Posted on 09/20/2014 6:14:30 AM PDT by Kaslin
A Fiscal Times, Yahoo Finance article by by John Grgurich claims that Instead of QE, Fed Could Have Given $56,000 to Every Household in America .
Grgurich formulated his article after reading "an intriguing piece just published in Foreign Affairs, Brown University political economist Mark Blyth and London-based hedge fund manager Eric Lonergan argue the Fed could have done better by pursuing a far different type of grand policy experiment."
The "intriguing piece" is Print Less but Transfer More, Why Central Banks Should Give Money Directly to the People.
Sheer Idiocy
So just lend them 56,000 dollars and have them pay an extra 60 bucks per year in interest till it’s paid back. Voila.
It seems to me, all the inflation has benefited foreign holders of dollars. The Chinese seemingly have trillions in dollars and are buying up America with money the Fed has printed.
They're not stupid. Green paper will soon be worthless.
When the hyperinflation comes, we'll be the ones holding the green paper.
Thank you, Democrat voters.
We are already 18 TRILLION DOLLARS IN DEBT.
That increases every single day.
Bring back AMERICAN JOBS.
This is what it’s coming to. One could argue its already here. Amazing how the concept of moral hazard is never even raised anymore.
“We are already 18 TRILLION DOLLARS IN DEBT.”
So what’s another trillion? Let’s see, oh yeah, 19 trillion.
Math is hard.
Giving 56k$ to every household in America would merely have brought the Great Inflation all at once. Instead it is a constant 6-10% general price rise that the government can claim is 1% by redefining what a price is and just what constitutes a “rise.” All that new money is parked in the banks, fortunately unlent in the general economy. It gets put in deposit at the Fed where the money that is free to the banks then earns interest or it goes into the stock market. I fear a stock market collapse because all that money that comes out of there will go directly into the price of gas and hamburgers. 6-10 could then become something like 20-50% pretty rapidly.
And China and India and Russia will be holding gold. That is where a lot of their green paper has been going.
The government (blessed be its name) should just print $1,000,000,000,000,000 for each of us, and then everyone would be rich. While we’re at it, the minimum wage should be raised to $1,000,000/minute. Why not, right?
Then no one will have to work, and everyone will be rich, and the wheat, and refrigerators, and tires, and clothing will be abundant! ‘Cause no one has to make the stuff in order for us to have it, right? Just let the government (blessed be its name) provide everything for everyone and we’ll all live in rainbow land!
Interesting that the amount of debt we have is almost equal to the amount spent on the war. The Great Society War started by President Johnson.
Conservatives think they know what money is and how it works. Delusional thinking never helps. Make this video go viral:
https://www.youtube.com/watch?v=HfpO-WBz_mw
Free money? LOL! The Fed bought bonds yielding something like 2%-4% from the banks. In return, they get cash yielding 0.25%.
0.25% of $2.7 trillion is $6.75 billion. That is the amount the Fed effectively gives banks, per year.
Idiot! If the Fed only bought Treasuries yielding 2% from the banks, they effectively took $54 billion from the banks per year.
It's really more, because many of the bonds yielded more than 2%.
You keep saying that.
Did it work yet?
No kidding. But enough about that silly video.
Consider the following numbered sequence of events:
1. A family wants to buy a home and the head of the family ‘James’ signs a property loan agreeing to pay every month. Call the person arranging the property loan Billy. James and his family move into their home, establish themselves in the community and watch their children grow.
2. Billy almost immediately sells a separate investment note based on James’ property note (that is kept hidden) to someone named Wong and agrees to pass through investment return payments while holding back a processing fee. But Wong knows nothing about James. Wong’s risk is totally with Billy as an unsecured loan. James knows nothing about the investment note that Billy has with Wong. Billy is happy because he has all his loan capital back via Wong’s investment and residual revenue from processing fees; money for nothing.
3. Billy dies and the property note he has with James goes missing.
4. James’ payments to Billy continue but are bounced back to James with no instructions where to forward payments. James becomes very concerned.
5. Wong makes inquires as to what has happened to Billy and what has happened to his investment return payments. No one knows.
6. Wong files a claim with Billy’s insurance agent Stanley who is listed on Wong’s investment contract note with Billy. Stanley is overwhelmed with the number of claims from all of Billy’s clients and has a massive heart attack.
7. Government representatives hear from Wong about Billy’s death and Stanley’s heart attack. They agree to arrange that the taxpayers fund the payoff of Wong (bail out) and fund the cost of resuscitating Stanley.
8 Everyone is taken care of except for James. James does not know what to do. He tries to chase down anyone that knows Billy and what should happen to his property note payments with Billy. No one knows anything. But one crooked person hears of James’ angst.
9. This crook is a sinister greedy person named Fast Eddie. Fast Eddie gets a criminal inspiration. Fast Eddie decides to represent himself as the beneficiary from the death of Billy. Fast Eddy creates a fictitious investment note from dead Billy to himself that is based on Jame’s property note. He has a forgery expert forge dead Billy’s signature to this false note.
10. But one problem remains for Fast Eddie. How will he tie his false investment note to Jame’s property? Fast Eddie decides to create another false document that sells the property note held by Billy to himself and he has it backdated.
11. Fast Eddie presents the notes to James and demands immediate past balances with penalties and fees that exceed the past due amounts.
12. James is blown away by Fast Eddie’s demands. James suspects criminal motive and intent behind Fast Eddie. James discovers that Fast Eddie never recorded Billy’s property assignment to Fast Eddie.
13. Fast Eddie claims that Billy died before recording the assignment of the property note to Fast Eddie. Fast Eddie forges yet another false document of assignment from Billy to himself and sends it to the property recorder’s office for recording.
14. The property recorder informs Fast Eddie that the deadline has passed for filing a record of property assignment of Jame’s property.
15. Fast Eddie meets with the State Governor’s Office and cuts a deal that he will pay the State money if the State will tell the property recorders to look the other way.
16. Fast Eddie arranges for a law firm to foreclose on Jame’s home. Jame’s family is traumatized.
17. ......To Be Continued ........
My questions to you:
Where is the Moral Hazard in letting James and his Family keep their home without Fast Eddie’s involvement?
Where is the Moral Hazard in letting Fast Eddie get away scot free with taking James’ home or his money, or with attempting to defraud the entire process?
Uh...over my head that.
Super Duper Hyper-inflation is just around the corner with this.
I’ll make it simple for you with two simple examples.
A boy sees a man drop a $100 bill on the ground and the boy picks it up. The boy has the choice to either pickup the $100 approach the man saying “Sir, you dropped this money” OR, the boy picks up the $100 bill and puts it in his pocket.
In another example a bankster notices a failed bank has dropped mortgage paper on the ground and picks it up and puts it in their pocket.
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