imageSounding ever more like an UrbanSurvival reader, Donald Trump is telling USA Today that Janet Yellen and the Fed should have already raised rates.

But, the Donald thinks they are being held low for political reasons and might not be raised until the next president is in line.

Although such sound thinking is not about to be listened to, and the market is likely already off on another bullish run (with the asterisk of a pullback likely around Thanksgiving), the thinking is sound, nevertheless.

What happens in wildly deflationary times is that the government prints oodles and gobs of money in order to maintain the delusion that inflation is still out there.  As long as working people can be hoaxed into that, they will keep up their free-spending ways.

On the business side, though, there is little incentive to build new plant and equipment – after all, it’s Cheaper in China, so who needs American workers.

So the cash piles up.  Not just for the bankster scree, but also for the 1% because they have few alternatives other than putting money in bonds.

What ends up happening is low rates beget lower rates and the first thing you know, deflation is a worldwide phenom with the Megalomaniacal Central Bank –a/k/a the ECB – is forced to hold rates at record lows as well.


Monetary policy decisions

22 October 2015

At today’s meeting, which was held in Malta, the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.05%, 0.30% and -0.20% respectively.

The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.

Damn/…that’s during my nap time…  Next week the Fed here will either QE or hold.  Dow 25,000 in 2016 has been in our work for a long time.  Might ask the doomers where that market collapse is… Futures up another hundred.

Point is that we are still in deflation and it is being covered up by huge money-printing world-wide and that’s just how things are going…sliding sideways until the general deflationary facts become undeniable…and the stock market will explode as it did leading into 1929 and it will be bubble time, once again.

So there you have it:  In a nutshell:  The set-up for the Fed to either do nothing or simply make up some additional money with another quantitative easing which will puff up everything and hide the sausage a while longer.

Once rates begin to go up, stagnant money in bonds, especially the shorter term sort, will have to go out and find “honest work to do.”  For now, though, the bondies are just caching dough while the Fed’s in the rich folks’ pocket.  As is, as was, and ever shall be, amen.

Hack and Slash Department

Remember a while back we warned you to be looking for the bad news to come filtering out of Deutsche Bank once they fired resigned their co CEO’s?  Thing like that only happen when things are very, very bad.

Fast forward to this morning and the second wave of this train is arriving as DB is slicing and hacking bonus pools by nearly a third.

Let me see, here:  Early June to now: five months.  So four or five more months and they should be ask in the headlines again…

She’s a What?

“Hillary Clinton, Ever a Voracious Student, Prepares for Benghazi Hearing” says the NY Times.

Meantime, Veep Joe has tossed in the towel, realizing that Hillary would be too formidable…provided she doesn’t get to court  on the email debacle and survives the House grilling on Benghazi.

I know Hillary likes money and power (what else is there?) as evidenced by all those stupid emails requesting me to send her a dollar. ICFBI… I somehow never got to it, though.  But money must matter greatly…

So I will step out on a limb here and suggest today might be a good time to sell a personal endorsement for a consumer product.  Like, oh, deodorant, for example.

“No sweat…Tougher than the GOP…”  I can see it now.

Paul Ryan is NOT Really a Republican

The Obama wing of the Republican Party seems to have secured yet another sell-out Speaker.

This as we notice that headline pointing out 93% of republican voters oppose Ryan’s open door/ “What border?” policies….All of which sound remarkably like the Obama types are pulling his strings.  Und?

If this doesn’t make it obvious the Obama wing of the GOP has sold out to corporate interests, how about the large number of democrats who are endorsing him?

That should speak VOLUMES if you pay attention.

Republicans – by the old school definition – were strong on defense, small central government, liberal on civil rights, and believed in balanced budgets and having a border or two.

So which one of those – if any – does Ryan lead on?

No, sir.  More like none of the above, as I read it.

Keeping the People Down

Speaking of politics and suppression of freedom, how about the new poll that says 58% of Americans want marijuana decriminalized?

Let me explain how Reality works.  What are pimped around as “leaders” in Washington are nothing more than lap-puppies of the corporations which run their strings through the K-Street Mafia which deals out cash, contributions, junkets (though not so publicly), and favors.  But if you need a Gulfstream back to the home district…

So what happens is Corporations set up The Booze Lobby and crush the legalization movement and at the same time, insurance types get onboard because there’s a way for them to get out of claims and raise rates…Go read the thresholds in Washington, as an example.

Bottom line is:  Ryan and all the Fools on the Hill are ignoring the will of the people.

As always was, and will ever be… gimme an Amen again, brothers and sisters.

Mexican Invasion Picks Up

More than 10,000 in September.  Story here adds up to about 10,000 and then how many that we didn’t know about?

U.S. Loses War with Mexico 150-years later.  Historians would have never believed it until we put so much fluoride in the water that no one seems to be able to tell, anymore.

Putin’s Roll

Might want to read “Putin Gains Record Support Among Russians Over Syria, Poll Shows.”  We used to have presidents like that…Here lately?  Not so much.


Trumponomics — 8 Comments

  1. This is a belated comment from the 8th, where you advised of the new format. Been out of touch for a bit and just came back today – Like It ! Easier to scan through the one’s I’d missed to prioritize which ones get read first. Can’t promise to catch up on all of them, but it’s easier to review. Also, when you started getting all that lumber, sorry I couldn’t have gotten here sooner to tell you that you might want to look at compressors while you were there. LOL !

  2. Republican vs democrat and left vs right are just weapons of mass distraction to provide the illusion to keep voters in the game. If you are still using these terms, then they own you.

    Marx was wrong, it’s not economic class ware fare, it always ends up government vs people. For you Americans, going against a government that has the world printing press and a 30 year lead on getting their ducks in place before the populace figures out what is really happening is going to be quite interesting, better than any tv show or movie we have ever seen.

    There are two new scenarios appearing in tv media in the last two years. It’s people saying it’s my fault when it’s not, and then competing with others to take the blame, and the scenario of someone saying “I promise” in situations where they end up being just plain old liars because they promised something they did not have the power to deliver.

    The corollary to this is failing to do something that ends up causing horrible results and then acting like it was not their fault because they didn’t personally do it. This all started with the Sara Connors Terminator Chronicles, where they left a trail of dead bodies behind because of their decisions and failure to act, but to the very end of the series kept saying, “we are good people because we don’t kill anyone. It like we had this killer in custody but didn’t shoot him as he escaped, but now he has killed seven more people. But it’s not our fault, we are still good people because we didn’t kill anyone.

    This is a cancer that goes to the very heart of the nation, because civilization ends when bad things do not happen to bad people. The corollary to this is bad things happening to good people and they blame themselves, like the abused woman who thought if she could just do the laundry the right way her husband would stop beating her. This is like believing that if you vote for the right candidate, things will improve.

    That how it looks from Ecuador.

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  4. “Republicans – by the old school definition – were strong on defense, small central government, liberal on civil rights, and believed in balanced budgets and having a border or two”. You forgot ‘family values’, LOL. Yes, George, that’s the propaganda line always articulated when talking politics, but in reality…when was this mythical time and who were these mythical people? We’ll just skip GW right off, go back to GHWB, de-reged financials(s&l fiasco),tested the waters for invading sovereign nations unilateraly, still open border…no, don’t think so. Ronnie? Hmmm…amnesty,open border,constitutional violations,first trillion dollar budget,massive deficit.. nope. Jerry? He wasn’t there long enough to tell, (Nixxon pardon). Tricky(I’m not a crook)?…civil rights, treason, corruption, deficit?…nope. Ike? Possibly…my political memory doesn’t go back further than his last year or two…but McCarthy(what party was he in?)and his political witch hunt occurred on his watch…but then he did try to warn us about the MIC. Who was Senator Nelson Aldrich and what happened at Jekyll Island? Seems to me that the GOP were just better at putting up a front claiming to be such and such…while taking care of the ‘better class'(and their money). K street and Madison Ave. at it’s finest. Like my dad used to say: “Republicans never did a damn thing for the working man”. I think that still holds today.

    • Neither party did a damn thing for the working man, or the small entrepreneur. Both parties force millions of bureaucrats on us, enforcing billions of rules that run counter to common sense.

      If all of the law can’t be written on 10 pages of paper or less, it can’t be understood and won’t be obeyed.

    • Zman. You should read Tricky’s memoirs, it is easy to see he brought about his own demise (and he is fortunate he was not assassinated) when he made a fatal comment about the number of Israelites in the White House, as with Saddam he brought about his own demise when he asked the US for ‘Gold’ Iraq oil as with French President Degaulle when he sent over a ship load of US Dollars to exchange for gold. There is an underlying link to a few of these events in history and a problem the US can not get free from, and it is doomed because of it. You make partial reference to it in your mention of “The Creatures From Jekyll Island”.I will leave you to ponder the problem and how to solve it but I suspect you all ready know.

    • 140 years of both parties in near equal control of the government. The superficial differences are slain by the unavoidable fact that economic bankruptcy, degradation of moral character and loss of liberty continues at an exponential rate. While the enslavement of the masses to government control by decree of direct or indirect handouts of both individual rights of movement and the community larder increase.

      The “People” have lost. We are yet too fat and entertained to realize it.

  5. I’m surprised you didn’t have either a reference to O’Reillys op-ed on Anarchy in America or brought out the back handed insult Malia Cohen of the San Francisco Board of Supervisors gave to Kate Steinle’s family and their supporters indicating Kate’s death mean nothing in the face of the greater goal of changing the face of America. California can NOT fall off in the ocean soon enough!