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You Can't Print Production and Prosperity
Mises ^ | 7/23/2009 | Doug French

Posted on 07/23/2009 10:16:52 AM PDT by anonsquared

It's hard to imagine that the monetary policy talk can get any nuttier, but we've likely only just begun. After all, despite the Federal Reserve growing its balance sheet by 140 percent and dropping rates essentially to zero, the bankruptcies just keep on coming. Ex-Fed governor Wayne Angell told Larry Kudlow's CNBC audience, "monetary policy always works!" ~snip~ Meanwhile, Japanese authorities are toying with the idea of outlawing cash in their country.

(Excerpt) Read more at mises.org ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: economy
First I've heard of this...

Now the word is that zero-percent interest rates are just too darn high. That's why we haven't seen a reinflation of bubble America. The Financial Times reports the existence of a Federal Reserve staff memorandum that makes the case for a negative-five-percent federal-funds rate.

1 posted on 07/23/2009 10:16:52 AM PDT by anonsquared
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To: anonsquared

The government and Fed are vigorously trying to reinflate those bubbles


2 posted on 07/23/2009 10:19:43 AM PDT by GeronL (UnitedCitizen.Blogspot.Com --------- United Citizens Nation! ------------- Join Today!)
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To: anonsquared

Oh yes you can!!!

The brilliant president, his brilliant advisors, his brilliant congress, and his brilliant constituents have proven it!!! Figures dont’t lie! Just look at the statistics!!

/S/

IMHO


3 posted on 07/23/2009 10:20:46 AM PDT by ripley
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To: anonsquared

Nonsense, the financial sector-banks, Wall Street-actually believed that they could engender prosperity by moving their pieces of paper from place to place-they can’t. You have to make something in order to be prosperous. We gave our prosperity away to China and India...in China sales of GM cars are up 62%. Why? They make products that people buy. The American people were sold a bill of goods by Wall Street-with the consumer, service or consumption economy-whatever you call it...it’s an abysmal failure. Until we find some way to bring back manufacturing, nothing will get better.


4 posted on 07/23/2009 10:22:50 AM PDT by nyconse (When you buy something, make an investment in your country. Buy American or bye bye America)
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To: anonsquared
"Now the word is that zero-percent interest rates are just too darn high. That's why we haven't seen a reinflation of bubble America. The Financial Times reports the existence of a Federal Reserve staff memorandum that makes the case for a negative-five-percent federal-funds rate.

Hard to wrap a partially functioning brain around that.
5 posted on 07/23/2009 10:23:31 AM PDT by allmost
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To: GeronL

Right, and the banks will make out again with a favorable Fed funds rate while hard working Americans pick up the tab.

What are the odds that those same banks will not only not charge you interest for using their credit cards, but pay you 5% interest to go out and charge up a storm?


6 posted on 07/23/2009 10:23:50 AM PDT by anonsquared (Jim Thompson made me do it!)
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To: nyconse

Just wondering if you have seen this? I watched the video of his speech the other night and he seems to be on the right page.

http://www.willyoufight.com/


7 posted on 07/23/2009 10:26:32 AM PDT by Pan_Yan (All grey areas are fabrications.)
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To: anonsquared

What they are doing is backwards from reality and common sense. Can you imagine punishing savings by subtracting 5% a year from accounts??

Where will these banks get the money to loan when there is nothing in their vaults?


8 posted on 07/23/2009 10:26:51 AM PDT by GeronL (UnitedCitizen.Blogspot.Com --------- United Citizens Nation! ------------- Join Today!)
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To: All

Will we be able to refinance our mortgages where the banks pay us 5% a year for 30 years?


9 posted on 07/23/2009 10:31:57 AM PDT by anonsquared (Jim Thompson made me do it!)
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To: nyconse

Although if we exported the bulk of lawyers in America to China and India, our prosperity would improve overnight while theirs would take a nosedive.


10 posted on 07/23/2009 10:39:41 AM PDT by anonsquared (Jim Thompson made me do it!)
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To: anonsquared

Fed will soon announce they will pay your airfare to bring your own sack and pick it up.


11 posted on 07/23/2009 10:42:08 AM PDT by org.whodat (Vote: Chuck De Vore in 2012.)
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To: allmost

Not really. 5% inflation with 0% interest rates = -5% real interest rate.


12 posted on 07/23/2009 11:24:30 AM PDT by Pessimist
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To: Pessimist
Negative five percent interest.
13 posted on 07/23/2009 11:27:59 AM PDT by allmost
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To: Pessimist
Paying people to borrow and simultaneously eroding the currency they use.
14 posted on 07/23/2009 11:30:45 AM PDT by allmost
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