Recent content by FrostBead

Very interesting discussion. I also believe in the policy responses as you Achilles. However, one market property that works against a weakened USD is that whenever there is perceived shit in the market, people turn to safe havens of which US treasuries is one. When is this property going to...

Ed Breen, How would you tackle the hit bank balance sheets are going to take by letting house prices clear? This would probably lead to insolvency scares and mistrust in the financial system all over again.

I don't know how to deal with the massive debt overhang, but it will be dealt with or dealt an outcome in the coming years. But any system you launch for the long term afterward, I think is much better off with taxes shifted towards real estate. This economic rent should be captured by the...

Stardust, In economics you want to produce things cheaply, more efficiently so that people can consume more and enjoy more "economic benefits". In light of this, we still want more expensive housing? Something is amiss... My take is that there has been a long term wealth transfer to...

Piezoe, I don't think there is political power to close the budget deficit in the US (or economically feasible to reduce government spending in the current situation/with current policies). The total amount of debt held abroad will therefore grow and simply force their hands. Imagine US debt...

1) China, Iran and Russia are trying to do some their oil dealing without involving any USD. 2) Suggestions (reiterations) on a global reserve currency have been made, in the wake of all the media attention on the mountain of US government debt. 3) Some countries with current account...

Whenever you undertake one action/opportunity that means that you forgo another one, you have to consider what you are missing. The other action/opportunity is your opportunity cost. Often economists examplify opportunity cost by quantifying it (assigning number values). Monetary cost is just...

I bet George W. Bush had this "it all trickles down" perspective of the first post when he ran his temporary lower taxes on the rich. If stability can induce investments then options should not be viewed as a zero sum game. Theoretically businesses would be willing to lose some money on an...

I would say that you want distribution network that is big enough to capture benefits from economy of scale. That benefit should be weighed against the monopolistic power incumbents hold, balance out these two. The fact that this kind of small scale distribution, that is mentioned here, is...

I kind of get the feeling that Keynesian policy is similar to martingale. If you provide stimulus and it doesn't work out then you are in debt on top of previous problems. You have the government operating deficits (for defense amongst many things). When you cut defense spending or any type...

I liked his "Yes we can" catch phrase better. "Pass this bill right now"...too many words.

I question that property rights will be honored when we run head first into the resource contraints wall. Isn't China already fragmenting the oil market with its acquisitions in Africa?

Damn, I just realized something. If Fed stopped being accomodative, then treasuries would soon look wobbly from a technical default perspective. Think of the reaction we got from SNB intervening on CHF. If I have not misunderstood that there was an effect of people running from CHF to gold...

I am conflicted on the matter of deflation or inflation. To your deflationary points, don't forget that the US is a net importer and is on one end (printing) pushing out dollars to the rest of the world. You have inflation in many of those assets - fuel, food etc. commodities. I think imports...

To get jobs back from abroad you either have to put tariffs on labor intensive goods or wait for the labor market to clear. Things that keep the market from clearing. Asset inflation - mainly living. Minimum wage. With free markets (theoretical) it should be that things cost as much to...