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To: Don Joe
He's always been s sucker for a hard-luck story -- as long as he's able to reach into the next guy's pocket to fish out the checkbook!

It is annoying, to say the least.

The only upside to all this money-vomiting is that I think part of the reason he did it was to prop up the economy.

Since I'm not an economist and don't even resemble one, I don't understand is why it hasn't caused massive inflation. Or, why pumping up the national debt hasn't caused it. Yet. Tax cuts, good. Pork spending by ignorant self-serving pols, bad.

73 posted on 12/31/2006 8:47:02 PM PST by FlyVet
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To: FlyVet
He's always been s sucker for a hard-luck story -- as long as he's able to reach into the next guy's pocket to fish out the checkbook!

It is annoying, to say the least.

The only upside to all this money-vomiting is that I think part of the reason he did it was to prop up the economy.

Since I'm not an economist and don't even resemble one, I don't understand is why it hasn't caused massive inflation. Or, why pumping up the national debt hasn't caused it. Yet. Tax cuts, good. Pork spending by ignorant self-serving pols, bad.

There is part of me -- a small part, to be sure -- that is wincing, crossing its fingers, and hoping against hope that it's a sham, and that the "relief workers" sent over there are really CIA spooks, using "the AIDS crisis" as a pretext, and the "relief worker" role as cover, to establish an effective network for the purposes of thwarting China and Russia, who are both working overtime to do what they've always done. That continent is a gold mine, both literally and figuratively, in terms of untapped natural resources.

Someone is gonna claim it...

78 posted on 12/31/2006 10:41:16 PM PST by Don Joe (We've traded the Rule of Law for the Law of Rule.)
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To: FlyVet
PS:

Since I'm not an economist and don't even resemble one, I don't understand is why it hasn't caused massive inflation. Or, why pumping up the national debt hasn't caused it. Yet. Tax cuts, good. Pork spending by ignorant self-serving pols, bad.

The dirty little secret is that it has caused massive inflation. There's a reason they suddenly decided last year to drop the M3 numbers into stealth mode.

Without knowing the M3 -- the total amount of money in circulation -- we can't know the actual level of inflation.

Too, we continue to be hammered with the lie, that "inflation" has something to do with price indexes, and can only be calculated by comparing prices against this, that, and the other thing, with various and sundry items at some other point in history.

That's pure mitigated flimflam.

"Inflation", is, by definition, the "inflation" OF the money supply.

True, the more you inflate the money supply, the less "buying power" each dollar will have -- but the decreased buying power -- the increased prices of "stuff" -- are a SYMPTOM of "inflation", not "inflation" itself!

It's really easy to calculate inflation. Compare today's M3 with the M3 at some previous point in time. Oh, but we can't do that anymore. How convenient.

Still, the indicators are there. The printing presses (real and virtual) are going like gangbusters.

Remember, "money" is NOT something that is ONLY "created by the government. BANKS "create money" every day, it's what they do. The "fractional reserve system" means, divorced from all the voodoo mumbojumbo, that when you deposit money in the bank, the bank gets to "lend" it out multiple times. Then, when the recipients of those loans deposit the money they received, it gets multiplied again. The system cascades and cascades and cascades... the "size of the money" is quite fluid.

Then there's the matter of the immense amount of debt that is held by our avowed enemy, sworn to our destruction, China. They hold something over a trillion dollars of government debt. Not to put too fine a point on it, but more and more, it appears that China owns us. Strange, how we continue to cut them slack right and left. We pretty much have to do their bidding, lest they yank our chains, and watch us collapse like a cheap suit.

Look at China, then the middle east oil dictatorships, which are gradually shifting to the Euro, from the dollar. Once they've finished the job, we are screwed beyond recognition. Between China and the oil creeps, we're getting "triangulated" out of relevancy as a world power -- and right into third world hellholedom.

Meanwhile, there's.... Mexico!

The "shadow" state that has been working a "stealth" convergence of the USA, Canada, and Mexico into a clone of the E.U. will quite likely use the fall of the dollar as the excuse to switch over to the "Amero" -- and then, to "unify" the three countries.

Oh, how I wish this were mere paranoid delusion! Sadly, it's for real, and "for real" power players are working overtime to bring it into being. And they are not accustomed to NOT getting their way.

We live in interesting times. Interesting, and terrifying.

79 posted on 12/31/2006 10:56:57 PM PST by Don Joe (We've traded the Rule of Law for the Law of Rule.)
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