Gold collapsing. Bitcoin UP.

[thezerg]

So we have 4T outstanding backed by 1.7T in land and buildings.  You want to know how much a dollar is really worth?  You do the math.

I think that those two graphs, velocity and monetary base tell a compelling story when put together.  And the moral of the story is that QE is ineffective; the real economy does not need any more dollars.

Edit: Could one of the main points of QE been to back the USD with something?

[cypherdoc]

pretty soon you'll be paying them for the privilege of keeping your money at their bank:

[cypherdoc]

by manipulating this rate, they've been highly effective in slaughtering bond shorts.  if only you were a privileged insider to this strategy for the last 30 yrs, you could've made a fortune in short squeezes.  but like i said above, "you ain't good enuf".  or perhaps, "you ain't inside enuf".

[cypherdoc]

So we have 4T outstanding backed by 1.7T in land and buildings.  You want to know how much a dollar is really worth?  You do the math.

I think that those two graphs, velocity and monetary base tell a compelling story when put together.  And the moral of the story is that QE is ineffective; the real economy does not need any more dollars.

Edit: Could one of the main points of QE been to back the USD with something?

the main pt of QE was to keep up bank profits and the bonuses handed out to the banksters.

[rocks]

So we have 4T outstanding backed by 1.7T in land and buildings.  You want to know how much a dollar is really worth?  You do the math.

I think that those two graphs, velocity and monetary base tell a compelling story when put together.  And the moral of the story is that QE is ineffective; the real economy does not need any more dollars.

Edit: Could one of the main points of QE been to back the USD with something?

the main pt of QE was to keep up bank profits and the bonuses handed out to the banksters.

That was one reason, the other was to backstop the massive amount of debt and unfunded liabilities in the system. The real economy may not be able to consume or utilize more money/debt, but without massive printing the current money stock could not support the massive unsustainable debt load accrued and the system would have crashed.

The reality is used money (M3) in the system became complete detached from base money (M0). The FED had to create new base money out of thin air to catch up to the amount of used money already in the system.

The amount of used money M3 is not changing, but the FED needs to increase the amount of base money to match promises already made.

[smoothie]

So we have 4T outstanding backed by 1.7T in land and buildings.  You want to know how much a dollar is really worth?  You do the math.

I think that those two graphs, velocity and monetary base tell a compelling story when put together.  And the moral of the story is that QE is ineffective; the real economy does not need any more dollars.

Edit: Could one of the main points of QE been to back the USD with something?

the main pt of QE was to keep up bank profits and the bonuses handed out to the banksters.

And to keep the Banking system from completely collapsing in on itself and having a world of angry customers with pitchforks after them.

[zeetubes]

So we have 4T outstanding backed by 1.7T in land and buildings.  You want to know how much a dollar is really worth?  You do the math.

I think that those two graphs, velocity and monetary base tell a compelling story when put together.  And the moral of the story is that QE is ineffective; the real economy does not need any more dollars.

Edit: Could one of the main points of QE been to back the USD with something?

the main pt of QE was to keep up bank profits and the bonuses handed out to the banksters.

And to keep the Banking system from completely collapsing in on itself and having a world of angry customers with pitchforks after them.

By not forcing the banks to go into bankruptcy, as should have happened, it also kept the banks' records out of reach of the public and pre-empted any civil suits, which, thank god, kept the CEOs out of jail.

[smoothie]

So we have 4T outstanding backed by 1.7T in land and buildings.  You want to know how much a dollar is really worth?  You do the math.

I think that those two graphs, velocity and monetary base tell a compelling story when put together.  And the moral of the story is that QE is ineffective; the real economy does not need any more dollars.

Edit: Could one of the main points of QE been to back the USD with something?

the main pt of QE was to keep up bank profits and the bonuses handed out to the banksters.

And to keep the Banking system from completely collapsing in on itself and having a world of angry customers with pitchforks after them.

By not forcing the banks to go into bankruptcy, as should have happened, it also kept the banks' records out of reach of the public and pre-empted any civil suits, which, thank god, kept the CEOs out of jail.

Yup they did not let the failed institutions crumble as every business SHOULD live or die based on its own merits....not get bail outs.

[tabnloz]

So we have 4T outstanding backed by 1.7T in land and buildings.  You want to know how much a dollar is really worth?  You do the math.

I think that those two graphs, velocity and monetary base tell a compelling story when put together.  And the moral of the story is that QE is ineffective; the real economy does not need any more dollars.

Edit: Could one of the main points of QE been to back the USD with something?

the main pt of QE was to keep up bank profits and the bonuses handed out to the banksters.

And to keep the Banking system from completely collapsing in on itself and having a world of angry customers with pitchforks after them.

Yup they did not let the failed institutions crumble as every business SHOULD live or die based on its own merits....not get bail outs.


[By not forcing the banks to go into bankruptcy, as should have happened, it also kept the banks' records out of reach of the public and pre-empted any civil suits, which, thank god, kept the CEOs out of jail.

Yes, QE has kept the undead banks functioning. It hopes to reflate the bubbles and get these banks back into some kind of solvency. Hasn't happened, won't happen, can't happen. It has kept the money and assets in the pockets of those who caused the whole mess too. And what's worse, they have used one tiny section of what is known as 'the holder memo' to avoid putting anyone in jail. So despite continuing criminality, fraud and deception, that increases systemic risk, no one goes to the big house.

It's actually an incentive to steal. Imagine implicitly knowing you can steal as much as you want and the worst that will happen is that you will have to give some of it back, because, you know, it might adversely effect the stability of the system if you go to jail.

[sidhujag]

If the public qe went to fund the criminals where did the hidden qe go? The criminals wives ofcourse! Google the real wives of wallstreet.

[Rakitich]

People is so prone to FUD 

[rocks]

So we have 4T outstanding backed by 1.7T in land and buildings.  You want to know how much a dollar is really worth?  You do the math.

I think that those two graphs, velocity and monetary base tell a compelling story when put together.  And the moral of the story is that QE is ineffective; the real economy does not need any more dollars.

Edit: Could one of the main points of QE been to back the USD with something?

the main pt of QE was to keep up bank profits and the bonuses handed out to the banksters.

And to keep the Banking system from completely collapsing in on itself and having a world of angry customers with pitchforks after them.

Yup they did not let the failed institutions crumble as every business SHOULD live or die based on its own merits....not get bail outs.


[By not forcing the banks to go into bankruptcy, as should have happened, it also kept the banks' records out of reach of the public and pre-empted any civil suits, which, thank god, kept the CEOs out of jail.

Yes, QE has kept the undead banks functioning. It hopes to reflate the bubbles and get these banks back into some kind of solvency. Hasn't happened, won't happen, can't happen. It has kept the money and assets in the pockets of those who caused the whole mess too. And what's worse, they have used one tiny section of what is known as 'the holder memo' to avoid putting anyone in jail. So despite continuing criminality, fraud and deception, that increases systemic risk, no one goes to the big house.

It's actually an incentive to steal. Imagine implicitly knowing you can steal as much as you want and the worst that will happen is that you will have to give some of it back, because, you know, it might adversely effect the stability of the system if you go to jail.

And just think, if bitcoin succeeds this entire class of criminals goes away simply because the pot of money is no longer there. In a bitcoin system these bankers would actually have to live with their mistakes, that would be a shock to them.

[cypherdoc]

https://twitter.com/cypherdoc2/status/491989188552982529

[molecular]

perhaps gold breaking below 1300 again could spark/catalyze the next Bitcoin rally?  the bull flag is ripe for a breakout...

[cypherdoc]

Why Scale Is Overrated in Banking, in Two Charts

http://www.americanbanker.com/bankthink/why-scale-is-overrated-in-banking-in-two-charts-1068916-1.html#comments

[cypherdoc]

but this is how open source software evolves, isn't it?

The world's most secure OS may have a serious problem

http://www.theverge.com/2014/7/22/5927917/the-worlds-most-secure-os-may-have-a-serious-problem

[cypherdoc]

Why Scale Is Overrated in Banking, in Two Charts

http://www.americanbanker.com/bankthink/why-scale-is-overrated-in-banking-in-two-charts-1068916-1.html#comments

https://twitter.com/MarcHochstein/status/491991777298358272

[cypherdoc]

"The blockchain may only ever be applicable to Bitcoin as Money."- cypherdoc

The new Ethereum release and funding is going to be a good test of my theory.  From just over 50% confidence, I've moved it to just over 60% after the NYDFS regs.  I say this b/c of the onerous identification mechanisms the regs have introduced.  Because Vitalik and company are well known and trackable, I think they could become targets very soon by the SEC or some such regulatory agency for selling securities unregulated.  With any regulatory attack will also come a freezing of their ether and USD funding.  Mind you, I don't wish this on them at all; it's just a fact.  As I've been saying, Satoshi by luck, design and timing, created a set of conditions that may never be reproducible.  His anonymity being one of the most critical along with his privacy in boot strapping Bitcoin via mining in the early stages.  I also don't see where Ethereum's mining power is going to come from.  There aren't going to be many miners willing to secure stocks, bonds, smart contracts, or whatever, I think.

We'll see.

[hdbuck]

"The blockchain may only ever be applicable to Bitcoin as Money."-cypherdoc

The new Ethereum release and funding is going to be a good test of my theory.  From just over 50% confidence, I've moved it to just over 60% after the NYDFS regs.  I say this b/c of the onerous identification mechanisms the regs have introduced.  Because Vitalik and company are well known and trackable, I think they could become targets very soon by the SEC or some such regulatory agency for selling securities unregulated.  With any regulatory attack will also come a freezing of their ether and USD funding.  Mind you, I don't wish this on them at all; it's just a fact.  As I've been saying, Satoshi by luck, design and timing, created a set of conditions that may never be reproducible.  His anonymity being one of the most critical along with his privacy in boot strapping Bitcoin via mining in the early stages.  I also don't see where Ethereum's mining power is going to come from.  There aren't going to be many miners willing to secure stocks, bonds, smart contracts, or whatever, I think.

We'll see.

i doubt etherum will even grow enough to tickle the regulation tyrants.



not so optimistic eh ^^

[cypherdoc]

"The blockchain may only ever be applicable to Bitcoin as Money."-cypherdoc

The new Ethereum release and funding is going to be a good test of my theory.  From just over 50% confidence, I've moved it to just over 60% after the NYDFS regs.  I say this b/c of the onerous identification mechanisms the regs have introduced.  Because Vitalik and company are well known and trackable, I think they could become targets very soon by the SEC or some such regulatory agency for selling securities unregulated.  With any regulatory attack will also come a freezing of their ether and USD funding.  Mind you, I don't wish this on them at all; it's just a fact.  As I've been saying, Satoshi by luck, design and timing, created a set of conditions that may never be reproducible.  His anonymity being one of the most critical along with his privacy in boot strapping Bitcoin via mining in the early stages.  I also don't see where Ethereum's mining power is going to come from.  There aren't going to be many miners willing to secure stocks, bonds, smart contracts, or whatever, I think.

We'll see.

i doubt etherum will even grow enough to tickle the regulation tyrants.



not so optimistic eh ^^

honestly, i don't think they're going to wait around to see.