Comments on: The World Financial System’s Achilles’ Heel http://dailyreckoning.com/the-world-financial-systems-achilles-heel/ Economic News, Markets Commentary, Gold, Oil and Investing Strategies. Sun, 27 May 2012 09:55:17 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Bors http://dailyreckoning.com/the-world-financial-systems-achilles-heel/#comment-20462 Bors Mon, 24 Aug 2009 15:32:25 +0000 http://dailyreckoning.com/?p=17955#comment-20462 Have you noticed how prices for food is going up and the containers they are in are getting smaller? Have you noticed how prices for food is going up and the containers they are in are getting smaller?

]]> By: LAGirl http://dailyreckoning.com/the-world-financial-systems-achilles-heel/#comment-20459 LAGirl Mon, 24 Aug 2009 15:11:38 +0000 http://dailyreckoning.com/?p=17955#comment-20459 I say there is inflation. Have you seen the quality of shoes lately? I can't find real leather shoes for my kids anymore, now they're all made out of vinyl, even the brand name ones. And I bought my husband some brand name tennis shoes yesterday. Tthe soles were cheap plastic. I say there is inflation. Have you seen the quality of shoes lately?

I can’t find real leather shoes for my kids anymore, now they’re all made out of vinyl, even the brand name ones.

And I bought my husband some brand name tennis shoes yesterday. Tthe soles were cheap plastic.

]]> By: Pete Murphy http://dailyreckoning.com/the-world-financial-systems-achilles-heel/#comment-20450 Pete Murphy Mon, 24 Aug 2009 13:05:04 +0000 http://dailyreckoning.com/?p=17955#comment-20450 Great analysis of the problem, Bill. Few make the connection between falling per capita consumption and falling per capita employment. Far fewer still ever question what factors may contribute to declining per capita consumption. And virtually no one has considered that excessive population densities make high per capita consumption impossible, or what happens to your own economy when you attempt to trade freely with others where overpopulation has left labor in a state of gross over-supply. Though spiraling rates of unemployment may get some slight, temporary relief from weak "recoveries," the long-term trend toward higher unemployment won't change until the underlying causes of overpopulation and free trade with overpopulated nations are addressed. Great analysis of the problem, Bill. Few make the connection between falling per capita consumption and falling per capita employment. Far fewer still ever question what factors may contribute to declining per capita consumption. And virtually no one has considered that excessive population densities make high per capita consumption impossible, or what happens to your own economy when you attempt to trade freely with others where overpopulation has left labor in a state of gross over-supply. Though spiraling rates of unemployment may get some slight, temporary relief from weak “recoveries,” the long-term trend toward higher unemployment won’t change until the underlying causes of overpopulation and free trade with overpopulated nations are addressed.

]]> By: robert http://dailyreckoning.com/the-world-financial-systems-achilles-heel/#comment-20408 robert Mon, 24 Aug 2009 04:33:32 +0000 http://dailyreckoning.com/?p=17955#comment-20408 email your letter to me. email your letter to me.

]]> By: Toru kubo http://dailyreckoning.com/the-world-financial-systems-achilles-heel/#comment-20307 Toru kubo Sun, 23 Aug 2009 08:50:12 +0000 http://dailyreckoning.com/?p=17955#comment-20307 I bet Goldman Sachs gonna bankrupt. I bet Goldman Sachs gonna bankrupt.

]]> By: Fred http://dailyreckoning.com/the-world-financial-systems-achilles-heel/#comment-20056 Fred Sat, 22 Aug 2009 14:01:00 +0000 http://dailyreckoning.com/?p=17955#comment-20056 Why is it Americans can not admit that the dollar can collapse and with Obama,Geithner and Bernanke's hijinks it will. All these glorious looking DOW numbers are a mirage to the actual consumer/American worker. You ain't seen bad yet, but it's comin. Why is it Americans can not admit that the dollar can collapse and with Obama,Geithner and Bernanke’s hijinks it will. All these glorious looking DOW numbers are a mirage to the actual consumer/American worker. You ain’t seen bad yet, but it’s comin.

]]> By: Goin'Fawr http://dailyreckoning.com/the-world-financial-systems-achilles-heel/#comment-20022 Goin'Fawr Sat, 22 Aug 2009 08:46:56 +0000 http://dailyreckoning.com/?p=17955#comment-20022 "Consumer prices are falling…actual CPI rates are negative in many countries" Interesting, seeing as the price of Oil and sugar have been going up all the while. Say, what with all the hocus-pocus involved in calculating the inflation rate in the last four decades, could it not be that all those reported 'negative' rates just got the +/- sign wrong? “Consumer prices are falling…actual CPI rates are negative in many countries” Interesting, seeing as the price of Oil and sugar have been going up all the while. Say, what with all the hocus-pocus involved in calculating the inflation rate in the last four decades, could it not be that all those reported ‘negative’ rates just got the +/- sign wrong?

]]> By: Lost & Found http://dailyreckoning.com/the-world-financial-systems-achilles-heel/#comment-20009 Lost & Found Sat, 22 Aug 2009 07:11:49 +0000 http://dailyreckoning.com/?p=17955#comment-20009 "Take out the effect of speculation on oil and commodities..." I doubt that there is an awful lot left over if you do that. However, it seems sooner or later the dollars come home to roost. May be they should not have travelled the world in the first place? “Take out the effect of speculation on oil and commodities…”
I doubt that there is an awful lot left over if you do that.
However, it seems sooner or later the dollars come home to roost. May be they should not have travelled the world in the first place?

]]> By: How About Hyperdeflation lol http://dailyreckoning.com/the-world-financial-systems-achilles-heel/#comment-19934 How About Hyperdeflation lol Fri, 21 Aug 2009 21:30:47 +0000 http://dailyreckoning.com/?p=17955#comment-19934 Bill, I’ve been reading the DR for over a year now. Thank you for all your great work! Once thing I can’t understand, and haven’t seen really explained from anyone other than Milton Freeman. This is the ‘velocity’ part of the inflation equation. If all this money printing stays in the bank’s reserves, where will the velocity come from? How will it manifest itself? Basically, if the banks don’t loan out the “free money” or Helicopter Ben doesn’t toss the money out of the window, then where does the velocity come from? Also, if they don’t loan or copter the money then doesn’t this, in the end, just create an even larger feudal oligarchy of banker overlords? Bill, I’ve been reading the DR for over a year now. Thank you for all your great work!

Once thing I can’t understand, and haven’t seen really explained from anyone other than Milton Freeman. This is the ‘velocity’ part of the inflation equation. If all this money printing stays in the bank’s reserves, where will the velocity come from? How will it manifest itself? Basically, if the banks don’t loan out the “free money” or Helicopter Ben doesn’t toss the money out of the window, then where does the velocity come from?

Also, if they don’t loan or copter the money then doesn’t this, in the end, just create an even larger feudal oligarchy of banker overlords?

]]> By: Bloomer http://dailyreckoning.com/the-world-financial-systems-achilles-heel/#comment-19933 Bloomer Fri, 21 Aug 2009 21:22:35 +0000 http://dailyreckoning.com/?p=17955#comment-19933 China can call for a global currency, but is it what they really want? What would a global currency do to their huge holdings in U.S. bonds? This debt can very easy become as toxic as that as those sub-prime loans! China can call for a global currency, but is it what they really want? What would a global currency do to their huge holdings in U.S. bonds? This debt can very easy become as toxic as that as those sub-prime loans!

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