Posted on 10/03/2012 6:23:26 AM PDT by blam
Your right on target.
It’s also the Middle Class who is going to be destroyed by this. So much for the party that loves the MC.
Very good article, post, thread. BE PREPARED. In the meantime DEFUND/DEPOPULATE the debt slavemasters (stop spending our money), on the way to eliminating the FED or the need for a “FED”.
FED up.
The left HATES, with a visceral passion, the existance of the middle class.
They want a society in which commoners are dirt poor and under the thumb of the elites (them), and the elites are living the lifestyle they deserve simply by being “elite”.
Any pandering to a “strong middle class” is simply a lie to achieve the power necessary to completely destroy it.
Gotta keep paying the regulators and social brainwashers to keep the riff raff from getting into the pie. It’ll go on, until the consequent crash happens. Then the elite folks will be the zombies. [Remember rash of bizarre incidents and suicides in 1929 and after. Add a few decades of interest.]
Surprise! People who suffer through a gradual decline in their standard of living tend to stay relatively stable per capita. Those who suffer a sudden, steep dive in their standard of living tend to react in more hyperbolic fashion on average.
Poverty doesn’t cause crime. Immorality does. Criminals refuse to consider consequences of their actions, as they are more apathetic. They come from all walks of life, although some tend to be more slippery while having resources that make them “untouchables.” Their counterparts with less in the way of resources commit more obvious crimes. As the more “political” folks fall from government/government-linked incomes, many of them will go haywire. Already beginning to happen, really.
There will be no vainglorious explosion of whatever for those who now regulate against others and feel invulnerable (and all of their government-connected cronies), but things will get worse—much like a leather binding that starts out very wet. It tightens, as it dries.
And eventually, pop! The realization that there will no longer any way to be a big government boss without a big manufacturing base and the freedoms that sustained it. Big business now depends on big, socialist government at all levels. Watch, as the situation changes.
Cheap currency is cheap currency. And any country that increases its manufacturing will have a currency that increases with it. A country that decreases its manufacturing, on the other hand, will see its currency decrease. It’s an unexpected but natural way of “free market” globalism (not so free at home, where Americans are prevented by relatives of globalists from starting, new, small production shops).
There were similarities in ancient tyrannies that were crushed, although most of the more striking similarities didn’t have so much directly to do with money (more social/moral/behavioral).
Yes, the Fed HAS taken it. I mean really.
The sum total of currency units (dollars) is the number of slices of the economic pie (GDP or total inherent value).
When the Fed “prints” more dollars (now at the rate of $85B/mo) the value represented by each dollar decreases, and is shared to the new dollars. Part of your 401k-invested value is transferred to those new dollars - redistribution of wealth via teleportation.
If the Fed doubles the currency supply, the value (purchasing power) of your investments is halved, while the new currency picks up the other half of that value just by coming into existence. The federal government takes that newly-confiscated-by-teleportation wealth and gives it to welfare recipients, creditors, and other unfunded liabilities - satisfying those obligations, while acquiring that wealth thru accounting sleight-of hand, and halving the value which was promised by redefining the representation thereof.
You have $10 in your 401k. Ten dollars of value. The federal government owes others $10 but has zero dollars value. (Note the difference in semantics.)
The Fed doubles the money supply.
The buying power of your investment halves, because inflation just hit 100%.
You still have $10 in your 401k, but it buys five “old” dollars of value.
The federal government now has $10 out of thin air, which also buys five “old” dollars of value (taken from you and you didn’t even notice save for $ shrinkage).
The federal government can now hand $2 to the 47%, $1 to creditors in interest payments, and $2 to other unfunded liabilities; those contracts are fulfilled.
And you sit there going “but...they didn’t _really_ raid my 401k...WTF happened?”
Not when the furious money-printing to catch up with numeric promises causes new promises to accelerate exponentially faster.
Sure the 47% is happy to get their promised money, but now wants bigger checks to cover the increased cost of living directly attributed to inflation caused by conjuring that money out of thin air. Cycle repeats until bubble pops.
If suggesting more QE drives down the value of the dollar, which makes our goods more affordable which will lead to greater demand for our goods, which will lead to more jobs to produce those goods thereby reducing unemployment which is the Fed’s objective, then by expanding QE to the infinity we can reduce the value of the dollar to zero, thereby making our goods free of cost which will create so much demand that will require so many new jobs that unemployment will be wiped out completely and everyone will be working. The only problem is, why is everyone working if the only thing they are earning are worthless dollars that can’t buy anything, but hey, it will solve the unemployment problem, right Bernanke?.................../s (thinking like a Keynesian makes my head hurt)
I agree with you... good explanation.
Isn’t it true, though, that at least right now, the banks have these new dollars in their reserve currency, and either won’t lend it out, or is prevented from lending it out?
Thus, at least in theory, it is not inflationary. If that is all the case, then the FED is thinking they are so adept, all they have to do is snuff out these new dollars when inflation starts to pick up.
Thus, they get to inflate the money supply without us seeing inflation, and then contract it.... IF they are quick enough.
Hmmmm... the hole in this is... I know they are borrowing 1+ Trillion, and spending it...
It’s still inflationary. That value is still being “teleported” (got a better term? please?) out of your pocket/account and into the government’s check-printing department. That cash may sitting in reserve, even prevented from going anywhere, but when those vaults are finally opened there won’t be much left therein.
I’ll have to think about the “snuffing dollars” process. You’re on to something there.
How is that creating jobs.
Doesn't the money have to be moving around to create jobs?
Yes, the money has to move to create jobs...
you see any jobs around? I see no money movement on those reserves to match.
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