Market drops 3 percent on profit jitters, oil record

reply to post by ALightinDarkness

Mr Bond said the emerging world is now on the cusp of a serious crisis. "Inflation is out of control in Asia. Vietnam has already blown up. The policy response is to shoot the messenger, like the developed central banks in the late 1960s and 1970s," he said.

Bernard Connolly, global startegist at Banque AIG, said inflation targeting by central banks had become a "totemism that threatens to crush the world economy".

Barclays Capital has advised clients to batten down the hatches for a worldwide financial storm, warning that the US Federal Reserve has allowed the inflation genie out of the bottle and let its credibility fall "below zero".

www.telegraph.co.uk.../money/2008/06/27/cnbarclays127.xml

Warren Buffett says inflation in the U.S. is "exploding" and he urged the Federal Reserve not to signal in any way that controlling prices takes a back seat to encouraging economic growth.

While Buffett stressed that the Fed needs to control inflation, he also said the central bank should also be concerned about slowing economic growth, and said he's glad he doesn't have Chairman Ben Bernanke's job. Pressed by Becky about what he would do if he were Fed chairman, Buffett joked that he'd "resign."

www.cnbc.com...

They're stuck. It's a no win situation. Raise rates, destroy economy. Don't raise rates, destroy the dollar. They'll destroy the dollar.

Go ahead and stay below decks on the Titanic, just giving a friendly knock on your door lettin ya know what's happenin.

reply to post by HimWhoHathAnEar


Warren Buffet? This is the same guy who routinely leads the doom and gloom sheep to the slaughter to make a quick buck off them. Why is it no one ever posts the predictions made in the 1990s and early 2000s predicting the same utter doom - and then turning around and profiting of the economic boon

The story from the doom and gloom crowd used to be that the Fed was going to keep lowering the rates and cause hyperinflation and we were all going to be in a 3rd world country. Now when the Fed doesn't cooperate with your fantasies, the story changes. But I note either way, the end is still nigh. How convincing.

As per the usual, yet again, media doom and gloom does not equal reality. The economists - who are not infallible but are much more likely to be right than the media - do not see this shadow of doom. How could it be?

Your not even on the titanic. Your jumping off a perfectly safe ship in the Caribbean because you just read A Night to Remember and forgot to check the back and find out the events happened in the past. You enjoy yourself in the shark infested waters.

Public policy scholars have been on to the doom and gloom game for years. I suggest you read some peer reviewed research on the matter to learn something beyond what the media wants you to believe, for a start:

Durr, R.H. 1993. What moves public policy sentiment? The American Political Science Review, 87(1).

Heres a hint: there is a specific manufacturing of a doom and gloom climate in election cycles in order to shift national policy. This is no different.

[edit on 28-6-2008 by ALightinDarkness]

I think they will continue to devalue the dollar until there's enough Ameros printed to replace it. And then, you will no longer live in the United States of America, and neither will anyone else for that matter.

Start buying Ameros:

video.google.com...

reply to post by ALightinDarkness

As per the usual, yet again, media doom and gloom does not equal reality. The economists - who are not infallible but are much more likely to be right than the media - do not see this shadow of doom. How could it be?

You keep blaming the media. Why don't you answer the BANKS and ANALYSTS that they're quoting, rather than attack the messenger? I guess you're smarter than all the analyst's at the BIS, RBS, Barclays,etc..

Next time you're at the gas pump, explain to everyone how it's the medias fault that their money is becoming worthless. A country can only live beyond its means for so long. Just like all the Americans being crushed by debt now that the Real Estate bubble is collapsing. Without the consumer a majority of GDP is vanishing. Service Economies don't work that well without consumers.

Problem is, we have ALOT of bills to pay. I would like to hear some of your ideas on solving these problems if you wouldn't mind expounding on them.

reply to post by projectvxn

Any time you get bad Inflation and the paper starts to return to its intrinsic value, it gets replaced with a 'New' paper which has the same intrinsic value. The only thing the US can offer a new paper is a black hole of debt. Of course there is Mexico. No wonder the Canadians are so bent, they would be sucked into our nightmare.

At the end of December the exchange rate was 1 DM = 3 trillion dinars and on January 4, 1994 it was 1 DM = 6 trillion dinars. On January 6th the government declared that the German Deutsche was an official currency of Yugoslavia. About this time the government announced a new new dinar which was equal to 1 billion of the old new dinars. This meant that the exchange rate was 1 DM = 6,000 new new dinars. By January 11 the exchange rate had reached a level of 1 DM = 80,000 new new dinars. On January 13th the rate was 1 DM = 700,000 new new dinars and six days later it was 1 DM = 10 million new new dinars.

www.sjsu.edu...

No, changing paper wouldn't do much. We'd need a new new dollar very shortly. Fiat monies never work, plain and simple.

reply to post by HimWhoHathAnEar


Do your research instead of buying in the doom and gloom. Let me know when you've read a peer reviewed article on this. The only BANKS and ANALYSTS who are crying wolf are the SAME ONES who whose investment divisions have been going down the tube and have been hemorrhaging money for years. The ANALYSTS who actually know what they are doing are to busy making profits off the doom and gloom sheeple.

And of course, if you actually looked at the reports instead of buying the media hype, a vast majority of "bankers" have done nothing more than point out a recession is coming. Sorry, not the great depression your hoping for.

Next time your at a gas pump, please try to explain to someone how its the gubments fault that their life is horrible and the government is plotting to make them feel pain by causing gas prices to go up. Your likely to get people to agree with you because populist propaganda is pretty alluring, but there is also likely to be someone intelligent pumping gas that will get a good laugh out of it.

The way to solve this is simple: don't buy things you can't afford, and don't waste investment money by buying into the commodity bubble because a internet armchair economist tells you the end is nigh. Gasp. Shocking. I'd like to know how your internet whining about doom is going to change anything. Sure, you can scream about how its a fiat currency and it needs to be pegged to gold, but what practical solutions do you have? Because those aren't going to work. You have none.

Once we have 1 doom and gloom prophet that gets 1 thing right, maybe I'll listen to the armchair economists. So far, every economic thread I've seen in the archives has been 100% wrong.

[edit on 29-6-2008 by ALightinDarkness]

reply to post by ALightinDarkness

don't buy things you can't afford

The bad thing about inflation is that it chases things that we NEED! It's already begun its pursuit of food. Should I stop eating when it becomes unaffordable?

The FED is owned by the private banks that it is bailing out with our money. That money is used to tax the crap out of us through inflation when it chases goods.

I would appreciate it if you could link some of your peer reviewed articles, I would like to take a look at one.

reply to post by HimWhoHathAnEar


Inflation means little, because core inflation is steady. Only food and gas prices are going up. The average person who has sense to substitute items on his or her grocery list is minimally impacted by recent food spikes. Sure, the price of apples may go up 100%, but if you buy an orange instead then its not a big deal. Even in the event someone is hell bent on sticking to the same grocery list and buying foods that are going up in prices, your simply not talking about a huge amount of money unless its the ONLY thing you buy.

Gas prices are different, but not by much. Depending on the survey, even with current gas prices, gas takes up 3-6% of a persons income. If gas prices double, people will have to give up other things, but going from spending 4% to 8% of your income is certainly not fun or pleasant but its not a sign of the end either.

I've already given you a cite to a peer reviewed article that explains this doom and gloom climate is manufactured every election cycle. They are not available online for free, because they cost money to make. Most large local libraries, and every university library, has them for free.

[edit on 29-6-2008 by ALightinDarkness]

reply to post by ALightinDarkness

Inflation means little, because core inflation is steady.

Now THAT is Media spin! Virtually everything must be transported to market. Therefore, the price of oil will be added into everything.

Your usual lack of supporting links tells me you're making things up and expecting anyone reading this to take your word for it.

reply to post by HimWhoHathAnEar


Yes, what you typed is media spin. Inflation measures are not meant to represent thing which are known to wildly fluctuate in price - and indeed - since food/gas prices have gone up and down quite a bit before just this year (despite recent hysteria, this is not new) - its not the hysteria that the mass media is making it out to be.

These are facts, I have provided you with a peer reviewed journal article which you apprently refuse to read. Your usual propgandizing of the mass media party line shows your just parroting media spin, as usual.

reply to post by HimWhoHathAnEar


Until they start naming the upcoming days after financial disasters (e.g. Black Wednesday) I'll just consider this another recession.

S.