Going for broke?

[loosecannon]

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.

 

[xotoxi]

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.

Exiting thread.

 

[william the wie]

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.

 

[loosecannon]

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.

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.

 

[Mr. H.]

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

 

[Revere]

The Fed can't print jobs.

 

[william the wie]

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.

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.

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.

 

[loosecannon]

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

 

[loosecannon]

The Fed can't print jobs.

yeah they can.

 

[Revere]

Really? When do they kick in?

 

[william the wie]

Really? When do they kick in?

They won't.

 

[loosecannon]

Really? When do they kick in?

When they reduce American labor cost/efficiency below the labor cost/efficiency of our foreign competition. DUH.

Do have a clue what globalization is?

 

[loosecannon]

Really? When do they kick in?

They won't.

They will, it's already in the works, a fast track to the bottom, for the sake of the nation.

 

[Revere]

Ah, poverty will bring back prosperity.

 

[loosecannon]

Ah, poverty will bring back prosperity.

yes it will, relatively speaking.

Globalization offers no alternative except poverty without prosperity.

Of the two which do you prefer? And please answer without BS. If that is possible on your part.

 

[Revere]

If everyone is sent into the rice fields at gunpoint, everyone will be prosperous again.

 

[loosecannon]

You mean if everyone is sent to work at their ordinary place of employment for wages on par with Brazil or Spain, America will be prosperous again then yes.

Why do you lie intentionally? Do you think that nobody will notice that you are a serial liar and that your own party is way down with destroying our prosperity?

 

[Revere]

Do you think nobody will notice when the US regresses to a third world nation to assuage the sense of social justice and self-hate of a temporary President?

 

[Revere]

Obama's brother lives in a cardboard box. Despites his millions, Obama doesn't lift a finger to change his brother's situation. Is there any evidence Obama would do any more for hundreds of millions of Americans he doesn't even know?

 

[william the wie]

This is a meaningless conversation as long as bond prices are dropping, which is the case currently. A private switch over to precious metals and private monies will emasculate any double down strategy by the Fed.