$700B -> $1.4T -> $8.5T -> Quadrillion $ Bailout???

Originally posted by Daniel666
reply to post by GhostR1der

 

I was been sarcastic.
But that is one question that is bothering me?
With the FED just printing money to bail out the banks, why is the Dollar not devaluating?

Because much of the world has the same banking and finance structure as we do.

But much of the world doesn't have oil trading in its currency, nor do they have a powerful military, nor are they in a safe geographic area, nor do they have a good (relatively) infrastructure, nor do they have rich farmlands, resources, etc.

In other words the country that backs the dollar is not in as sucky a position as other countries and their currencies. Our currency and economy sucks but not as much as nearly everyone else so we win by default at the present time.

reply to post by Rockpuck

"Thanks for the 3rd grade video though."

Must have been the fruit

With all due respect to my fellow citizens, given the economic IQ of the average taxpayer (you may have nailed it), I think the Mortenson presentation dovetails nicely with his mission statement...it has it's place.

Mortenson didn't imply that "consumer prices did not fluctuate until we moved from Gold backed to another form of currency"...on the contrary...only, that following inflationary peaks prior to 1929-ish, consumer prices tended to retreat to near base-line.

"Not to mention when ones supply of Gold is dry the country collapses"

or..defaults - aka: Nixon Shock.

"How long would America's Gold supply last with our trade balance and our social programs?

Exactly RP....put another way; What would our current deficits & war history resemble, under strict compliance to an external control mechanism? It was a loss of confidence that inspired Europe to redeem at levels which threatened our Gold supply...and wisely so, given the amount of deficit spending/currency debasement associated with our misadventure in SEA.

No, I'm not a proponent of dragging the Gold Standard out of mothballs. Perhaps it is/was effective for disciplining the balance of trade, but it would prove ineffective against the root problem today >>> to many Dollars already in circulation. I'm currently researching the practicality of a reconstituted, modified version of the Federal Reserve Gold Certificate Ratio...a victim of congressional attrition...another discipline ultimately abandoned altogether under the Nixon administration in 1968.

Multiple incomes required to hold-down the household? This Keynes quote from the vid kinda reminds me of that popular ATS thread about everyone feeling tired......but nobody knows why

"....The [inflation] process engages all of the hidden forces of economics on the side of destruction, and does it in a manner that not one man in a million can diagnose". - JMK

reply to post by OBE1

Must have been the fruit

Mortenson didn't imply that "consumer prices did not fluctuate until we moved from Gold backed to another form of currency"...on the contrary...only, that following inflationary peaks prior to 1929-ish, consumer prices tended to retreat to near base-line.

I can somewhat agree to this.. I don't think it had so much to do with what the dollar happened to be pegged to then what we now consider "normal" market conditions.

Here is what I mean:

In 1600 a bundle of Cotton cost X amount of dollars. For convenience we will say $1. A war breaks out, Gold runs low, taxes have to be levied, military uses supplies, prices rocket to $20. War ends, Government is strapped for cash so they continue the levies and restrict supplies hoping tariffs and exports will bring revenue.. but the price slowly returns to normal.

Once the "disruption" ends the only movement in price follows demand.. in newer Capitalist leaning societies with free markets the increase in expenses only followed population growth and consumption .. economies where isolated, very internal and do not suffer the massive swings we see.

Stock holders where not so much an issue either.

Today it's not longer Supply and Demand.. we leverage, create inflated bubbles to prop GDP and create debt to sustain economic growth .. a continuous 3-4% increase in consumer prices and basic necessities is impossible over extended periods of time without regulation, control and a return of natural order (recessions and depressions which are desperately needed in Capitalist societies).

The METHOD to which wealth is created and distributed in a Capitalist non-Gold-peg society is NOT a bad thing.. in fact taking restrictions from wealth creation has given us the single biggest technological explosion since man walked out of his cave and began building wonders.

The LACK OF REGULATION .. the sacrificing the good of the economy to suffice the needs of the stock holder.. that is an economy on Cocaine.. you feel great, you think you look great, you cannot live with out.. but inside your broken, diseased, desecrated and miserable.

Returning to a Gold Peg would be disastrous for extended growth above the growth of consumers.. and as we see in America and much of the world.. buying power decreases only slightly it causes ripples.

Don't get me wrong, I support a Gold Standard.. I do not believe McMillionaires are healthy for the economy.. but I do not expect to see it in my lifetime.

I am just sick of hearing Gold supporters think gold is some kind of super wonderful cure for our ailments. It's not. For many reasons. And to think a Gold backed currency is not issued at Fiat is also absurd.

But I digress..

Multiple incomes required to hold-down the household? This Keynes quote from the vid kinda reminds me of that popular ATS thread about everyone feeling tired......but nobody knows why

I know. Absurd. That could be a whole new thread.

How do we fix the economy? That's what everyone wants to know..

You let it collapse.

No one has the balls to tell the World .. we are just going to let it ride it's self out.

time for some levity

Originally posted by Rockpuck
How do we fix the economy? That's what everyone wants to know..

You let it collapse.

Stop making sense RP...anyway, it's pretty clear they're prepared to throw the sink at this one. Speaking of collapse, the bond market has become pretty crowded lately, and TRILLION$ in Treasuries need yet be issued just to fund the current & looming bank bailouts. As that flood of IOU's comes on-line...who's gonna be foolish enough to sop 'em up? China? Will we be forced to monetize? Coincidentally, it appears the Dollar rally is beginning to wobble a bit. Imagine the fallout from a 'splosion in the bond market...hard-rain for Uncle Buck...non-stop commuter flights to precious metals & the commodities complex imo.

Always a pleasure RP...your POV is much appreciated.

Now...back to the bunker for a few weeks.

GL

Wow,

Let’s add in socialized health care, infrastructure repair, green energy etc… Let’s say 10 trillion….

Let’s see 10 trillion divided among 300 million…no wait..Well minus 150 million that are between the age of 1 to 18 and 65 and up. Wait….well we need to subtract another 75 million who don’t pay any taxes… so 10 trillion divided by 75 million and that is about 130k per person, well if we went with the top 5% who makes more than 250k then they can pay it at 660000 per….


Easy money

reply to post by warrenb


Now, now: We shouldn’t fear the unknown when the ‘f@t bastard fires’. Or is that when the ‘f@t lady sings’?

What really bothers me is this statement!

The Securities and Exchange Commission is considering another option that might ease the crisis, one that would change accounting rules so banks don't have to declare huge losses whenever the market declines.

WHERES THE TRANSPARENCY?

So what is going to happen?
The banks are going to loss more of your tax payers money!
The FED is going to print another Trillion!
And pump it into the banks and pretend that nothing happened!
The Dollar is DEAD!
I bet my bottom Dollar that the High Level Emergency meetings are been held between the Banks and the Arms manufactures.
If you want to invest!
Invest in your local Arms manufacturer!

The banks are going to finance them with YOUR tax Dollars!
We go to WAR!
They get rich!
The banks get rich! (With our money!)
WE GET F*****!