Posted on 08/28/2014 6:53:33 AM PDT by Mechanicos
... The reasoning was very simple: in a country (and world) drowning with debt, there are only two options to extinguish said debt: inflate it away or default. Anything else is kicking the can while making the problem even worse.
... Moments ago a stunning article appearing in the "Foreign Affairs" publication of the influential and policy-setting Council of Foreign Relations, titled "Print Less but Transfer More: Why Central Banks Should Give Money Directly to the People."
... In it we read the now conventional admission of failure by Keynesians, who however, unwilling to actually admit they have been wrong, urge the even more conventional solution: do more of the same that has lead to the current financial cataclysm, only in this case the authors advocate no longer pretending that the traditional monetary channels work but to, literally, paradrop money. ....
(Excerpt) Read more at zerohedge.com ...
A one time infusion of cash in everyone’s pocket will result in the following:
1. The price of everything will suddenly and temporarily increase
2. The rich (i.e. producers, investors) will be richer, the poor will be poorer
3. Since most of the new money has flowed to the rich, prices of consumer goods should return to basically what they were (perhaps a little higher)
4. Prices of luxury goods will increase, as well as most investment vehicles.
5. A new moral hazard will be introduced. This will incentivize most people to be more irresponsible and to demand this type of giveaway more often.
Have you been reading Paul Krugman’s columns?
If you transferred all the money from the rich to the poor, the rich would have it all back in less than a year. And everything would be just as it was before.
So true. If every household had received $300,000 or so they could have paid off their mortgage and the banks would have gotten paid back instead of all the foreclosures. But that was not the intent of the TARP.
Except that the poor will want to repeat that process as often as possible.
It’s what’s called redistribution.
I detest that woman.
Of course the Communists just shot the rich and solved that problem.
True.
But we’ve already legalized counterfeiting, so this is just the next step .... handing out the counterfeit money to everyone.
We don’t need wheelbarrows full of useless money any more when the EBT cards can be loaded up digitally with extra zeroes...
Two points...
1) “Free cash”? I could use it to buy more ammunition.
2) Per the article... “Most citizens already trust their central banks to manipulate interest rates.” Yeah, right. Do we have any choice?
Send out $10 trillion in checks? How perfectly stupid.
Why do they keep perpetuating this lie that there is no inflation? For me, gas, up 10%, health care, up 8%, food, up 6%, cable, up 7%, mass market paperback, up about 60% in 8 years, utilities, up 4%, and on and on.
I think there is like 100 million households in the US. If every household got $100,000 wouldn’t that be less than 700 billion?
“It begins” is right up there with “bombshell.”
I was trying to figure this out on my hand calculator. Still it would have been better to just divide the 700 billion by 80 million households and send them a check.
Then the stimulus package that followed did nothing. They repaved Lawrenceville highway in front of my neighborhood using private contractors who had all illegals working for them. It made the street even harder to navigate and closed off one the entrances to my neighborhood. It would have been better to just send it directly out to people.
We are the ones who have to pay it back after all.
More than 14 times your 700 billion claim.
Bank TARP was repaid, at a profit to the US Treasury.
Would $7000 in loans to every household have fixed the economy?
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