moonbat1775

The Road to Economic Hell

Smarty,
It's good to see you posting again. Your sound thinking is a breath of fresh air.

Both parties should consider:

1. Good ideas do not have to be mandated by government.

2. Bad ideas should especially not be mandated by government.

Too bad politicians can't just be pure passive parasites who left the economy alone other than skim it. Instead they must also try to "help" it.

Pounding the drum, most social and economic evils can be traced to government backed money and banking cartels.

'Bailouts' Are Misunderstood

"Indeed V is now falling. That is why there is an imperative for stimulation." Lok Sang Ho

The proper way to increase V is new lending from real savings resulting from previous increases in aggregate output resulting from previous lending etc. Note however that the lending should result in increased aggregate output. How does one know if aggregate output has increased or just the price level for a given P*Y? Just see if Y is falling as determined by measurement of the price level. True economic growth should be characterized by rising V, lowering P, and increasing Y. M can be increased sustainably by the proper use of commodities and assets in succession to ethically distribute new money by selling new money for a commodity at greater than par value and using the "profit" to compensate existing money holders for the dilution of their money stock. After distribution, the now bigger commodity backing should be swapped out for appreciating assets in the money till the next issue of new money. A virtuous circle? If not, I would like to know why not.

The Sun Is Shining on Wall Street

"Then again, I'm no Mises or Rothbard so maybe I'm missing something. " Smarty

Well, to be completely honest, Rothbard was referring to installment credit. I can see the need for business liquidation even if it helps the bankers who caused this mess. But I was intrigued that consumer liquidation might not be necessary.
I hate these banker bailouts. He who lives by FRB should die by it,IMO. Why should they be spared liquidation? Just rhetorical.

The Sun Is Shining on Wall Street

Smarty,
I was reading in the Good Book that debts were to be forgiven in Israel every 7 years among fellow Jews. Since would-be savers were driven by artificially low interest rates into speculation with houses there would be some justice in allowing them to keep their homes. OTOH, liquidation is an essential part of the recovery process but perhaps business liquidation is the essential part. From Rothbard's <b>America's Great Depression</b>: "The Mises analysis of the business cycle traces causation back to inflationary expansion <i>to business</i> on the loan market ... But loans to consumers <i>qua</i> consumers have no ill effects." page 80. Food for thought?


On Nov 24 11:12 AM Smarty_Pants wrote:

> "it will be a two-year, nationwide effort to jumpstart job creation
> in America and lay the foundation for a strong and growing economy."
> - B. H. Obama
>
>
> If anyone in the media had any useful knowledge in economics they
> would recognize this statement as an oxymoron. The only way to get
> a truly 'strong and growing' economy is to cut spending and increase
> savings, which is almost certainly NOT what Obama's team will chose
> as their approach.
>
> Instead we will get more of the same old borrow and spend programs
> that do nothing productive and serve only to dig the debt hole that
> much deeper. Meanwhile the talking heads continue to blather on as
> though the light at the end of the tunnel wasn't an oncoming train.

>
>
> Buckle up, it's going to be a bumpy ride.

Bigger is Not Better in Banking

Why don't you say "transferal of capital" instead of "capital infusions"? It seems to me a rotten banking system is giving capitalism a bad name.

The Paulson Plan: Compelling Banks to Lend at Bazooka Point

"V", you the man. However, it is almost all the fault of the fractional reserve bankers abetted by the governments they bribed with fiat money. They have financed wars, caused depressions that led to more wars and socialism, and social decay. I blame them for everything from WWII, Communism and Fascism to the teacher's unions and the repulsive tatoos I see everywhere.

Who would guess that violating just the lying and theft Commandments would cause such misery?

The Paulson Plan: Compelling Banks to Lend at Bazooka Point

"How did this happen? Who's to blame? Well certainly there are those who are more responsible than others, and they will be held accountable. But again, truth be told...if you're looking for the guilty, you need only look into a mirror.
I know why you did it. I know you were afraid. Who wouldn't be? War. Terror. Disease. There were a myriad of problems which conspired to corrupt your reason and rob you of your common sense. Fear got the best of you and in your panic, you turned to the now High Chancellor Adam Sutler. He promised you order. He promised you peace. And all he demanded in return was your silent, obedient consent." V

The Paulson Plan: Compelling Banks to Lend at Bazooka Point

Maybe that mouse, but this mouse decided that life could not possibly suck that much and looked for alternatives. He sought and behold, he found.

"I look on the faithless with loathing, for they do not obey your word."
Psalm 119:158

The Paulson Plan: Compelling Banks to Lend at Bazooka Point

Once upon a time, there was a mouse in a maze.
It was a very clever mouse and the maze was very big.
Unfortunately, the maze had no exits.

Wall Street Says 'Oops'

The Fed protects the status quo which has been crooked since 1913. Fractional reserve banking is just a sophisticated form of counterfeiting. The Fed exists to allow the banks to get away with it without worrying too much about bank runs.

People talk about sustainable this, sustainable that. How about a sustainable economy built on an honest banking system?

Too radical? Maybe you won't think so in the next couple of years.

Wall Street Says 'Oops'

Here it is 2008 and still we have booms and busts. tsk, tsk.

Who would guess that a banking system built on fraud and theft via inflation would cause serious problems. Let's see
von Mises, Hayak, Rothbard, Hazlette and history since 1694.

I thought honesty was the best policy?

Who Benefits When the Fed Floods the System with Liquidity?

Ron Paul understands monetary policy. He will take us prudently and moderately to an honest monetary system. Please write him in this Nov. so he can't be ignored in 2012.

Absurd Accounting Rules and $5 Trillion Off Bank Balance Sheets

There is no accounting for taste but there is certainly accounting for lying.