moonbat1775

The Economic Policies of Failure

Steven H,

This will happen whatever you say. It has the inevitability of an idea whose time has come. Enjoy the show.

The Economic Policies of Failure

"FRB, an invention from hell
that many thought crooked but swell.
It turns out they were wrong
and for the price of a song
the moonbat the secret did tell.

The Economic Policies of Failure

Note to Seeking Alpha: I accidentally reported TinyTim for abuse.

Tiny,

I apologize to you. I can be an idiot. But you are in noble company; i reported Smarty by accident too.

Tim, you understand the problem well. There is a solution though.
The solution is APPRECIATING monies with a 100% reserve requirement.

The Economic Policies of Failure

"If you don't like Keynesian economics what is the alternative?"

Honesty combined with creativity. What else could it be?

The Economic Policies of Failure

How could I not say "Merry Christmas and a Happy New Year"?

The Economic Policies of Failure

The above solution came from the Alpha and the Omega, IMHO.
How appropriate, it seems. We celebrate His birthday this month, though He was probably born in the Spring, which is also appropriate since He brings new life.

The Economic Policies of Failure

"We could go back to Herbert Hoover or even further before the Federal Reserve Act, but do we want to?" - Steven H.

Nope. It turns out the problem has been a false choice between a dishonest/unstable but fast money system (FRB) and an honest/stable but slow money system (100% reserve gold standard).
There are alternative monies that are 100% honest and that will outperform FRB in all but the short run as you would expect when the honest compete against the dishonest.
The solution is two step:
1. Move from dishonest/unstable FRB to 100% reserve gold standard. This will stabilize the stock market. Now we are at honest/stable/slow.
2. Move from honest/stable/slow (100% gold standard) to 100% reserve equity backed monies (notice plural). We would then be at honest/stable/high performance. The market as a whole would only move up. The market would then be separate forever from the threat of FRB deflation.

The Fed Still Manipulates Gold and the Markets

The moonbat will weigh in with a remark about wealth. Wealth is both dynamic and static. The analogy to life is 100%, I believe. A body has a certain dead (static) value, so much fat, so much protein, $1.98 in minerals, etc. But it is much more valuable when it is alive. Money is of course the life blood of wealth but how much is enough? How much blood does a human body need? How is it created?

Gold - Not the Safe Haven People Think it Is

"It may not be perfect, but it's the closest thing humans have found for use as an honest medium of exchange (or store of value) throughout their entire history. " Smarty

Yes, that is absolutely correct. Everyone accumulate it as fast as you can. Its stability will be needed to bring in its honest, appreciating child.

The Fed Still Manipulates Gold and the Markets

Drat! Slow down moonbat! The repayment of old FRB loans faster than the creation of new FRB loans IS deflation.

The Fed Still Manipulates Gold and the Markets

""So the only true way to deflate the money supply is to pay off all the unbacked loans which created FRB money in the first place." Smarty

Ooops! I was hasty. Forgive me, please. Actually, the only thing needed to cause deflation is for the rate of new FRB loans to be less than the repayment of old FRB loans.

The Fed Still Manipulates Gold and the Markets

"So the only true way to deflate the money supply is to pay off all the unbacked loans which created FRB money in the first place.

Or so it seems to me. "

Bingo! It is an honor dealing with someone who can learn. We are all right in one way or another but a man who can learn is awesome. May I also learn to learn from anyone, anywhere, anytime. But it is not easy.

Average Performance: Fate or Karma?

Make that "we" and "our" instead of "you" and "your". ;)

Average Performance: Fate or Karma?

The reason the market does not make a steady climb forever is because of deflation which is a unavoidable consequence of a fiat money system to prevent run away inflation. It is really that simple.
FRB expands the money supply and creates a boom, assuming new borrowing takes place. New loans = new money created, old loans repaid = destruction of money. A 100% reserve requirement allows for steady unending growth overall but is considered slow. There is a better solution and you will see it in your lifetime, IMHO.

Why Would Anyone Buy T-Bills at 0%?

A couple of thumbs down! Finally! Disapproval is no guarantee that one's view are correct but it is a necessary consequence. Did moonbat blow his own horn with his little rhyme? Look again,then, my friend. And please point out flaw in his speculation strategy.
Moonbat happy.