06-28-2010, 07:49 PM"What this country needs are more unemployed politicians."
"Liberals are the type of people who go on safari and wonder why they can't get out and pet the lions..."- warpig
06-28-2010, 07:56 PM
I have probably posted this already, but it belongs here since it is a harbinger for what lies ahead for us under the current regime.
http://www.youtube.com/watch?v=LyePCRkq620"Our president delivered his State of the Union message to Congress. That is one of the things his contract calls for -- to tell congress the condition of the country. This message, as I say, is to Congress. The rest of the people know the condition of the country, for they live in it, but Congress has no idea what is going on in America, so the president has to tell 'em." ~ Will Rogers
- Join Date
- May 2008
06-28-2010, 08:46 PM
These two graphs just don't compute:
I'd say watch the Fed's EXCRESNS statements, and look for excess reserves to fall. That will mean that banks are lending. If interest rates don't rise at the same time to cause deinflation, we'll see CPI inflation to some degree, though I'm not sure how bad. As I've said before, when the floodgates open and this bailout money hits main street, there is a small chance that Helicopter Ben can navigate the necessary monetary deflation steps without screwing us, but it's going to take a fortuneteller, or a lot of luck for him to do it.
I've always wondered what would happen to a debt based economy if consumers stopped borrowing. :p I also believe this behavior thoroughly refutes the assumption that fiscal stimulus always increases demand.
Last edited by malloc; 06-28-2010 at 08:52 PM."In England a king hath little more to do than to make war and give away places; which in plain terms, is to impoverish the nation and set it together by the ears. A pretty business indeed for a man to be allowed eight hundred thousand sterling a year for, and worshipped into the bargain! Of more worth is one honest man to society and in the sight of God, than all the crowned ruffians that ever lived."
—Thomas Paine, Common Sense
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