Forward To Prosperity

Discussion in 'Politics' started by LogikAndReazon, Nov 7, 2012.

  1. LogikAndReazon
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    LogikAndReazon Gold Member

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    Lets Borrow, Print and Spend at least 50 Trillion on "Stimulus" to really get the economy moving........

    The people have wants and needs, and progressives have the answers .........
     
  2. konradv
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    konradv Gold Member

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    Apparently along with "unskewed" and "fair and balanced" being used as codes for just the opposite, now we have "logic and reason"!!! :eek:
     
  3. TakeAStepBack
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    TakeAStepBack Gold Member

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    Seriously. It's exactly what the federal reserve should do, and the prez. should instigate it.
    Just think of how many people we can feed, cloth, shelter and put through public school if we just loosen up this extremely tight monetary policy and push off 50 trillion on M1.

    It really is a great idea. 50 trillion may not be enough. We could do 100 trillion, if the 50 doesn't work out as planned.
     
  4. Vel
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    Vel Gold Member

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    How Quantitative Easing Causes Unemployment And Reduces Growth
    November 7, 2012

    This article shows that the actual effect on the economy slows real wage and employment growth, thus restraining GDP growth and negates a wealth effect through the following mechanism:

    GDP is a return on the economy's total asset base.
    Wherein capital and other asset formation normally occurs in proportion to GDP growth and where growth is the required return on capital formation.
    The long run return on capital and labor is equivalent.
    QE has created an abnormal (excess) supply of new capital which necessarily lowers its available real return from GDP growth. This requires that real wage growth also stagnate because low capital returns cannot accommodate real wage growth. Stagnating real wage growth, normally equal to productivity growth, depresses real GDP growth.
    Worse, the 2008-09 recession should have resulted in deflation as both the non-performing assets and the associated false real wage growth were wrung out of the economy. Fiscal and monetary policy prevented price and wage deflation, leaving a wage level that cannot accommodate full employment. The consequences are impaired GDP growth and high structural unemployment and fiscal deficits.


    How Quantitative Easing Causes Unemployment And Reduces Growth - Seeking Alpha
     
  5. TakeAStepBack
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    TakeAStepBack Gold Member

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    The interest rates should go -5% too. That is how you know you can borrow until....well, until you can't borrow another piece of zinc.
     
  6. TakeAStepBack
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    TakeAStepBack Gold Member

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    Just think of what -5% interest rates would do for your savings!!! Savings? Who needs savings! We can borrow, brah.
     
  7. LordBrownTrout
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    LordBrownTrout Gold Member

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    Let's just print everyone a trillion dollars and be done with it. Let's get this utopia going. I'm ready for some trinkets.
     
  8. TakeAStepBack
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    TakeAStepBack Gold Member

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    That's teh spirit!! Embrace the LOLberal principles, man. It will make the next four years so much more enjoyable.
     
  9. TakeAStepBack
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    TakeAStepBack Gold Member

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    and you geta trillion dollars! Gas will be 500 billion a gallon, but you'll have a TRILLION dollars!!!! Everyone will! It's fucking brilliant!
     
  10. LordBrownTrout
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    LordBrownTrout Gold Member

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    I believe!!! Hands open!!
     

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