Posted on 08/08/2011 8:21:00 AM PDT by Tulsa Ramjet
Former Federal Reserve Chairman Alan Greenspan on Sunday ruled out the chance of a US default following S&P's decision to downgrade America's credit rating.
"The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default" said Greenspan on NBC's Meet the Press
(Excerpt) Read more at cnbc.com ...
>>>AND, our creditors will notice theyre being paid with Monopoly money. What a moron.
AND, our citizens will notice they’re being paid with Monopoly money. It effects everyone once it hits M2. This was a really stupid remark by EZ Money Al.
Oh, we need a barrel of money
To buy two ounces of honey;
but we'll roll it along,
Still singing our song...
Side by side!
Thank the Good Lord that we had the foresight to own three wheelbarrows, and a couple of large garden carts!
Got some analysis of those numbers? Might help me crunch out some more economic boundary conditions I’ve been pondering.
You would have a better chance with this administration if you proposed going onto a marijuana & cocaine "standard".
100 Pseudo-Feds = 1 Snort; 100 Snorts = 1 Obama; 10 Obamas = 1 Fatal-Overdose...
DEA, ATF, Dept of Ag, and FDA could enforce counterfeiting
Thanks ApplegateRanch.
If we can print money to pay the debt, why do we have the debt? Why didn’t we just print money when we needed it? Why are you and I paying taxes? Why not just print the money without you and I working for it?
Heck I bet Jethro Bodine can cipher that and school Mr. Drysdale!
Apparently Greenspan got obamacare a little earlier than the rest of us.
>>Got some analysis of those numbers? Might help me crunch out some more economic boundary conditions Ive been pondering.<<
If by “economic analysis” you mean how did I get them, all you need to do is use the “y to the x” key (take “y” to the “x” power) on a calculator, assuming it has one.
If you forecast 20 years of 15% inflation, put 1.15 in for “y” and 20 in for “x”. The answer is 16.36, meaning prices will be 16 times higher than they are now. Divide, say, the price of a car at $25,000 by the 16.36 and you get $152. So, if you have the price of a car stashed somewhere in a sock, in 20 years of 15% inflation, you’ll be able to buy a nice dinner out with your wife with that $25,000.
Alternatively, the car in 20 years will cost you $25,000x16.36 or $409,000. That may sound ridiculous, but I was eating nickel candy bars as a kid that cost over a dollar now, and that nickel candy bar was already way up from my parents’ childhood days. And the old “Dime Store” is now a Dollar Store.
If you don’t have a y to the x key, just multiply the 1.15 times itself 20 times. At the end of one year, prices are 1.15 times the beginning price. At the end of two years they’re 1.15x1.15 or 1.32 times the beginning, etc. Using this method, you can gradually raise the inflation rate, say starting at 5%, then 8%, then 12%, etc., by using 1.05 x 1.08 x 1.12, etc.
Ack. Sometimes I ask stupid questions, especially when the consequences of the issue invoke cognitive dissonance (say, $25,000 for a modest dinner out...).
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