Posted on 07/01/2016 1:42:13 PM PDT by blam
I was just saying that the other day.
But then realized that, without a subject for context, the headline is meaningless.
Gold doesn’t pay any interest.
But then these days interest-bearing accounts don’t pay any interest either!
POLO!
yeah, but do you have the $15?
but what do the illegals make?
If a Toro lawn mower drops to $5 you won't need a lawn mower. The bullets whizzing across you or lawn will keep the grass cut.
OF COURSE artificially low prices on manufactured goods would be bad for the entire world.
Consumers would be putting sound manufacturers out of business, cheap sellers would be putting themselves out of business.
In the countries with good standards of living, while they would get a short burst of benefit, they would also be putting out of business those who are responsible for compliance with environmental, labor and safety laws.
The bulk of the pressure would be carried by workers and the communities in which they live.
Such a system also facilitates the transfer of Capital Stock...the very reason China is growing and the US is stagnant.
It's bad juju for all.
The Fed will buy the bonds if nobody else will.
Of course, before we get there interest rates will go over 10% (full market rate) for US Bonds.
And that will be the trigger for an accelerated Debt Deflation.
Large swaths of the economy will lose access to credit, slowing growth. The combination of flat or declining growth, crashing consumer demand and high rates will drive a cascade of BK throughout the economy...small business, individuals, large corps, municipalities, states, banks. Everyone.
Except those who are holding cash.
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