Baseball91's Weblog

January 6, 2010

A Weak Currency Is Inflationary

Filed under: currency,euro — baseball91 @ 1:40 AM
Tags: , ,

Looking at the reasons why. Figuring at only who was winning, and not the reasons why. When business was too much a game. Figuring out too much what would happen next. Until Wall Street got it all wrong. Or Washington.

How could these indexes reflect a confidence about the present? Living and breathing in a bubble. Was Wall Street all living in denial?

The Federal Reserve and the Treasury (in league with top Wall Street firms) in the past nine months has been mostly due to to secret government buying of stock-index futures on a daily basis, rigging the massive stock-market rally, Charles Biderman, chief executive of TrimTabs Investment Research, said Tuesday. TrimTabs tracks liquidity flows in the market, and the source of approximately $600 billion net new cash could not be identified from traditional player, by TrimTabs which had lifted the market capitalization overall by $6 trillion in 2009. In a statement Tuesday, Biderman said the money did not come from retail investors, foreign investors, hedge funds or pension funds. “We cannot identify the source of the new money that pushed stock prices up so far so fast.” Charles Biderman did admit he held no evidence of market manipulation. And such manipulation by the Federal Reserve and the Treasury Department is clearly illegal.

Or with “the confluence of technology and artificial market influences,” was the G20 or China rigging the market? Where a currency holds a nation together, “the economy and perhaps society at large assumes more not less risk, as a function of the path of our attempted fix,” wrote Todd Harrison.

From Paul B. Farrell in Marketwatch, today.

We recently lived through two and we are close to a third episode of excessive financial optimism. Only this one will spread irrational pessimism and distrust.
–Robert Shiller

“The current crisis marks the end of an era of credit expansion based on the dollar as the international reserve currency. We are now in a period of wealth destruction. The system is broken.”
— George Soros

“The average life span of the world’s greatest civilizations has been 200 years … and once a society becomes successful it becomes arrogant, righteous, overconfident, corrupt, and decadent … overspends … with costly wars. Wealth inequity and social tensions increase. And society enters a secular decline.”
–Marc Faber

“A proposal to give banking regulators authority to block accounting standards is a terrible idea.”
–Paul Volcker

How many voters have yet to figure out the cancer which was slowly metastasizing. That a weak currency was a silent killer — stealing your life away, silently. When a weak currency was the national policy, in the decade old monetary wars. The one with the yuan, the euro and the yen.


1 Comment »

  1. Comment by baseball91 — April 10, 2012 @ 4:57 AM | Reply

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