SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : The Brazil Board
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: John Vosilla who wrote (1624)7/23/2016 2:20:33 PM
From: THE ANT  Read Replies (1) of 2504
 
I think it could save us. Remember there is too much excess capacity in the world. There is no reason the world cannot expand until that excess capacity is used up and/or the prices of commodities rise to the point the cost of expansion is prohibitive. With oil prices dropping and likely to drop further, especially as China goes into a financial crisis mode, I think we likely can print 50% more dollars into existence without creating inflation. Again it makes no sense to have a recession which wipes out this excess capacity, the only restraint in the world economy should be inflation. Remember in a capitalistic system the government gives banks the right to print money as they feel Banks are better allocators of capital. My argument is that in times of high private debt to GDP Banks can no longer complete their role. The government must then step in with deficit spending to create dollars to use this excess capacity. The real question in the US is which president do you trust to spend this free money most efficiently. Again I believe this created money is essentially free at this point as capitalism and world development have created this excess capacity. Unfortunately the supply of dollars in the world has not increased enough. We will only know that there're enough dollars in the world when inflation is created. At that point creating more dollars will only create more inflation. There is almost no risk to my proposal. Pres. Trump should print a 10% deficit and watch how the markets unfold. This should be repeated at intervals until inflation clearly hits the 3 to 4% range and stays there. When inflation eventually returns the current winners and losers Will flip-flop. Rising rates and rising wages will reward the middle class as they own few capital assets. The wealthy will see a real fall in asset values as well as watching the wage the capital ratio rise. The financial System should shrink back to 3 to 5% of GDP. Industry should benefit and the politicians will follow the money and start to worry more about real production and wage earners. The reason this has not already played out is that the US elite have no interest in this playing out. Again every society has its ruling elite. Ours has lost the right to govern
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News