miko33
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We've been down this road before...why do it again?
Back in my MBA days, I've read case studies about macro economic policies and how the benefits of a stable currency have been the tantamount goal of the U.S. since the early 80s. After a decade of suffering through Arthur Burns' tenure as Federal Reserve Chairman and experiencing the painful clean-up that we needed to endure under Volcker in the 80s, why is the U.S. electing to go down the exact same path once again? What did Burns do that was so bad? He succumbed to political pressure in order to keep the unemployment rates as low as possible by artificially depressing interest rates. This resulted in the "printing" of dollars and - high inflation.
So what are we seeing from Bernanke? A redo of Arthur Burns. The international markets have noticed... http://www.ft.com/cms/s/0/451b5a2e-7bc3-...z1M928x45z
(This post was last modified: 05-12-2011 08:55 AM by miko33.)
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05-12-2011 08:54 AM |
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HtownOrange
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RE: We've been down this road before...why do it again?
Anytime we pull a "Keynes", we will always devalue our money and affect the economy. When our economy is affected, the world's economy is affected.
* Keynes, in short, believed that money could simply be printed to cover government expenses. The basic premise is good until someone asks what the real value of the money is and realizes that they have been taken to the cleaners. This policy has always failed. Money must have a value, even fiat money, like ours, must be valued by the backing of something stable; i.e. precious metals or a stable government. Applied to our present situation, we are telling everyone that the money they had is now worth less than it was a few months ago, simply because the government says so (unstable government).
(This post was last modified: 05-12-2011 10:48 AM by HtownOrange.)
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05-12-2011 10:45 AM |
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ClairtonPanther
people need to wake up
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RE: We've been down this road before...why do it again?
Man, my favorite topic. 3 words Eff the Fed.
We really need transparency man. When I hear people like Hermain Cain say that the Fed does self audits and their papers are clean. It just makes me want to puke.
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05-12-2011 10:58 AM |
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miko33
Defender of Honesty and Integrity
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RE: We've been down this road before...why do it again?
(05-12-2011 10:58 AM)animus Wrote: Man, my favorite topic. 3 words Eff the Fed.
We really need transparency man. When I hear people like Hermain Cain say that the Fed does self audits and their papers are clean. It just makes me want to puke.
It's popular to blame the Fed for all of the problems out there, but I submit that it would be a lot worse if we did not have the Fed. The Fed runs amok when it bows to political pressure - like when Arthur Blank succumbed to Nixon's demand that he manipulate interest rates to drop unemployment rates. Otherwise, it is a great protector against politicians manipulating the currency to benefit their political party. Want to boost exports, put more people to work, etc? Devalue the currency. Short term gains to win elections at the expense of future years of stability and prosperity. That is what you would get if the Fed was not here today.
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05-12-2011 11:18 AM |
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HtownOrange
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RE: We've been down this road before...why do it again?
Isn't that why the founding fathers placed monetary policy in the hands of the Senate? This would balance the politics of short term and long term. Senators were elected from the States Assemblies, by the States Assemblies and could be recalled for failing to represent the State. Not that it will happen again.
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05-12-2011 11:54 AM |
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gruehls
Jersey Retired
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RE: We've been down this road before...why do it again?
where the heck is gerald ford and the "whip inflation now" pins when we need them?
p.s. animus, isn't "eff" technically a letter and not a word?
just asking.
(This post was last modified: 05-12-2011 04:39 PM by gruehls.)
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05-12-2011 04:36 PM |
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ClairtonPanther
people need to wake up
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RE: We've been down this road before...why do it again?
(05-12-2011 04:36 PM)gruehls Wrote: where the heck is gerald ford and the "whip inflation now" pins when we need them?
p.s. animus, isn't "eff" technically a letter and not a word?
just asking.
I'm a former rapper/writer... I make up my own words
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05-12-2011 05:35 PM |
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bitcruncher
pepperoni roll psycho...
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RE: We've been down this road before...why do it again?
Please save me from rappers...
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05-12-2011 06:40 PM |
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gruehls
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RE: We've been down this road before...why do it again?
(05-12-2011 05:35 PM)animus Wrote: (05-12-2011 04:36 PM)gruehls Wrote: where the heck is gerald ford and the "whip inflation now" pins when we need them?
p.s. animus, isn't "eff" technically a letter and not a word?
just asking.
I'm a former rapper/writer... I make up my own words
i'm a lawyer and i make up my own words too. probably not nearly as creative as yours, but it paid purty good.
save the common man from rappers and lawyers.
if you miss the "common" comment, it's hopeless.
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05-12-2011 07:24 PM |
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HtownOrange
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RE: We've been down this road before...why do it again?
Long after rappers have left this world, lawyers will remain. There is no hopesave divine intervention.
Besides, everyone knows that words made up by rappers are not really words and will be dropped from the vernacular within a few years. Lawyers and judges, though, make up words and they become fixtures in our language.
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05-13-2011 08:21 AM |
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gruehls
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RE: We've been down this road before...why do it again?
(05-13-2011 08:21 AM)HtownOrange Wrote: Long after rappers have left this world, lawyers will remain. There is no hopesave divine intervention.
Besides, everyone knows that words made up by rappers are not really words and will be dropped from the vernacular within a few years. Lawyers and judges, though, make up words and they become fixtures in our language.
i personally invented "the," and i wish i was getting royalties.
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05-13-2011 08:52 AM |
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HtownOrange
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RE: We've been down this road before...why do it again?
(05-13-2011 08:52 AM)gruehls Wrote: (05-13-2011 08:21 AM)HtownOrange Wrote: Long after rappers have left this world, lawyers will remain. There is no hopesave divine intervention.
Besides, everyone knows that words made up by rappers are not really words and will be dropped from the vernacular within a few years. Lawyers and judges, though, make up words and they become fixtures in our language.
i personally invented "the," and i wish i was getting royalties.
Now we know you really are a lawyer, taking credit, trying to steal my profits, for something everyone knows I invented! However, as you are a poster on this board, I will consider entering talks to resolve this dispute.
(This post was last modified: 05-13-2011 09:52 AM by HtownOrange.)
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05-13-2011 09:52 AM |
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gruehls
Jersey Retired
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RE: We've been down this road before...why do it again?
(05-13-2011 09:52 AM)HtownOrange Wrote: (05-13-2011 08:52 AM)gruehls Wrote: (05-13-2011 08:21 AM)HtownOrange Wrote: Long after rappers have left this world, lawyers will remain. There is no hopesave divine intervention.
Besides, everyone knows that words made up by rappers are not really words and will be dropped from the vernacular within a few years. Lawyers and judges, though, make up words and they become fixtures in our language.
i personally invented "the," and i wish i was getting royalties.
Now we know you really are a lawyer, taking credit, trying to steal my profits, for something everyone knows I invented! However, as you are a poster on this board, I will consider entering talks to resolve this dispute.
well dang! you drive a hard bargain. 50-50 ok, and you get the naming rights to "the?"
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05-13-2011 10:05 AM |
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HtownOrange
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RE: We've been down this road before...why do it again?
(05-13-2011 10:05 AM)gruehls Wrote: (05-13-2011 09:52 AM)HtownOrange Wrote: (05-13-2011 08:52 AM)gruehls Wrote: (05-13-2011 08:21 AM)HtownOrange Wrote: Long after rappers have left this world, lawyers will remain. There is no hopesave divine intervention.
Besides, everyone knows that words made up by rappers are not really words and will be dropped from the vernacular within a few years. Lawyers and judges, though, make up words and they become fixtures in our language.
i personally invented "the," and i wish i was getting royalties.
Now we know you really are a lawyer, taking credit, trying to steal my profits, for something everyone knows I invented! However, as you are a poster on this board, I will consider entering talks to resolve this dispute.
well dang! you drive a hard bargain. 50-50 ok, and you get the naming rights to "the?"
Done deal. I'll have my people draw up the agreement and we'll do lunch.
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05-13-2011 10:21 AM |
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gruehls
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RE: We've been down this road before...why do it again?
(05-13-2011 10:21 AM)HtownOrange Wrote: Done deal. I'll have my people draw up the agreement and we'll do lunch.
ok, but to be sure you're the real article, i get "a" and "an."
have your girl call my girl.
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05-13-2011 12:44 PM |
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