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*Phil*
Opinionated Interventionist
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Posted: Wed Mar 11th, 2009 02:40 pm |
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George Ure of UrbanSurvival has a very interesting article today.
Wednesday, March 11, 2009
http://urbansurvival.com/week.htm
Where the case is made that we desperately need %10-%20 inflation as soon as possible to fix the economic problems.
He suggests a mandatory %10 wage hike for everyone. I've always felt that the government should just give everyone a %100 tax refund for a year or two, or give everyone $10,000 each year until problem solved. In any case the government is hogging (as in rutting pigs) all the trillions and spending it wayyyy too slow. So slow the effect will not be great enough to fix anything.
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Pecca fortiter, sed fortius fide et gaude in Christo!
Galactic Signature: Blue Self-Existing Monkey
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Garden Queen
Honored Fellow Grover
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Posted: Wed Mar 11th, 2009 06:10 pm |
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I could spend my day on this site.
All this money ...even idiots who know nothing about economic's have to question
what is going on.
G Q
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Roy
Quasi-Infallible Egocentric Tyrant
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Posted: Wed Mar 11th, 2009 09:01 pm |
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What a great article, Phil! The guy, right or wrong, is a genius of finance.
Yeah, I had already intuited the "inflation-good-for-us" position. Inflation would obviously get a lot of houses under water to be, once again, worth what their mortgages were.
So, paying everyone more for a while might work.
Actually, one of the solutions for health problems being touted is to use as many approaches as possible so as to minimize the negative effects of any one approach.
Following this logic, if you want to lower arteriosclerosis, you lower cholesterol, LDL, triglycerides, and blood sugar level, while raising HDL.
You use a variety of substances to do this: policosanol, slo-flush niacin, pomegranate extract for the LDL oxidation, cod liver oil to lower triglycerides and Irvingia to raise insulin sensitivity.
Same with the economy.
By adding one factor to another, we could, with minimum side-effects, get enough inflation to restore the value of the assets that are now worth less than the paper that got the loan done.
I will read and re-read this guy.
One caveat: one of the two Dr Dooms predicts inflation already, while the other predicts deflation.
Deflation in this situation would be worse.
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"The force and degree of a man's inner benevolence evokes in others a proportionate degree of ill-will" - Gurdjieff
"In a time of universal deceit, telling the truth is a revolutionary act." — George Orwell
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*Phil*
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Posted: Wed Mar 11th, 2009 09:32 pm |
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Looking at government spending to cure economic depression from a medical analogy it is like administering a drug that the patient becomes addicted to it then you've got to withdraw the medicine and deal with the withdrawal. Once the economy starts moving again due to the stimulus money will taking the money away cause the depression to return? That was the problem we had during the Great Depression. The economy never recovered on its own until WWII ended and the government budget was cut by 2/3. Some have argued that it was the downsizing of the government to 1/3 its former size that got the economy moving. We've seen that each modern recession requires ever larger stimulus to work.
In any case I feel Obama's approach is misguided. Our economy and government finances was very different in the 1920's and 30's. Out of all the economists in the world- hundreds of them - only half a dozen predicted this mess we have today. Alas! The die is cast and we shall see what happens over Obama's alotted four years.
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Pecca fortiter, sed fortius fide et gaude in Christo!
Galactic Signature: Blue Self-Existing Monkey
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Roy
Quasi-Infallible Egocentric Tyrant
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Posted: Wed Mar 11th, 2009 10:42 pm |
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Phil, would you know who the half-dozen economists were who successfully predicted all of this?
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"The force and degree of a man's inner benevolence evokes in others a proportionate degree of ill-will" - Gurdjieff
"In a time of universal deceit, telling the truth is a revolutionary act." — George Orwell
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*Phil*
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Posted: Thu Mar 19th, 2009 02:07 pm |
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Only two economics PhD's come to mind Marc Faber and Nouriel Roubini. They are both nicknamed Dr Doom. Faber is an Austrian economist and Roubini is Keynesian.
With the Fed's official and historic announcement yesterday that they are monitizing several hundred billion dollars of treasury debt we will get inflation for sure but it won't be the kind that ordinary americans will find helpful (wage increases). Of course we here in The Gove knew this was coming. The dollar dropped a lot and Gold went into huge backwardation (what can be had today is worth a lot more than a promise to deliver tomorrow) in response.
The international community of central bankers may decry protectionism but the competitive currency devaluation wars are accelerating.
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Pecca fortiter, sed fortius fide et gaude in Christo!
Galactic Signature: Blue Self-Existing Monkey
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*Phil*
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Posted: Fri Mar 20th, 2009 02:30 pm |
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THE END OF AN ERA
"LUXEMBOURG (Reuters) - A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency"
Role and value of U.S. dollar set to fall: Asia think tanks
http://finance.yahoo.com/news/Role-and-value-of-US-dollar-rb-14685487.htmlThursday March 19, 2009, 2:59 am EDT
TOKYO (Reuters)
“The dollar’s role will gradually be shifted,” Zhang Yunling, director of Institute of Asian and Pacific Studies at Chinese Academy of Social Sciences, told a news conference in Tokyo after a meeting of Asian research groups….”
China backs Russia's call for replacing the dollar as the world's primary reserve currencyhttp://www.reuters.com/article/usDollarRpt/idUSLJ93633020090319
By Gleb Bryanski
Reuters
Thursday, March 19, 2009
MOSCOW — China and other emerging nations back Russia’s call for a discussion on how to replace the dollar as the world’s primary reserve currency, a senior Russian government source said on Thursday.
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Pecca fortiter, sed fortius fide et gaude in Christo!
Galactic Signature: Blue Self-Existing Monkey
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