Posted on 11/17/2007 10:16:45 AM PST by shrinkermd
So, who do I believe, you and Toddsterpatriot or Greenspan? I’m leaning towards Greenspan myself. No real rational thought, just a feeling. It may be silly, but there it is.
“When you consume someone else’s production in exchange for currency that the federal reserve creates in the banking system, who is getting the free ride?”
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Just because the dollar isn’t backed by gold doesn’t mean it can’t be devalued.
No need to chalk up to conspiracy that which can be explained by ignorance.
He’s what Lenin would call a “useful idiot”.
I expect most that read these boards can see what the truth is, after reading his posts and ours.
Huhh??
We certainly can. LOL.
I am really confused about what point you are trying to make. To put it positively, as Greenpan himself stated in his article referenced in post #94, it is just because we are not on a gold standard (absolute or mixed) that the currency can be devalued through inflation.
The larger issue that I have been arguing with Toddsterpatriot and some others is that the central banks of the world chose to hold US$ as their reserve currency. Thus, when the US mints more of the stuff, they take it to hold exhange rate at levels they desire. The effect of this is that the US does not spread its inflation across the US only, but around the world. Inflation is actually a theft by the party printing the money of goods and services provided by those who accept the money either directly or derivatively through trade.
If this didn't work, then cheap labor from the rest of the world would be a fiction. When we print $ and exchange them for labor, the exhange value of the dollar will drop and therefore the "cheap" labor will become more expensive.
So who do we believe you and Toddsterpatriot, or Greenspan?
I’ve heard the free-trader arguements before.
“Well were screwing them haha! We import finished goods, we export paper, HAHA! ain’t we smart.”
That money comes back it will proportionally devaluate the domestic dollar. What do they propose? Burn it at the border?
Even if it were true, it still pisses away American jobs.
While the argument is a bit more complicated then I think that dollarbill and I are actually on your side.
Economists lose the big picture when they micro-analyze everything.
Conspiracy theories now jumble around in my head about how the weaker dollar will increase exports and ease protectionist gabbing just before the 2008 republican primaries.
OOOOOH HOW CONVENIENT!
So, a few weeks ago, when Cramer was acting like the ass that he is screaming his head off about how Bernanke was screwing the banks with high interest rates and it was hurting all of his friends on wall street (his words, more or less, not mine), which of the following was true:
a. he actually wanted rates lowered to help the banks on wall street?
b. he actully wanted rates lowered to hurt the banks on wall street?
c. The federal funds rate is irrelevant to the profits his friend can earn on the street.
d. Cramer is an irrelevant ignorant hot air bag an should do what Toddsterpatriot so eloquently told me what to do?
Groanup and Toddsterpatriot may be lots of things. One thing that they are not is economists.
Neither am I, I only studyed physics (and math). Like 15 years ago, I probably couldn’t simplifly a polynomial equation if my life depended on it. 15 years.
Still doesn’t change the fact that economists are as politicized as someone from Code Pink, or the NRA. Why the leftist media is full of Harvard educated economists that LOVE taxes. Being an economist means zero, zip, nada.
I never claimed to be an economist and neither did todd. However, I do claim to know what I'm talking about and you don't have a bleeding clue.
I know I really haven't a clue what I am talking about and am just trying to benefit from your profound wisdom and knowledge. So, when Alan Greenspan says that the government prints money to finance itself was he wrong? Why? Why should I believe old Toddster, who denies it, and not Alan?
Help us poor ignorant slobs. We really would just like some englightenment at the feet of you luminaries of modern finance.
That I, and a few others, are totally efin clueless. Other than that, they have claimed nothing in about 800 posts spread across numerous threads.
Tell us o wise masters why dollarbull and I should not be concerned by M3 growing at 14-20% YOY, why this is really good for us, why this is really bad for wallstreet who just wish that the Federal reserve would turn off the money spigot right now. Please, we just want to understand.
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