I live in the USA and I am concerned about the future. I created this blog to share my thoughts on the economy and anything else that might catch my attention.
Tuesday, October 14, 2008
Cash in my Backyard (Musical Tribute)
If I could hoard cash in my backyard
The first central banking taboo
Is to save all my pay
Until hyperinflation decays
Just to hoard it with you
If I could dig these holes forever
If holes could make value hold true
I'd bury my pay like a treasure and then
Again, I would hoard it with you
But there always seems to be too much cash
Drops from helicopters flying by
Once you dig holes
I've looked at what we've borrowed
Stagflation might be the combo
Can't dismiss
If I had a vault just for silver
And deflation really comes true
The vault would be empty
Except for the money
All the trillions funded by you!
But there always seems to be too much cash
Drops from helicopters flying by
Once you dig holes
I've looked at what we've borrowed
Stagflation might be the combo
Can't dismiss
As Banking 'Fairy Tale' Ends, Iceland Looks Back to the Sea
Today, Iceland's swollen banks are ruined. In the space of a few days, practically the entire banking system has been seized by the government. The largest bank of all, Kaupthing Bank, was seized Thursday, and trading was suspended on the stock exchange until Monday. The krona has ceased functioning as a currency outside Iceland.
Inflation and debt payments are soaring, and trade has been crippled in a country heavily dependent on imports. The U.K. and Netherlands are suing over frozen deposits held by their citizens, while the government is trying to arrange more foreign loans to help stave off national bankruptcy.
Stag,
ReplyDeleteCash in the backyard! What an idea! You're on to something big!
Just think. Rather than randomly dropping $$$ from helicopters, the government could hire people to bury cash in each and every backyard. It's a targeted jobs and cash infusion program. A real wealth builder.
The plan will definitely help stop house prices from falling. I think we should also randomly bury a winning lottery ticket in some back yards too just to create the bubble/casino atmosphere that Americans crave. A little extra "something for nothing" just to create a buzz.
The plan would also continue to punish unpatriotic renters. We really need to modify their economic behavior. Teach them a lesson they will never forget. Those penny pinching, risk averse renters started this entire housing mess imo. Exactly what part of the American debt nightmare don't they like?
I'm calling Bernanke right now. Don't worry either. I'll make sure you get "credit" too.
One more thing. We need a slogan. I propsose: "Backyard Asset Relief Program" (BARF). Problem solved! Woohoo!
One more thing. We need a slogan. I propsose: "Backyard Asset Relief Program" (BARF)
ReplyDeleteOops. That should be: "Backyard Asset Relief Fund" (BARF)
If we need a second round I would propose "BURP"! Backyard Underground Relief Program.
You get idea.
The plan would also continue to punish unpatriotic renters. We really need to modify their economic behavior. Teach them a lesson they will never forget. Those penny pinching, risk averse renters started this entire housing mess imo. Exactly what part of the American debt nightmare don't they like?
ReplyDeleteLOL
MAB,
ReplyDeleteBARF and BURP! I love it! LOL!
BARF and BURP!
ReplyDeleteI thought fitting given the rocky terrain (and the credit orgy).
Also, you better stop the tributes or this sucker will keep going down. Strange correlations these days.
MAB,
ReplyDeleteLet's work on that Fannie end as well.
Debt, Income, and Asset Repricing Requires Housing Eulogy Agency (DIARRHEA)
There would be checks and balances in my plan though. DIARRHEA would be overseen by the Department of Homeland CONSTIPATION.
Credit Offered Needlessly Soon Translated Into Plunging Assets Towards Insolvency for an Overleveraged Nation (CONSTIPATION)
MAB,
ReplyDeleteAlso, you better stop the tributes or this sucker will keep going down. Strange correlations these days.
Perhaps it's a feedback loop. I do the tributes because it crashes. It crashes because I do the tributes. Just imagine the carnage I could do if I had more than a handful of readers, lol.
I'd be willing to stop should BARF and BURP pay me to stop though. I think it is a fairly good government investment. $100 million and I'll fully Kudlowize this place! I'd promise to keep it Kudlowized as long as $100 million could still buy 100 loaves of bread.
Here's a preview of what the first million would get you.
Three more years of goldilocks! Happy Thanksgiving everyone! We're going back to Candy Mountain!
http://illusionofprosperity.blogspot.com/2007/11/happy-thanksgiving.html
As a side note, the baby and bathwater croud is becoming a bit more discerning today. My TIP fund is currently in the green for the day. Go figure. That was not even remotely true during the last major crash. The non-inflation protected counterpart is doing slightly better though, for obvious reasons.
All is right in my world again. There should be only so much selling of a guaranteed 3% real yield, especially when three month treasuries yield under 0.5%. The market should stick to selling the non-guaranteed 3% future real yields first in my opinion.
Short and mid-term deflation is becoming a very distinct possibility. I once semi-joked to stagflationary acquaintances (one was in gold, one was in oil) that as a paper stagflationist (TIPS) I'd do worse than them if we were right about stagflation. We'd all do better than average though. However, if we were wrong about stagflation I'd do better than them.
Let's just say that I'm glad I've not been riding this crisis out in oil and silver lately.