Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So | |
dr0id
(OP) User ID: 80230728 United States 03/22/2022 12:24 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So https://imgur.com/fstBy56 [link to imgur.com (secure)] Last Edited by dr0id on 03/22/2022 12:25 PM Articles posted do not necessarily reflect endorsement. |
dr0id
(OP) User ID: 80230728 United States 03/22/2022 12:27 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So https://imgur.com/a/IPGGEV5 [link to imgur.com (secure)] "Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." ~John Maynard Keynes, 1919 [link to en.wikiquote.org] "There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." ~Ludwig von Mises, 1929 Chapter XX: Interest, Credit Expansion, The Trade Cycle, § 8 : The Monetary or Circulation Theory of the Trade Cycle Gas Gas Gas Inflation Meme [link to www.youtube.com (secure)] Articles posted do not necessarily reflect endorsement. |
Anonymous Coward User ID: 75484868 United States 03/22/2022 12:29 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 70754653 United States 03/22/2022 12:32 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So lol,they could turn it all around with my project but they chose to crash it on purpose. fuckem,its hotdogs and marshmallows time,who has the metal clotheshangers? |
Anonymous Coward User ID: 77117628 Cuba 03/22/2022 12:33 PM Report Abusive Post Report Copyright Violation | |
2022 Sucks Too.
User ID: 81764695 United States 03/22/2022 12:40 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So Interest rates would have to go to 20% like back in the 80's to stop this inflation... Quoting: ^TrInItY^ Bought my first home at 16% interest rate. That said, prices were 5 fold lower. Couldn't even imagine high interest rates and runaway pricing. Bottom line is the future is bleak and were all fucked. |
Anonymous Coward User ID: 80231300 Belgium 03/22/2022 12:50 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So To combat inflation interest rates must rise at the same rate inflation does. Currently thats 7 or 8%. Not gonna happen. Inflation for the win. Not gonna stop. All part of the great reset. |
Anonymous Coward User ID: 68316327 Canada 03/22/2022 12:54 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So To combat inflation interest rates must rise at the same rate inflation does. Quoting: Anonymous Coward 80231300 Currently thats 7 or 8%. Not gonna happen. Inflation for the win. Not gonna stop. All part of the great reset. You might wish to look into what the real inflation rate is, and how they've changed how it is calculated.. |
REaliZe
User ID: 80781908 United States 03/22/2022 12:59 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 54469829 United States 03/22/2022 01:04 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So They will have Biden say "We're a nation that pays it's debts" all the while handing out more and more cash. That's the only lever government has and they dangle it over people's heads like a freaking carrot! This guy is deluded! |
Anonymous Coward User ID: 82551505 United States 03/22/2022 01:04 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So They will just continue to do QE bailouts like they did for Obama's economy. Your crap rambler will be worth a million bucks with some Gen Z kid buying it on a 60 year mortgage. |
Anonymous Coward User ID: 54469829 United States 03/22/2022 01:17 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So The only way I could see this happening is if there were some type of "event" to make most of the assets not worth what people thought they were to allow them to readjust the system. If homes don't have value, if stock doesn't have value. Something like a Deagel depopulation "event" then maybe they could give these types of protections to get buy-in and go from there. Outside of that, no way it would ever happen in the current political environment. |
Big Duke6
User ID: 81810934 Canada 03/22/2022 01:27 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 82550372 03/22/2022 01:30 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So I remember when interest rates were over 20% during Reagan-Carter. 20% interest on $30 Trillion federal debt is more than the GDP can produce in tax revenue. The entire military budget and social security program would need to be eliminated to pay interest on the debt. |
Anonymous Coward User ID: 81646515 Canada 03/22/2022 01:36 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So To combat inflation interest rates must rise at the same rate inflation does. Quoting: Anonymous Coward 80231300 Currently thats 7 or 8%. Not gonna happen. Inflation for the win. Not gonna stop. All part of the great reset. You might wish to look into what the real inflation rate is, and how they've changed how it is calculated.. Yes. CPI is a rigged calculation. True inflation is probably over 20% and higher for some things |
QCluminati
User ID: 78083688 Canada 03/22/2022 01:39 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So Interest rates would have to go to 20% like back in the 80's to stop this inflation... Quoting: ^TrInItY^ 20% on your 850k mortgage? people are gonna burn themselves in the streets Last Edited by QCluminati on 03/22/2022 01:39 PM Unvaxxed because fuck you |
Anonymous Coward User ID: 80674095 Mexico 03/22/2022 01:39 PM Report Abusive Post Report Copyright Violation | |
NIMST3R
User ID: 79436430 Netherlands 03/22/2022 01:47 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So Interest rates would have to go to 20% like back in the 80's to stop this inflation... Quoting: ^TrInItY^ yes and it may sound crazy now. But in the 80s 0% sounded crazy also. They will pull the rug from the housing market. They will offer refinance to allow you to stay but you lose the title. Anyone with a mortgage will have no choice but to take that deal. And all of them "will own nothing and be happy" People who think they are safe now will sell because the housing market will tank the coming year. Either way, a moment will come where "cash is king" again. They will be the future if they get in at the right moment. But the window will be small. You have to get back into assets before they devalue the currency wherever you are. Do not "wait it out". —— There still is time if you RUN NOW!! — |
Anonymous Coward User ID: 80562797 United States 03/22/2022 01:48 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So The Fed has only two choices: Choke off inflation or risk societal and government collapse. I don't think Karl realizes they want collapse. Then they can 'build back better' which really means make your cage stronger and smaller. |
Anonymous Coward User ID: 75564839 United States 03/22/2022 01:49 PM Report Abusive Post Report Copyright Violation | |
NIMST3R
User ID: 79436430 Netherlands 03/22/2022 01:49 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So Interest rates would have to go to 20% like back in the 80's to stop this inflation... Quoting: ^TrInItY^ 20% on your 850k mortgage? people are gonna burn themselves in the streets Then add the reality that that 850K house then will sell for 400K. And the bank makes that mortgage call for you to drop 450K by monday or they take your house. This shit will cut from all sides if you dont fully own property. —— There still is time if you RUN NOW!! — |
Anonymous Coward User ID: 80045711 United States 03/22/2022 01:51 PM Report Abusive Post Report Copyright Violation | |
NIMST3R
User ID: 79436430 Netherlands 03/22/2022 01:51 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So America will be hit hardest. Finding a true price or value of a house will be a shocker. As most houses are just 2x4s and drywall. Value : none. —— There still is time if you RUN NOW!! — |
NIMST3R
User ID: 79436430 Netherlands 03/22/2022 01:54 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So Interest rates would have to go to 20% like back in the 80's to stop this inflation... Quoting: ^TrInItY^ What do the fed inflation rates even do? I know a lot of stuff but not this Fed sets the lending rates for banks connected to it. The banks add a premium and sell it to you. If it goes up, you pay more for loaning money. So you can imagine that very quickly all houses at current prices will become out of reach for most people who could still afford it now. That means the buyer market dries up and at some point people will want to exit and put lots of properties on the market. But there will be no buyers. So the price needs to come down. Once people get wind of that trend the floodgates open up. —— There still is time if you RUN NOW!! — |
Anonymous Coward User ID: 80562797 United States 03/22/2022 01:56 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 54469829 United States 03/22/2022 01:58 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So How about when hell freezes over? They are already talking about a "Gas Stimulus Check" to go out to all Americans as I type. They want "$100 per month for individuals or $200 for couples, with the criteria similar to standards used for stimulus checks. The plan would add $100 for each dependent and would go to families for each month the national gas price exceeds $4 per gallon". Denninger might as well burn his cash right now! They will never stop. |
442
User ID: 79579101 United States 03/22/2022 01:58 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 80045711 United States 03/22/2022 01:59 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So Interest rates would have to go to 20% like back in the 80's to stop this inflation... Quoting: ^TrInItY^ What do the fed inflation rates even do? I know a lot of stuff but not this Fed sets the lending rates for banks connected to it. The banks add a premium and sell it to you. If it goes up, you pay more for loaning money. So you can imagine that very quickly all houses at current prices will become out of reach for most people who could still afford it now. That means the buyer market dries up and at some point people will want to exit and put lots of properties on the market. But there will be no buyers. So the price needs to come down. Once people get wind of that trend the floodgates open up. Hmm so don’t buy a home for at least the decade and sell now? Got it |
Anonymous Coward User ID: 79031244 United States 03/22/2022 02:02 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So Interest rates would have to go to 20% like back in the 80's to stop this inflation... Quoting: ^TrInItY^ Bought my first home at 16% interest rate. That said, prices were 5 fold lower. Couldn't even imagine high interest rates and runaway pricing. Bottom line is the future is bleak and were all fucked. Last call: buy physical gold and silver |
Blenderizer
User ID: 80562797 United States 03/22/2022 02:06 PM Report Abusive Post Report Copyright Violation | Re: Karl Denninger's Prediction: They Will Raise Interest Rates and Collapse the Stock Market to Stop Inflation: "I Know You Don't Think So Remember the usa has to pay on that interest rate as well. Quoting: 442 And we can't because the debt is so high Yah they do, but they've been rolling their debt ever since Volker raised interest rates to stop the inflation of the 70's. That created a situation where corporations and the government could borrow at lower (cheaper) rates in the future so they could meet principle and interest payments as well as a little more to spend on their frivolous activities https://imgur.com/OhAoXda Now we're at the right side of that graph and they can't lower interest rates anymore without going into negative interest rates which destroys capital formation. You need capital formation to justify creating new debt. So Karl is theoretically correct, they need to jack up rates but they can't pay off existing debts because they can't borrow cheaper in the future so they also have to default on about 75% of existing bonds wiping out the commercial banking system and most retirement funds. Modeling reality |