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Mav88
Registered: Aug 2008
Posts: 3023 |
08-17-12 11:19 AM
Quote from mrbill:
OK, agree with you about a lot of government inefficiency, granted. Needs a LOT of improvement. However the basic premise of keeping some money moving is pretty basic economics. Is it better to let someone sit with no money to spend while unemployed, as an example, or to allow them to have some support for them and their families to spend to keep the money flowing locally?
In the carrot example, it makes sense to use Aya's money for some fruitful use, no pun intended. IMO.
But who should be 'allowed' money, the people who work or those who do nothing? If they get hungry enough they will work.
It's also pretty basic economics that if the government does that every single year, borrowing costs will eventually force the government to print money and impoverish everyone.
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Ricter
Registered: Aug 2004
Posts: 13362 |
08-17-12 07:21 PM
Quote from Mav88:
But who should be 'allowed' money, the people who work or those who do nothing? If they get hungry enough they will work.
Yeah, they "work" all right. Look to history, and to recent events, to see the "work" that hungry people do.
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rew
Registered: Jan 2010
Posts: 1685 |
08-17-12 10:03 PM
Quote from Free Thinker:
as indicated by the price of money the government has to pay there are dozens of Ayas eager to lend money to obama. next.
Money is cheap (i.e., yields are low) because when nobody else wants to buy a Treasury bond the Federal Reserve does, with money created out of thin air. There is no real market price of U.S bonds. Me, I think you'd have to be crazy to lend to the U.S. government at current rates.
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Ricter
Registered: Aug 2004
Posts: 13362 |
08-17-12 11:53 PM
Quote from rew:
Money is cheap (i.e., yields are low) because when nobody else wants to buy a Treasury bond the Federal Reserve does, with money created out of thin air. There is no real market price of U.S bonds. Me, I think you'd have to be crazy to lend to the U.S. government at current rates.
Their creating money out of thin air has about the same net effect that the finance sector's money creation, through collateral chains, has, i.e. not much, because spenders are not getting their hands on it. Hence, no inflation.
You are correct, but formerly, not now, about the demand for U.S. debt:
"Guess Who's Buying All the Bonds? (It's Not the Fed)"
Published: Friday, 8 Jun 2012 | 2:09 PM ET
By: Jeff Cox
CNBC.com Senior Writer
http://www.cnbc.com/id/47738555
And, "Who Else Is Buying U.S. Treasuries?"
By James Bianco - June 14th, 2012, 8:30AM
http://www.ritholtz.com/blog/2012/0...u-s-treasuries/
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mrbill
Registered: Jun 2012
Posts: 1492 |
08-18-12 02:37 AM
Quote from Mav88:
But who should be 'allowed' money, the people who work or those who do nothing? If they get hungry enough they will work.
It's also pretty basic economics that if the government does that every single year, borrowing costs will eventually force the government to print money and impoverish everyone.
Who should be allowed money? Those who have worked and saved, and took risks. Those who believe in workfare, not welfare, absolutely. Hunger should not exist in this Country, leaving the analogy a bit, but health care should not be a concern either, IMO. I would rather my people had their own health care rather than my having to negotiate for it, or provide cash for it, which is what would happen with single payer, but I regress.
Yes, borrowing costs, even though kept artificially low by the FED, IMO, will eventually lead to some changes, if we don't put a stop to wasteful spending, wars, subsidies to the oil companies, and yes, even many entitlement programs. Not Draconian, but planned.
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PHOENIX TRADING
Registered: Mar 2012
Posts: 6945 |
08-18-12 03:43 AM
Quote from mrbill:
Hunger should not exist in this Country, leaving the analogy a bit, but health care should not be a concern either, IMO.
Pure pie in the sky stupidity.
I'd be wealthier than warren B if I had $100 for every idiot who thinks food and healthcare are unlimited resources, but that wouldn't make it any more valid a belief.
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