Since the Keynsian multiplier has been found to be less than one, it
really makes no sense as a policy. In fact it seems to actually inhibit
economic growth in the mid term.
On 11/16/2010 7:07 AM, eckinator wrote:
no on Japan but just looking at the recent developed of the euro -
dollar - gold triangle is scary, there is no real world backing for
that. plus the European Central Bank with its guarantee to buy back
bad EU member bonds has opened a euro dollar swap gate which China is
making good use of - they've been heavily buying those bonds with
their USD reserve and selling them back to the ECB, thus far to
equivalent to 9% of the greek GNP and they'll keep doing so with other
EU bad bond members as well. also, the idea of an artificial inflation
as pursued by Bernanke just postpones the bursting of the - then
bigger - bubble. the amount of USD in circulation vs national reserve
ratio has changed dramatically over the past years. you can't do
Keynes 1 (artificial growth through overspending borrowed or printed
money) over and over without a thought to Keynes 2 (consolidation and
debt reduction). look at what happened to Greece when its CDS ratings
went to the shitter and you know the next thing to happen to anyone
with a GNP to debt ratio like theirs without some consolidation... all
Bernanke wants to do is fuel the economy by giving people the idea
that it is a good thing to spend money they don't have until those
loans go bad again... or the economy regains momentum which
incidentally didn't happen the last couple of times this was tried...
2010/11/16 Bob Sullivan<rf.sulli...@gmail.com>:
Peter,
No reason to believe Bernanki isn't just as good or better than
Greenspan and the others.
Remember Greenspan is the guy who brought you the mortgage/housing bubble,
talk about irrational exhuberance? ! ! !
I can't believe folks want to take us back to 1932 and Depression
monetary policies. :-(
Anybody checked Japan's growth lately?!?
Regards, Bob S.
On Mon, Nov 15, 2010 at 9:54 PM, P. J. Alling
<webstertwenty...@gmail.com> wrote:
The Fed is supposed to manipulate the economy within certain limits. Mostly
to anticipate the size of the money supply required to match economic
activity, to smooth out peeks and troughs due to natural variations. Money
acts as a lubricant in an economy, and just as with an engine the wrong
amount of oil will ruin it . The fact that The Fed has proven to be utterly
incompetent at it's task, about 3/4 of the time and the Obama administration
has chosen them to implement policies well beyond it's original scope,
(which did I mention it is often incompetent at), just scares the bejesus
out of me. The current Fed Chairman isn't Milton Freedman, he isn't Paul
Volcker, he isn't even Allen Greenspan, at least Greenspan had some idea
that something was going wrong...
On 11/15/2010 10:38 PM, Daniel J. Matyola wrote:
The point of manipulating the economy is not whether what is done is
good or bad; the point is to manipulate the economy.
Dan
On Mon, Nov 15, 2010 at 10:30 PM, P. J. Alling
<webstertwenty...@gmail.com> wrote:
I've seen it. The only problem I have with it is that they seem to think
that deflation is good. It isn't any better for the economy than massive
inflation, just bad in a different way.
On 11/15/2010 10:30 PM, Daniel J. Matyola wrote:
http://www.youtube.com/watch?v=PTUY16CkS-k&feature=player_embedded
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