Going for broke?

Discussion in 'Economy' started by loosecannon, Dec 15, 2010.

  1. loosecannon
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    loosecannon Senior Member

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    There is a well known gambling trick that is guaranteed to always earn you money provided that the table keeps playing and you can afford the stakes.

    Every time you lose you double down. 2>1, 4>1+2, 8>1+2+4 etc.

    I am beginning to get the feeling that a policy decision has been made involving the fed and the Federal government to double down as long as it takes until we win.

    A) the reaction to the second announcement of QEII was disproportionate considering the same announcement a few weeks earlier hardly caused a ripple in the force field

    B) even within Fed Board circles the second announcement caused a significant split

    C) the Congress and WH seem to have lost their minds just within the last few weeks piling on massive amounts of new deficit spending even in the wake of public warnings from....

    D) ...Moody's that this course will lead to our credit rating being downgraded

    E) the deficit reduction committee that was considered a serious concern just a month ago is being ignored by all

    F) China hasn't broken the peg and doesn't look likely to do so, but expressed measured alarm over QEII, as did Germany, and publicly

    G)as a last ditch effort, in a real emergency, it makes good economic sense to double down until you win, esp when your fed can print more money than anybody

    If I am wrong then everybody in DC belongs in an asylum.
     
  2. xotoxi
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    xotoxi Platinum Member

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    Exiting thread.
     
  3. william the wie
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    william the wie Gold Member

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    Strange to see this. About an hour ago I was having this same conversation in regards to my gambling degenerate brother. 1T, 2T, 4T but 8T only after the debt limit is raised. The Fed can play with that limit a little but not much and if 7 trillion does not cause a bubble then that is all she wrote and everybody but the Fed knows it.
     
  4. loosecannon
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    loosecannon Senior Member

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    But that's the thing, Willie. IS there a limit? In a world in which all currency is fiat and every nation in the world wants to debase their currency there is no limit at all, ever.

    Antagon called this a game of chicken. But the deal is we can print the most money by far as long as our money is the last refuge. So in the end we not only win but we accomplish what globalization intended.

    Unless of course everything goes horribly wrong. But when you are going for broke you have already resigned yourself to the worst.
     
  5. Mr. H.
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    Mr. H. Diamond Member

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    If it ain't broke, keep trying to fix it.
     
  6. Revere
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    Revere BANNED

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    The Fed can't print jobs.
     
  7. william the wie
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    william the wie Gold Member

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    Destroying the currency through unchecked hyperinflation or even the attempt would lead to a constitutional convention or more violent form of revolution. Obama would shut down the Fed immediately if it were attempted.
     
  8. loosecannon
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    loosecannon Senior Member

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    No way, Obama is in, hence his crazy compromise on the tax cuts. His crazy abandon toward spending as if there is no tomorrow.
     
  9. loosecannon
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    loosecannon Senior Member

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    yeah they can.
     
  10. Revere
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    Really? When do they kick in?
     

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