let's see what that communist Heli-Ben says today. Funny the only thing I know of with respect to his impact on economic theory is screwing up monetarism.
was just thinking about the same guy. By the way before joining the Fed Ben ran analysis proving that he would be better than a computer - that's probably why he got chosen....
I thought it was because he'd said, "I have no qualms about printing money like a som-bitch". And the Administration said, "We're down with that"!
LOL Seriously, I always liked USD notes - it is pretty sad they will go away pretty soon (at least low denominations) - or maybe they just add few zeros...(?)
Apparently we are officially at the name calling stage of the discussion. I personally would prefer an independent check and balance on government spending and currency inflation via a standard. However, thus said, the only economic thing that really matters in the long run is "confidence" , "economic respect" and the ability to "preserve value" . As long as there is not a complete bust in credibility and that the global community can independently reward or punish poor economic and monetary policy via free trade etc. then it should all be self correcting (assuming the world does not go to war to collect on debt). In my simple manner of thinking the US is one of the very few countries which has invested in a credible security apparatus (e.g. military) and I believe that in the long run lead trumps gold and human nature. Again, I prefer more of a market driven economy with not too much FED meddling. A gold standard could easily be corrupted by a "club" of large bullies (with military muscle) setting prices up or down at any desired whim and outlawing of private ownership of a national strategic asset. Ultimately, all that matters is that we have peaceful procession among buyers and sellers and a reasonable level of currency credibility. By the way, who ever came up with the idea that currency and economic collapses are not natural and can not be healthy and beneficial in the long run? And who came up with the idea that a gold standard, somehow changes the nature of all Democracies to motivate the majority to vote to loot from the minority (e.g. poor vs. rich)? Right now the average US middle class citizen lives better and with more quality than any King or monarch has ever lived in prior generations. Who needs gold when there is abundant quality of life and relative peace? TS
The "apparent prosperty" will be replaced with bankruptcy and depression... maybe 30 years? Everything looks good while you're "charging but not paying" for goods and services... until the bill comes due. No more posts for me on this topic.. I don't suffer fools gladly.
If the bill collectors are mean and do not extend additional credit or continue to barter cheap goods in exchange for exported paper debt notes or other favorable trade terms its time to use the investment that that debt bought. In other words convert lead for gold and simply shoot the bill collectors... Economic co-dependency between creditors and debtors is the new modern day form of detente and assured mutual economic destruction. Get used to it and don't get caught in any cross fires and for heavens sake don't be so foolish as to flash anything shiny in attempts to barter for goods or services... TS
"very few countries which has invested in a credible security apparatus (e.g. military) and I believe that in the long run lead trumps gold and human nature." Great Point. I think thats why the market is wrong to ignore Iraq, NK, Russia, etc. The real world always matters. When the US loses a war it makes our bargaining power go down the toliet. We can keep marveling about this orgy of finance that we have created, but its not going to mee sh$t if our power weakens.
it <i>was</i> true - but is not anymore. US military is almost useless - they can't do much with it without international agreement - and this of course beats the purpose of creating a powerhouse hegemony. Since WW2 US was not a real winner in a single conflict I remember... So you are left with wealth - and that's where the problem starts with inflation.
Yep! I would think that 10% of the gold mania which happened over the last few years is the result of lobbying, providing fake arguments for the public which are repeated over and over in forums ... till everyone is convinced that these arguments are rights without questionning their basics. Please do not get me wrong, i did not say that the gold rise was not justified (if justification has any meaning). Yep but happiness is not just the fulfillment of basic needs? people spend their time comparing each over, social status matters for happiness ... I am fairly convince that a king was much happier of his situation than the average guy even if his fridge was not as full. He could have as many chicks as he wanted