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WMARKW

WMARKW
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  • The Burden We Leave Our Grandchildren [View article]
    I will only say that some writers out there today say the bond bubble is the biggest of all bubbles.
    Jan 5, 2012. 04:58 PM | 1 Like Like |Link to Comment
  • The Burden We Leave Our Grandchildren [View article]
    You fail to grasp that we are talking about a spectrum that involves extremes. Your extremes are antithetical to MMT. MMT does not support or suggest that we should print money and no one should work.

    In the past with a gold standard, the bitch (as you get below) was that there was insufficient new gold found and minted into coinage to support the population and productivity growth in the USA. All MMT says is that you can deficit spend when there is a surplus of productive capacity, and as soon as that surplus goes away, you can't any more.

    OBVIOUSLY....in order to manage that process you have to have people at the helm who are trustworthy or who have "Laws" (which no one seems to pay attention to anymore - so long as you work for the government and they go against what you want to do) that restrict the creation of money.

    Neither did you respond to my question about paying back the Chinese or the SS Trust Fund.
    Jan 5, 2012. 04:55 PM | Likes Like |Link to Comment
  • Chatter about an Obama plan for mass mortgage refinancings heats up again, with speculation the President might appoint a "housing advocate" as head of the FHFA, whose current chief has been lukewarm about such an operation. The administration could get their "own man" in there without Senate approval using the same sort of recess appointment just used to install the head of the CFPB.  [View news story]
    And we are all supposed to believe the Whitehouse? Not on your life.
    Jan 5, 2012. 04:48 PM | 2 Likes Like |Link to Comment
  • Chatter about an Obama plan for mass mortgage refinancings heats up again, with speculation the President might appoint a "housing advocate" as head of the FHFA, whose current chief has been lukewarm about such an operation. The administration could get their "own man" in there without Senate approval using the same sort of recess appointment just used to install the head of the CFPB.  [View news story]
    Serndipity....don't we do that in elementry school just after we sing the Obama song.
    Jan 5, 2012. 04:47 PM | 1 Like Like |Link to Comment
  • Chatter about an Obama plan for mass mortgage refinancings heats up again, with speculation the President might appoint a "housing advocate" as head of the FHFA, whose current chief has been lukewarm about such an operation. The administration could get their "own man" in there without Senate approval using the same sort of recess appointment just used to install the head of the CFPB.  [View news story]
    "Mayer estimates that some $3.7 trillion of mortgages would be refinanced. That’s right, this would be the Mother of All Mortgage Refinancing Plans. It would help roughly 30 million borrowers save $75 billion to $80 billion a year. As Mayer puts it: “This plan would function like a long-­lasting tax cut for these 25 or 30 million American families.”"

    Hey, isn't this what it's all about any way. Socialize the risk....but dump it on the backs of those who are paying the majority of the taxes anyway.
    Jan 5, 2012. 04:44 PM | Likes Like |Link to Comment
  • The Burden We Leave Our Grandchildren [View article]
    Sextus....on MMT....start with the concept that there really is a printing machine that the Treasury has. It used to be that way. It still is to some degree. Now the Bureau of Engraving, etc. make bills, etc. But imagine if there weren't a Federal Reserve Bank (remember there didn't use to be one before 1913 - so how did we do it back then?). Congress would create a budget (we havn't had one in 3 years now) and the Treasury would give them newly printed money to spend (we didn't use to have an income tax prior to 1913 either - makes you wonder if the FED and the Income Tax go hand in hand)

    Now instead of printing money and giving it to the government to spend, the Fed, just creates a digital deposit in the government's spending account(s). Voila....you now know how "money" is created.

    Taxes are the extinguishment of money. When received into the IRS account, they are deposited into government's account, and depending on net transactions for the day, they fundamentally disappear. Money gone.
    Jan 5, 2012. 04:32 PM | Likes Like |Link to Comment
  • Battered By Gold, Whipped By Silver [View article]
    Russian.....

    Baaaahhhhhh, Baaaaahhhhhh, Baaack up the truck and load 'er up.
    LOL !!!!!
    Jan 5, 2012. 04:26 PM | 2 Likes Like |Link to Comment
  • Why Is Gold Dropping? [View article]
    Exbuggy....I won't trade a 1 ounce Kruggerand, but I will give a pre-1964 dime.
    Jan 5, 2012. 04:06 PM | Likes Like |Link to Comment
  • The Burden We Leave Our Grandchildren [View article]
    Japan is exactly an example of NOT MMT. Japan's problem is the people in Japan are too focused on saving and consequently have funded all their government's deficit expenditures for 2 decades. The government needs to tell them to stop saving and buying Japanese sovereign debt.
    Jan 5, 2012. 03:43 PM | Likes Like |Link to Comment
  • The Burden We Leave Our Grandchildren [View article]
    msh317 and mobyss....you shoot your own argument in the foot by suggesting that the debt burden would or could get to $40 trillion or some other "unsustainable" level. If "investors" become concerned about holding US treasuries then how will there ever get to be $40 trillion in outstanding treasury debt?

    Mr. Roche has said above, that as long as China is willing to take $ in payment of the goods they sell us, we will be able to print $ to buy their stuff. When that situation reverses, then maybe they will send some of our manufacturing jobs back to the US and we can sell them stuff.
    Jan 5, 2012. 03:41 PM | 1 Like Like |Link to Comment
  • The Burden We Leave Our Grandchildren [View article]
    Fueled....your key phrase, "despite the modified gold standard" is the difference between MMT and what you use as your argument. We are not on a gold or modified gold standard.
    Jan 5, 2012. 03:35 PM | Likes Like |Link to Comment
  • The Burden We Leave Our Grandchildren [View article]
    LT....once again, you mis-understand because of your insistance on a paradigm that just doesn't apply.

    Let's just focus on China for a minute. How's about we go to the printing press and print ~$3T and redeem their treasuries. What will they do with that money that will cause inflation in the USA. I propose that they will do nothing. If they needed money to spend, they themselves would cash those treasuries in and then buy.....US cars? They are investors and those treasuries are part of their currency reserves and serve to protect the imbalance between their currency and ours.

    Secondly, let's focus on the SS Trust fund for a minute. How about we go to the press and print another $ 2.7 Trillion and redeem the treasuries the SS Trust fund holds. Now those are gone and the Trust Fund has $2.7 Trillion in dollars to do what with. Will they spend it to buy cars, houses, copper, wheat or what. Nope, they will invest it.
    Yep...they may invest it in something like equities, municipal bonds, foreign sovereign debt, etc. But they certainly won't consume driving up inflation.

    Lastly....ask yourself what the other holders of US debt like UK, Japan, and other investors (key word) would do with their dollars if treasuries were redeemed. Oops....I suspect they will seek another form of investment. Maybe we could get them to buy the existing housing stock in the US and we could reflate values to where people aren't underwater.

    You have failed to grasp the concept that inflation is driven by too many dollars chasing too many goods....and we don't have a shortage of stuff to buy in the US. When the economy is at full employment and there is nothing else to buy....then maybe printing money will create inflation.
    Jan 5, 2012. 03:32 PM | 1 Like Like |Link to Comment
  • The ECB's Athanasios Orphanides says the notion of the private sector taking losses on its Greek holdings needs to be dropped. Taking the threat of loss away, he writes, could be the only way to entice investors back into the euro-periphery. "The capacity to learn from mistakes is the hallmark of good leadership," he argues, suggesting he himself has learned little.  [View news story]
    Tramslation of Greek: The notion of private sector investors taking losses is insane when you can put the losses on the back of the public - who incidentally have been notorious slackards at paying their fair share of taxes. Taking the threat of loss away could be the only way to entice private sector succors to invest again in our (their) sovereign debt. The capacity to learn just how to stick to anyone other than the bankers who made such terrible decisions is the hallmark of good political leadership.
    Jan 5, 2012. 03:17 PM | 1 Like Like |Link to Comment
  • Possibly taking the starch out of oil prices in the last few minutes, the FT reports Japan and South Korea are busy finding new suppliers of crude to lessen their dependence on Iran. JX Nippon, Japan's largest refiner, is talking with Saudi Arabia as is the country's foreign minister, currently visiting the Middle East. WTI Crude is off $2 in the last hour to $101.80. USO -1.4%.  [View news story]
    Hey, Japan and S. Korea, check out the US as a possible supplier....we are now huge exporters of ..... gasoline. No wonder gas prices won't fall further and faster.
    Jan 5, 2012. 03:13 PM | Likes Like |Link to Comment
  • Was 2011 The End Of The Gold Rush? [View article]
    Franc....If I had access to the printing press....that would be pretty good hedge. Absent that....I'll stick with my physical Au and Ag.
    Jan 5, 2012. 01:04 PM | 5 Likes Like |Link to Comment
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