Please help make FR's voice louder.
Truth, Justice, and the American Way.
Posted on 01/29/2016 5:25:06 PM PST by blam
Tyler Durden
January 29, 2016
With Citi's chief economist proclaiming "only helicopter money can save the world now," and the Bank of England pre-empting paradropping money concerns, it appears that Australia's largest investment bank's forecast that money-drops were 12-18 months away was too conservative. While The Finns consider a "basic monthly income" for the entire population, Swiss residents are to vote on a countrywide referendum about a radical plan to pay every single adult a guaranteed income of around $2500 per month, with authorities insisting that people will still want to find a job.
The plan, as The Daily Mail reports, proposed by a group of intellectuals, could make the country the first in the world to pay all of its citizens a monthly basic income regardless if they work or not. But the initiative has not gained much traction among politicians from left and right despite the fact that a referendum on it was approved by the federal government for the ballot box on June 5.
Under the proposed initiative, each adult would receive $2,500 per months, and each child would also receive 625 francs ($750) a month.
The federal government estimates the cost of the proposal at 208 billion francs ($215 billion) a year.
Around 153 billion francs ($155 bn) would have to be levied from taxes, while 55 billion francs ($60 bn) would be transferred from social insurance and social assistance spending.
(snip)
(Excerpt) Read more at zerohedge.com ...
Bread with cost $3k a loaf.
Where I live that would do quite nicely.
You can have a one bedroom apartment in a nice town for $650/month, utilities paid.
That leaves $1850 for food, clothing and other necessities.
If share an apartment with another adult you should be well off.
Of course this is a grossly inflationary policy which will seriously push up the cost of labor.
Is this Science Fiction?
Time to start exporting our inner city parasites to Switzerland as refugees.
Learn to can. We do it every weekend.
L
Math...
Were the Starnes Swiss?
Yes...forgot to multiply by the year. It gets expensive real quick!
I can learn to can while I Can-Can.
You’ve piqued my interest, you swine. More payroll gone. :)
It’s actually fun. We had home canned soup for dinner tonight. It’s been in the cupboard for three months and was as good as the day we made it. No refrigeration required. We’ve got months worth put back.
If you’re really interested, freepmail me and we will chat further.
Good luck.
L
I might even send you a phone number to call. :)
Truth, Justice, and the American Way.
I might even make use of it if you did.
L
Sounds like Hubert Humphtey’s 1968 campaign promise to give $X to every man, woman, and child—adjusted for inflation.
Inflation soon to follow.
My understanding may be very imperfect, but anyway...
QE money goes from thin air of one form or another to the banks, who are then supposed to loan the money wisely to people who qualify for the loans. The thin air is actually all of the people since the existing money is diluted by the new money printed. Since not everyone has the same amount of savings, the very rich people are inflation-taxed quantitatively more than the poor people.
helicopter (H) money goes from thin air of one form or another directly to all people, equally. The thin air is actually all of the people since the existing money is diluted by the new money printed. Since not everyone has the same amount of savings, the very rich people are inflation-taxed quantitatively more than the very poor people.
If all else is equal (and all government plans to recover the money printed somehow go awry as they usually do), then from the perspective of anti-banksters, H money is better than QE money, because the money goes directly to the people instead of passing through a (corrupt) banking filter. From the perspective of least-governs-best advocates, the same is true.
Yet another perspective is the classic economic perspective that without more manufacturing, no real wealth is created by printing money. (However, I am no longer certain that that is true. the same might be said of a sudden gold asteroid shower hitting the earth. Would we still not be better with the added gold in everyone’s pockets? New demand is created. The new demand could in theory spur new manufacturing growth among those people in the population who desire to work harder to make more wealth from the people who would spend their sudden windfall to purchase goods.
Yet another perspective is the classic economic perspective that inflation is a cruelly regressive tax, because the poor are affected worse by inflation than the rich. (However, if the inflation surplus goes directly into H money, I am no longer certain of this.)
Is there H money in USA’s future??
IIRC, Taiwan has already done this on a one shot basis (and they seem to have survived).
It is our ex-Federal Reserve Chairman who is known as 'Helicopter Ben'.
Helicopter Ben is a coined name for Federal Reserve Chairman Ben Bernanke. The origin of this "nickname" stems from statements made by the Chairman in regards to a hypothetical monetary crisis. He basically indicated that if there were a liquidity squeeze, he would direct helicopters to be flown around the country spewing out fistfuls of cash to the populous.
Don't worry about a recession, Helicopter Ben will save us.
by Guido1 March 03, 2008
what i am wondering about it the downside.
we already have inflation. we already have a balance of trade problem. we already have a ballooning deficit. taxes are typically rising. poverty exists— welfare needs exist.
at the surface, printing money and tossing at at citizens seems to counteract the majority of these problems.
if that is the case, then perhaps it is only a matter of time before the politicians seriously propose it(and we should all consider it evenhandedly).
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