“Additional Liquidity”

NonEntity's picture

Okay, so lemme see if I can get this blog thingie off the ground... Grunt grunt groan push ...

You remember when you would replace all of that great alcohol that you stole from your parents' liquor bottles with water, carefully marking the side of the bottle first, so as to remember how much it took you to get wasted? Well, I don't either because I never could stand alcohol until I turned about 40 or so, and my parents didn't smoke pot, so I had to... well, I'm getting off track here.

The point is, that every time I hear one of those yo-yo brained idiots on the propaganda network babbling about how this or that entity added "liquidity" to this or that economic vacuum cleaning device, all I can think of is the bottle of Vodka which in actuality is about 2 parts Vodka and 98 parts tap water. We must be REALLY wasted if'n we cain't tell by the taste. REALLLLY wasted.

Was I spozed to start my career here with a rant?

- NonE

“Supposed to??”

Very amusing, but spot-on observation, my friend. Welcome aboard.

You'd think

You'd think anyone could tell when their bottle was diluted.

The analogy I like to use is that of trying to raise the level in a swimming pool by dipping water out of the deep end and pouring it into the shallow end.

Of course, a lot of the water gets spilled in transit, so the level in the pool eventually goes DOWN. But everyone is so busy hauling water that nobody notices until very late.

And, if they work it right, some folks can manage to get away with a lot of the spilled water.

No, I wouldn't. I try NEVER to think! ;-)

Ackshully, Mama,

I think you're missing the point. If you dip water from one end of the pool and dump it into the other, you still have water and you still have (mostly) the same amount.

With volkswagon fiat currency, you have lots LESS water and a lot MORE pretend water. The dilution rate is now probably WELL over 20:1 and climbing. So if you take all of the "money representations" (FRN notes, demand deposits, funny stock and hedge fund contracts and all that crap) and evenly divide it across all of the wealth (actual REAL stuff) in the world, each "money representation" would buy you about nothing. Just one teeny tiny little smidgeon of a tad of a bit more than nothing. Maybe a flies' left wing.

Unlike the water in the swimming pool, which would qwench the thirst of just as many people at the beginning of the pool filling party as it would at the end, and maybe even a few flies as well. (Don't get me started on cockroaches!)

Any idea what a Zimbabwean dollar is worth today? You probably can't even get a good wipe from one.

- NonE