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To: Publius

Hey. I did not see that but I am glad I am not being ridiculed. This is very possible in this climate. Maybe they are using Atlas as their template.


6 posted on 07/13/2011 7:48:53 AM PDT by screaminsunshine (Socialism...Easier said than done.)
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To: screaminsunshine

What this means is that we are heading into a deflationary economy where the primary purpose of short term bonds is safe harbor parking of money.


8 posted on 07/13/2011 7:56:27 AM PDT by rdcbn
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To: screaminsunshine
Oh, it gets better.

They could even make it unattractive to hold money.

Almost a decade ago, the St. Louis Fed published some scholarly papers about government actions in an economic emergency. One proposed government seizure of all IRA's and 401-k's and diverting them into Treasury bonds, either the usual variety or some kind of Treasury Retirement Bond. This would divert capital into government coffers that otherwise would have gone into the stock market or money market.

Another proposal would have attached expiration dates to Federal Reserve Notes on a sliding scale to effect depreciation. For example, you might pay for a purchase with a $20 bill, the clerk scans the bill and tells you the bill is now worth only $14. "Do you have 6 dollars, sir?" The $10 bill you pull out of your wallet may be worth $10 -- or only $5. That's how they proposed it would work. The idea was to increase the velocity of money.

9 posted on 07/13/2011 7:56:37 AM PDT by Publius
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