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Old 10-04-2011, 09:48 AM
 
Location: The Republic of Texas
61,154 posts, read 31,007,198 times
Reputation: 13028

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Bernanke admits his only tool is Monetary easing!!!!


Bye-bye Middle class and the very very hard times for the impoverished that has been growing daily, because of QE-1 and QE-2 and the other sneaky ways to keep the presses going to bailout nations... 16 Trillion he printed just to bailout foreign banks in Europe!!!
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Old 10-04-2011, 10:07 AM
 
31,385 posts, read 31,185,018 times
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With the interest rate nearly at 0% there ain't a frackin load of stuff left for the Fed to do. As for them furin banks, you must be living in the early 20th century because you must think that global financial systems are still independent of each other.

(seems like folks have short memories and have forgotten how the failure to bailout Lehman shook financial markets across the globe, bring us in part to where we are today).
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Old 10-04-2011, 12:34 PM
 
Location: San Francisco, CA
12,930 posts, read 10,280,225 times
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Hmm...hello..this is pretty much the definition of the a central bank. The only direct levers they have are money supply and interest rates.
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Old 10-04-2011, 12:53 PM
 
2,515 posts, read 1,664,668 times
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That is why I'm all for a big bump in the minimum wage. There are two ways out of a liquidity trap: One, write off/retire a lot of debt. Two, radically increase wages to support more debt. Upping the minimum wage enough is herder on the top end than the the bottom end.
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Old 10-04-2011, 12:54 PM
 
3,458 posts, read 3,006,504 times
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Quote:
Originally Posted by BentBow View Post
Bernanke admits his only tool is Monetary easing!!!!
is this a surprise?
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Old 10-04-2011, 01:04 PM
 
Location: Londonderry, NH
41,505 posts, read 49,770,564 times
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If you can accept the concept that debt is the basis for money then this move makes sense. If debt is either canceled or paid off the money supply shrinks and the house of cards economy collapses. Talk about being caught between a rock and a hard place.

I am still having some trouble with the debt = money part. But what else is money anyway? A dollar is just a promise to a merchant that he can pay his supplier, or the bank for his loan, with the dollar I just spent on a soda.
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Old 10-04-2011, 01:09 PM
 
Location: Portland, OR
9,601 posts, read 9,472,580 times
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Quote:
Originally Posted by newonecoming2 View Post
That is why I'm all for a big bump in the minimum wage. There are two ways out of a liquidity trap: One, write off/retire a lot of debt. Two, radically increase wages to support more debt. Upping the minimum wage enough is herder on the top end than the the bottom end.
Ok, that could work, but, at minimum wage how long would it take until a critical mass of conumer confidence took over the economy? How about the next time the bankers (they are coming soon) belly up to the counter slurring their familiar refrain: "Gi' me another (hic)" the Fed says, "erm, you've had enough buddy, next round is for the people". A Treasury Cheque for ~$20,000 to each and every registered American household (~115,000,000) would be less than what the banks would claim they need to keep going. Keeping their banks going has taken Ireland, Iceland, Greece, Portugal, Spain and other large economies permanently offline. Nationalize them all and save the free world.

H
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Old 10-04-2011, 01:25 PM
 
2,515 posts, read 1,664,668 times
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Print a bunch of money and give it to everyone. I'm talking about $30 hr for the minimum wage. That should give about 1/2 of the workers a raise. The others would be say I want one as well. A check of about $3k per person would get the economy going and if it doesn't then give them another one.
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Old 10-04-2011, 01:27 PM
 
Location: The Republic of Texas
61,154 posts, read 31,007,198 times
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Quote:
Originally Posted by newonecoming2 View Post
That is why I'm all for a big bump in the minimum wage. There are two ways out of a liquidity trap: One, write off/retire a lot of debt. Two, radically increase wages to support more debt. Upping the minimum wage enough is herder on the top end than the the bottom end.


Well, they are raising it in some states...

.35¢ an hour.
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Old 10-04-2011, 01:30 PM
 
26 posts, read 10,980 times
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Quote:
Originally Posted by GregW View Post
If you can accept the concept that debt is the basis for money then this move makes sense. If debt is either canceled or paid off the money supply shrinks and the house of cards economy collapses. Talk about being caught between a rock and a hard place.

I am still having some trouble with the debt = money part. But what else is money anyway? A dollar is just a promise to a merchant that he can pay his supplier, or the bank for his loan, with the dollar I just spent on a soda.
Do you think the Gold Standard need to be reinstituted?
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