We all know that printing money isn't a good economic policy.
If printing money worked for an economy, then Zimbabwe would be Switzerland and Argentina would be wealthier than the United States. Incredibly, the world's "smartest" and most powerful economic mandarins have all adopted debt monetization (aka quantitative easing) as their core economic lever.
Anyone with a shred of common sense... or any understanding of human nature (or history)... knows this won't work for long. After all, not paying debts is a lot easier and more fun than facing a sober and sound economic reality.
Alas, there is no Santa Claus.
And, sooner or later, global confidence in this gigantic paper-money swindle will disappear, like blowing out a candle.
It isn't supposed to. As soon as the economy comes out of recession and all resources are being worked at close to capacity, you don't need to stimula te the economy any more, and in fact have an urgent need to shut down any s imulation programs.
The sober reality of an uncorrected recession is that the economy shrinks - by 1933 the US economy had shrunk by 25% vis-vis 1929, and it took twice a s long to build it back up to the 1929 as it had to shrink it.
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A non-shrinking economy isn't exactly Christmas, but it beats the pants off a shrinking economy. Because a shrinking economy is a deflating economy, a ll the debts you have before the economy started shrinking are harder to pa y off than they were, so accepting extra debt to prevent that situation isn 't irrational.
It's not any kind of swindle, and global confidence has had a number of dec ades to see exactly how well it works - and where it actually does go wrong , and why.
There are plenty of flat-earth economists around, because all the guys who own a lot, and have people owe them money just love depressions - what they are owed is worth more, and they can buy up their competitors for very lit tle.
The rest of us are a lot less fond of depressions. Your problem isn't with economics - which you don't understand any better than any of the other sub jects you sound off about - it's in coping with stuff that's complicated en ough to be useful.
Flipped any burgers recently ?>:-} ...Jim Thompson
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| James E.Thompson | mens |
| Analog Innovations | et |
| Analog/Mixed-Signal ASIC's and Discrete Systems | manus |
| STV, Queen Creek, AZ 85142 Skype: skypeanalog | |
| Voice:(480)460-2350 Fax: Available upon request | Brass Rat |
| E-mail Icon at http://www.analog-innovations.com | 1962 |
Thinking outside the box... producing elegant solutions.
"It is not in doing what you like, but in liking what you do that
is the secret of happiness." -James Barrie
Yeah you can have an American made Gibson or Fender if you think an American made model is worth the 800% markup compared to a Korean or Mexican-made model. Is an American made Gibson an 800% better guitar?
What planet are you on? The Fed just raised interest rates and announced it will unwind $4.5 trillion at rates between $6 billion per month and up to $30 billion per month. The Fed is shrinking the money supply. It's destroying money not printing money.
Yep. I just did a few calculations and it ain't pretty.
We'd have to cut total annual federal spending about 30% just to make the interest payments. They're not going to do that, so I s'pose we'll have some inflation, to inflate the debt away instead.
The Chinese are. Ask Taiwan and Japan about that. ...Jim Thompson
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| James E.Thompson | mens |
| Analog Innovations | et |
| Analog/Mixed-Signal ASIC's and Discrete Systems | manus |
| STV, Queen Creek, AZ 85142 Skype: skypeanalog | |
| Voice:(480)460-2350 Fax: Available upon request | Brass Rat |
| E-mail Icon at http://www.analog-innovations.com | 1962 |
Thinking outside the box... producing elegant solutions.
"It is not in doing what you like, but in liking what you do that
is the secret of happiness." -James Barrie
it will unwind $4.5 trillion at rates between $6 billion per month
The problem with John Larkin is that he has got no idea how remarkably igno rnat he is - a feature he shares with Jim Thompson.
As long as the government wants to borrow new money, it has to pay competit ive interest rates. As long as it is seen as a reliable borrower, unlikely to default, it can get away with offering the lowest interest rates on the market, but they still have to be competitive with the higher rates offered by more risky borrowers.
As usual, John Larkin has got his logic backwards.
James Arthur's "calculations" are s unrealisitic and over-simplified as his political arguments, and serve exactly the same purpose - deception.
Modern economies figure on a steady inflation at about 2% to 3% per year. Central banks try to keep the economy running at levels that delivers this.
James Arthur's politico-eonomic prescription would have delivered a Great Depression style economic contraction after the GFC - which had shrunk the US economy by 25% over the three years 1930-33, and cut consumer prices by the same proportion.
That was deflation, which was great for those who had money, and hell for anybody with debts (including the government).
Gibson's and Fenders are definitely way, way overpriced.
I think the Carvins are great. You can chose from a huge range of options. Way better, imo, that something like a PRS. They have a straight through body neck for starters.
I've been playing the same Korean-made Epiphone LP gold-top for the better part of forever; I think I paid around $400 for it new circa
1995. I invested around another $150 in it sometime in the late 1990s for a new set of tuners and pickups.
I've played other people's American LPs and I think mine feels every bit as nice. Maybe I'll get another axe someday; I've kinda been feeling like I need something Telecaser-esque in my life
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