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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: kris b who wrote (75582)12/14/2006 4:25:37 AM
From: bart13  Read Replies (1) | Respond to of 110194
 

I am referring to $ 300.00 per year Ben's helicopter drops. In order to make it to be felt at a household level he would have to drop about $ 2,000.00 per month per family. This is the only way to reliquify them.


Thanks.

I don't think it would take anywhere near that, in the sense that a full reliquification is not necessary to have the household spending rate of change increase again.... lots of stupid people out there... and I also haven't done the full math.



To: kris b who wrote (75582)12/14/2006 6:00:14 AM
From: Mike Johnston  Respond to of 110194
 
"I am referring to $ 300.00 per year Ben's helicopter drops. In order to make it to be felt at a household level he would have to drop about $ 2,000.00 per month per family. This is the only way to reliquify them."

If the Feds were giving $2000/month per family, on balance the prices across economy would immediately rise by the amount equivalent to the percentage that this increase in household income represents of the previous total income.

Therefore it would not make any difference, they would be able to afford exactly the same number of goods as before.

In fact it is quite likely that prices would increase faster for certain goods desirable to lower income groups, as people "rush" to spend their $2000 check on some desirable items, and will attempt to get to the store before everybody else.