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Really? The national debt is about half the mortgage credit created during the housing bubble from 2001-2008. That pumped 27 trillion dollars into circulation and you think just da guberment is behind inflation?
The government encouraged the Housing bubble. That aside, even if there were bubbles that also added to inflation in the past in no way dismisses my arguement about why profits can currently be so high while the economy is still dragging.
Are you saying that the QE programs did not do what I stated they did?
Now, is Wall Street desperately searching for the next bubble? Yes, I'm sure they are. Until then they will be satisfied with QE3.
You do understand, our wealth of this nation, is being redistributed to all other nations.
Actually I don't. Its the opposite. We export debt and import goods and services. To the point that we mover operation overseas and lose intellectual property because of it is a side effect. However what are officially consuming what the world produces.
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You cannot see how though, or the methods they use to fool the ignorant to not see it right off until it is too late.
We would not have a private debt, if everyone was working and paying into the system, keeping the central government out of the economy.
The only way to get out of private debt is to increase the public debt else you get a depression. All money is debt either in the form of da guberment debt or bank credit.
The only way to get out of private debt is to increase the public debt else you get a depression. All money is debt either in the form of da guberment debt or bank credit.
Yes, there is not enough demand for debt to maintain high Wall Street numbers. So the government creates this demand. That can not go on forever. There is nothing wrong with some very slow, anemic growth.
We are under no obligation to maintain Wall Street profits. If it's not good enough, actually create something.
The government encouraged the Housing bubble. That aside, even if there were bubbles that also added to inflation in the past in no way dismisses my arguement about why profits can currently be so high while the economy is still dragging.
Fine but don't imply the private sector is not also to blame.
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Are you saying that the QE programs did not do what I stated they did?
I really have no idea what they think it will do. What it is doing is propping up asset prices , real estate in particular, to be too expensive and thus destroying the economy. Credit should be flowing to consumers and labor while heading off conspicuous consumption from overseas.
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Now, is Wall Street desperately searching for the next bubble? Yes, I'm sure they are. Until then they will be satisfied with QE3.
They are just enjoying ZIRP which has given investment banks free money for gambling overseas where they will keep what they win and socialize their losses as usual.
Yes, there is not enough demand for debt to maintain high Wall Street numbers. So the government creates this demand. That can not go on forever. There is nothing wrong with some very slow, anemic growth.
We are under no obligation to maintain Wall Street profits. If it's not good enough, actually create something.
Why do people think it cannot go on forever? The Fed has an infinite balance sheet. "Debt" in that form is limitless.
Fine but don't imply the private sector is not also to blame.
I never did. I answered why profits could still be so high even though the economy still sucks.
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I really have no idea what they think it will do. What it is doing is propping up asset prices , real estate in particular, to be too expensive and thus destroying the economy. Credit should be flowing to consumers and labor while heading off conspicuous consumption from overseas.
Housing is still falling. You can't force consumers to spend. If I wanted a loan, I could go get one with no problem. Asset prices were artifically propped up by as you note, the housing bubble. It is wrong to believe that those artificial prices should have been propped up. They should have been allowed to find their bottom and the lumps taken.
Now that it's been shown that the government will not allow that, it's on to find the next bubble.
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They are just enjoying ZIRP which has given investment banks free money for gambling overseas where they will keep what they win and socialize their losses as usual.
Yes, government working hand in hand with the big investment houses at the expense of main street.
Why do people think it cannot go on forever? The Fed has an infinite balance sheet. "Debt" in that form is limitless.
At some point those holding the debt are going to demand a return. Yep, we can print and print and print money but then those holding the debt will tire on pennies on the dollar.
I never did. I answered why profits could still be so high even though the economy still sucks.
OK
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Housing is still falling. You can't force consumers to spend. If I wanted a loan, I could go get one with no problem. Asset prices were artifically propped up by as you note, the housing bubble. It is wrong to believe that those artificial prices should have been propped up. They should have been allowed to find their bottom and the lumps taken.
Agreed. What should have happened is the opposite. Interest rates should rise and taxes should have fallen, particularity regressive taxes like SS . Interest rates is the bank tax rate, now at zero.
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Now that it's been shown that the government will not allow that, it's on to find the next bubble.
Also agree they want to find some sponge to absorb more private debt. That is what carbon credits is all about. They have monetized the land and the water, now its time to monetize the air.
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Yes, government working hand in hand with the big investment houses at the expense of main street.
obama "stimulates" the economy with $800 BILLION DOLLARS.
Not one net job created.
obama suggests tax credits for new hires....very few takers.
obama suggests tax credits for businesses to hire veterans......very few takers.
WHY?
If there is NO demand for a product, a business doesn't need any more employees. Employees cost money.
It's as simple as this....get rid of the corporate tax rate, get the EPA under control.
Make America business friendly and jobs will follow.
You'll see proof once Mitt Romney is POTUS!
That is quite possibly the least efficient thing you can do if you are cutting taxes. As you said demand for a product is what fuels hiring employees. The fact is corporations do not create demand. Final end consumers create demand and a corporation by its very nature will never be a final end consumer since it is concievbly only purchasing stuff to provide a good or service and make a profit. If you are going to have a tax cut that creates demand you should be cutting payroll and individual income taxes particularly on the lower income folks in since lower income people tend to spend a far higher % of their income which goes 100% into demand. Personally more effective then any tax cut really would be to just do a massive infrustructure program since that would create tons of final use demand and put money into the pockets of working class and middle class folks who will create even more final end demand
If you cut corporate taxes you accomplish nothing because you are not creating any final consumer demand at all. In fact you are mostly creating savings as you can see from the massive cash stockpiles most corporations are sitting on, because there is limited consumer demand and thus not an incentive to invest.
Agreed. What should have happened is the opposite. Interest rates should rise and taxes should have fallen, particularity regressive taxes like SS . Interest rates is the bank tax rate, now at zero.
I agree that this should have been done long ago. We are now in a position that makes that far harder.
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Also agree they want to find some sponge to absorb more private debt. That is what carbon credits is all about. They have monetized the land and the water, now its time to monetize the air.
Yep, carbon taxes are not about the environment.
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You are OK by me, pknopp.
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