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  1. #11  
    Senior Member warpig's Avatar
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    Quote Originally Posted by malloc View Post
    The money? That's easy, it's going to come from right here:



    The value, the wealth, that's going to come out of every dollar anyone has earned.
    I notice" Krudman" is more worried about deflation than inflation............What a moron.
    "What this country needs are more unemployed politicians."
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    "Liberals are the type of people who go on safari and wonder why they can't get out and pet the lions..."- warpig
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  2. #12  
    Senior Ape Articulate_Ape's Avatar
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    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
    "The efforts of the government alone will never be enough. In the end the people must choose and the people must help themselves" ~ JFK; from his famous inauguration speech (What Democrats sounded like before today's neo-Liberals hijacked that party)
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  3. #13  
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    Quote Originally Posted by malloc View Post
    The money? That's easy, it's going to come from right here:



    The value, the wealth, that's going to come out of every dollar anyone has earned.
    Buy gold and silver cause the way money is being printed, it might not be worth much more than toliet paper one day.
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  4. #14  
    Senior Member malloc's Avatar
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    Quote Originally Posted by warpig View Post
    I notice" Krudman" is more worried about deflation than inflation............What a moron.
    Actually, I think I'd like to retract my statement about a little deflation and substitute deinflation (lower positive rate of inflation vs. negative rate of inflation), at least until I learn more. The more I look into this, the more I can see the economy isn't behaving at all like it should right now. We should have mild inflation, and flowing credit considering all the money that's been pumped into the system through monetary inflation and debt. We aren't showing either, and production and demand certainly haven't increased to match the current money supply. I guess the obvious reason is that this currency inflation is being held by banks as excess reserves, and the banks aren't willing to lend. When they do lend, we'll see inflation. Printing more money for banks to hold as excess reserves isn't going to do squat for the economy until banks lend it. So what do we need to do in order to get the banks to lend? I don't know, maybe an upturn in production? Demand? Savings? I don't know. Maybe it's just that consumers aren't borrowing anymore, and are spending savings, or *GASP* living within their means! There's also another theory which states these excess reserves aren't excess at all, and the money being called excess is in fact absorbing the major losses the banks took as a result of all the defaults.

    These two graphs just don't compute:

    http://dailycapitalist.com/wp-conten...-6-17-2010.png
    http://dailycapitalist.com/wp-conten...0-5-yr-YoY.png

    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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  5. #15  
    Power CUer NJCardFan's Avatar
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    Quote Originally Posted by malloc View Post
    When America does finally crawl out of this hole, I'm sure it will be in spite of government efforts, and not because of them. However, I wonder what U.S. History textbooks on the subject will have to say about government efforts. Will Obama be painted in the same light as FDR, for "fearlessly leading us out of this recession"? That is, if we are out of this recession by 2012, which I don't see happening.
    I'll let you figure this one out in this manner: what's the difference today than back then?
    The Obama Administration: Deny. Deflect. Blame.
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  6. #16  
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    Quote Originally Posted by Articulate_Ape View Post
    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
    Brilliant.
    The Obama Administration: Deny. Deflect. Blame.
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