Yet somehow you manage to contribute even less than you say I do.
Well done! It is quite an achievement.
Thanks!
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
Do you think they would? My heart and mind says no - but my money is positioned just in case they do decide to send us to hell. May as well make money out of it if it happens I guess.
Well I guess tapering is off the agenda for the forseeable.
If you are referring to not raising the debt ceiing, No ,it will be raised for which I am 1000% certain. Why, because they have too, to not raise it will bring the world economy to its knees,or is that hands and knees.... markets around the whole world would be thrown into completer kaos and collapse, the US has now sccrewed the whole world with their mindless spending ways.
They are forced into the most visious of corners, to just keep borrowing money to keep the economy alive and ticking over, since this beganquite some time ago it has only gotten worse, to the point they started with there 45 billion a month stimulus,then this was not enough, they were then forced to drop there rates to zero because the interest alone was not able to be repaid without further stimulus, they then increased the debt ceiling again because without it ,they would of collapsed. All the while there economy was still headed backwards with not the slighetst chance of ever paying it back. with the economy still heading south and their unpayable debt increasing and their zero interest rates running out of steam they were then forced to increase their stimulus again to 85 billion per month .
The situation will continue like this until it all just implodes, back in 2008 oil had reached a record high of $150 a barrel. now you here miw talking about inflation because of increasd money being bought into the system and the purchasing of treasury bonds, there is also purchasing of mortgage backed securities.
Now the reason we are not seeing this massive inflation yet ,is because it not going directly into the system as such , if it was printed and just handed out to the public, we would have already seen it, but it is being directed to bonds , a bond is just an iou of purchasing debt. if you were to buy a bond you would be purchasing government debt with a so called promise to be repaid at a later date with interest. now the thing is nobody wants to purchase these well not enough people to cover their actuall debt so the government is forced to supposedly print money and purchase these themselves, so its not actually print money , its more like printing bonds which is the same thing. they use these to pay for things from foreign countries like china and japan. They also buy mortgage backed securities ,which is more or less a form of maintaining there banking and housing system to stop it collapsing also.
So they need the stimulus to buy bonds to pay there debt, which is actually just creating 40 billion dollars worth of bonds each month, they will need to probably print cash when it comes time cash in all these bonds becuase they wont have enough dollars. Its the same as just printing more money but what will happen eventually is the chinese will get sick of getting paid an iou which iss becoming more worthless each day beacuse they just create them from thin air every month. without increasing the debt ceiling they would not be able to do this and then the whole thing will collapse. It will collapse when the chinese get sick of giving away all their hard earned goods for worthless pieces of paper created out of thin air that become more worthless by the day, the inflation will hit hard when the chinese decide to cash these in for US dollars, what will happen then is the dollars will flow hard into the US economy and everybody else holding these will cash these in. Because the Us dont produce much worthwhile these days the chinese and evrybody else will start buying anything in the states they can get there hands on, mainly second hand goods cause thats all they have left,presitge cars ,jewellery, maybe gold and silver ,rare coins ,basically anything second hand that has the most value, when this happens the price of evrything, including second hand goods will go through the roof as this money comes flowing back into the system hard and fast. There cash will become near worthless and you will need a shitload of it to buy anything left becuase there is so much of it and so few goods left.
I could go on but have had enough for now and think you are getting the idea,
As far as I know the Kennedy $5 notes were all withdrawn and were never circulated, but there are a bunch of myths and conspiracy theories about them.
Notes and coins are only a portion of the monetary base.
You seem to be getting muddle up again.
The "kennedy notes" pictured were not special notes. The treasury just has the ability to produce circulating notes but none were issued into circulation after early 1971.
Probably you can find collectors notes issued during more or less any presidency from the civil war up to 1971
The "kennedy notes" pictured were not special notes. The treasury just has the ability to produce circulating notes but none were issued into circulation after early 1971.
Probably you can find collectors notes issued during more or less any presidency from the civil war up to 1971
You're right. The treasury can issue notes but only up to a limit in circulation set in the 1800s.
Here's one take on the whole "Kennedy notes" thing. Seems it is all just a beat-up.
But the issue is entirely peripheral to how the monetary base got pumped up during the Johnson adminstration which was through the Fed buying bonds with freshly-minted book entries.
the issue is entirely peripheral to how the monetary base got pumped up during the Johnson adminstration which was through the Fed buying bonds with freshly-minted book entries.
According to the state department in a book updated several times since the early 1980's:
An Outline of the U.S. Economy - After enacting a tax cut in 1964 to stimulate economic growth and reduce unemployment, President Lyndon B. Johnson (1963-1969) and Congress launched a series of expensive domestic spending programs designed to alleviate poverty. Johnson also increased military spending to pay for American involvement in the Vietnam War. These large government programs, combined with strong consumer spending, pushed the demand for goods and services beyond what the economy could produce. Wages and prices started rising. Soon, rising wages and prices fed each other in an ever-rising cycle
Also in 1964 pressure was put on the Fed to lower interest rates
"But starting in 1964, President Lyndon B. Johnson’s government spending programs for welfare and the Vietnam War again put pressure on the Fed to keep interest rates down. The Fed yielded somewhat to administration pressure. Increases in M1 that had been between 2 and 3 percent in the early 1960s jumped to 5–8 percent from the mid-1960s to early 1970s."
After that it seems appropriate to come back to the present with this:
"But starting in 1964, President Lyndon B. Johnson’s government spending programs for welfare and the Vietnam War again put pressure on the Fed to keep interest rates down. The Fed yielded somewhat to administration pressure. Increases in M1 that had been between 2 and 3 percent in the early 1960s jumped to 5–8 percent from the mid-1960s to early 1970s."
That sounds about right.
If you have a look at the graph I put up, you'll also notice that the gold reserves were being eaten away by redemptions at a very fast clip as well, and if I understand it right, if it hadn't been, the Monetary base (which is a bit different from the M1) would have been growing even faster.
Quote:
After that it seems appropriate to come back to the present with this:
Indeed. Seems to me the US is doing more or less the same thing now, except that they are supposedly committed to stopping if inflation raises its head. It's one thing to pump up the monetary base when GDP is flat and another when it is growing at 4%+.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
If you have a look at the graph I put up, you'll also notice that the gold reserves were being eaten away by redemptions at a very fast clip as well, and if I understand it right, if it hadn't been, the Monetary base (which is a bit different from the M1) would have been growing even faster.
Indeed. Seems to me the US is doing more or less the same thing now, except that they are supposedly committed to stopping if inflation raises its head. It's one thing to pump up the monetary base when GDP is flat and another when it is growing at 4%+.
On the other hand when you have millions unemployed and living in poverty and you just bailed out all of the fat cats what you gonna do if GDP rises and you still have millions unemployed?
Is it easier today than it was back in the 1960's?
While we are at it we might as well have this one thrown into the ring too
On the other hand when you have millions unemployed and living in poverty and you just bailed out all of the fat cats what you gonna do if GDP rises and you still have millions unemployed?
Is it easier today than it was back in the 1960's?
If you have millions unemployed then you are probably going to have some difference getting either high GDP growth or inflation though, aren't you?
Johnson was trying to screw extra production out of an economy already going as hard as it could. Not exactly the situation in the USA today.
Quote:
While we are at it we might as well have this one thrown into the ring too
Amusing, but I don't find it all that illuminating - got chuckles from bits I already understood but it is all to slick to help me with the gaps.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
Would have to agree strindy, maybe its the start of an improving economy wherethey start saving money and stop wasting it, maybe they could then start to pay there own bills. as for your linked article, I dont see why people cant watch the pandas, cant see why the cameras still cant un, or do they have to pay a moron or five to sit there and make sure its still switched on. And what about the national parks they mentioned, people could still go in and enjoy a day out, they just done have to pay the fee to get in, which would cover the five staff probably maning the gates and sitting in the office on some internet property forum, they would not need to pay the overexpensive office to be built or the 24 ranges manning the 2 square km park or the 24 new vehicles they drive and renew every 12 months, this is the example of the continual over spending in the name to create bs jobs for the bs economy. same mindless shit goes on here when it comes to government or federal jobs.
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