firms’ tight grip on their cash was keeping economic growth under wraps. Banks responded that, after the bursting of the credit bubble that led to the financial crisis, consumers and companies were unwilling to borrow.

The data offer the latest signal that the deleveraging that swept the economy following the 2007-08 turmoil may be easing.

“Companies that are credit-worthy haven’t been in a borrowing mood, but we are starting to see that change,” said Jeffrey Harte, a principal with Sandler O’Neill + Partners LP.

At Citi, retail-banking loans rose 15% from a year ago to $133 billion, as the New York bank lent more to individuals and local businesses. At San Francisco-based Wells, commercial and industrial loans rose 11% from a year earlier to $167 billion at Dec. 31, amid what Chief Financial Officer Tim Sloan called broad-based growth.

All told, loans outstanding at the companies and J.P. Morgan rose by $41 billion from a year ago in the fourth quarter, to $2.14 trillion. That’s the first increase for the three giant lenders since 2008, when crisis-related acquisitions led to big expansions at J.P. Morgan and Wells Fargo. Bank of America Corp., the second-biggest U.S. lender after J.P. Morgan, is due to post its fourth-quarter numbers on Thursday.

The expansion is good news for the U.S. economy at a time when unemployment remains high and investors are fretting about the prospect of an economic downturn or market shock spurred by Europe’s debt crisis. Increased credit availability stands to help U.S. businesses that have been looking to finance new growth.

Demand is “everywhere,” J.P. Morgan Chase Chief Executive James Dimon said during a conference call last Friday. “Industrial, consumer, Asia, Latin America, trade finance, corporations, all types of corporations.”

The lending pickup is a bright spot in a mostly dour big-bank earnings season featuring declining revenue and mixed profits. Big U.S. financial firms are under pressure in the markets as weak economic growth, tighter regulation and a decline in trading and deal making crimp their earnings outlooks. Citigroup stock fell 8.2% on Tuesday following its weaker-than-expected fourth-quarter earnings report; Wells Fargo edged up 0.7%.

But strong lending growth, as long as the loans are of high quality, should boost earnings in coming years.

“From what we can see so far, there is actual demand for loans, as opposed to banks going down the credit spectrum and loosening their standards,” Sandler’s Mr. Harte said.

The lending gains are being driven in part by a retreat by European lenders tied to the region’s debt crisis. As banks on the continent sell assets to raise capital and reduce their dependence on scarce dollar funding, big U.S. lenders are stepping in. Mr. Dimon said on Friday that “a little bit” of the bank’s lending increase can be attributed to a pullback in lending by hobbled European competitors.

The banks’ numbers aren’t the only source of positive signs for the economy. Household borrowing on credit cards, car loans, student loans and other kinds of installment debt rose at a 9.9% seasonally adjusted annual rate in November, the Federal Reserve said this month, marking the fastest monthly increase since November 2001.

Now Reporting

Track the performances of 150 companies as they report and compare their results with analysts’ estimates. Sort by date and industry.

[earningspr2]

Recent borrowers include Tom and Tevie Dante Fraser, who closed in September on a new credit line for their Fulton County, Ga., classic-car business. They got the line and refinanced a mortgage on their showroom with Wells after the bank they had borrowed from previously was taken over by a competitor.

The new loan will let the couple make opportunistic buys at the car auctions “on the spot,” Ms. Fraser said, allowing the couple to expand their business.

At Citigroup, corporate loans surged 24% from a year ago to $219 billion. Another bright spot was trade finance—the management of money, credit and investments for large corporations; Citigroup was able to increase this type of lending by 50% in the period, as it picked up share from European banks that are paring back as a result of the region’s debt crisis.

“In the fourth quarter, we began to see some good demand for loans pretty much spread around the world,” Vikram Pandit, Citigroup’s CEO, said on a conference call with analysts and investors on Tuesday.

J.P. Morgan’s total loan book was up 4% during the fourth quarter, as lending to middle-market and corporate banking clients rose 12% and loans retained by the investment bank were up 28%. Executives said the latest-quarter gain would have been 9% if the firm hadn’t been allowing loans tied to its 2008 acquisition of Washington Mutual Inc. to run off, or mature without being replaced by new loans.

“I believe you are seeing real loan growth,” Mr. Dimon said.

At Wells Fargo, commercial and industrial loans rose 11% from a year ago, while commercial real-estate lending rose 6.6%. The figures were boosted by loan purchases, particularly from retrenching European lenders, which CEO John Stumpfsaid would continue. The bank recently purchased loan portfolios from Allied Irish Banks and Bank of Ireland, both of which are retrenching following government bailouts.

But the European shake-out is far from the only driver of loan growth.

Ronald Duffy closed last Friday on a $600,000 loan from Wells Fargo that he says he will use to a buy a laser-cutting machine for his company, Laser Cutting Services in Tualatin, Ore. He expects the new machine to allow him to take on more capacity at lower rates.

“The banks had been very tight-fisted, and they are still being extremely cautious,” Mr. Duffy said. “But they are lending to companies that they consider to be an acceptable risk.”

—David Benoit and Dan Fitzpatrick contributed to this article.

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Responses

  1. I didn’t suspect I’d ever be recommending any lectures coming out of Yale, Harvard, or Princeton. But there you are.

    I’m a fellow that likes to see pretty ordinary people doing a very good job. I’ve been listening to this fellow’s lectures. He’s not a rightist. He’s not particularly leftist. From my point of view I could find ways to convict him for being soft on crony town. But I’m only talking about how good this fellow is as a lecturer. These are good all around lectures that this fellow comes out with:

  2. A further example of deep argumentation from the stupid wop Joseph Cambria (scientist):

    “I’m now in the process of writing a peer researched paper on a new mental illness and sending to the New England Journal of Medicine. Don’t you people be shocked if my name comes up next year for the Nobel prize in Medicine.

    I’m calling the new illness, Federal Reserve Psychosis.”

    This is how this idiot actually thinks. Never through actual argument. Always and only through pseudo-argument.

  3. A lot of people were in a panic because they knew Ron Paul would win Iowa.

  4. But Graeme, what are we to do regarding the Final Solution as to the Banker Question? ENDING FRACTIONAL RESERVE FOR ALL TIME. BREAKING UP LARGE BANKS. MAKING DEBT FINANCING NOT PART OF LIMITED LIABILITY.

    • SAME ANSWER FOR WOP BANKERS, LIMEY’S, SPICS, ETC. THE ETHNICITY MAKES NO DIFFERENCE. THE FORMULA FOR DEALING WITH THEM IS THE SAME.

  5. You always flew, beautiful woman.

  6. Gronk, aka JC Motor-mouth, is really hurting, eh.

    But as my teachers said: You reap what you sow.

    No wonder his only daughter has fled to another country to get away from the abusive turd.

    Cambria: suck it up. Women despise violent sexist oafs like you.

    • YES AT THE MOMENT I SUFFER FROM TENNIS ELBOW.

  7. Look at this idiot Cambria:

    “Are you kidding, that it was just price controls. I really don;t want to through the history, but to ignore what the Arabs did is laughable.”

    No you are laughable you stupid wop. Shortages, back then were entirely due to price controls, and nothing else. The Arabs could reduce supply, therefore they could increase the price. They had no capacity to destroy price-rationing, and convert price-rationing to physical rationing. Just shows you how clueless this dumb wop is.

    We can get shortages in physical commodities today, simply because these markets have been damaged by negative inventories speculation. But shortages without price controls were more or less impossible in the 70’s.

    • too right, Mr Bird. Stupid wop is always blaming the Arabs for everything when we both know it’s the Jews.

  8. Kates thinks there is no way to get rid of recessions, but recessions are highly unnatural to a properly-run free market. They are a function of fractional reserve. Although its true that the closure of the straight of Hormuz could throw even a 100% backed economy into recession, the list of other events that could do so would be short.

    Scott Sumners idea of targeting nominal GDP is not entirely irrational. But its pretty irrational just the same. Since GDP is only a subset of spending. Targeting GDR would be better. But Scott would be targeting Nominal GDP with banker subsidies, and he would be calling these banker subsidies “monetary policy” so his whole scheme is flawed. There is only one reasonable way to target nominal gross domestic REVENUE and this is by way of the reserve asset ratio, and new cash injection via debt retirement.

    Kates has all his gear down correctly about always running surpluses. But he doesn’t have a good understanding of monetary-economics. The “free banking” (fraud banking) crowd are all idiots, compulsive liars, monetary cranks, and crony-lovers. The crony-lovers lying about their support of fraud banking. They are childish. They are despicable. They are evasive. Free banking is the height of monetary crankery. You simply cannot get more stupid than this.

  9. Silver finally back above where I bought it. After the MF Global debacle it had to take a long time to recover, because people needed to know under what circumstances their gear could be stolen off them. In the short run the banker thieving was a massive blow to the gold and silver price, on the other hand it ought to be the opposite in the longer term, as people will now be very wary of owning anything that can so easily be taken off them.

    The trustees have so far managed to pay back about 70% of what was stolen. But no-one is in jail, which suggests that the financial markets are appallingly regulated (too many regulations, the wrong regulations, little enforcement, and crony capture of regulation agents.) What you want is a few very good regulations and hair-trigger enforcement. Never let these creeps cross over a thin red line, or massive dysfunction, becomes normalised.

  10. Capital markets, and anything to do with the medium of exchange, needs to have pre-emptive and hair-trigger regulation, completely different then the regulation of merchants for example. With normal sales and servicing, the buyer beware, and regulation enforcement, kicking in some time after the fact is pretty acceptable. But with trading environments, dysfunction can go through many hands just on the one day. This is why the regulatory regime has to be on the basis of completely different principles.

    Also we see the stupidity of the free banking advocates. Its like these people are so dumb, they just arrived in town on the back of a turnip truck.

  11. every last one of them a Jew

  12. Right. Cambria … Jew. Rabbi Soon ….. Jew. Humphreys, well he’s a Jew. Terje? Jewish mother. Actually its hard to see that any of them are Jews. Plus none of them believe what they are saying. They are stupid yeah. But not that stupid.

  13. I’m very Anglo Celtic and very Catholic Graeme. Square that away with your Jewish theory. WHAT JEWISH THEORY YOU IDIOT? YOU HAVE SEVERE READING COMPREHENSION AND LOGIC PROBLEMS. CHRIST YOU ARE A MORON. YOU BRING ALL YOUR LACK OF ANALYSIS TO YOUR FREE BANKING PURE IDIOCY.

  14. This article makes the case that iPhones are being made in China not just because the wages are lower but because China has an ability to mobilise the latest technologies and infrastructure to satisfy Apple’s needs that cannot be met in the US.

    It also explicitly states that manufacturing is finished in the US. The NYT website also has some eye-opening graphics, including a comparison of the largest employers in 1960 and 2010 in the US. The second largest employer in 1960 was Bell Systems.Today it is Kelly Services, a temp work agency. That says it all.

    http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html

  15. Right. You allow your ability to make and build things fall away you are ruined. Ruined in all places except for neoclassical thinking.

  16. The process described puts the notion of “creative destruction” to rest, once again, as complete and utter BS.

  17. I think its really the concept of the post-industrial society that has to go to the fires. Creative destruction is really just a fancy name for competition.

  18. Central bankers getting a lot of laughs about impoverishing the world:

  19. I’ve spent a lot of time gatecrashing Catallaxy, and just commenting elsewhere on the net, to try and explain how it is that financial imbalances are destroying our future, the most visible symptom being the ongoing damage to our manufacturing.

    Now finally a small segment of this topic is being taken seriously in the media. The idea that our high dollar, is hurting manufacturing. But of course the commentariat, and the economic quakademics are pretty clueless as to the wider financial imbalances involved. So naturally they are utterly useless when it comes to proposing, short-run, medium-run, and long-run ways of handling the situation.

    • THEY ALL COME AROUND TO MY OPINION IN THE END. THEY JUST FORGET TO SEND ME APOLOGY NOTES AFTER THE FACT. LIKE YOU AREN’T ABOUT TO SAY SORRY FOR YOUR IDIOCY OF THINKING THAT COMETS WERE SNOWBALLS. WELL JUST EXTRAPOLATE THAT SORT OF THING ALL THE WAY DOWN THE LINE.

      • THERE IS A NO LYING POLICY ON THIS SITE. THIS IS WHY YOUR ULTRA-NEW POLICY OF PRETENDING THAT YOU DIDN’T THINK COMETS WERE SNOWBALLS, DOESN’T GET UP.

      • they are described as being akin to “dirty snowballs” because they are made predominately of dust and ice.
        HAHAHAHAHAHAHA YOU FUCKING NORON. SO THE COMET GOES INTO THE 2 MILLION DEGREE CORONA, COMES OUT THE OTHER SIDE, REAPPEARS, AND RECONSTITUTES ITSELF AS A COMET, AND YOU YOU BRAIN-DAMAGED IRRATIONAL CUNT, YOU THINK ITS A SNOWBALL, MADE OUT OF ICE. YOU SHOULD GET A LOT OF HOMELESS PEOPLE TO PISS AND VOMIT ON YOU, FOR BEING SUCH A DUMB CUNT.

      • Good Lord you are a stupid cunt. Its not possible to me more of an irrational, anti-reason, stupid cunt then what you already are. What a fucking idiot. So you are basically going to believe anything NASA tells you no matter how totally disproven? Yes you are. Because you are a fucking idiot. Great Ceasars ghost. This is just Keynesian multiplier all over again.

        Now the rest of you, fucking get used to it for Christ sakes. There is no limit, to the stupidity of what the public servants will claim, and they will defend their stupid claims. Just get used to it. Do not be a stupid cunt like THIS stupid cunt Birdflapz. Learn the habit of reason. Rely on it.

      • WHAT YOU DUMB CUNT. ONE OF THEM LIT UP 1000 000 TIMES ITS LUMINOSITY. ANOTHER, JUST LAST MONTH WENT INTO THE SUN AND CAME OUT AGAIN. AND YOU’VE NO EVIDENCE WHATSOEVER, AND NONE HAS EVER APPEARED, THAT COMETS ARE MADE OF ICE. YOU ARE SUCH A STUPID CUNT. GO OUT NOW. FIND SOME HOMELESS PEOPLE. GET THEM TO VOMIT ON YOU. FOR FUCKSAKES. CAN YOU DO NOTHING ABOUT THIS IDIOCY?

        YES INDEED. IT IS PROVEN THAT YOU WILL BELIEVE ANYTHING NASA TELLS YOU. NO MATTER HOW BASELESS, WRONG, PROVEN WRONG, AND IDIOTIC IT IS.

      • LOOK. GO OUT. FIND SOME HOMELESS PEOPLE. GET THEM TO VOMIT ON YOU. I GUARANTEE YOU YOU’VE NEVER SEEN EVIDENCE THAT COMETS ARE MADE OF ICE. YOU BELIEVE IT. BECAUSE YOU ARE A FUCKWIT. YOU WILL BELIEVE ANYTHING AT ALL THAT NASA TELLS YOU. YOU WILL DO THIS BECAUSE YOU ARE A MINDLESS INSECT. SO GO OUT ON THE STREET. PAY SOME OLD HOMELESS CUNT TO VOMIT ON YOU.

        YOU ARE NOT GOING TO FIND HUMAN REASON IN YOUR LIFETIME.

      • Or more accurately: YOU ARE NOT GOING TO FIND HUMAN REASON ON THIS BLOG IN YOUR LIFETIME.

  20. “The idea that our high dollar, is hurting manufacturing”

    What are you going to do, get rid of mining and increase inflation?

    EVEN SUGGESTING SUCH A THING IS A CONFESSION OF YOUR IGNORANCE. YOU ARE CLUELESS AS TO WHAT TO DO ABOUT THE PROBLEM.

    • It might be useful if you went away, and tried to figure out what alternatives are available to solve the problem.

    • So how would you make the dollar cheaper without restructuring industry SO THAT IS ALL THE OPTIONS YOU’VE GOT? YOU GOT TWO STUPID OPTIONS AND YOU ARE TAPPED OUT. FOR FUCKSAKES LEARN ECONOMICS. WHAT IS THE PROBLEM? HOW WOULD CAPITALISM DEAL WITH THAT PROBLEM. HOW DO YOU BRIDGE THAT GAP, BETWEEN CRONY-REALITY, AND THE PRESUMED RESPONSE OF THE MARKET, IF WE HAD A PROPER MARKET?

  21. Lauren Lyster. Hot. Smart. Doing the right thing:

    • Bird;

      You realize RT is a Kremlin new service, right?

      I SUSPECT SO. WHAT DECADE ARE YOU LIVING IN WOPPIE? YOU SEEM MORE LIKE A SORT OF MUMMIFIED JOE 90 THEN EVER.

      MY JESUS INTERPRETER, AND PERSONAL RIGHTEOUSNESS COACH IS CALLING FOR RON PAUL TO KEEP UP THE WHOOPASS:

  22. Before Reagan was completely claimed by Alzheimers, he pointed out to a visitor, that they had defeated the Soviet Union for their sakes as well as for the sake of Americans. In that meeting we see the Christian cultural heritage at its absolute best.

    So yeah it is kind of nice that the most constructive news service in the US is coming out of the former Evil Empires heart. One could not wish for anything better.

  23. Lee Rhiannon is also a very good writer. Who’d’ve known?!

    This squib is excellent and its people-oriented focus demonstrates exactly why the Greens are such a successful force in national and state politics.

    http://lee-rhiannon.greensmps.org.au/content/news-story/need-blog-name

  24. “Where ever I go so do my bird watching interests.”

    Lee Rhiannon loves birds, all sorts of Birds.

    http://lee-rhiannon.greensmps.org.au/content/news-story/birds-summer-coogee-laos

    • Oh well. Bill Oddie liked bird-watching too. And he was pretty smart. Each to their own. I’d be bored silly myself. I”d rather watch Lauren Lyster.

  25. “There was a magical-realist quality to Osama Bin Laden. He looked like the risen Christ, and was often thought dead and came always back to life.”

    I know a lot of women also thought he was very handsome.

    Excellent writing by Bob Ellis.

    http://www.ellistabletalk.com/2012/01/25/classic-ellis-the-bin-laden-assassination/#comments

  26. Aboriginal protesters to sell Julia Gillard’s lost shoe on ebay unless she comes to claim it. That is so funny. Great that some levity has been injected into the police/security screwup yesterday. The way those morons manhandled the lady is a national disgrace.

    • Ha ha yeah. Pretty funny. Our Prime Minister is probably a Cinderella of the heart. She may find the love of her life (who surely isn’t the hairdresser) if only she is willing to go back and try on that other shoe for size.

      • The hairdresser is a mummified spruiker for sheds. A total bore, even if he’s gay. She lost her shoe as a diversion.

        Julia and her Slavic Knight-in-Shining-Armour will be debriefing, as we speak, in a candle-lit, sandelwood and rose scented hot tub, with Telemann playing softly in the background, sipping on flutes of the finest gin and tonic and tickling each others nether parts.

      • Well I should hope so. Not enough real men in that girls life.

  27. Note the way the cowardly boofhead Abbott is shepherded along behind Gillard like a knackered poodle.

    The dropkick doesn’t lift a hand to help the PM exit the venue gracefully and with the dignity a woman, any woman, deserves in such a situation.

    The man soils everything, including himself. First he incites a riot. And then he flees the scene of his crime with his tail between his legs.

    What an effete tosser.

    • Ha ha ha. A very harsh interpretation. He stood to lose either way. Physically he could have done quite a bit of damage to one or two citizen-voters. Hard to know what was the right thing to do in the circumstance. I haven’t seen the footage.

  28. “Oh god

    http://www.ellistabletalk.com/2012/01/25/classic-ellis-the-bin-laden-assassination/#comments

    There was a magical-realist quality to Osama Bin Laden. He looked like the risen Christ, and was often thought dead and came always back to life.

    jtfsoon
    27 Jan 12 at 9:29 am”

    Bob has it wrong here. The magic was just a very tawdry display of smoke and mirrors, and there wasn’t a scintilla of realism to it. He was only ever Osama-bin Goldstein. Only ever Professor bin Moriati. A ridiculous fictional creation of the shadow government. Nothing about his story ever held water. He was a CIA man. A manufactured patsy. And obviously so.

  29. “He was only ever Osama-bin Goldstein. Only ever Professor bin Moriati”

    To some Westerners maybe, a minority cultural subset who saw him through that sectarian cultural prism.

    But to others he was something quite different.

    I repeat. Many women, young women, hailed Osama bin Laden as a hero, He became a poster boy for them and their families.

    I know this is true all over the world, but I know, especially, this occurred in Australia.

  30. Well they may have hailed him as a hero, but the reality is that he was a shadow government patsy.

  31. To recap on recent events.

    Tony Abbott has been shown to be a coward and an inciter of racial hatred.

    Julia Gillard has won much sympathy for her plight as a woman under siege and manhandled by panicking uniformed men. At the same time she has met a man who can be her match physically and romance is now in the air for her.

    All men now want to protect her and enclose her in their arms.

    The Aboriginal movement for self-determination has received a massive fillip.

    And we’ve all had a good laugh at Tony Abbott’s expense.

    Oh happy day.

  32. Right. Well. I don’t know about this all men wanting to sort of get with her. But I’ll take your word for it, that it could be a political win for her, in the comparative sense.

  33. Hahahahahahahahahahaha. Stupid fucking demented woppy Charlatan!!!!!

    “Excellent banking reform suggestion.

    http://www.themoneyillusion.com/?p=12671

    So says Joseph Cambria (scientist), now not pleading either that we just give him free money, or that he is for “free banking” and also spilling the beans on Mark Hills lying ignorance about “free banking” “history”.

    Its a good link and well worth reading. But Cambria, linking it with that comment, is more evidence of what a slimy slimy moron he is. Louis Hissink is talking about Cambrian Trogobites, or some such thing, evolving to dinosaurs. I don’t think anything Cambrian, could evolve past the dumb wop stage.

  34. Get it through your thick here, you primitive wop animal …. surely you are not even human …. Get it through your thick head, that the reserve asset ratio is A REGULATION. And so now you turn around and speak favourably of ANOTHER REGULATION ….. this you filth, after you’ve supported relentless finance industry subsidy, and after you have never fucking once allowed for the idea of a reserve asset ratio.

    What a low cunt you are Cambria. What a low low shitty little piece of afterbirth you are.

    “The many men, so beautiful!
    And they all dead did lie:
    And a thousand thousand slimy things
    Lived on; and so did I.”

    So we see with Cambria, and with all this other filth, like Humphreys, Soon, Everyone else that has fucking lied in every banking debate for seven long years, that they don’t have a problem with regulation. They only have a problem with the RESERVE ASSET RATIO.

    One of the few solid and meaningful regulations, in a pile-up of force and repressed violence, covering page after page that may well stack up to the Van Allen belts. Such is the incredible runaway regulation in all the many languages the world over. But these cunts don’t mind regulation. In fact they love regulation. But the only regulation the cannot stand under any circumstances ….. is the RESERVE ASSET RATIO.

  35. You see it becomes obvious that if you won’t have 100% backing, or even 50% backing, then you are going to have to regulate, or have a visibly failing investment market. So these guys found a pretty good substitute regulation. Doubling the liability on shareholders, for depositors funds.

    Well obviously that is one crap regulation. But necessary under the circumstances that fractional reserve was not outlawed. If you fail to enforce the excellent regulations, then it is very clear that you will need many more regulations of questionable social payoff.

  36. Wow.

    And ouch.

    He seems like a worthy and generally unobjectionable bloke, but TerjeP, the Oz blogosphere’s right liberatarian poster boy has been subject to prolonged and humiliating for him and his cause envisceration over on Larvatus Prodeo over the weekend. A fate meted out to the poor lad not even by lefties, but by liberals. LOL

    Awesome stuff.

  37. Yeah I see what you are saying. Or I can imagine it, because I haven’t reviewed Taya’s plight over at Prodeo. Taya is a rare fellow, in that he is basically a decent and intelligent fellow who wants to be a politician. So he compromises with idiocy on both sides of the political fence. He’s also a monetary crank, as it turns out. What I’m saying that even if you take out the excessive compromising, he’s not intellectually perfect. But he’s fundamentally a good guy. He’s the only free-banker I have any sort of sympathy with ((((( actually that is not quite true. On a social level I find Rabbi SOON to be a fellow of excellent company)))))), except for those libertarians that I would have to consider “the economics laity.” Free banking SOUNDS like the right idea to the libertarian economics-laity. But its a horrendous and mean-spirited lie.

    As we have seen from that fucking Woppy right there above.

  38. Here’s something that’s right up your paranoid alley Bird, chock full of conspiracy theories and pseudoscience.
    WHAT PART OF IT IS PSEUDO-SCIENCE? THAT HORUS STUFF IS AN HYPOTHESIS. IT LOOKS LIKE JIVE TO ME BUT ITS
    ONLY AN HYPOTHESIS. SO WHERE IS THE PSEUDO-SCIENCE. RELATIVITY IS TOO FULL OF SHIT TO EVEN BE PSEUDO-SCIENCE.
    BIG BANG “INFLATION” IS SO STUPID IT REPRESENTS A SCANDAL THAT OUGHT TO TRIGGER MASS-SACKINGS. BUT THE
    ONLY PSEUDO-SCIENCE I SAW IN YOUR CLIP WAS THAT THE FELLOW JUMPED FROM COSMOLOGY TO ECONOMICS, IN WHAT
    AT THIS EARLY STAGE LOOKS LIKE A DUBIOUS LEAP.

    YOU DON’T KNOW WHAT SCIENCE IS OR WHAT PSEUDO-SCIENCE IS. YOU ARE SUCH A STUPID CUNT THAT
    WITHOUT A SCINTILLA OF EVIDENCE YOU THINK THAT COMETS ARE SNOWBALLS, WHEN THIS IS PROVEN
    WRONG UTTERLY, HAS NO EVIDENCE FOR IT, AND IS IN ANY CASE AN UTTER IMPOSSIBLITY.

    GO OUT TO THE STREET AND SHAKE DOWN A WINO TO VOMIT ON YOUR PERSON.

  39. From Elsewhere:

    As your most fervent supporter and fan, you might have noticed, that if I disagree with you, in a transitory way, or otherwise, I’m not backward in mentioning this region of disagreement. I believe you are being too harsh with this crowd. We want someone to take up the task of reworking all things from the ground up its true. But this crowd never pretended to be doing that. They have a more limited agenda. Unlike the relativity voodoo, or the ultimate embarrassment of the big bang, these..
    GMBCATASTROPHE 1 second ago
    …. or the ultimate embarrassment of the big bang, these guys are working off pretty solid “working models” to do with the behaviour of electricity. When I say “working models” I mean that they may be not the ultimate truth but at least they have practical value, and are not some sort of feeble idiocy like “quantum tunnelling” or “wormholes” or some such other Rainman-childish autistic JIVE.
    You see I don’t think you ought to begrudge them that they aren’t the ones to take up the more…..
    GMBCATASTROPHE 1 second ago
    to take up the more arduous task of really getting into the nitty gritty of how the small stuff looks and works. I hope these are friendly amendments to my general concurrence of the core of your innovative views. But the thing is that if these little bitches gave you a hard time then turn-about is fair play. So make sure you get a good kick in the throat early on.
    You may be interested to note that there are two schools of electric universe. The one you have rumbled with, and then there..
    GMBCATASTROPHE 1 second ago
    and then there is the James McCanney model. I take the James McCanney model to be marginally more convincing then the Thunderbolts paradigm. But yet I see them as both valid paradigms, and within the limits of human reason, honestly practiced. This is not the Keynesian multiplier, the global warming fraud, the Arabs-alone 9/11 farce, the ultimate embarrassment of “inflation” or the childish autistic lie of “space-time”. I believe that these people are doing good, and honest science.
    GMBCATASTROPHE 1 second ago

    • NO YOU ARE LYING. BILL HAS NEVER SPOKEN ONCE OF MCCANNEY. A FEEBLE LIE ON YOUR LAME PART. BUT WHAT WE WOULD EXPECT FROM SOMEON WITH RELIGIOUS FAITH THAT COMETS ARE SNOWBALLS. GET THEM TO VOMIT ON YOU.

  40. Bill also thinks comets are “dirty snowballs”.

    NO HE DOESN’T. YOU ARE A LIAR. PLUS BILL HAS NEVER MENTIONED JAMES MCCANNEY ONCE, AND NO EVIDENCE EXISTS THAT HE EVEN SO MUCH AS HAS HEARD OF HIM.

    • NO HE DOESN’T

      You weak liar, he said it in the comments of his video YEAH YOU ARE RIGHT. HE DID SAY THIS, I WENT AND CHECKED. THE IMPLICATION WAS THAT HE DID NOT KNOW ABOUT THE SUBJECT, AND WAS MERELY GOING ALONG WITH WHAT HE HAS BEEN TOLD. SO WE CAN SEE WHY HE ISN’T SEEING THE VALUE IN THE MORE LIMITED AGENDA OF THE ELECTRIC UNIVERSE PEOPLE. SO HERE, AT LAST, YOU WERE RIGHT, AND I WAS WRONG.

      BUT IT DOESN’T MATTER. YOU ARE NOT MAKING A SCIENTIFIC ARGUMENT. MERELY POINTING OUT THE LIMITS OF BILLS GENERAL KNOWLEDGE OF MATTERS. ALL OF US COME INTO THE SCENE KNOWING THAT THE LAMESTREAM IS UTTERLY USELESS IN OUR AREA OF UNDERSTANDING. BUT WE DON’T KNOW AT FIRST HOW FUCKING USELESS THEY ARE BROAD SPECTRUM.

      • BirdFlapz was right and I was wrong about something. Thats a “twofer” right there. So I thought I’d better alert the media.

  41. You display every fucking aspect of a shithead. What Bill thinks is just irrelevant. There is no snow, no ball, so no snowball. The nucleus of a comet is always scorched rock. Always. Never ice. The comet tail has all sorts of gear in tow. Never ice, where the comet is noticeable from earth. But the nucleus is scorched rock.

  42. See every argument you make …. none of them are ever scientific arguments. You make every kind of argument that can be made, other than valid ones. Always the pseudo-argument, never once a proper argument. Name one time when you, you dumb cunt, have a made a proper, reasoned argument. You’ve never done it. So go out into the street, find a homeless person, bribe him to vomit on you.

    • NO EITHER YOU ARE A CUNT, AND A DUMB-CUNT, OR YOU AREN’T. AND SINCE YOU ARE A CUNT, YOU ALWAYS ONLY DEAL WITH PSEUDO-ARGUMENTS. LIKE THAT FUCKING FARCE OVER AT BILL GAEDE’S PLACE? WHAT DO YOU THINK THAT PROVES YOU FUCKING USELESS CUNT? WHAT DOES IT PROVE? IT PROVES THAT BILL HASN’T INVESTIGATED THE COMETS SCANDAL AND WHY WOULD HE HAVE?

      YOU ARE JUST A FUCKING MORON MATE. I NEVER KNEW HOW MANICHEAN THE WORLD WOULD GET. WHAT WITH TOTAL FUCKING MORONS LIKE YOU ON ONE SIDE, AND ON THE OTHER SIDE, REASONABLE PEOPLE GETTING A FEW THINGS RIGHT IN A FEW AREAS, AND GETTING SUCKERED IN AREAS THEY WERE UNFAMILIAR WITH.

      • What scientific thesis do you think you are making an argument for?

        When will we have an ACTUAL argument from you, as opposed to all these pseudo-arguments.

      • As soon as you stop being a cowardly comment censoring pussy, ok?

  43. From elsewhere:

    This is FANTASTIC NEWS. Ralph Nader is a genuine old-time lefty, who really does mean well, and he HATES crony-capitalism with a vengeance. He’s amenable to constitutionalism. Not a strict constitutionalist himself, but highly amenable to this. He once asked Justice Scalia if the constitutional freedoms are valid for corporations. Scalia said he hadn’t really thought about it. The constitution says “We the people” not “We the corporations”. Ralph Nader is our ideal bipartisan ally.
    GMBCATASTROPHE 1 second ago

  44. “See every argument you make …. none of them are ever scientific arguments. You make every kind of argument that can be made, other than valid ones. Always the pseudo-argument, never once a proper argument. Name one time when you, you dumb cunt, have a made a proper, reasoned argument. You’ve never done it. So go out into the street, find a homeless person, bribe him to vomit on you.’

    Graeme, the JC wingnut has written often that he vomits into himself (an amazing admission to make, but then the dude is an uber-lug) and therefore there is no need for someone else to vomit on to him. ‘Twould be redundant. The guy revolts even himself, unconsciously of course, since he is such a primitive throwback lacking in self-awareness.

    JC really must stink to high heaven given his constant vomiting into himself, No wonder he is a woman-free zone .And so angry.

    Yuk.

  45. Great posts by the wise owl, Mr Denmore.

    http://thefailedestate.blogspot.com/


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