Comments on: Another Day, Another Trillion Dollars http://dailyreckoning.com/another-day-another-trillion-dollars/ Economic News, Markets Commentary, Gold, Oil and Investing Strategies. Fri, 25 May 2012 20:12:01 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Jeff http://dailyreckoning.com/another-day-another-trillion-dollars/#comment-3350 Jeff Wed, 25 Mar 2009 17:17:32 +0000 http://dailyreckoning.com/?p=13494#comment-3350 Nice article. When you say "Bill of Retainer", I think you meant "Bill of Attainder", which like an ex post facto law (the 90% retroactive tax could be considered as such) is forbidden by the U.S. Constitution. From Wikipedia: A bill of attainder (also known as an act or writ of attainder) is an act of the legislature declaring a person or group of persons guilty of some crime and punishing them without benefit of a trial. Bills of attainder are forbidden by Article I, section 9, clause 3 of the United States Constitution. Nice article. When you say “Bill of Retainer”, I think you meant “Bill of Attainder”, which like an ex post facto law (the 90% retroactive tax could be considered as such) is forbidden by the U.S. Constitution.

From Wikipedia: A bill of attainder (also known as an act or writ of attainder) is an act of the legislature declaring a person or group of persons guilty of some crime and punishing them without benefit of a trial. Bills of attainder are forbidden by Article I, section 9, clause 3 of the United States Constitution.

]]> By: axbucxdu http://dailyreckoning.com/another-day-another-trillion-dollars/#comment-3346 axbucxdu Wed, 25 Mar 2009 17:08:42 +0000 http://dailyreckoning.com/?p=13494#comment-3346 Herr Bonner wrote: "They are caught between Scylla…and Charybdis…on the one hand the rock of deflation…on the other, the Chinese. What can they do? Our guess it that they are aiming to muddle through…with just a little bit of QUALITATIVE decline in the dollar – not enough to cause the Chinese to panic – but enough to get U.S. consumers, investors and businessmen to loosen up. Good luck to them." It would be interesting to compare the actual mechanics of the quantitative easing the Fed's conducting today versus the money supply expansion they embarked on in the 1970s. In particular, how does the Bernanke Reserve's information command/control system of today compare to the information capabilities available to Volcker, et al. in the late 60s and 70s? In terms of growing the money supply there's probably little difference between the transactions executed today versus the open market methods used by the Fed during the Johnson/Nixon/Ford/Carter era. However, to drain the system back in those days, the Volcker Fed's brute force market operations resulted in the deep recession of the early 80s. On the other hand, do Bernanke & Co. have the technical information capabilities, a "secret weapon" if you will, that will allow him to snuff out all these excess reserves once the inflation fire begins burning? If a trillion dollars can be placed on the Fed's balance sheet in a day, surely it can be removed just as swiftly...of course, I don't recommend you try this at home... P.S. Mr Bonner: I think the term is bills of attainder...In any event, TAG just showed the Supremes don't care what the Constitution says... Herr Bonner wrote:

“They are caught between Scylla…and Charybdis…on the one hand the rock of deflation…on the other, the Chinese. What can they do?

Our guess it that they are aiming to muddle through…with just a little bit of QUALITATIVE decline in the dollar – not enough to cause the Chinese to panic – but enough to get U.S. consumers, investors and businessmen to loosen up.

Good luck to them.”

It would be interesting to compare the actual mechanics of the quantitative easing the Fed’s conducting today versus
the money supply expansion they embarked on in the 1970s. In particular, how does the Bernanke Reserve’s information command/control system of today compare to the information capabilities available to Volcker, et al. in the late 60s and 70s?

In terms of growing the money supply there’s probably little difference between the transactions executed today versus the open market methods used by the Fed during the Johnson/Nixon/Ford/Carter era.

However, to drain the system back in those days, the Volcker Fed’s brute force market operations resulted in the deep recession of the early 80s. On the other hand, do Bernanke & Co. have the technical information capabilities, a “secret weapon” if you will, that will allow him to snuff out all these excess reserves once the inflation fire begins burning? If a trillion dollars can be placed on the Fed’s balance sheet in a day, surely it can be removed just as swiftly…of course, I don’t recommend you try this at home…

P.S. Mr Bonner: I think the term is bills of attainder…In any event, TAG just showed the Supremes don’t care what the Constitution says…

]]> By: StingingNettle http://dailyreckoning.com/another-day-another-trillion-dollars/#comment-3343 StingingNettle Wed, 25 Mar 2009 16:41:22 +0000 http://dailyreckoning.com/?p=13494#comment-3343 I'd like to see Bill review the movie "The Obama Deception" Come on Bill go for it. :) I’d like to see Bill review the movie “The Obama Deception”

Come on Bill go for it. :)

]]> By: Steve Klemmer http://dailyreckoning.com/another-day-another-trillion-dollars/#comment-3330 Steve Klemmer Wed, 25 Mar 2009 12:18:59 +0000 http://dailyreckoning.com/?p=13494#comment-3330 "The problem was not that they didn’t have the money to lend, it was that they didn’t have a creditworthy borrower to lend to." Last week I received a phone call from my 18 year old daughter. She told me she had just purchased a $9,000 used car, financing $6,000 of the purchase. I was shocked that she got a loan so easily, because she has no credit history. However she is in the Coast Guard so apparently the financing agency believes she has a secure job and will be able to repay. I called my representatives in Washington to explain this situation, hoping they would perhaps take another look at the bailouts but they acted as if I were speaking another language. “The problem was not that they didn’t have the money to lend, it was that they didn’t have a creditworthy borrower to lend to.”

Last week I received a phone call from my 18 year old daughter. She told me she had just purchased a $9,000 used car, financing $6,000 of the purchase. I was shocked that she got a loan so easily, because she has no credit history. However she is in the Coast Guard so apparently the financing agency believes she has a secure job and will be able to repay. I called my representatives in Washington to explain this situation, hoping they would perhaps take another look at the bailouts but they acted as if I were speaking another language.

]]> By: Dennis http://dailyreckoning.com/another-day-another-trillion-dollars/#comment-3315 Dennis Wed, 25 Mar 2009 09:25:43 +0000 http://dailyreckoning.com/?p=13494#comment-3315 What the Administration is really thinking, they will never tell us. They call the situation challenging, while it is basically hopeless, and they can only postpone Armageddon and social chaos - so be prepared! Even Greenspan knew that sooner or later Fed-policy was to end in drama, but in 2001 it was easily possible to create another credit-boom, pushing the inevitable downturn forward. Now the Fed is bringing the horses to a huge pool to drink, but they don't want to drink no more...No one wants to borrow no more, no one wants to lend no more... What the Administration is really thinking, they will never tell us. They call the situation challenging, while it is basically hopeless, and they can only postpone Armageddon and social chaos – so be prepared!
Even Greenspan knew that sooner or later Fed-policy was to end in drama, but in 2001 it was easily possible to create another credit-boom, pushing the inevitable downturn forward.
Now the Fed is bringing the horses to a huge pool to drink, but they don’t want to drink no more…No one wants to borrow no more, no one wants to lend no more…

]]> By: Egor Burgman http://dailyreckoning.com/another-day-another-trillion-dollars/#comment-3296 Egor Burgman Wed, 25 Mar 2009 04:54:16 +0000 http://dailyreckoning.com/?p=13494#comment-3296 My crystal ball indicates that the real incomming poop has not yet hit the proverbial financial fan. My crystal ball indicates that the real
incomming poop has not yet hit the proverbial financial fan.

]]> By: JMR ManDribble http://dailyreckoning.com/another-day-another-trillion-dollars/#comment-3295 JMR ManDribble Wed, 25 Mar 2009 04:21:24 +0000 http://dailyreckoning.com/?p=13494#comment-3295 I bet Zimbabweans wish they had a bottle of booze or some ciggys to trade... Prisons, 3rd world scenarios, boot camp, World war!... Bet you wish you had a bottle of booze or ciggys to trade... If Obama still smokes, so do the poor. Damned be the luxury taxes too. Damned to HELL I bet Zimbabweans wish they had a bottle of booze or some ciggys to trade…

Prisons, 3rd world scenarios, boot camp, World war!…

Bet you wish you had a bottle of booze or ciggys to trade…

If Obama still smokes, so do the poor. Damned be the luxury taxes too. Damned to HELL

]]> By: Patick McAllister http://dailyreckoning.com/another-day-another-trillion-dollars/#comment-3288 Patick McAllister Wed, 25 Mar 2009 01:59:33 +0000 http://dailyreckoning.com/?p=13494#comment-3288 When President Barack Obama reaches the point where he is laundering credit card loans to AIG for the purpose of bailing out Golden Sachs, you know you have a corrupt government. Golden Sachs under Paulson played a major role in securitizing the sub-prime loans forced on bank to lend. Congress started this mess and now the tax payers are on the hook. The bonuses paid to AIG are pennies compared to the Billions in bail out money and the Trillions in proposed spending. Obama is putting my children and grandchildren into tax slavery in his role as America’s power seeking Giving God. The man is a fool and the danger lies in the fact that he thinks he is a God. You add the power hungry Congress and we have world war like crises. Before this is over, there will be a blood in the street type dictatorship. Only the mercy of the true God can help us. When President Barack Obama reaches the point where he is laundering credit card loans to AIG for the purpose of bailing out Golden Sachs, you know you have a corrupt government.
Golden Sachs under Paulson played a major role in securitizing the sub-prime loans forced on bank to lend.
Congress started this mess and now the tax payers are on the hook.
The bonuses paid to AIG are pennies compared to the Billions in bail out money and the Trillions in proposed spending.
Obama is putting my children and grandchildren into tax slavery in his role as America’s power seeking Giving God.
The man is a fool and the danger lies in the fact that he thinks he is a God.
You add the power hungry Congress and we have world war like crises.
Before this is over, there will be a blood in the street type dictatorship.
Only the mercy of the true God can help us.

]]> By: theaccusersgift http://dailyreckoning.com/another-day-another-trillion-dollars/#comment-3284 theaccusersgift Tue, 24 Mar 2009 23:52:33 +0000 http://dailyreckoning.com/?p=13494#comment-3284 In the 1994 opinion United States v. Carlton, the U.S. Supreme Court unanimously held that retroactive tax laws did not violate the constitutional prohibition on ex post facto legislation, provided their retroactive application was "supported by a legitimate legislative purpose furthered by rational means".[5] In the 1994 opinion United States v. Carlton, the U.S. Supreme Court unanimously held that retroactive tax laws did not violate the constitutional prohibition on ex post facto legislation, provided their retroactive application was “supported by a legitimate legislative purpose furthered by rational means”.[5]

]]> By: Russian President (unofficially) http://dailyreckoning.com/another-day-another-trillion-dollars/#comment-3281 Russian President (unofficially) Tue, 24 Mar 2009 23:32:09 +0000 http://dailyreckoning.com/?p=13494#comment-3281 Another wonderful article, unfortunately I wager it will go unnoticed, quoting from your book (joint work with Lila Rajiva), that I am reading right now: "People occasionally appreciate the truth in the same way they appreciate a good joke. It breaks the monotony. But it is to falsehood that they look to organize their lives. Myths stick to them like burrs to a sweater ..." It is still Thomas L. Friedman's world until the market crashes or the USA defaults on its debt. Another wonderful article, unfortunately I wager it will go unnoticed, quoting from your book (joint work with Lila Rajiva), that I am reading right now:

“People occasionally appreciate the truth in the same way they appreciate a good joke. It breaks the monotony. But it is to falsehood that they look to organize their lives. Myths stick to them like burrs to a sweater …”

It is still Thomas L. Friedman’s world until the market crashes or the USA defaults on its debt.

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