so what happens to sustainable levels if interest rates are not controlled by the FED and they are allowed to return to say 7 percent. Do you really think the cronies can rig this indefinitely. Do we all understand that the rigging creates wastes of human and other resources... it creates wastes like zombie banks and dead economies in Japan. Do you understand you can't screw with the invisible hand forever and it keeps the standard of living of the people down in the long run?
What If: We got all the good ideas worldwide, payed a little more to implement them?
- Thread starter nitro
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Coincidentally...
Feb 9 12:32 pm
Bonds on the Run
"While we obsess over domestic politics — not that there’s anything wrong with that, since a lot depends on whether the next leader of the world’s most powerful nation is a racist xenophobe, a sinister theocrat, an empty suit, or all of the above — something scary is going on in financial markets, where bond prices in particular are indicating near-panic.
"I know, Paul Samuelson famously quipped that the stock market had predicted nine of the last five recessions; the wisdom of crowds is often overrated. Still, bond markets are a bit less flighty than stocks, and also more closely tied to the economic outlook. (A weak economy has mixed effects on stocks — low profits but also low interest rates — while it has an unambiguous effect on bonds.) What plunging rates tell us is that markets are expecting very weak economies and possibly deflation for years to come, if not full-blown crisis.
"Among other things, such a world would be a very bad place into which to elect a member of a party that has spent the past 7 years inveighing against both fiscal and monetary stimulus, and has learned nothing from the utter failure of its predictions to come true."
http://krugman.blogs.nytimes.com/2016/02/09/bonds-on-the-run/?module=BlogPost-Title&version=Blog Main&contentCollection=Opinion&action=Click&pgtype=Blogs®ion=Body
so true, I know some bond traders and they are the smartest people in the world.Coincidentally...
Feb 9 12:32 pm
Bonds on the Run
"While we obsess over domestic politics — not that there’s anything wrong with that, since a lot depends on whether the next leader of the world’s most powerful nation is a racist xenophobe, a sinister theocrat, an empty suit, or all of the above — something scary is going on in financial markets, where bond prices in particular are indicating near-panic.
"I know, Paul Samuelson famously quipped that the stock market had predicted nine of the last five recessions; the wisdom of crowds is often overrated. Still, bond markets are a bit less flighty than stocks, and also more closely tied to the economic outlook. (A weak economy has mixed effects on stocks — low profits but also low interest rates — while it has an unambiguous effect on bonds.) What plunging rates tell us is that markets are expecting very weak economies and possibly deflation for years to come, if not full-blown crisis.
"Among other things, such a world would be a very bad place into which to elect a member of a party that has spent the past 7 years inveighing against both fiscal and monetary stimulus, and has learned nothing from the utter failure of its predictions to come true."
http://krugman.blogs.nytimes.com/2016/02/09/bonds-on-the-run/?module=BlogPost-Title&version=Blog Main&contentCollection=Opinion&action=Click&pgtype=Blogs®ion=Body
I can see thinking in big systems is not your intent.
No.. Japan is the example of a moribund economy which is created when you allow the cronies and the establishment to screw with business cycles. Instead of the destruction of businesses and banks which are poorly managed...you allow them to turn into washed out low growth bloated dead zombie businesses. When you have enough big ones... you have a zombie debt ridden economy which does not grow good jobs and spread out wealth.
in short... crazy Krugman thinking is what leads to massively mis allocated capital. Instead risk capital going to new business and creating jobs and growth... it goes to crony business creating tighter control of assets and corrupt politicians.
No.. Japan is the example of a moribund economy which is created when you allow the cronies and the establishment to screw with business cycles. Instead of the destruction of businesses and banks which are poorly managed...you allow them to turn into washed out low growth bloated dead zombie businesses. When you have enough big ones... you have a zombie debt ridden economy which does not grow good jobs and spread out wealth.
in short... crazy Krugman thinking is what leads to massively mis allocated capital. Instead risk capital going to new business and creating jobs and growth... it goes to crony business creating tighter control of assets and corrupt politicians.
What if? I have a what if. What if leftists made decisions based upon how the world actually is, instead of the fantasy world they wish for? At a minimum policy making would be a fuck of a lot less expensive. We might not waste so much god damn time on shit that has no chance of working. What if?
I would settle for implementing fewer bad ideas. Often it's hard to tell if an idea will turn out good or bad, so if we just do nothing we reduce the amount of bad ideas implemented by a considerable margin. In fact, since good ideas are much rarer than bad ideas, doing nothing is clearly the smartest approach.
Voters have intuitively grasped this, which is why they are comfortable with divided government and the resultant gridlock.
Voters have intuitively grasped this, which is why they are comfortable with divided government and the resultant gridlock.
I did not say that. I am saying we should have followed our advice here... instead of your teams plan. I am saying the longer you put off the invisible hand the more its going to the rob the future of the growth and jobs it should have had. We should have done things very differently a few years ago and lowered taxes instead of creating massive inflation, reviving zombie banks, and saving those who made terrible investment decisions.
By now we would have had a strong base and a booming retooled economy.
We don't have that now.
If it were up to me. I would not the spending until the budget was balanced, I would eliminate income taxes and I would demand the Federal Reserve cease expanding the money supply for the next 2 years. I would also enact tariffs designed to return jobs to america and raise revenue. I would also create a hybrid model for health care. Which would be funded by sequester type action from other parts of govt.
Then I would see how inflation, the economy and the deficit are doing in 2 years.
One thing I know for sure... with low taxes and an elimination of health care cost on our businesses our economy would boom and the govt would have fewer people in need of benefits.
By now we would have had a strong base and a booming retooled economy.
We don't have that now.
If it were up to me. I would not the spending until the budget was balanced, I would eliminate income taxes and I would demand the Federal Reserve cease expanding the money supply for the next 2 years. I would also enact tariffs designed to return jobs to america and raise revenue. I would also create a hybrid model for health care. Which would be funded by sequester type action from other parts of govt.
Then I would see how inflation, the economy and the deficit are doing in 2 years.
One thing I know for sure... with low taxes and an elimination of health care cost on our businesses our economy would boom and the govt would have fewer people in need of benefits.
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