Iceland To Take Back The Power To Create Money

[Banjo]

This has the potential to be the seed, albeit remote, of creating a watershed moment in history.

http://www.theautomaticearth.com/2015/03/iceland-to-take-back-the-power-to-create-money/

 

[Gringo]

Fractional reserve banking is the issue here. Those who think CB won't screw it up are deluding themselves.

 

[TooOldForThis]

This is very little change from the present usual practice of banking and will certainly have no effect on the boom/bust cycles (which are due to the human tendency to imitate each others behavior). Boom bust cycles predate the invention of central banking by hundreds of years.

The business cycle has been present in every capitalist economy since capitalism was invented. Politicians promising to fix it are, at best, deluded but more likely are fishing for new and better ways to amass power and money.

 

[loyek590]

This is very little change from the present usual practice of banking and will certainly have no effect on the boom/bust cycles (which are due to the human tendency to imitate each others behavior). Boom bust cycles predate the invention of central banking by hundreds of years.

The business cycle has been present in every capitalist economy since capitalism was invented. Politicians promising to fix it are, at best, deluded but more likely are fishing for new and better ways to amass power and money.

well said. IMHO, in the short run our economy works better with a strong fed. However, in the long run it's probably better to let things play out naturally. What do you think?

 

[TooOldForThis]

I have no idea what "play out naturally" means. I think the Fed is doing an extremely good job; inflation is still low but US growth is better than our trading partners. And the Fed had to do that despite a US president who is a complete idiot and has done everything he can to scare the bejesus out of the rich.

One of the problems with a lot of analysis, I think, is that they compare this downturn with stuff that isn't at all like it. This was a serious banking collapse similar to the Great Depression, caused by rich people running to cash. Rich people are still running scared. Eventually they'll turn around and we'll have massive inflation. And people will blame the Fed without understanding that the alternatives were much worse. But I think that the massive inflation is a long time from now, maybe 10+ years. It might not happen until the rest of the world absorbs enough US dollars to fill their foreign currency reserves which should happen maybe 20 years from now. Ought to be fairly entertaining to watch but very slow motion.

 

[Tsing Tao]

I have no idea what "play out naturally" means. I think the Fed is doing an extremely good job; inflation is still low but US growth is better than our trading partners. And the Fed had to do that despite a US president who is a complete idiot and has done everything he can to scare the bejesus out of the rich.

One of the problems with a lot of analysis, I think, is that they compare this downturn with stuff that isn't at all like it. This was a serious banking collapse similar to the Great Depression, caused by rich people running to cash. Rich people are still running scared. Eventually they'll turn around and we'll have massive inflation. And people will blame the Fed without understanding that the alternatives were much worse. But I think that the massive inflation is a long time from now, maybe 10+ years. It might not happen until the rest of the world absorbs enough US dollars to fill their foreign currency reserves which should happen maybe 20 years from now. Ought to be fairly entertaining to watch but very slow motion.

This is all wishful thinking as far as I'm concerned.

 

[loyek590]

This is all wishful thinking as far as I'm concerned.

well, I've been hearing for a long time the fed's easing is going to trash the dollar and lead to inflation. That never happened and now they are done easing.

 

[zdreg]

I have no idea what "play out naturally" means. I think the Fed is doing an extremely good job; inflation is still low but US growth is better than our trading partners. And the Fed had to do that despite a US president who is a complete idiot and has done everything he can to scare the bejesus out of the rich.

One of the problems with a lot of analysis, I think, is that they compare this downturn with stuff that isn't at all like it. This was a serious banking collapse similar to the Great Depression, caused by rich people running to cash. Rich people are still running scared. Eventually they'll turn around and we'll have massive inflation. And people will blame the Fed without understanding that the alternatives were much worse. But I think that the massive inflation is a long time from now, maybe 10+ years. It might not happen until the rest of the world absorbs enough US dollars to fill their foreign currency reserves which should happen maybe 20 years from now. Ought to be fairly entertaining to watch but very slow motion.

predictions 10+ years are nearly always unreliable.

 

[Tsing Tao]

well, I've been hearing for a long time the fed's easing is going to trash the dollar and lead to inflation. That never happened and now they are done easing.

First, they aren't done easing. They're keeping their balance sheet steady (and buying when debt is retired, etc) but policy is still so loose that they still refer to it as "emergency measures".

Second, when all currencies are depreciating, it's hard to trash your own.

Lastly, inflation is out there - limited to food, housing, etc - all the things the poor need. The BLS shows no inflation, of course, but that doesn't mean there are rising prices. Additionally, when your wages are stagnant, even 1% inflation hurts.

 

[zdreg]

well, I've been hearing for a long time the fed's easing is going to trash the dollar and lead to inflation. That never happened and now they are done easing.

"now they are done easing."
did you get a midnight call on an untraceable line?