What makes you think this? is there an event or circumstance you're thinking of that would trigger this?
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Capablanca, there are some who would argue yes Friedman adviced they should have increased the money suply during the great depression to stave of liquidity issues back then due to bankruns when what we face today is more a solvancy crisis thus raising the question of moral hazard... Care to comment on that? Cheers.
All this hyperinflation talk seems pretty far fetched to me... I would like the answer to this too. "Their printing money" does not qualify as an answer. I do not see the dollar collapsing because of our reserve status...and I also think there will be a global depression the next decade.
let's say i suffer from delusional thinking, and so i tend to make up bullshit like that, but do come back in a year maybe we can talk about where and how i should seek treatment
Without wallowing in the details, the FED was created to prevent precisely what is happening now and what happened through the early 1930s. Both messes found their origins in the lead-up orchestrated by the FED. This lead Allan to be lead by his ego, thus ignoring the lessons of the Great Depression; and it lead Bernie to study them in great depth thus completely missing the lead up to the 2008 banking collapse which is about to drag on for longer than it should. Two points immediately leap to mind. ... Lord save us from mental midgets . ... We are condemned to repeat our mistakes. regards f9
The solutions to today's problems are very simple in concept, but impossible to implement in this quasi-socio-capitalist economy of ours: 1) Reduce the size and scope of government. This will effectively remove roadblocks to getting things done efficiently and also to reduces taxes. 2) Let the free market decide who gets to stay in their homes, who gets a job, who must live on their savings, etc, etc. Otherwise, whatever the government tries to implement, it won't be fair to many people. Also, let's ban labor unionism - again, not fair unless EVERYONE can join one. Look at what happened to GM with the powerful UAW ! Now we must pay for that debacle as well. No wonder Santelli blew a fuse last week. The land of the free has become the land of the unfair.
What you see among both the ordinary and the clever is their personal view of their fears often just generalised as a depressed description of present economic conditions. It is no more than a mantra: repeat bad often enough and you give yourself a depressed outlook and likewise repeat good often enough and you make your outlook good. There is no depression and there will be no depression. Recessions periodically arise as the current recession has arisen and with them comes increased unemployment. Governments use increased spending to revive retail demand thereby reviving economic activity and employment. The urgent specific requirement in this recession is a temporary ban on ALL domestic foreclosures (except where the owner/occupier has abandoned the property). Any defaulting occupier is required to pay a proportion of earnings or income (eg 28%) as a monthly mortgage repayment, this equating to the maximum interest on the mortgage which the lender is permitted to charge each such mortgage borrower.