So the solution is quite simple.   Your bring back the very progressive
tax code of 1941 and you print more money

  --> Republicans

... Well, they tried everything they could to prevent
libruls and Democrats from getting us into this mess, and they failed!

WOW!!!  That has to be the biggest whopper I have ever seen!!!!!!

and they must find ways to actually _INVEST_
or see their wealth eaten by the inflation monster.

Nope, they just move it out of the country where its not affected by that..

Your approach is completely brainless and wont work. Plenty
of countrys have tried it an they get that result of the rich moving
their money out of the country where its immune from inflation.

Or just put it into gold etc etc etc.

So the guilty are:

1.  Democrats, who had oversight, and who appointed

2.  The regulators, who insisted on politically correct

3.  The poor, primarily poor members of protected

The crisis began in 2005 November,

Another bare faced lie, you silly little pathological liar.

Looks like a big crash is coming across all asset classes.  The tsunami
will be Option ARMs, Commercial Real Estate, and Leveraged Commodity and
Carry Trade.  Probably not until early next year as the FED/Treasury
will be propping up the economy on funny money until the moment of
reckoning.  I am wondering if money market funds will be safe in this
forthcoming storm...

On Sat, 07 Nov 2009 06:57:23 -0600, Yadda wrote:

on 11/6/09 3:15 PM *Anarcissie* said the following:
Looks to me like spreading funny money around can't generate
employment. No employment, no wages; no wages, no consumption; no
consumption, no business; no business, no employment. But you knew
that already.

We may be reaching the end of the funny-money era, although it would
not surprise me if our lords and masters and their tame geniuses gave
it another shot or two regardless of the lack of positive results.
They probably don't know what else to do.

So, how much further will the funny money go, and then what's next?
Looks like a big crash is coming across all asset classes. The tsunami
will be Option ARMs, Commercial Real Estate, and Leveraged Commodity and
Carry Trade. Probably not until early next year as the FED/Treasury
will be propping up the economy on funny money until the moment of
reckoning. I am wondering if money market funds will be safe in this
forthcoming storm...

Why would there be a crash of asset prices unless the government isn't
blowing enough money into the bottom of the economy??????

On Sat, 07 Nov 2009 06:57:23 -0600, Yadda<yadda at (no spam) nospam.net> wrote:
Looks like a big crash is coming across all asset classes. The tsunami
will be Option ARMs, Commercial Real Estate, and Leveraged Commodity and
Carry Trade. Probably not until early next year as the FED/Treasury
will be propping up the economy on funny money until the moment of
reckoning. I am wondering if money market funds will be safe in this
forthcoming storm...

Money market funds will be fine in nominal terms, unless you have long
term bonds - but inflation is starting to accelerate. I predict the
next cpi report, due out in a week or so, is going to be a shocker.

Long term bonds will take a beating when inflation starts to bite.

Rod Speed wrote

We aint even in a technical recession anymore.

That is just because the government is manipulating the
cpi, thereby producing fictitious growth, as in Argentina

Unemployment just rose 0.4% to 10.2% this month

And the reason it "only" rose to 10.2 is that very large
numbers of people are no longer considered job seekers.

The number of employed people continues to plunge.

That is a recession all right.

People are losing their jobs. When lots of people lose their jobs, it is a recession.

The number of jobs has been in steady and rapid decline for quite some time,

and the decline shows no sign of flattening out

- indeed, as the "stimulus" starts to bite, it shows signs of accelerating.

Yadda <yadda at (no spam) nospam.net> wrote

Looks like a big crash is coming across all asset classes. The
tsunami will be Option ARMs, Commercial Real Estate, and Leveraged
Commodity and Carry Trade. Probably not until early next year as
the FED/Treasury will be propping up the economy on funny money
until the moment of reckoning. I am wondering if money market funds
will be safe in this forthcoming storm...

Money market funds will be fine in nominal terms, unless you have
long term bonds - but inflation is starting to accelerate. I predict the
next cpi report, due out in a week or so, is going to be a shocker.

Long term bonds will take a beating when inflation starts to bite.

Phlip <phlip2005 at (no spam) gmail.com> wrote:

Aaaand once again we twist around and
stick our head up our ass to avoid blaming...

--> rich people
--> Republicans

It is a bit hard to blame republicans, when Congress,
which has oversight of the financial system, has been
in the hands of the Democrats during the whole crisis,
and was well before the crisis began.

The proximate cause of the crisis was not rich people
but the regulatory requirement that bankers make
loans equally to members of protected minorities,

even though members of protected minorities
are not equally inclined to repay their debts.

The crisis began in 2005 November,

in that it became glaringly obvious that
members of protected minorities were
failing to pay their debts in large numbers.

So the guilty are:

1. Democrats, who had oversight, and who appointed
larcenous (but politically correct) criminals to run
Fannie and Freddie over the protests of Republicans.

2. The regulators, who insisted on politically correct security
ratings, rather security ratings that reflected reality,

and then, when investors started to "irrationally"
panic about politically correct security ratings,
insisted that financial institutions act as if
these ratings reflected reality.

3. The poor, primarily poor members of protected minorities, who
accepted loans they had neither the will nor the ability to repay.

When you hear of "toxic assets", they are toxic because based on politically correct loans.

Rod Speed wrote
Michael Coburn wrote
Phlip wrote
Anarcissie <anarcis... at (no spam) gmail.com> wrote

Looks to me like spreading funny money around can't generate employment.

Aaaand once again we twist around and stick our head up our ass to avoid blaming...

--> rich people
--> Republicans

The former are holding onto their money, waiting for
someone else to stimulate the economy for them.

So the solution is quite simple.

Nope.

Your bring back the very progressive tax code of 1941 and you print
more money and blow it into the bottom of the economy with stimulus.
The money held in the mattresses of the rich will decline in value

Nope, they just move it out of the country where its not affected by that.

and they must find ways to actually _INVEST_ or
see their wealth eaten by the inflation monster.

Nope, they just move it out of the country where its not affected by that.

It really is a no brainer.

Your approach is completely brainless and wont work. Plenty of
countrys have tried it an they get that result of the rich moving
their money out of the country where its immune from inflation.

Or just put it into gold etc etc etc.

Government creates money and spends it into existence.

What good will it do a person with loads of money to take
the money out of the mattress and run away to Biminy?

the answer is, of course, that such a move would be useless.

In a proper tax system where true investment is _NOT_
heavily taxed while income from economic rent (i.e. income
from government backed bonds) _IS_ heavily taxed

we will not see the rich running away to foreign shores.

They will be much better off staying right here and actually INVESTING.

Michael Coburn <mik... at (no spam) verizon.net> wrote
Anarcissie wrote
Michael Coburn <mik... at (no spam) verizon.net> wrote

Inflating the money seriously would generally tax those
on fixed incomes and those with savings accounts and
the like tied to currency values, that is, poor people.

What a strange definition you have for "poor people".

Rich people have lots of money and poor people don't. What sort of
training (brain washing) does it take to claim that a decrease in the
value of money hurts people who have no money. Most of the middle
class has had their 401ks looted but that is NOT money in a saving
account at the bank. It is shares of ownership in the means of
production. And inflation will not harm these real capital assets.
This crap about fixed incomes is yet another brain washing. SS
benefits are tied to CPI.

I am using poor as in poor versus rich.

The poor include working-and lower-middle-class people for me.

These are people who have savings accounts,

fixed pensions,

life insurance

and the like (if they have anything -- and a lot of them have a little something).

Usually they are wage-earners, with their wages or salaries set in currency
amounts which are often changed upward only with great difficulty.

At least, this has been my experience as such a person.

These are the people you appear to be proposing to tax through inflation.

By contrast, while the rich may keep a certain amount
of cash around to facilitate transactions, most of their
wealth is held in equities, commodities, real estate,
collectibles, and the like. They are far more able to deal
with inflation and escape its bad effects than the not-rich.

The CPI is a joke as far as I am concerned.

It will become more of a joke if any serious inflation sets in, since the government
will be interested in limiting payouts to Social Security beneficiaries.

I suppose this would loosen up a certain amount of value, but
I can't see that it would fix the large structural problems caused
by deindustrialization and years and years of inflated credit.

I don't see why not. As the dollar is worth less to foreigners then
the cost of foreign goods rises and the advantage to domestic
production improves. That is a pretty well understood economic reality.

Assuming there is any serious domestic production of exportable
goods, beyond movies, bombs, bullets and bullshit.

One might also want to recall the results of the inflation in Germany in the 1920s --

Boogerman, Boogerman, Boogerman!!! Hyped like a true defender of the rich.

That's not much of an argument.

there is no particular reason to believe that, if the
savings and pensions of the working and middle
classes are wiped out, they will take the blow passively.

The working middle class has investments in their 401K. They do
not have any serious amount of money stuffed in a mattress or in a
savings account and aver diversified regarding government bonds.
If not then these people will lose some purchasing power. Bur the
_VAST_ majority will be better off. We not the continued apparent
health of the equities market in spite of the fact that demand is
very slack. It is currency devaluation that causes that to happen.

There is also the problem of the huge debts owed to foreigners
which must be refinanced from time to time. If a policy of strong
inflation goes into effect, the interest rates won't be pretty.

That is what curbs the amount of inflation that can be
tolerated, but at present we have NO internal inflation.

That depends on what you're trying to buy.

Note also that many areas of the labor market are somewhat
deflationary. There is a limit to how far _that_ can be carried on,

and in any case it exacerbates the bad effects which the inflation
you're proposing if it goes into effect (and I think it will, because
I think your advocacy of inflation channels ruling-class intentions).

on 11/7/09 3:31 PM James A. Donald said the following:
On Sat, 07 Nov 2009 06:57:23 -0600, Yadda<yadda at (no spam) nospam.net> wrote:
Looks like a big crash is coming across all asset classes. The
tsunami will be Option ARMs, Commercial Real Estate, and Leveraged
Commodity and Carry Trade. Probably not until early next year as
the FED/Treasury will be propping up the economy on funny money
until the moment of reckoning. I am wondering if money market
funds will be safe in this forthcoming storm...

Money market funds will be fine in nominal terms, unless you have
long term bonds - but inflation is starting to accelerate. I
predict the next cpi report, due out in a week or so, is going to be
a shocker. Long term bonds will take a beating when inflation starts to bite.


Many are predicting a run on money funds.

Michael Coburn wrote
Phlip wrote
Anarcissie <anarcis... at (no spam) gmail.com> wrote

Looks to me like spreading funny money around can't generate
employment.

Aaaand once again we twist around and stick our head up our ass to
avoid blaming...

--> rich people
--> Republicans

The former are holding onto their money, waiting for someone else to
stimulate the economy for them.

So the solution is quite simple.

Nope.

Your bring back the very progressive tax code of 1941 and you print
more money and blow it into the bottom of the economy with stimulus.
The money held in the mattresses of the rich will decline in value

Nope, they just move it out of the country where its not affected by
that.

and they must find ways to actually _INVEST_ or see their wealth eaten
by the inflation monster.

Nope, they just move it out of the country where its not affected by
that.

It really is a no brainer.

Your approach is completely brainless and wont work. Plenty of countrys
have tried it an they get that result of the rich moving their money out
of the country where its immune from inflation.

Or just put it into gold etc etc etc.