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1 posted on 11/25/2012 2:35:23 PM PST by blam
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To: Kartographer
How The Doomers Got It Wrong
2 posted on 11/25/2012 2:37:55 PM PST by blam
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To: blam

Inflation is a form of default. They are repaying government debt with dollars that are worth less than the dollars they borrowed.


3 posted on 11/25/2012 2:38:26 PM PST by SeeSharp
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To: blam

Yes! Let’s look to failing euro countries as our model. Lets throw in Japan, who have been in a stagnant economy for two decades. He sure made his case!


5 posted on 11/25/2012 2:44:43 PM PST by ilgipper (Obama supporters are comprised of the uninformed & the ill-informed)
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To: blam
Countries that borrow in their own currencies and can "print" at will don't have default risk

Hey! That's great news!!!

... ummmmmmm ... is there any risk for hyperinflation?

6 posted on 11/25/2012 2:46:43 PM PST by ClearCase_guy (Global Warming is a religion, and I don't want to be taxed to pay for a faith that is not mine.)
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To: blam

Almost all nations use the USD as their reserve currencies. That means that, to the extent their central banks have USD reserves, the value of their currencies and the risks associated with each nation’s sovereign debt is based on that of the USD and on US sovereign debt. Most nations central banks hold US in the form of US Treasury debt.

Therefore, the correspondence between the interest rates paid on the sovereign debt of the US and other nations simply does not prove what Krugman claims.


8 posted on 11/25/2012 2:50:20 PM PST by sourcery (If true=false, then there would be no constraints on what is possible. Hence, the world exists.)
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To: blam

Uh, huh. Funny, I seem to recall a similar saying about housing prices never going down. Some things appear true until, suddenly, they’re not true anymore. Then there is a day of reckoning—sometimes a big one.

The fact that these Government are borrowing MORE than ever and the interest rates keep going DOWN should intuitively tell you something is very wrong.


9 posted on 11/25/2012 2:51:08 PM PST by rbg81
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To: blam

Well, one chart would explain it all, wouldn’t it? I have a chart showing that men are taller than women. Do I get a Nobel Prize?


10 posted on 11/25/2012 2:51:30 PM PST by blueunicorn6 ("A crack shot and a good dancer")
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To: blam

Recovery?
Really?
With a real unemployment rate of more than 10%
Lowest job participation in years?
GDP of almost zero (if you subtract gubmint spending)?
Unfunded liabilities of more dollars than exist on the earth?

I could dream for a minute that money printing won’t turn us into Zimbabwe. Yes, obviously we are trying to inflate away our debt but what good is a dollar worth less than nothing?

Is this article satire?


13 posted on 11/25/2012 2:55:59 PM PST by vanilla swirl (searching for something meaningful to say)
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To: blam

If Krugman is correct that “debt doesn’t matter” then let us take that to an extreme. Have the Fed fund the entire federal budget. Already the Fed funds about half of it, so this isn’t a large stretch.

With the Fed funding the full federal budget there is no need for any income taxes.

That should please Krugman, yes?! Certainly our economy would grow rapidly without those pesky taxes.


14 posted on 11/25/2012 2:56:36 PM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: blam

In fact Krugman does not discuss the benifits to our economy if we had a lower debt rate.

Anyone can talk about being able to maintaining high credit card debt ...

... lost is the discussion about how much improved everything would be without those debts.


15 posted on 11/25/2012 2:58:25 PM PST by teppe (... for my God ... for my Family ... for my Country)
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To: blam

In fact Krugman does not discuss the benifits to our economy if we had a lower debt rate.

Anyone can talk about being able to maintaining high credit card debt ...

... lost is the discussion about how much improved everything would be without those debts.


16 posted on 11/25/2012 2:58:39 PM PST by teppe (... for my God ... for my Family ... for my Country)
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To: blam

Don’t all these countries track similarly because this has been an ongoing “global” economic meltdown?
I mean, “global” means everybody, doesn’t it?


17 posted on 11/25/2012 3:00:23 PM PST by Lancey Howard
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To: blam

When you find yourself in a hole, the best thing to do is get a bigger shovel...


20 posted on 11/25/2012 3:07:34 PM PST by Mudtiger
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To: blam
Countries that borrow in their own currencies and can "print" at will don't have default risk, so their borrowing costs are an expression of expectations of future interest rates and growth.

This is the poorest economic logic I have seen in a long time. Getting paid with devalued currency is a default risk.

21 posted on 11/25/2012 3:08:55 PM PST by Lysander (vices are not crimes.)
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To: blam

Can you explain this to me like I am an 8 year old? Confusing. :)


23 posted on 11/25/2012 3:12:35 PM PST by SoFloFreeper
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To: blam

What is missing from this and virtually every single analysis of our finances is : China.

China sells us billions and billions (and billions) more than we sell China.

There are two reasons for that.

First off, back when we could have changed that, we were more concerned with getting access to China.

Now we have been given limited access, while China has full access to our markets. We have been sold a bill of goods, and a lot of people on our side are also to blame.

It is time to close our markets to sales more than are bought from American sources.

If a country wants to sell to America, let them jolly well buy from America equally.

Equally.

However if a country is only selling, then we should stop buying.

For real.


25 posted on 11/25/2012 3:15:05 PM PST by Cringing Negativism Network
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To: blam

Krugman has a chart. I feel so much better


26 posted on 11/25/2012 3:21:04 PM PST by slumber1 (Don't taze me bro!)
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To: blam; SeeSharp; GeronL; ilgipper; TurboZamboni; sourcery; ClearCase_guy

The fact most other countries behave similarly just postpones the day of reckoning. They see the specter of theirs and all national debt entering a marketplace without buyers. They are frightened when imagining a devastated U.S. economy, because feeding the insatiable desires of U.S. consumers has been a mainstay of their prosperity.

Remember that when the Bretton Woods agreement came apart in the early 70’s, we began the time when the world operated without a precious metal standard. Only within the period of my working career has the world been adrift. Not only has this issue never been resolved, but it has never been addressed.

I imagine something like the final scene in “The Good, The Bad, and The Ugly”. The G-20 members stand in a circle with open graves behind them. Each contemplates how to successfully outdraw the other nineteen members and survive the resulting mayhem, which Lee Van Cleef’s character did not. The only thing needed now is a typical expression of human frailty to commence the cascade to catastrophe.


28 posted on 11/25/2012 3:23:20 PM PST by Retain Mike
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To: FReepers; Patriots
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29 posted on 11/25/2012 3:27:19 PM PST by onyx (FREE REPUBLIC IS HERE TO STAY! DONATE MONTHLY! IF YOU WANT ON SARAH PALIN''S PING LIST, LET ME KNOW)
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To: blam
The Marxist must jack-off to Zimbabwe's economical outlook if showing just one chart eases everyone's fears. How can this fool be taken seriously with any rational human being?

I suppose an individual stricken with inoperable cancer is cured by dying in a car crash in this foolish one eyed idiot among bigger fools' minds. I mean artificially f’ing up the currency is great for the future and the economy; a noble prize winner can't be insane, can they?

31 posted on 11/25/2012 3:38:48 PM PST by rollo tomasi (Working hard to pay for deadbeats and corrupt politicians.)
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