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Topics - Mister Roboto

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Market Flambe / QEverlasting?
« on: October 26, 2014, 10:21:29 PM »
Okay, I know this about Quantitative Easing:  It's an extended program where the Federal Reserve buys dodgy financial paper from the big banks and finance-firms with money it essentially creates out of thin air.  This has been keeping the financial markets propped up for the past few years.  In fact, it has become a sort of monetary heroin that the markets would flame out badly without, from what I understand.

But now the Fed is talking about cutting back the supply of smack, and the markets reacted badly, recovering only when the Fed basically said, "JK!  ;D"  Can anyone explain to me like I'm five years old ("Explain Like I'm Five" began as a phenomenon) what adverse consequences of QE prevent the Fed from doing it forever if the financial markets need it so badly now?  I tried posing this question on a thread at TAE and got vague, mumbly pieties that actually explained nothing.  I'm looking for an economic nuts-and-bolts explanation of why QE is unsustainable.

The Kitchen Sink / Coronal mass ejection doom
« on: July 25, 2014, 12:14:37 PM »
I saved this comment that I made to JMG's blog to my clipboard in case ate it while I was trying to post it, so I may as well copy it here instead of going to the trouble of typing a whole new post.  Copied text is between "devil" smilies.


This post provided some very delicious and exotic food for thought as usual.  It certainly comes as no surprise that the ancient Greeks were equal to the task of inventing and constructing a working steam engine, at least if their philosophy is any solid indicator of their cultural intellectual prowess.

If you'll forgive me for veering off-topic just a little bit, I read some news today (oh boy!) that spoke of an apocalypse.  Well, maybe not really, I just wanted to preserve the meter of the beloved old "Beatles" song!  Seriously though, this article in the UK newspaper The Guardian described a coronal mass ejection (CME) event that might have brought down the electrical grid, everything that relies on it, and most modern communication systems too, had our planet been in its line of fire.  And we would have been, too, had this CME erupted in the same way a week earlier than it did.

Considering where we are in terms of resource depletion and resulting economic near-exhaustion (a fancy way of describing the way the world's industrial societies are pretty much hanging on by the proverbial thread these days), I really do think this would have precipitated a "fast-crash" event, or something close enough to a fast-crash that it would certainly have been the primary turning point in the decline of industrial society.

It wouldn't have been an apocalypse in the traditional religious sense, but the hardship and mayhem that would have ensued certainly would have resulted in very many people calling it the apocalypse.  The fact that it would have happened in 2012 would certainly have added to the temptation to call it just that.  I have to admit, the new ager in me has to wonder if that CME would have hit us were it not for the spiritual growth of ordinary humans ultimately redeeming us from being hit with "the worst".  What do you think?  :-)


So, Diners, what do you all think?  Would this have been "it" and triggered a disaster leading to chaos, hardship, and mayhem culminating in the mass die-off?

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