SERVING THE QUANTITATIVE FINANCE COMMUNITY

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exCBOE
Posts: 80
Joined: May 19th, 2010, 9:48 pm

Double dip or not ?

September 17th, 2011, 5:50 pm

QuoteOriginally posted by: BullBearQuoteOriginally posted by: Traden4AlphaQuoteOriginally posted by: exCBOEQuoteOriginally posted by: BullBearInflation only benefits citizens that are debtors and corrupt and inapt Politicians that can't plan anything right for the sake of their citizens. They just want power and influence to make a bunch of money for their partisans and friends.Inflation would benefit all net debtors, whether citizens, banks, or sovereigns.Actually, inflation only helps net debtors who can run a sufficient surplus to repay their debts (with inflated currency). Debtors with deficits or who must roll their debts as the come due get royally screwed by inflation because they are forced to borrow at inflation-determined rates. Unless the inflation keeps accelerating, they eventually have to pay off the inflated debt with currency that's no longer inflating. And who thinks that EU inflation would help the governments run a surplus?The PIIGS could repay their debts, with hyper-inflation, by extortion to the Germans and all EU net creditors. Rates are already fixed for "x" years... with hyper-inflation they could sell a pack of cigarettes and repay their debts at the expense of All EU citizens who are net creditors (Germans, Some PIIGS citizens, other countries) who all their lifetime savings wouldn't be enough to buy a pack of cigarettes. So, high inflation is evil! It would be a trade of of a lifetime of savings for a lifetime of debts.Governments from the PIIGS (our Southern EU government folks and Oligarchs truly are Pigs) would already have done this if it weren't for the EUR. The latins are famous for their ponzi-scheme abilities with national currency redenomination (e.g. Brazil with Color de Melo). With the EUR, if they leave the EUR, the EUR would become forex like the USD or the CHF, and Creditors will have legal claims in EUR. That's why there hasn't been a true routing of money from a bunch of EU countries. If these Governments dare to say that 1 EUR of their debt is equal to 100 New National Currency that can't buy a bigmac, and Courts back the Government instead of backing the law and the rights of citizens, they will be criminals and cause a true mutiny (a blood bath, maybe) from all citizens who are net creditors! So... inflation is the most unfair mechanism used by Governments and Central Bankers to rob People. They have printed money in 08 to prevent a great depression. Now they want to keep doing it all over again and again until they screw everybody up. I have defended an expansionist policy on 2008 but with the remark that these deficits would have to be compensated with years of austerity in Gov spending and a decade of de-leverage later. Governments are still spending 5% to 10% above their means and keep saying this is austerity and... "oh, it's so hard to cut the deficit from 10% to 5% and from 5% to 3%!". These Policitians are a shame.The last few posts bytraden4alpha and bullbear contain more common sense than anything said by the clowns at the finance minister pity party, albeit our humble Wilmotters didn't have to deal with free expensive wine, caviar and the like. Out of respect for our dear friend Strauss-Kahn, the hookers were in short supply.
 
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Anthis
Posts: 4313
Joined: October 22nd, 2001, 10:06 am

Double dip or not ?

September 18th, 2011, 10:41 pm

QuoteOriginally posted by: exCBOEWhat your fellow travelers call win/win, is actually only a win for the parasite. Maybe Germany should help bail out Greece; they still owe them from the war. The win for Germany is the satisfaction of paying a moral debt and of being charitable to the needy, deserving or not. The win for Greece is being able to continue to consume more than they produce for as long as there are kind strangers around, or is that ultimately a loss?When Siemens was bribing the 2/3 of the parliament seats, just to earn monopolistically government contracts, Greeks were not parasites. Same when they were buying guns. When orders were dropped, some tension would arise, all of a sudden, in the neighborhood, Moreover, a small exercise for you. 4 billion USD lended "obligatory" back in 1943, but never paid interest or any redemption of principal, how much worth today?Use US treasury rates, not delinquency rates.
 
User avatar
exCBOE
Posts: 80
Joined: May 19th, 2010, 9:48 pm

Double dip or not ?

September 19th, 2011, 12:55 am

QuoteOriginally posted by: AnthisQuoteOriginally posted by: exCBOEWhat your fellow travelers call win/win, is actually only a win for the parasite. Maybe Germany should help bail out Greece; they still owe them from the war. The win for Germany is the satisfaction of paying a moral debt and of being charitable to the needy, deserving or not. The win for Greece is being able to continue to consume more than they produce for as long as there are kind strangers around, or is that ultimately a loss?When Siemens was bribing the 2/3 of the parliament seats, just to earn monopolistically government contracts, Greeks were not parasites. Same when they were buying guns. When orders were dropped, some tension would arise, all of a sudden, in the neighborhood, Moreover, a small exercise for you. 4 billion USD lended "obligatory" back in 1943, but never paid interest or any redemption of principal, how much worth today?Use US treasury rates, not delinquency rates. I'm not sure where you're going with that. I abhor bribery and crony capitalism. Germany has a special moral debt to a whole lot of people and countries. Are you saying Siemens bribed Greek parliament or German or both? By all means put them in jail if you can prove it. Who did the US lend to in 1943?The gun reference also eludes me.I'm certainly not about to look up 68 years worth of t-bill rates but a couple of thirty year bonds bought at the wrong time could have yielded 8% or more. Let's say 6%. That's $200B. What does that have to do with anything? What do you mean by ""obligatory""?I don't think the Greek people are any more parasitic than anyone else. But if you promise people that they can consume more than the nation produces over a thirty year or longer period, there is bound to be trouble. Without getting into moral issues, isn't it much like anyone who falls for the promises of a con artist? Is there enough wealth in the world to make good on all the promises made by all the governments? I'm guessing no.Would you prefer describing them (us) as "suckers" or "marks" rather than parasites? The world economy is unstable due to excess leverage. End of story. If people owned their homes and other property outright we would never have a financial panic.
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