Fed Money Printing Games Out of Gas-Karl Denninger

Fed Money Printing Games Out of Gas-Karl Denninger By Greg Hunter’s USAWatchdog.com 

Financial analyst Karl Denninger has never bought the so-called “recovery” story.  Just the opposite is happening right now.  He says, “When you look at these indices in the context of the last three or four months, what you see is a deteriorating picture . . . deteriorating employment, deteriorating final demand, deteriorating basically everything.”   So, will the Fed print even more money?  It might, but Denninger says it won’t help, “We’re seeing the leading edge of a great deal of softness, and this means the Federal Reserve’s money games have run out of gas.”  A weak economy will be the backdrop for Obama Care in 2014, which Denninger says basically transfers healthcare costs to the government.  Denninger warns, “If you shift more of the private expense into the government, all you do is bankrupt the government faster.  How does this solve a healthcare problem?”  Denninger says, “We are sowing the seeds of the next crash . . . and yes, there will be losses.”  Join Greg Hunter as he goes One-on-One with Karl Denninger of Market-Ticker.org.

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  1. Rev. William W. Joslin

    Great interview Greg! You forgot one about Obamacare… It’s not a tax unless we need to fight it in court, then we’ll call it what it is, a tax. One thing I just don’t get, and probably never will, is how can people continue to be so blind. There’s so many people who choose to keep their heads buried in the sand. I just don’t get it. Someday, very soon I believe, they will have no choice but to face the reality that is thrust upon us. By then, it will be too late for them.

    • Greg

      Thank you Rev. I agree!

  2. Allen Ols

    Greg. As gerald celente and others report. Get out of paper/dollars. Cash your checks weekly and I say buy. Food. Etc. First. Metals second. It will collapse. Don’t be left holding a wad of us cash. Refer to. Ferfall the argentinan collapse google. It

    • Greg

      Good advice!

  3. Allen Ols

    Btw. Jim willie just posted a new article on the. Victory report u must get him back on your show the interview is always better than a read article. Al

  4. Charles H.

    Hey Greg,

    Just a superlative post. Remember the Rocky and Bullwinkle Show? “Watch me pull a rabbit out of my hat. Nothing up my sleeve (rip). ROAR!!!!!! (Pulls Lion’s head out; then put back in.) I got to get me another hat!” Greg, me boy – you need another hat.
    One has to listen through this post a number of times – to get it all; to soak it in. I confess Carl Denninger is a personal favorite: but few nail it down and tells it plain like he does. Also the strength of conviction in his words and expressions are somewhat special and telling this time. Congratulations to you both.
    At some point, I feel like I am one of the ensemble players on the deck of the Titanic. You are the First violinist, and I, maybe the Bass. But it is my moment to turn to you and say – It has been my great honor to have had a part in what you have been doing. You have been very kind and very fair toward those who post with you. But I must say that the honor has been ours. It has been mine.

  5. Troy

    Yet another great interview Greg. Did U read this?

    20 Signs That The Next Great Economic Depression Has Already Started In Europe

    Michael Snyder
    Economic Collapse Blog
    April 30, 2013
    The next Great Depression is already happening – it just hasn’t reached the United States yet. Things in Europe just continue to get worse and worse, and yet most people in the United States still don’t get it.
    All the time I have people ask me when the “economic collapse” is going to happen. Well, for ages I have been warning that the next major wave of the ongoing economic collapse would begin in Europe, and that is exactly what is happening. In fact, both Greece and Spain already have levels of unemployment that are greater than anything the U.S. experienced during the Great Depression of the 1930s. Pay close attention to what is happening over there, because it is coming here too. You see, the truth is that Europe is a lot like the United States.
    We are both drowning in unprecedented levels of debt, and we both have overleveraged banking systems that resemble a house of cards. The reason why the U.S. does not look like Europe yet is because we have thrown all caution to the wind. The Federal Reserve is printing money as if there is no tomorrow and the U.S. government is savagely destroying the future that our children and our grandchildren were supposed to have by stealing more than 100 million dollars from them every single hour of every single day. We have gone “all in” on kicking the can down the road even though it means destroying the future of America.
    But the alternative scares the living daylights out of our politicians. When nations such as Greece, Spain, Portugal and Italy tried to slow down the rate at which their debts were rising, the results were absolutely devastating. A full-blown economic depression is raging across southern Europe and it is rapidly spreading into northern Europe. Eventually it will spread to the rest of the globe as well.
    The following are 20 signs that the next Great Depression has already started in Europe…
    #1 The unemployment rate in France has surged to 10.6 percent, and the number of jobless claims in that country recently set a new all-time record.
    #2 Unemployment in the eurozone as a whole is sitting at an all-time record of 12 percent.
    #3 Two years ago, Portugal’s unemployment rate was about 12 percent. Today, it is about 17 percent.
    #4 The unemployment rate in Spain has set a new all-time record of 27 percent. Even during the Great Depression of the 1930s the United States never had unemployment that high.
    #5 The unemployment rate among those under the age of 25 in Spain is an astounding 57.2 percent.
    #6 The unemployment rate in Greece has set a new all-time record of27.2 percent. Even during the Great Depression of the 1930s the United States never had unemployment that high.
    #7 The unemployment rate among those under the age of 25 in Greece is a whopping 59.3 percent.
    #8 French car sales in March were 16 percent lower than they were one year earlier.
    #9 German car sales in March were 17 percent lower than they were one year earlier.
    #10 In the Netherlands, consumer debt is now up to about 250 percent of available income.
    #11 Industrial production in Italy has fallen by an astounding 25 percent over the past five years.
    #12 The number of Spanish firms filing for bankruptcy is 45 percenthigher than it was a year ago.
    #13 Since 2007, the value of non-performing loans in Europe has increased by 150 percent.
    #14 Bank withdrawals in Cyprus during the month of March were double what they were in February even though the banks were closed for half the month.
    #15 Due to an absolutely crippling housing crash, there are approximately 3 million vacant homes in Spain today.
    #16 Things have gotten so bad in Spain that entire apartment buildings are being overwhelmed by squatters…

    A 285-unit apartment complex in Parla, less than half an hour’s drive from Madrid, should be an ideal target for investors seeking cheap property in Spain. Unfortunately, two thirds of the building generates zero revenue because it’s overrun by squatters.
    “This is happening all over the country,” said Jose Maria Fraile, the town’s mayor, who estimates only 100 apartments in the block built for the council have rental contracts, and not all of those tenants are paying either. “People lost their jobs, they can’t pay mortgages or rent so they lost their homes and this has produced a tide of squatters.”

    #17 As I wrote about the other day, child hunger has become so rampant in Greece that teachers are reporting that hungry children are begging their classmates for food.
    #18 The debt to GDP ratio in Italy is now up to 136 percent.
    #19 25 percent of all banking assets in the UK are in banks that are leveraged at least 40 to 1.
    #20 German banking giant Deutsche Bank has more than 55 trillion euros (which is more than 72 trillion dollars) of exposure to derivatives. But the GDP of Germany for an entire year is only about 2.7 trillion euros.
    Yes, U.S. stocks have been doing great so far this year, but the truth is that the stock market has become completely and totally divorced from economic reality. When it does catch up with the economic fundamentals, it will probably happen very rapidly like we saw back in 2008.
    Our politicians can try to kick the can down the road for as long as they can, but at some point the consequences of our foolish decisions will hunt us down and overtake us. The following is what Peter Schiff had to say about this coming crisis the other day…

    “The crisis is imminent,” Schiff said. “I don’t think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems.”
    “We’re broke, Schiff added. “We owe trillions. Look at our budget deficit; look at the debt to GDP ratio, the unfunded liabilities. If we were in the Eurozone, they would kick us out.”
    Schiff points out that the market gains experienced recently, with the Dow first topping 14,000 on its way to setting record highs, are giving investors a false sense of security.
    “It’s not that the stock market is gaining value… it’s that our money is losing value. And so if you have a debased currency… a devalued currency, the price of everything goes up. Stocks are no exception,” he said.
    “The Fed knows that the U.S. economy is not recovering,” he noted. “It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode.”

    So please don’t think that we are any different from Europe.
    If the United States government started only spending the money that it brings in, we would descend into an economic depression tomorrow.
    The only way that we can continue to live out the economic fantasy that we see all around us is by financially abusing our children and our grandchildren.
    The U.S. economy has become a miserable junkie that is completely and totally addicted to reckless money printing and gigantic mountains of debt.
    If we stop printing money and going into unprecedented amounts of debt we are finished.
    If we continue printing money and going into unprecedented amounts of debt we are finished.
    Either way, this is all going to end very, very badly.
    This article was posted: Tuesday, April 30, 2013 at 7:01 am

    • Greg

      Fantastic Troy,
      Thank you for the info and for posting this!

  6. justin king

    As Karl points out, being the tallest midget in the room will insulate places like the U.S. and Australia for awhile, but how long ?? — His Austrian School certainty makes you want to buy gold but how long can the Oligarchs keep their own boat afloat at the expense of the middle class ? – Stay tuned. Timing is EVERYTHING.

    • Greg

      Thank you Justin and JC!

  7. jc davis

    OUT OF THE PARK ! Home Run!
    Wonderful statement from Carl (We have crabs everyone else is with A.I.D.S.)
    Greg This interview is on fire with truth. Right in line with John Williams. http://www.shadowstats.com/
    Time for Mitchell Battros at http://earthchangesmedia.com/
    It seems all negative’s are colliding together at the same time.
    I am a big believer in letting depression take it’s natural course. What has happen to our country will cause DESPAIR. In that day the bankers will run and hide, or die trying.
    Thanks as always.

    • jc davis

      Karl Denninger

      • jc davis

        Obama (no care) is like bailing water from a sinking boat with a spoon instead of a bucket because it is lighter in weight.

  8. art barnes

    Greg, Mr. Denninger is my favorite guest on Watchdog, so insightful with facts to verify them. Thank you for having him on. It was great hearing that the FED’s policy of money printing can’t be carried on to infinity. Sooner or later if I understand Mr. Denninger right manipulated markets can’t be sustained and will correct themselves.

    • Greg

      I agree Art and I am only sorry it took so long to get him back. My bad and thank you!

  9. BLT

    we’re the hooker with crabs…finally a metaphor I can understand!

  10. Richard Pace

    Your interview with Fabian Calvo was a real eye opener. I email the information to some close friends of mine and told them that they had to view it. When they went to youtube the title real-estate-pump and dump coming had a line through it on the goggle page and the middle of interview had been removed. The censored section was about his belief that the government was behind this latest rip off of the American People.
    My question is who is behind the editing of the guts of the interview.
    R.C. Pace

    • Greg

      The complete interview is on my site and YouTube channel. I did not edit out the middle of the interview. I don’t know what happened Calvo knows his stuff though!! Thank you for your comment and concern.

  11. This Guy


    As a reader of KD’s blog, there’s a question I always wanted to ask him; KD is not a believer in gold & silver as a form of wealth retention. Although I think I would know his argument, I would like to hear it from the horse’s mouth.

    I hold both based on its history as money going back thousands of years. Also, since I cannot personally store thousands of barrels of oil, quantities of food/water, etc i understand using a resource substitute that has a long history that is relatively easily storable.

    But I also understand that you cannot eat, drink, wear, or live in gold and silver – which I think may be the crux of KD’s opinion on PM’s. I’d also like to hear what steps he’s taking to prepare.

    Thanks! Plz keep up the great, great work!
    You are a true inspiration!

    • Greg

      This guy,
      Well you can’t eat drink or wear stocks or Federal Reserve Notes, and if we have a EU style “bail-in” you won’t have access to it. I will try to ask KD in our next interview about gold and silver. I think your gold and silver premise is a sound one in terms of financial protection. Thank you for your comment.

  12. Al

    “If the American people had any idea what we were doing behind closed doors, they would chase us down in the streets and hang us”—George W. Bush

  13. AndyB

    Greg: In his own way Karl is just reinforcing the fact that the stink of fascism permeates everything; you have to wonder how much time we really have left before the true endgame of ruthless totalitarian control. The largely cognitive dissonance of the historic incremental loss of our freedoms is now changing for some, but it is far too little and way too late. Despite the MSM propaganda, the Boston “lockdown” was really a totally unconstitutional declaration (template?) of martial law, with stormtroopers armed with military weapons and vehicles. No outcry from the populace that cherished freedoms were trashed; instead they applauded their 7000+ saviors for rounding up and shooting an unarmed 19 year old. Certainly coming to another part of this country and soon. Welcome to the Fourth Reich.

  14. Jerry

    Greg you are amazing with the interviews you do. FYI the banking elites are beginning to move their assets to the Ozarks. Not far from Springfield in a little town nearby several large banks have appeared for no apparent reason. The locals have no idea whose money is in them, but apparently its from sources outside the area. I have confirmed this with several reliable sources. You can bet your bottom dollar (no pun intended) that they may not care what happens to our money, but they know right where there’s is. I think it would be very foolish to leave large amounts of assets in a bank right now. My grandfather even warned me about keeping gold and silver in bank boxes. He said during the depression that the feds would confiscate them if they found them in a bank box. Not sure if this is true, but I’ve never known my grandfather to lie.

    • Greg

      Thank you for the real world reporting and it sounds like your grandfather is a smart guy.

  15. George

    Another Federal Organization committing fraud on the American People. I missed IndyMac…How did I miss this?
    “About 95% of the $19 billion in deposits in the bank are insured, but that leaves $1 billion that was not covered by FDIC guarantees. According to the agency, 10,000 IndyMac customers could lose as much as half of that amount, or $500 million. The agency says the failure will cost the Deposit Insurance Fund between $4 billion and $8 billion, based on preliminary estimates. ”
    I love that IndyMac was likely backdating deposits (committing Fraud) and no one went to jail.
    Thanks Greg for having Karl on!

    • Greg

      Karl is a gem. Thank you for your comment and support!!!!

  16. Kenny

    Great interview. Thanks Greg
    And the pump pump pump keeps on going.
    Check it out… http://www.cnbc.com/id/100695681

    • Greg

      Thanks Kenny for the comment and link!

  17. jc davis

    This year, the largest gold reserves have been bought by Mexico (99.2 tons) and Thailand (9.2 tons), while over the past year and a half – by Russia (181.5 tons). However, these transactions are still lagging behind China and India which purchased 454 and 200 tons of gold, respectively, in 2009.
    To read in full.http://bnn-news.com/emerging-countries-buying-gold-prepare-debt-crisis-33640
    Also. http://www.cnsnews.com/blog/gregory-gwyn-williams-jr/payments-using-chinese-yuan-continue-surge-currency-tops-russian

  18. Chip

    Denninger is awesome. Thanks for having him on Greg. Enjoyed the interview…

  19. Mickey Lapua

    Hi Greg,

    You deliver some of the best reporting on the economic theatre. However, the currency war is not exclusive of the persecution and propaganda theatre’s. You understand the media better than anyone. Perhaps you have a minute to consider these reports and may connect the dots in future interviews… Mickey Lapua



  20. major

    Yes there will be losses….the Government will try to steal the Peoples money to save their own skins…and then there will be war. I don’t care how many bullets DHS has they wont be able to stop 300 million mad people and the military will be on Peoples side.

  21. Reader

    I wanted to be pro-America… but the Israel 1st crowd make that an impossible option.

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