Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
1. print $1T or so and give it to everyone in the US at $1k per month. 3~4 months or so should get the economy booming.
2. Tax the payment of interest on debt. We have way too much debt and we need the creation of new debt to slow down and the existing debt to be retired. Also we need to keep the interest on the national debt from getting too high so taxing the payment of interest on debt will raise the interest rate on privately held debt without raising the interest rate on publicly held debt.
3. require banks to hold a minimum balance with the federal reserve bank. This will be used to soak up the new money being printed so that we don't have hyper inflation.
4. set up a national savings plan in credit unions. Countries with high savings rates tend to have higher exports than imports regardless of rates of pay.
5. Raise the minimum wage to 20$/hr or so. Doing it in steps every 6 months or so will inflate wages and prices to match the inflation in assets that we have had with the real estate boom that we had in the 00's.
We should be able to have a stable economy in a matter of months from the time the first check goes out to everyone and then it is just a matter of keeping the economy growing in a sustainable manner.
It doesn't seem you're accounting (pun intended) for the US currency and its global reserve status... No matter what we may come up with, the rest of the world isn't necessarily going to play along. It's a fiat currency - we lost control of it - I don't think you can sum up fixing this mess in 5 steps.
A steady diet (they pumped $5bil in today alone) is keeping the market propped because that's what sheeple look at it. People are beginning to notice and even the MSM is leaking some real info. The pension funds are what is going to get noticed first - at some point the checks will stop coming... Iceland, Greece, et al becoming completely insolvent will barely get a headline. Wait until people don't get their retirement payments.
It doesn't seem you're accounting (pun intended) for the US currency and its global reserve status... No matter what we may come up with, the rest of the world isn't necessarily going to play along. It's a fiat currency - we lost control of it - I don't think you can sum up fixing this mess in 5 steps.
A steady diet (they pumped $5bil in today alone) is keeping the market propped because that's what sheeple look at it. People are beginning to notice and even the MSM is leaking some real info. The pension funds are what is going to get noticed first - at some point the checks will stop coming... Iceland, Greece, et al becoming completely insolvent will barely get a headline. Wait until people don't get their retirement payments.
We have our debt valued in $USD We need to make some moves like I've outlined before the world wakes up and realizes we are insolvent. Inflating GDP by 200% would do wunders for our abilaty to cover our debts. The 5 steps are how to inflate GDP by about that amount an not loos comtrol of the situation. Long term we would need a high nainal saving rate. This will tend to balance trade and also we need to stop burning oil for personal tranceperation. PV for EV but the five steps will get us started and it is simple enough for most to understand.
http://boombustblog.com/reggie-middleton/2010/09/22/the-illinois-teachers-pension-issues-more-answers-to-its-media-critics-i-add-in-my-22-cents-2-cents-levered-11x/ (broken link) Not looking good for the pension fund. Not good at all. I don't like the looks of it.
Investment research | Front Page - (http://boombustblog.com/reggie-middleton/2010/09/28/this-gloomy-bloomberg-housing-article-is-not-gloomy-enough-and-would-be-gloomier-if-all-of-the-facts-came-to-the-forefront/ - broken link) Well it really is not looking good for the economy
Just like the decade long depression of the 1930's. long lasting.
Government involvement just prolongs the suffering, as they think they can control it. All they do is make it worse with unsure citizens.
The 1920 depression, compared to the 1930's depression, compared to the 2009 depression.
Who had the right idea and which of them was the worst drop in economic depression, not the longest lasting?
What did they do in 1920, that they didn't do in 1930's and today?
In the 1920s they did what Bush did. They gave lots of money to the rich. Everybody else purchased on debt. The bubble burst in 1929. Then the 1930s happened.
What took the U.S. out??? Americans going to work in WWII. The general population were all working and had spending power based on income. NOT debt.
Until salaries for lower and middle class rise, increasing the spending power, we won't get out of this problem.
I suggest you listen to this. It makes a lot of sense. Think of it in longer terms than just a few years or individual recessions. The bubble was building since the idiot actor took office and slashed taxes on the wealthy. Clinton didn't help and Obama doesn't have the b@!!$ to get what needs to be done done.
Front Page (http://boombustblog.com/reggie-middleton/2010/11/10/the-month-in-review-and-more-importantly-how-the-shadow-inventory-system-in-the-us-is-disguising-the-equivalent-of-a-dozen-ambac-bankruptcies/ - broken link) Are the chickens coming home to roost?
"So, where do we stand after this link ridden, event filled 30 days or so? Well, the bankruptcy of Ambac is telling, for they succumbed to cash flow issues. They were definitely balance sheet insolvent, but to fall due to cash flows shows exactly how bad the mortgage market really is. You see, those CDS contracts were written quite favorably in Ambac’s favor, allowing extended payout periods and relatively long loss tails (at least relative to what most may assume). It is not as if a claim appears and Ambac has to pay out everything the next day. If, even with the loss tails, assistance, government bubble blowing, ZIRP, and regulatory agencies officially looking the other way, the insolvent still fall into bankruptcy, then the proverbial “Houston, we have a problem!” soundbite is called for.
A few readers have emailed me asking for my opinion of the result of this slow motion train wreck. Well, outside of everyone staring down MBIA and its peer group, let’s not forget who Ambac et. al. insured. Basically, at least in the structured finance space, they worked to allow banks to move junk assets to unwitting buyers and/or release risk reserves with a faux AAA or near investment grade rating. In bankruptcy, I think its fair to say that Ambac is no longer investment grade – even to S&P and Moody’s!!!"
Some good reading.
Last edited by newonecoming2; 11-10-2010 at 11:20 AM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
green shoots shot down
