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yes, well i actually explained this idea to mama sometime around thanksgiving, and she understood. She said "It sounds good."
Explained it to my dad (retired money manager) and he about had a heart attack. He still thinks banks are inherently better stewards of capital, and that U.S. households will simply blow money on crap from China rather than invest or deposit it.
yes, well i actually explained this idea to mama sometime around thanksgiving, and she understood. She said "It sounds good."
Explained it to my dad (retired money manager) and he about had a heart attack. He still thinks banks are inherently better stewards of capital, and that U.S. households will simply blow money on crap from China rather than invest or deposit it.
Ask him why then the bankers stuffed us like a birdy with yen. That is what got us to plop for the Toyota in the first place.
Ask him why then the bankers stuffed us like a birdy with yen. That is what got us to plop for the Toyota in the first place.
I asked him about this aspect of the monetary system. His response: "Well what about Barney Frank and Pelosi and Solyndra and Fannie and Freddie...... "
When we're back on speaking terms again, which should be soon, I'll have to remind him that I'm not a Democrat. It is sad what exposure to television news can do to an otherwise bright mind.
This is just cognitive dissonance, on his part, and on the part of many intelligent Americans. He knows about the Japanese zombie banks; he was investing in that environment. However he is still trapped in the idea that "private debt is always productive" and "public debt is always unproductive." His advice is currently to "buy everything you can, because Obama has expanded the monetary base."
I asked him about this aspect of the monetary system. His response: "Well what about Barney Frank and Pelosi and Solyndra and Fannie and Freddie...... "
Fannie and Freddie was bank pork from the beginning with a nice populist package. What a scam. Rising land values = death.
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When we're back on speaking terms again, which should be soon, I'll have to remind him that I'm not a Democrat. It is sad what exposure to television news can do to an otherwise bright mind.
This is just cognitive dissonance, on his part, and on the part of many intelligent Americans. He knows about the Japanese zombie banks; he was investing in that environment. However he is still trapped in the idea that "private debt is always productive" and "public debt is always unproductive." His advice is currently to "buy everything you can, because Obama has expanded the monetary base."
We are on year 4 . Oh the smell of a human mind burning rubber in a trench....
Big banks = the 4th branch of American government. I don't understand for the life of me while conservatives can pile on guys like Bernanke (appointed by Bush, by the way) while criticizing any attempt to reign in the power of our financial institutions as 'interfering' with the 'free market'. The private banks don't really operate by the rules of the free market. They operate with the assumption that they'll be bailed out by the taxpayer, and they have been and probably will be until these cancers run their course and overwhelm us completely.
Oh really? So when the interest sucks so much money out of the economy that a depression is an absolute certainty, this doesn't force the government to stabilize the bloated prices caused by the commercial banks?
I don't know where I get this stuff...except that is exactly what just happened right before our very eyes. So no, its the banks that that spewed the trillions on our economy.
you have to understand that intrest are governement policies. they are reponsible for causing the intrest rate to go up or down. its how they manipulate the the money supply. it has nothing to do with banks. bank simply go by the rules set by the government. so when interest is sucking money out of the economy, you can bet on the governent causing it!!
you have to understand that intrest are governement policies. they are reponsible for causing the intrest rate to go up or down. its how they manipulate the the money supply. it has nothing to do with banks. bank simply go by the rules set by the government. so when interest is sucking money out of the economy, you can bet on the governent causing it!!
You say that like it's a bad thing.
Today, the government can borrow at 1.95%, which is lower than inflation. The real interest rate is negative and absolutely no burden. A correction is that the interest rate on government debt is set by the buyers of that debt. If there are no takers, the rate goes up. When many are competing to buy the debt, the rate is low. It's the same reason interest rates on Greek debt is so high.
No, I just proved your axiomatic, monetarist formula false. Its junk economics. When someone is robbed, no new money is created, and it circulates when the crook spends it. Since the same amount of product exists(only in the hands of crooks), we have perfect economic equality( according to neo-classicals). Why I'd say banditry is self financing and frictionless. Should we convert victims into a resource pool and draw up a resource utilization curve ? That it?
Economics isn't about junk, axiomatic, mathematical expressions. Its about pattern recognitions, and then when fully vetted, can have descriptive formulas. Everyone knows crooks don't create wealth. 10 land owners for 1 worker doesn't create wealth. Only a neo-classical economist and landed gentry thinks such an economy is running at 100%. A real economist knows its running at under 10%.
the crook simply stole someone wealth. what does that has to do with economics. the crook simply effected the economic status of the person that was rob. too bad for that person call the police!! economics is all about common sense. pattern recognitions IS what the government uses to manipulate the money supply and IS NOT doing a very good job at recognizing or vetting patterns. crooks steal wealth that can be recovered, government destroys wealth that can never be recover!!!
Today, the government can borrow at 1.95%, which is lower than inflation. The real interest rate is negative and absolutely no burden. A correction is that the interest rate on government debt is set by the buyers of that debt. If there are no takers, the rate goes up. When many are competing to buy the debt, the rate is low. It's the same reason interest rates on Greek debt is so high.
I believe that it is a bad thing. why would anyone in their right mind loaned money out, put it at risk of loss for no gain!! correction, the U.S government sells secutities to the public at a fix price. if however there are no taker for all of the securities. the central bank steps in and purcases already outstanding government securities from the public.
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