My responses to the above excerpt:
1)We do have a problem selling out debt. The Fed is not exactly a volunteer buyer.Even if we didn't, it would still be a serious problem.
2)We are indeed "creating" money electronically. Typical leftie to say that since it's not printed paper, it doesn't count
3) The US is not a "highly productive" economy. If it were wee wouldn't be getting our regular pack of fiddled economic stats every week from the BLS et al. Inflation, unemployment, GDP are all so manipulated as to be nothing but sh1ts and giggles.
To affirm your points:
1) I have read many stories the last few years discussing how the Fed has been buying most if not all the debt at certain times when bonds have been released. This is basically a bookkeeping trick to keep “things running smoothly” for the ponzi scheme that is running with the fiat currency in place, backed by nothing but good vibrations.
2) The banks create money out if thin air by fractional reserve lending. The vast majority of “money” is electronic and not in physical form.
3) Barry’s been working hard to make sure our productivity keeps going down, using multiple vectors.
And our enemies have no trouble buying it......
(2) we aren't actually printing money; and
That's soooo 20th Century. Computers are much faster than printing presses......
(3) the United States is a highly productive economy that is nothing like bombed-out Budapest.
We have a defacto SERVICE Economy now, need nails done? No problemo. Need nails? Get them from CHINA........................
Didn’t Obama want to crank out a couple trillion dollar coins?
This is nonsense. The only thing propping our economy up is the fact oil is pegged to the dollar. If that ended our economy would implode in a month.
Matthew O’Brien is a special kind of stupid.
This is why no sensible person reads The Atlantic.
Read the actual history of the Weimar Republic. We are on a very similar trajectory (if for different reasons). Once BRICs is thoroughly aligned against us (already happening) and the dollar is dumped as the international reserve currency we will be well on our way to Weimar territory.
Deflation is a Bitch.
What would you do, or have done if confronted with the most serious reality of deflation, if you were at the FED?
Let the inevitable depression happen or use whatever tools you had to forestall it?
Inflation can easily be dealt with, while Deflation is a wholly different problem.
This is a piece of my post on a prior topic, but is appropriate here:
Printing (creating) money will eventually result in inflation for goods the money is used to buy. 40 years ago those goods were real (remember Carter), so prices of goods went up dramatically.
Today printed money is being used to prop up the stock and bond markets. The PTB can point to the markets and say, “Hey, look. The markets are strong so the economy must be good.” Actually, inflation from newly created money is showing up in stock and bond prices, not in the prices of goods.
That’s what happens when printed money goes to Wall Street and not to Main Street.
Unlike most hyperinflations, Zimbabwe's wasn't the consequence of war or revolution. It was self-inflicted. In 2000, the Mugabe government broke up the mostly white-owned farms that formed the backbone of the nation's agricultural sector into smaller ones. As a matter of social policy, trying to undo the enduring iniquities of the colonial era made sense. As a matter of economic policy, it was suicidal.
Yes - countries absolutely can do this to themselves in the absence of malign foreign influence. And there are a number of determined political movements within the U.S. with ideas of this broad a scope, notably draconian environmental laws, deliberate demographic changes through massive and illegal immigration, and socioeconomic changes such as the socialization of health care. Yes, it can happen here.
Never say never.
Point 3: Budapest was part of Germany?
I stopped reading right there.
And the Fed is “printing” money — it’s called Quantitative Easing.
Two out of three ain’t bad/.
We would be more productive if we produced more oil and energy at home, not having to import any from abroad, and lower energy prices would stimulate the domestic economy.
“(1) we don’t have any problems selling our debt
(2) we aren’t actually printing money”
Au contraire, our “money” IS debt. “Electronic currency” is a series of IOUs, tracking who owes who what.
Fiat currency is backed by a gun- the state, that’s it. US is the world currency because it has been the largest economy and has the strongest military.
But the US is losing its grip because 0bama and his globalist puppets are destroying the US by weakening it economically and creating the conditions for rebellion and civil war.
Hyperinflation and dollar collapse will coincide with economic and military collapse.
Money velocity is very slow inhibiting inflation.
So many dollars have been produced that in the short term, even an expansion of the balance sheet by one or two trillion doesn’t cause a large percentage increase in the money supply.
It doesn’t have to be Wiemar — it only has to be the 1970s again and tens of millions will suffer.