Feedback please

Discussion in 'Economy' started by loosecannon, Sep 30, 2010.

  1. loosecannon
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    loosecannon Senior Member

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    Read this: http://www.nytimes.com/2010/09/27/opinion/27krugman.html?ref=paulkrugman and then consider this question:

    If we are locked into debasement as a strategy to weaken the dollar and improve our trade deficit, AND locked into deep unemployment gridlock, doesn't it begin to make sense to start direct stimulus measures based not on deficits but on debasement practices?

    The fed could, for example, lend directly to US consumers at zero interest sparking small business investment and even a whole range of personal infrastructure improvements like weatherizing your home, installing solar panels, buying that electric auto, blah blah.

    The point is that wouldn't debasement dollars be best spent directly generating demand in the USA? So what if the default rate was high? The money would be spent and the economy would realize a benefit, without increasing federal deficits.

    Is it time for the "helicopter Bernanke" approach?
     
  2. uscitizen
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    uscitizen Senior Member

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    I have said all along that the USA would have benefitted more if the stimulus money was devided up and given to the citizens.
     
  3. Bill Angel
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    Bill Angel Gold Member

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    If the fed loaned money at zero interest to Americans to buy electric automobiles, would the autos that they bought be manufactured in the USA or in Japan? Would the autos be produced by General Motors, or would they be Japanese models produced by Nissan or Toyota?
     
  4. loosecannon
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    loosecannon Senior Member

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    I'd like to say made in the USA!
     
  5. william the wie
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    william the wie Gold Member

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    This idea needs some work. I think the question is worded wrong for your purposes, how about:

    "What's the best way to use currency debasement to grow the US economy?"
     
  6. loosecannon
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    loosecannon Senior Member

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    only because the operative question these days is how to create jobs, spark demand and reduce unemployment.

    The secret to fixing the economy is simple, full employment, managable wage stability.

    But you are right the key is how to use debasement money to do that.

    Debasement is a printing press. So why not send that money where it will do some good instead of using it to buy other currencies? Or 10 year bonds etc.
     
  7. loosecannon
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    loosecannon Senior Member

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    JP Morgan just weighed in with their own version of the same:

    J.P. Morgan’s $1.5 Trillion Bailout of America - Robert Lenzner - The Bottom Line - Forbes

    I liked my plan better! Fuck the banks, bypass the banks and lend direct to citizens! They won't lend, they are most of the problem. They can't even manage the paperwork.
     
    Last edited: Sep 30, 2010
  8. Neubarth
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    Neubarth At the Ballpark July 30th

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    Because of our present treaties, our government can not offer a stimulus to the American people unless we are ensuring that it can be used to buy foreign product also.

    Elect me President, and I will declare all treaties null and void. If Congress disagrees, I will declare Congress to be null and void. If the Supreme court disagrees, they will also be declared Null and Void.

    Probably a good idea not to elect me.
     
  9. Dis
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    Dis Guest

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    Well, at least you've put some friggen clothes on, thank God.
     
  10. Paulie
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    Paulie Platinum Member

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    Because the Fed doesn't give a fucking horse's nutsack about the citizens.

    I hope you realize that.
     

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