<<Last I heard USA had no savings - but those Asians have lots - so if we reset who gets hurt?>>
... You heard wrong. US has plenty of savings; the US is not saving. Pool vs flow.
In a manner of speaking, as the wealth pool has something to do with economic savings, but also to do with monetary and economic valuation, and the leverage applied to them ... you know, per capital apportionment of pool, poison and the good stuff, and so there is plenty to extract.
So do not fret, even after extraction, there will be plenty to steam-pressure up the well, to burn.
And so all is well with globalization motivation, and equalization dynamic.
<<I always go buy water when hurricane is coming>>
... How odd! I load up on DVDs.
<<why someone believe so strongly DEBT WILL BE PAID>>
... perhaps they mean in a metaphysical or Biblical sense?
<<... rapid technological change has made inheritance ... other than human capital ... less valuable ... Which would be more valuable ... physical possessions, ... financial assets, or a large investment in their human capital?>>
... Is that a trick question? My answer is ‘Yes. I will settle for all of the above’.
<<Probably 90 percent of his physical possessions will be obsolete by the time his children reach 21>>
... I guess he has no gold and no platinum … bummer ;0/
<<I am pretty sure that things will take care of themselves>>
Well, things always have, so far, in a manner of speaking, one way or another, via Zimbabwe equation or Civil War formulae, and paper money has always gone to … let me see, … hmnn, how odd, zero.
<<Rothbard ... three central lessons>>
... I am in agreement.
<<I like how in one of your recent posts you say you LOVE ... the robbing of the little guy - so much for being altruistic>>
I am guessing you can be too literal when you choose to be. As it may, think of it this way, I love to take care of the little guy by taking care of his moolah, so that he cannot harm himself by borrowing against his moolah so as to dig himself into a deep hole. I should help out with the editorial with NYT / IHT / WSJ / Stratfor.
<<Burb&Boom BurnAndKaput is an economic illiterate ... Who tells you this?>>
Besides intuition? ... the same one who told me Greensputin does not like to visit HK because our HKMA do not have own building.
<<What is the extent of their academic study of economic history?>>
... sorry, your sentence has the word ‘academic’ and ‘economic’ in it, and that is a bad sign pointing to wrong premise underlying the sentence.
In any case, pretty good, good enough to judge.
<<He even did analysis on your FRENCH folks!
econlog.econlib.org >>
... will take a look before comment on same.
<<Wage floors make unemployment worse, especially in the face of a monetary contraction>>
... I do not disagree. However, I point out, inflation also makes unemployment worse, in this day and age.
<<Examples of interventionist measures by the French government included tough agricultural import restrictions and minimum grain prices ... >>
... be patient, we will see same again. You must read about the California electricity crisis that was and see how these decisions come about.
<<In case it isn't obvious to you, context makes it clear that he firmly disapproves of policies inhibiting the market's adjustment.>>
... it is obvious to me, and I am figuring particularly true is intervention by printing press, especially.
<<the man has amazing academic credentials>>
… yes, and so do Ms. Rice, and the rest of the “Rose petals on the streets of Mesopotamia” crowd.
... over rated, credentials as indication of literacy, given that I know exactly how I muddled through higher education.
<<During upturns and downturns, does money or credit play the leading role? Bernanke showed that credit has greater importance
… Geez, and there I thought I ought to have a shadow of a doubt, when you brought up the matter of credentials. I guess not, at least not by this point, for empirical rigor on the intuitively obvious seems … well, enough said. Next point, please.
<<Inflation targeting>>
… old idea, with a new name, and if the targeted rates do not vary, chasing own tails, and if it varies from time slot to slot, then exactly the same old schema.
Let us not argue this point, and simply let the gentle passing of time show us the truth.
Causes of the Great Depression
If you read Andrew Dickson Whites readings to Congress April 12th 1876, and it was that “Fiat Money Inflation in France – how it came, what it brought and how it ended” pamphlet, when the man tried to warn against what was going to be tried in the US, you will know what caused the Great Depression by then foresight, as opposed to hindsight by Burp&Boom BurnAndKaput eons later.
The global savings glut
… :0) Funny, extremely, and here I thought it was planet liquidity deluge.
<<some Asian countries have high levels of savings, but poor financial institutions. They invest their savings in the United States, and often we invest in back in Asia
… It is one way to look at it. Another way is that there is much liquidity released via ‘sophisticated financial innovations and infrastructure’, and it washes over everything and everywhere, creating false value and real investment, losing some by friction (i.e. my put sales to fund holidays), accumulating somewhere else as savings, before vaporization, and showing up in a yet another locale, as vendor financing.
<<non performing loans - but we clean ours up over here in the west no[t] at the cost of little people and old people>>
I will give you an opportunity to retract that claim, seeing as how folks are losing jobs, real wages have been stagnant, and everything necessary costs more.
<<While I’m told that Bernanke is open to market indicators, he also seems overtly committed to an explicit target for the core inflation rate, which I view as problematic. Trying to stabilize a backward-looking index of prices by manipulating short rates probably is an impossible task, not to mention an undesirable one>>
… central planning is a bad idea, full stop.
<<I also have some concern about Bernanke’s view of the inflation process>>
Do not be concerned. Be like me, ready to enjoy the process, for we know what is coming.
<<Inflation is a monetary phenomenon, not a cost-push event.
… Agree.
So I we must ask our canadian and new zealand friends about inflation targeting and if it is the better approach?
Dunno. Must put in context. Small populations digging money out of the ground is not exactly a model for a real and continental economy, especially if said economy’s monetary regime is the planetary moolah schema.
<<We believe Bernanke promoted the plan to hand out $2,000 to hurricane victims. It is an indication of more micro-management to come>>
Herman, given the times, as in the period of Fiat Money Inflation in France, if Burp&Boom BurnAndKaput did not support the push the idea, some other illiterate would have. It is the sign of the times and indicator of the course.
<<See China Is Open for Business: Will China’s growth eliminate inflation? (September 21, 2005)
… if that was a question to me, then my answer is "no", because China invented paper money and chanced upon the printing press, and has put a few monetary regimes to waste.
Chugs, J |
