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and who doesn’t want to work?
and who doesn’t want to work?
Me. I want to be able to live off my hard earned savings without it being inflated or taxed away.
There will be pllleeennntttty of jobs after the poverty lock!
> " After all, a cheaper USD means America’s products are cheaper for foreigners to purchase, and these cheaper goods means more jobs in the long run – and who doesn’t want to work? "
This is the #1 propaganda talking-point of the Chicago School.
There is absolutely no amount of feasible currency depreciation that will make American labor competitive with offshore labor. The tipping point of a declining USD and rising oil, ultimately blows up the currency-depreciation game long before east-west labor competition heats up.
The ONLY point of depreciating the currency is saving the banks. All other justifications are to make you shut up and not revolt. Of course -- you will. Because the necessary devaluations are about 10 clicks beyond max-pain.
The whole theory of decreasing-USD / increasing exports doesn't even pass the logic test: Chinese labor is less than 10% the cost of US labor. So is a 90% dollar devaluation in the cards? Go ahead and try it Ben. It won't work. The whole system implodes long before you get close. Not only will oil ruin your day -- but so will food, water -- and blood in the streets. Or wait, perhaps Bernanke still believes in the old canard: "The US will make high-tech products, and China will make socks". Amazingly, economists still spout this rubbish. Too bad the Chinese are now building planes, aircraft carriers, UAV's and supercomputers. Oh, and stealing technology is part of their business model. So on what grounds exactly are we suppose to compete again?
Inflation is simply a justification for an invisible tax ("tithe") on the American serfdom. It will impoverish Americans, and if anyone thinks that the upside is that Americans will have an economically viable, competitive workforce thereafter -- they are being sold a bridge.
Wealth formation is at the crux of American competitiveness -- and Bernanke is aggressively destroying America's ability to save...
+ 1 even if it does not work with italics at the beginning of your reply.
I am in a similar position, I have savings accumulated and am not looking for work (too old and not interested in work). Just leave me alone already! The US$ may have a good short-term future, but longer term, I WAY prefer gold.
You said it, DoChen. And thanks for explaining why the up arrows don't work sometimes. I've been wondering about that.
Hopey changey sucks goldman sacks!
Here's one of the creatures responsible for the demise of our once great nation.
The Real Newt Gingrich
A deflationary depression is going to require a re-education on the significance of using lower denominations of money and its related value thereof.
Re-education might be needed, but it will more likely involve explaining how many zeros were lopped off the currency. As in 1994 in Yugoslavia where 1 New Dinar was exchanged for 1,000,000,000 old Dinars. Accounting software was running out of spaces for all the zeros.
For those without the time to watch this entire video, just to to the 28:00 mark to listen to what Newt did to stop Ron Paul.
Gingrich is indeed a nasty piece of work.
-1 Michael, for the off topic political attack. Fuck off already, troll. We all hate you.
fkn right. people don't get it.
you can debase the dollar to make US exports cheaper, in the short term.
In the longer run, the inputs we need to manufacture those exports will increase in price, via inflation, faster than we can raise the price of the exports, until eventually we end up worse off than before the inflation.
I think these guys are simplistic idiots. They're pulling things out of their ass faster than they can imagine them.
Nobody gets it, certanly not Icecap
German exports went up as the Dm/ Euro went up. US exports went down as the dollar went down.(last 10 years 120 to 74)Japan has trade surpluses with China, yet they have higher wages then the US. Germany has a stronger currency then the US yet they have trade surpluses with China. The US had the highest wages in the world when it was the biggest exporter in the world.
So we can look foward to earning 100K working at McDonalds. Of course, the fucking Big Mac is going to cost $25,99 and freedom fries are going to set you back another $15. Oh, and a Coke is $10 bucks, but don't be a fool, just buy the combo meal for $45,99. It's a great deal!
so everyone will work a part time job at a food joint around lunchtime so they can eat for free??
Only a year ago a Whopper Junior at Burger King was one of the $1 items. Yesterday it was $1.69. The days of a $9.99 Whopper and Big Mac are coming.
Entenmann's cakes are now $6. Last year they were about $5.50, maybe a little less. However, that may not be a good gauge since Entenmann's is now owned a Mexican conglomerate.
Years ago they had decent products. Now it's just a mix of high fructose corn syrup (liver damaging) and saturated oils (heart damaging). Each cake should come with a free doctor visit.
Even for free they are to be avoided. I used a free whopper coupon the other week. It didn't taste bad to me, but a few pieces of the soy/sawdust/mystery? meat substitute made my healthy cat vomit. IMHO, It's not food, it's chemicals.
Yes, the USD gets the benefit of the doubt until the Eurozone goes kaput, then all eyes turn to the US. Who couldn't have figured that one out? Oh wait, I guess 99% all traders buying into hopium can't see it coming.
Watch the EURO. When the EURO tanks it's the signal for USD QE3. The US and Chinese cannot tolerate a cheaper EURO in the currency wars. I wouldn't be surprised to see Bernanke print USD to prop up the EURO and kill two birds with one stone.
Are you friggin' kidding me? Do they understand nothing about our monetary system?
The Fed is a private institution. They may or may not be looking for a way out this mess, but they are looking out for their owners and not for the 'country'. As per the Fed, the commercial banks create most of the money in our system. The Fed is merely the enabler. Finally, yes the Fed can print money out of thin air, but FRNs must be BORROWED into existence. More money means more debt. We have a debt-money system.
Sorry, but fail.
but FRNs must be BORROWED into existence.
but FRNs must be BORROWED into existence.
That's the current method but as electrons are cheap the Fed could just give them away to the Treasury for free in order to "save" the system and ensure their monopoly. Think of it as a greenback jubilee.
I was trying to think how bernank would phrase it--then I realized, he's already got the terminology: asset purchases; next up, US Congress (well, immediately next after some crippled version of an ECB anyway).
"I was trying to think how bernank would phrase it--then I realized, he's already got the terminology: asset purchases"
Benny has already phrased it... 'We have the printing press, we can throw money from helicopters'...
Theyre not looking for a way out of this mess, they planned it and have an endgame planned as well, and we're there now.
The US Federal Reserve has the capacity to print unlimited amounts of USDs – expect plenty more USD weakening policy moves
Unfortunatley, gradually through the 2000s and especially since 08, the simple minded cure for all that ails us...a weak $....has reached it's endgame. It is now past the point of "diminishing returns" and actually into "incremental punishments".
Each move to weaken the dollar now carries the ultimate economy killer: serious inflationary pressures, with very anemic growth in demand for US exports. It's just a byproduct of the new economic reality. You get rising costs of basic materials and no discernible impact on exports. In fact the rising costs preclude cheap manufacturing in the US. Capital, jobs and management has flown overseas at a dramatic rate during the 2000s and 1990s. Very hard to compete with what has been built overseas by our own US multinationals.
Competitive debasement is a bitch.
Even if it doesnt want to the FED will be forced into it by the ROW.
I dont believe this 'endless printing' story at all, thats not the plan, at all. Their printing is done, now they just need the collapse and the new currency and it will be sudden, this writer is missing the bigger picture.
Anyone else find the name "IceCap" a little inaccurate for the logo shown?
IceCap sounds like a euphemism for a fatality caused by a gansta's bullet fired in cold blood.
And here I thought it described the "heat" of the economy rather well.
As opposed to China's "BoilingOcean" and Europes "RogueWave"....
America! FUCK YEAH!
Now possible to begin and end a pregnancy at an OWS. Who needs the trouble of an inconvenient and expensive abortion when you can just have all the casual sex you want in those colorful tents and then confront police until you get pepper sprayed. But how does she know it wasn't the drugs and alcohol?
Here in Seattle I know that pregnant protester very well. She is the best friend of my fiance.
She really was pregnant and the critics be damned.
What american products, newly printed dollars?
chart on page 11 of the presentation pretty much sums everything up.
Devalued dollar = the 2/3rds of oil imported and consumed in the US increases in dollar terms = everything that requires oil (manufacturing, ag, transportation, etc) increases in dollar terms.
So tell me again how devaluing the dollar will make exports cheaper?
Is Saudia Arabia going to peg the price of oil to a devaluing dollar? Will any other major oil producer/exporter?
How much more inflation do the commodities exporting countries want to import due to a devaluing dollar?
Trading colored pieces of paper (dollars, Euros, Yuan) for actual, useful, commodities is always a bit of a sticky wicket.
Good point. The dollar is being devalued and it won't be sunshine and roses.
But in the "race to debase" the U.S. usually wins (safest port in rising seas). China's totalitarianism could have worked -- 50 years ago. Now (1.5B people) it's hopeless. I'm afraid that leaves US odd man in?
no you peg bombs to oil - money is worthless
just like how middle america takes years to see new music and fashion, the reality of how worthless money is will trickle down in a few years and people will go back to barter and slaughter
No other country has to do anythign at all other than sit back and watch the USA implode. Why should they help us out of the endless pit? This is their chance to eliminate the USA from the world power equation and they can do it by just watching.
I believe that the right question is, does anybody in control of decisions at the top end, know what the hell they are doing with any certainty? Does Bernanke really have the cognitive experience and knowledge to produce a soft landing?
In my opinion, the answer is simply "No". And this is exacerbated as all these greats appear to be working against each other. Certainly the Bureaucrats in Europe and the Congress in the US are not working in concert, each lot hoping to remaion in power for another day and not to lose theirs heads in the event of total failure.
I have a question though, if I may? As the FedRes and its memeber banks are all Private corporations, then to debt they buy in the QE I, II, and currently III, cannot all this be ring fenced and written off through a controlled bankruptcy re-organization proceedure to protect the ordinary peoples of the USA?
Sounds to me if the US leadership ever got the balls to do something like this - across the TBTF board, it could solve a large part of your unemployment situation for more than a decade.
Doesn't printing dollars cause monetary inflation fears/actuality, resulting in interest rates rising?
Since rising rates defeats the Fed's main goal(at least according to the writer) of trying not to kill the economy, the premises of this long winded piece makes no sense.
15 trillion US Dolla make you holla.
Screw the economy. We all know it's going down at some point.
So instead of waiting for the same BS ``bailout`` news again and again, I'm playing Skyrim.
The only difference between all this and a Monopoly game is that its bank can't print more funny-money and it isn't rigged.
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