Comments on Saving to Inve$t: Funding the Bailouts by Printing Money and Issuing...

The dilemma is the domestic's work costs are still...

2009-06-20T01:24:20.654-04:00

The dilemma is the domestic's work costs are still based on the standards only made achievable by monopoly power.
However does anybody sincerely consider this car bailout is regarding liquidity?

We can't print money but the government can. Let's...

2009-04-02T22:27:00.000-04:00

We can't print money but the government can. Let's hold the government to the same standards as the citizens of this country. Printing money is NOT the only way to solve our economic problems. There are several other ways that all add up to cutting taxes on free enterprise which got us to be a world leader...The talk group at Target

The problem is borrowing interest-bearing debt not...

2009-02-28T05:22:00.000-05:00

The problem is borrowing interest-bearing debt notes from a private banking system. End the FED or put it under Treasury and use the FED's zero interest borrowing power to put credit into the system instead of debt--money that can go directly toward goods and services and not to servicing "interest" for private bankers and investors.

Interesting to see that Anna Schwartz is in favour...

2009-01-25T17:47:00.000-05:00

Interesting to see that Anna Schwartz is in favour of printing money. She co-authored some of Milton Friedman's most important works. And she and Friedman were very much AGAINST sudden money supply increases. They advocated a small annual increase of 2% or so. If she of all people now advocates printing significant amounts of money, this bolsters the case for money printing.

As to whether this money printing means hyperinflation in a few years, it all depends on whether central banks and governments can claw back the money or clamp down in other ways, and at the right moment. Or in the words of a former Fed chairman William McChesney Martin, the job of a central bank is to "withdraw the punch-bowl just as the party gets started".

Good call on Citigroup. Here is a light hearted ta...

2009-01-14T19:35:00.000-05:00

Good call on Citigroup. Here is a light hearted take on Citi's too big to fail model:

http://www.talkstocktrading.com/is-citigroup-a-tommy-big-business-and-the-martin-lawrence-connection/

I don't think we're in for a decline in an absolut...

2009-01-14T13:16:00.000-05:00

I don't think we're in for a decline in an absolute sense, but this debt will weigh on our growth for generations to come. We will almost certainly go into relative decline and be surpassed as the world's largest economy at some point in the next 50 years. Overall, I think living standards will continue to rise over the long-term, albeit much slower than before. And I think I'm being pretty optimistic in saying that.

Andy,The problem is that other countries like Chin...

2009-01-14T11:28:00.000-05:00

Andy,

The problem is that other countries like China, or the arab nations do not have anywhere else to put their foreign currency reserves but in US gvt debt.
Most foreign central banks alos hold the majority of their currency reserves in US dollars. they won't keep them in chinese yuans or japanese yen.
In addition to that, if the Chinese and arab nations stop buying US debt, then they will have smaller revenues which will increase their unemployment and thus increase social unrest there.
It is in the best situation for the world economy that the US economy doesn't fall further.
I also doubt that the money that the FED gave to the banks increased money supply that much and will cause hyperinflation, since banks are mostly hoarding cash, and the money velocity seems to be decreasing. (deleveraging anyone).

Without any real demand for goods and services we won't have any inflation, but we will have deflation, even if the FED gave everyone more money.