Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

It Begins: "Central Banks Should Hand Consumers Cash Directly"
Zero Hedge ^ | 08/26/2014 | Tyler Durden

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 ...


TOPICS: Business/Economy; Society
KEYWORDS: banks; economy; idiocy; socialism
Navigation: use the links below to view more comments.
first previous 1-2021-4041-56 next last
To: Mechanicos

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.


21 posted on 08/28/2014 7:58:35 AM PDT by aquila48
[ Post Reply | Private Reply | To 1 | View Replies]

To: C210N

Have you been reading Paul Krugman’s columns?


22 posted on 08/28/2014 7:58:58 AM PDT by Rusty0604
[ Post Reply | Private Reply | To 2 | View Replies]

To: Mechanicos

23 posted on 08/28/2014 7:59:36 AM PDT by dfwgator
[ Post Reply | Private Reply | To 1 | View Replies]

To: aquila48

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.


24 posted on 08/28/2014 8:00:46 AM PDT by dfwgator
[ Post Reply | Private Reply | To 21 | View Replies]

To: Stentor

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.


25 posted on 08/28/2014 8:04:20 AM PDT by Georgia Girl 2 (The only purpose o f a pistol is to fight your way back to the rifle you should never have dropped.)
[ Post Reply | Private Reply | To 18 | View Replies]

To: dfwgator

Except that the poor will want to repeat that process as often as possible.
It’s what’s called redistribution.


26 posted on 08/28/2014 8:05:29 AM PDT by aquila48
[ Post Reply | Private Reply | To 24 | View Replies]

To: Buckeye McFrog

I detest that woman.


27 posted on 08/28/2014 8:05:37 AM PDT by Rusty0604
[ Post Reply | Private Reply | To 20 | View Replies]

To: aquila48

Of course the Communists just shot the rich and solved that problem.


28 posted on 08/28/2014 8:06:59 AM PDT by dfwgator
[ Post Reply | Private Reply | To 26 | View Replies]

To: All


Help FR Continue the Conservative Fight!
Your Monthly and Quarterly Donations
Help Keep FR In the Battle!

Sponsoring FReepers are contributing
$10 Each time a New Monthly Donor signs up!
Get more bang for your FR buck!
Click Here To Sign Up Now!


29 posted on 08/28/2014 8:19:03 AM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
[ Post Reply | Private Reply | To 28 | View Replies]

To: BitWielder1

True.

But we’ve already legalized counterfeiting, so this is just the next step .... handing out the counterfeit money to everyone.


30 posted on 08/28/2014 8:20:24 AM PDT by Lorianne (fedgov, taxporkmoney)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Mechanicos

We don’t need wheelbarrows full of useless money any more when the EBT cards can be loaded up digitally with extra zeroes...


31 posted on 08/28/2014 8:20:43 AM PDT by GraceG (No, My Initials are not A.B.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Mechanicos

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?


32 posted on 08/28/2014 8:26:47 AM PDT by moovova
[ Post Reply | Private Reply | To 1 | View Replies]

To: Georgia Girl 2
If they had given every household a check for even $100,000

Send out $10 trillion in checks? How perfectly stupid.

33 posted on 08/28/2014 8:26:54 AM PDT by Toddsterpatriot (Science is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Mechanicos

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.


34 posted on 08/28/2014 8:37:21 AM PDT by Steve_Seattle
[ Post Reply | Private Reply | To 1 | View Replies]

To: Toddsterpatriot

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?


35 posted on 08/28/2014 8:43:16 AM PDT by Georgia Girl 2 (The only purpose o f a pistol is to fight your way back to the rifle you should never have dropped.)
[ Post Reply | Private Reply | To 33 | View Replies]

To: Georgia Girl 2
"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."

If there are 80 million households (at about 4 people per household), that would be 24 trillion dollars.
36 posted on 08/28/2014 8:45:00 AM PDT by Steve_Seattle
[ Post Reply | Private Reply | To 25 | View Replies]

To: Georgia Girl 2
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 would be 10 trillion dollars.
37 posted on 08/28/2014 8:47:33 AM PDT by Steve_Seattle
[ Post Reply | Private Reply | To 35 | View Replies]

To: Mechanicos

“It begins” is right up there with “bombshell.”


38 posted on 08/28/2014 8:49:07 AM PDT by deadrock (I am someone else.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steve_Seattle

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.


39 posted on 08/28/2014 8:52:59 AM PDT by Georgia Girl 2 (The only purpose o f a pistol is to fight your way back to the rifle you should never have dropped.)
[ Post Reply | Private Reply | To 36 | View Replies]

To: Georgia Girl 2
It would be $10 trillion.

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?

40 posted on 08/28/2014 8:57:03 AM PDT by Toddsterpatriot (Science is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 35 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-56 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson