westpacific:
>>Your beloved FED is printing money, FIAT MONEY, at a level that is just absurd and borderline criminal (but when you are the government you can do whatever you like!!!!). This money has allowed the power players to run up so much DEBT they now own the FED! The Fed cannot allow them to fail, for if they do, then we are talking systemic collapse. It is known as INFLATE OR DIE. Print currency like there is no tomorrow - the same strategy that Bush and his team just asked the Japan Central Bank to undertake. It has ramificatins that borderline on insanity - it is allowing massive debt runups that only lead to a greater problem.<<
OK, I understand, we're going to be overcome by a tidal wave of INFLATION caused by the out of control printing of fiat money.
>>We could talk about deflation here, the biggest enemy of DEBT, if you do not think that CHINA is going to create massive deflation you are living on MARS. We have 1B people that NEED to work! Stanley and everyother corparation on the planet is exporting AMERICAN jobs offshore. China could produce all the needed goods for the entire globe alone for the next century!!!! This will cause deflation on a scale never seen.<<
Wow, we're going to be crushed by DEFLATION. Wait a minute, I thought you said that the problem was INFLATION. Oh, so the big problem is INFLATION and DEFLATION, occurring simultaneously.
In your frantic search for the big economic bugaboo, you can't produce an internally consistent post.
Try this on for size. The Fed is printing fiat money to offset potential deflation from several causes, one of which you have correctly identified (China). Japan has as yet, failed to inflate their money supply appropriately, which has resulted in outright deflation in Japan. (By the way, 70% of Japanese companies plan to CUT the salaries and wages of existing workers in 2002). They are now in the same kind of deflationary spiral that led to the Great Depression in the US, which was caused by a similar failure to appropriately inflate the money supply. Let's hope that the Bush team succeeds in encouraging the Japanese Central Bank to print like crazy, or we will see a meltdown in Japan. Which will be mostly a spectator sport, by the way, as the Japanese economy has been incredibly resistant to US imports, to their detriment. We will still get our SONY big-screen TVs, even if the average Japanese citizen can't buy a cake of (incredibly expensive Japanese) rice. |
