Posted on 03/06/2009 9:26:46 AM PST by Shellybenoit
I think it is very doubtful that the Fed will take that route for the simple reason that they are an (nominally) independent institution. This country has never had hyper-inflation - I don't see the Fed & Congress (which would have to raise the debt ceiling and authorize the sale of Ts in the first place) willing to chance a Zimbwabe.
(Btw, a more logical explanation is that if printing money was effective, why would anyone ever work? Why haven't societies for 1,000s of years just created money?)
Either way works towards destroying the welfare state, which is our chief objective. Anyway, at the end of the day, someone is going to have to take the boy aside and explain to him that the game is over. We'll have significant budget cut backs and the Commies will have to plot for another generation.
That being said, I think 0bama's just spinning his wheels. The tipping point was the trillion dollar bailout in October. Once you're over the cliff you can brake, accelerate or start coasting. It doesn't make any difference.
All I can think of is to get in on some "green jobs" scam corporation, but I can't see any way to distinguish the ones that are defrauding their investors from the "honest" ones that are only defrauding the taxpayer.
>> I think it is very doubtful that the Fed will take that route for the simple reason that they are an (nominally) independent institution.
I wish I could agree but the evidence points otherwise.
Remember who is at the helm of the Fed? “Helicopter” Ben.
The Fed buying long bonds is nothing more than a form of monetizing the debt.
“Helicopter” Ben has the biggest pot, and he can and will out-bluff the hardiest of savers at the table, methinks.
Don't worry about the approval polls. Obama voters are still the battered woman who keeps going back to her abuser. It's going to take a while, and things are going to get real desperate and ugly before anything changes.
Things aren't going to change until the gubmint free money stops flowing and urban infrastructure shuts down. Unfortunately there are just too many people out there who have no moral qualms about income redistribution, class warfare, and government dependence.
WHAT??? Not Rasmussen. It’s at 58 on Rasmussen.
>> That’s the situation I’m in: I have plenty of cash, but I can’t think of a single place to put it.
The good news is, cash is not a bad place to be right now, and for the “near” future (whatever “near” means).
“Near future” means January 20, 2013.
>> “Near future” means January 20, 2013.
Duly noted — I’ll put a note on my calendar. :-)
Sad, isn’t it?
“Obama voters are still the battered woman who keeps going back to her abuser”
You wouldn’t want to be seen as RACIST for not saying you support Obama, would you?
Indeed. People are still so emotionally invested in their support of Obama that, I swear, he could go on national TV and eat a live baby and these people wouldn’t flinch.
I’m thinking of using my cash to pay off my morgage. We won’t get it as a deductible in a few months anyway.
What BB has NEVER said is that he'd engage in QE to meet non-stimulus shortfalls in funding. That is to say, BB has never said, nor implied, that he would willingly print money to finance Hussein' health care/energy (cap&trade) plans. (Besides, like I said, Congress would first have to authorize in the 1st place.)
I know people at FR tend to engage in hyperbole, but let's be realistic. If we really want to win this thing (and I have every confidence that we can if we just get everybody pointed in the same direction), then we to accurately assess what the enemy does, and does not have.
They cannot beat us with inflation - it doesn't get them anywhere. Claiming that inflation is effective for them is no different than thinking "tea parties" and/or guns are effective for our side.
This is all about who will crack first on the tax/debt equation - them or us.
>> Those comments were directed towards keeping down medium term interest rates
Maybe that was the intent, but like the economist in the article is quoted, the EFFECT is quantitative easing: “Moreover, although the potential actions announced Monday technically are not quantitative easing, they will have that effect, says economist David H. Wang.”
>> even then, BB has pulled back from his earlier jawboning
New information (to me). I’ll look into it.
>> like I said, Congress would first have to authorize in the 1st place
After all that’s transpired, to argue that congress would FAIL to authorize it if Bambi and Geithner asked for it is a teensy bit naive.
>> They cannot beat us with inflation - it doesn’t get them anywhere. Claiming that inflation is effective for them is no different than thinking “tea parties” and/or guns are effective for our side.
I don’t believe they’re employing inflation as a strategy. I believe they think they are smart enough to put the brakes on at just the right moment to avoid it. I also believe they’re wrong as hell, and they’ll fail.
You do realize that BB prides himself on his study of the last war oops I mean depression and has honed his skills and strategy (he thinks) to the purpose of preventing this one. As is said of generals, “fed chairmen are always fighting the last war”. I think it’s naive to assume that Ben won’t do anything and everything he thinks is necessary to reinflate — just as he has promised, and written, that he would. And I think he’ll fail, but on the side of massive inflation.
Nevertheless, I’m “in” with the strategy of saving and minimizing spending. But it’s not a suicide pact. At least, not for me — you do what you want.
FRegards
In the meantime, between Rush, FR, Keyes, et al and some other sites, people are starting to get the big picture. The stimulus package was fresh & new - besides, Keynesian fiscal spending always appeals to politicians. But to come back for $trillions more in debt requests to deficit finance the wholesale takeover of key parts of our economy is just unrealistic.
As far as a suicide pact, if Hussein gets health & energy, you'll be dead sooner than later. Rationing always has that effect eg you don't want to wait 6 mos for that cat-scan if there's a lump in your abdomen. Might as well fight now when we have a good chance of winning.
I mostly agree with your analysis. Its time for those who got us here to suffer. I am preparing myself for the dark ages. Those living on the government teat will hopefully starve to death or eat each other. It will be better for our children and grandchildren.
Its like war, you must suffer for a while, but victory brings the spoils of war. Set it off. Let it burn. American needs to tighten up.
>> He’s not superman, and he can’t beat the markets.
That’s my belief, in a nutshell. It’s fun to hang this downward slide on Obama, but the reality is, the American people brought it on with their profligate ways and nature will take its course.
I have a strong core confidence that conservatism will carry the day, because it simply makes the most sense and most closely aligns with the deep-down beliefs of the majority of those in this great country.
IMO, we’re in heated agreement: we’re just going at the same problem (and same solution) from slightly different viewpoints. But the outcome will be the same. I hope and pray.
FRegards
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