The US economy doesn’t need cheaper credit. Just the opposite; it could use higher interest rates to lower inflation. As it is, consumer prices are still going up at about two times the Fed’s target.
Today I actually agree with you. Inflate or die. Our stupid politicians only care about themselves. We could be on the road to some recovery if we did a few things which, of course, is political suicide. It will take balls, big large ones. The real only way is to not spend more than you earn. The cuts can include:
1. Cut military spending in half
2. Get rid of the department of energy and education as a start
3. Term limits for everyone
4. Get rid of lobbyists
5. Get rid of all duplicative departments between the federal and state government.
6. Increase the age to get social security to 70 y/o. Begin with people who are 50 y/o now.
7. Have work for welfare except for the needy elderly and debilitated individuals
8. All immigrants will have to work with no welfare (most other countries in the world do this)
9. Get rid of all the ‘pork’ in the budget; much of this is bullshit payback to contributors in elections.
This is just the beginning of the cuts; I’m sure there are many other duplicative departments.
Most families would cut all unnecessary spending to stay above water. The US Government should do the same.
The Austrian School of Economics defines inflation as a general increase in the money supply. You can have an increase in the money supply without an increase in prices. When velocity is added to this toxic cocktail you get your price increases. The Federal Reserve and all Central Banks for that matter were specifically designed to create inflation. The Central Bank architects understood the Cantillion Effect very well. Named after Economist Richard Cantillion; The Cantillon Effect states that the first recipients of the new supply of money have an arbitrage opportunity. They can spend money before prices go up. The new fiat money is created at almost zero cost and given to specific parties, usually banks. Folks, this is all by design. For those just figuring this out; welcome to the party! By the way Richard Cantillion was born in 1680 :-)
Agreed, but its ridiculous to think that if you increase the volume of money the increase in prices are more or less in equilbrium until, you have velocity. But you can have velocity without, an increase in the volume of money. Therefore, its the volume and the delayed aggregate amount that cause that increase in prices short or long duration.
Before the Plandemic the Federal Reserve apparatchiks worked to keep the newly created fiat currency flowing predominately into the financial system to avoid price increases for daily living expenditures. Inflation was mainly restricted to financial assets. Trump and Biden used the Plandemic to justify their Quantitative Easing for the masses. QE for the masses along with supply shortages caused by State intervention brought us to the promised land. Once you let this genie out of the bottle its game over. This is a text book example why no State should ever be given monopolistic control of money creation. We've known this for hundreds of years and this time will be no different. Think of this as the dividend you receive living in a society choke full of economic illiterates.
Increased demand and shortages can also cause price increases; not just an increase in the money supply. Prior to the Plandemic most of the newly created fiat currency lived as additional reserves on bank balance sheets. There's virtually no velocity for new fiat currency residing on a bank balance sheet as an additional reserve. The Politico's gave us QE for the masses and product shortages. How any American can put any faith in the U.S. Government is a testament to their economic illiteracy.
The parasite, in this case government, eventually kills the host, in this case the "country". So, the problem is self-solving: sooner or later, top-heavy government will go broke and collapse. The government, and perhaps even the country itself, will be replaced with "something else", and the cycle will repeat. The idea that we can "control" anything, least of all ourselves, is not only delusional but discredited many times over. The challenge is to accumulate and hold those things known to have value in all circumstances, and, even more importantly, to find a way to maintain control/possession of those things throughout the vagaries and changes which are constant. Simple? Yes. Easy? Likely not. Another way forward might be possible, if, somehow, government could be made productive, but then, it would not be government. Is there a lesson there? Best always. PM
Superb analysis and comments! I had to laugh as Bill comments that "wisdom surpasseth growth and prosperity forever". I laughed aloud the whole way through that section.
Dan, superb comments on the Social Security selling more bonds. That had skipped my mind for a while but when I read that I just thought, "OH yeah just another little addition to exacerbating the problem of debt financing". It's amazing what these incompetents (politicians) have missed in their game to stay in office. Really why would they want to stay in office, other than the money, the public will simply hate them for their inability to see what has been coming for 20 years. I guess mathematics is simply beyond the comprehension of Americans in general including the Ivy League schools producing these clowns. Conservatives get laughed off the podium for suggesting we have too much debt. So much so that we have no conservatives left. I guess these clowns are gonna find out what compounding can produce. Maybe Krugman or Kelton can convince these clowns to make a trillion dollar coin or two.
Incompetents - I don't think so. They absolutely KNOW what they are doing. They are becoming wealthy at our expenses. For them to be "incompetent" they would actually have to have us proles' best interest at heart. They - being Big Finance, Big Business, and Big Government don't give a hoot about us. I would hope they only "don't give a hoot about us" but, unfortunately, I think they want a lot less of us. Depopulation is here - slowly, slowly, then all of a sudden. Don't fall into the trap of thinking they just aren't smart. Oh, they are more than smart. And, what they are overlooking is in the not too distant future, there won't be a need for so many "elites" and their day will come. It is going to be Ugly!
Normally, dismissing coincidences seems appropriate. Yet, your last sentence ol’ LSO has gotten my minute man gene aroused. Why so? “It is going to be Ugly!“ A rhetorical question: When is Guy Fawkes Night 2024?
Guy Fawkes Night is celebrated on November 5th every year. In 2024, it falls on a Tuesday, and the festivities usually take place on the nearest weekend for convenience. Seems fitting to mark the calendar for the 1st weekend after the general election.
G.F., you just reminded me of a movie that is apropos of the times (and prominently features a Guy Fawkes mask as a prop), that being "V for Vendetta." One of my all-time favorites. The dialogue is superb! Thx p.s. do you know where Starboard Edge has been? I miss his comments...
Hi Brian, last first. When we texted (about a couple weeks ago) Starboard is fine. His sense of humor hasn’t faltered. I will pass along your regards.
Good one about V for Vendetta. I have not seen it and have wanted to. No time like the present to check Roku and Netflix to put it into the que for watching. I remember a trailer about the Norsefire Party… right about apropos
That is remarkable........I hadn't thought about good ol' Guy Fawkes way back in the 1600s or so. Just another religious zealot going bonkers. Could easily happen again. There are coincidences and then there are PLANNED coincidences. I am marking my calendar. Good catch!
Austrian economists believe inflation is a negative event because it destroys savings and devalues currencies. Keynesian economists believe a low, steady inflation rate stimulates economic growth and encourages investment.
Before MMT you had Keynesian Economics. The State needs a theory to justify their endless money printing. Most of us in this community mock MMT as economic idiocy. I hate to break it to you, but there were economic literates like us back when the State was pushing Keynesian Economics in the 1930s and 1940s. At the end, economic idiocy carried the day and will most likely do so in the future. This is the dividend you get from living in a society comprised of economic illiterates.
I think what Bill means is - not that we need higher rates - but that we need rates that are set by the free market, and not by agencies or departments. And the free market rate would most likely be higher.
"The principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale. "
— Thomas Jefferson
Thomas Jefferson was right, I really admire him for his philosophy. Unfortunately, as I learned on a trip to Monticello, Jefferson died with many debts, and they had to liquidate his estate to pay the debts. His slaves were sold off as well.
Dan, thanks for the sobering reminder that there will be no social security for us Gen Xers and beyond. We'll need to focus on our health so we can work into old age, and of course, keep buying gold and silver. (smile)
The Federal Reserve's apparatchiks understand their fiat monetary system was designed to enrich the bankers at the expense of the rest of society. The apparatchiks also understand the inherent unsustainability of their system and spend all their working hours attempting to keep it alive. Politicos on the other hand, don't have a clue as to the inherent unsustainability of the fiat monetary system. Yet another societal dividend from the economic illiterates.
Where's all the economically illiterate ideologues who conflate fiscal rectitude with anti-Semitism or Putin with Hitler. Today's topic is strictly for the adults among us. Ideologues hate this topic because it constrains them and forces them to think and behave like an adult. Nobody ever said life's fair; you make your decisions and you live with the results. We're all free to feel entitled, but it won't put any food on our table.
Massive amounts of fish float too late, pocket fiat ferpengomer stratifies the lunar module. The Russian space rocket reroutes in outer space and destroys the fermented battleship in the inner liners of the ocean peg.
The world economy continues to strengthen as the war escalates the booming effect of rich lives matter.
Filthy rat scrunch blue beetle noose eggs. The cross paddles through inscription. Do not let the tea party activate plutonic relationships. The tunnel passage must be secured and controlled. USA spend 3.4 trillion to conquer world power with double aid to fund the IDF and build the New X Tunnel gateway to sink Russia within the sandbox geography.
Trim the world banking system and completely monopolize the fiat if you hope to gain unmovable control Candy man.
Bill:
Today I actually agree with you. Inflate or die. Our stupid politicians only care about themselves. We could be on the road to some recovery if we did a few things which, of course, is political suicide. It will take balls, big large ones. The real only way is to not spend more than you earn. The cuts can include:
1. Cut military spending in half
2. Get rid of the department of energy and education as a start
3. Term limits for everyone
4. Get rid of lobbyists
5. Get rid of all duplicative departments between the federal and state government.
6. Increase the age to get social security to 70 y/o. Begin with people who are 50 y/o now.
7. Have work for welfare except for the needy elderly and debilitated individuals
8. All immigrants will have to work with no welfare (most other countries in the world do this)
9. Get rid of all the ‘pork’ in the budget; much of this is bullshit payback to contributors in elections.
This is just the beginning of the cuts; I’m sure there are many other duplicative departments.
Most families would cut all unnecessary spending to stay above water. The US Government should do the same.
The Austrian School of Economics defines inflation as a general increase in the money supply. You can have an increase in the money supply without an increase in prices. When velocity is added to this toxic cocktail you get your price increases. The Federal Reserve and all Central Banks for that matter were specifically designed to create inflation. The Central Bank architects understood the Cantillion Effect very well. Named after Economist Richard Cantillion; The Cantillon Effect states that the first recipients of the new supply of money have an arbitrage opportunity. They can spend money before prices go up. The new fiat money is created at almost zero cost and given to specific parties, usually banks. Folks, this is all by design. For those just figuring this out; welcome to the party! By the way Richard Cantillion was born in 1680 :-)
Agreed, but its ridiculous to think that if you increase the volume of money the increase in prices are more or less in equilbrium until, you have velocity. But you can have velocity without, an increase in the volume of money. Therefore, its the volume and the delayed aggregate amount that cause that increase in prices short or long duration.
As I see it.
Before the Plandemic the Federal Reserve apparatchiks worked to keep the newly created fiat currency flowing predominately into the financial system to avoid price increases for daily living expenditures. Inflation was mainly restricted to financial assets. Trump and Biden used the Plandemic to justify their Quantitative Easing for the masses. QE for the masses along with supply shortages caused by State intervention brought us to the promised land. Once you let this genie out of the bottle its game over. This is a text book example why no State should ever be given monopolistic control of money creation. We've known this for hundreds of years and this time will be no different. Think of this as the dividend you receive living in a society choke full of economic illiterates.
Increased demand and shortages can also cause price increases; not just an increase in the money supply. Prior to the Plandemic most of the newly created fiat currency lived as additional reserves on bank balance sheets. There's virtually no velocity for new fiat currency residing on a bank balance sheet as an additional reserve. The Politico's gave us QE for the masses and product shortages. How any American can put any faith in the U.S. Government is a testament to their economic illiteracy.
True and good point
The Federal Reserve knows all about the Cantillion Effects. Do you? The Federal Reserve is banking on the fact you don't :-)
The parasite, in this case government, eventually kills the host, in this case the "country". So, the problem is self-solving: sooner or later, top-heavy government will go broke and collapse. The government, and perhaps even the country itself, will be replaced with "something else", and the cycle will repeat. The idea that we can "control" anything, least of all ourselves, is not only delusional but discredited many times over. The challenge is to accumulate and hold those things known to have value in all circumstances, and, even more importantly, to find a way to maintain control/possession of those things throughout the vagaries and changes which are constant. Simple? Yes. Easy? Likely not. Another way forward might be possible, if, somehow, government could be made productive, but then, it would not be government. Is there a lesson there? Best always. PM
Superb analysis and comments! I had to laugh as Bill comments that "wisdom surpasseth growth and prosperity forever". I laughed aloud the whole way through that section.
Dan, superb comments on the Social Security selling more bonds. That had skipped my mind for a while but when I read that I just thought, "OH yeah just another little addition to exacerbating the problem of debt financing". It's amazing what these incompetents (politicians) have missed in their game to stay in office. Really why would they want to stay in office, other than the money, the public will simply hate them for their inability to see what has been coming for 20 years. I guess mathematics is simply beyond the comprehension of Americans in general including the Ivy League schools producing these clowns. Conservatives get laughed off the podium for suggesting we have too much debt. So much so that we have no conservatives left. I guess these clowns are gonna find out what compounding can produce. Maybe Krugman or Kelton can convince these clowns to make a trillion dollar coin or two.
Incompetents - I don't think so. They absolutely KNOW what they are doing. They are becoming wealthy at our expenses. For them to be "incompetent" they would actually have to have us proles' best interest at heart. They - being Big Finance, Big Business, and Big Government don't give a hoot about us. I would hope they only "don't give a hoot about us" but, unfortunately, I think they want a lot less of us. Depopulation is here - slowly, slowly, then all of a sudden. Don't fall into the trap of thinking they just aren't smart. Oh, they are more than smart. And, what they are overlooking is in the not too distant future, there won't be a need for so many "elites" and their day will come. It is going to be Ugly!
Boy, did you get that right. The business involving the ugly part is worthy of a knowledge of history.
Normally, dismissing coincidences seems appropriate. Yet, your last sentence ol’ LSO has gotten my minute man gene aroused. Why so? “It is going to be Ugly!“ A rhetorical question: When is Guy Fawkes Night 2024?
Guy Fawkes Night is celebrated on November 5th every year. In 2024, it falls on a Tuesday, and the festivities usually take place on the nearest weekend for convenience. Seems fitting to mark the calendar for the 1st weekend after the general election.
G.F., you just reminded me of a movie that is apropos of the times (and prominently features a Guy Fawkes mask as a prop), that being "V for Vendetta." One of my all-time favorites. The dialogue is superb! Thx p.s. do you know where Starboard Edge has been? I miss his comments...
Hi Brian, last first. When we texted (about a couple weeks ago) Starboard is fine. His sense of humor hasn’t faltered. I will pass along your regards.
Good one about V for Vendetta. I have not seen it and have wanted to. No time like the present to check Roku and Netflix to put it into the que for watching. I remember a trailer about the Norsefire Party… right about apropos
Regards,
Mark
Thanks for responding Mark. You won't regret watching.
That is remarkable........I hadn't thought about good ol' Guy Fawkes way back in the 1600s or so. Just another religious zealot going bonkers. Could easily happen again. There are coincidences and then there are PLANNED coincidences. I am marking my calendar. Good catch!
Austrian economists believe inflation is a negative event because it destroys savings and devalues currencies. Keynesian economists believe a low, steady inflation rate stimulates economic growth and encourages investment.
Before MMT you had Keynesian Economics. The State needs a theory to justify their endless money printing. Most of us in this community mock MMT as economic idiocy. I hate to break it to you, but there were economic literates like us back when the State was pushing Keynesian Economics in the 1930s and 1940s. At the end, economic idiocy carried the day and will most likely do so in the future. This is the dividend you get from living in a society comprised of economic illiterates.
I think what Bill means is - not that we need higher rates - but that we need rates that are set by the free market, and not by agencies or departments. And the free market rate would most likely be higher.
"The principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale. "
— Thomas Jefferson
Thomas Jefferson was right, I really admire him for his philosophy. Unfortunately, as I learned on a trip to Monticello, Jefferson died with many debts, and they had to liquidate his estate to pay the debts. His slaves were sold off as well.
What happens when a prole gets to thinking and connects a few dots:
▫️JLOTS - https://tinyurl.com/2s5updw3 - a temporary pier…
▫️ https://www.offshore-technology.com/wp-content/uploads/sites/20/2018/02/Image-3-Karish-and-Tanin-field.jpg - Karish & Tanin natural gas fields
▫️ https://www.offshore-technology.com/wp-content/uploads/sites/20/2018/02/Image-2-Karish-and-Tanin-field.jpg - more of the same above
You've done it again, G.F...gone and started thinking on your own. Well done!
And as the Fed inflates away the debt, the working man’s savings are dissipated as well.
Dan, thanks for the sobering reminder that there will be no social security for us Gen Xers and beyond. We'll need to focus on our health so we can work into old age, and of course, keep buying gold and silver. (smile)
The Federal Reserve's apparatchiks understand their fiat monetary system was designed to enrich the bankers at the expense of the rest of society. The apparatchiks also understand the inherent unsustainability of their system and spend all their working hours attempting to keep it alive. Politicos on the other hand, don't have a clue as to the inherent unsustainability of the fiat monetary system. Yet another societal dividend from the economic illiterates.
Where's all the economically illiterate ideologues who conflate fiscal rectitude with anti-Semitism or Putin with Hitler. Today's topic is strictly for the adults among us. Ideologues hate this topic because it constrains them and forces them to think and behave like an adult. Nobody ever said life's fair; you make your decisions and you live with the results. We're all free to feel entitled, but it won't put any food on our table.
Massive amounts of fish float too late, pocket fiat ferpengomer stratifies the lunar module. The Russian space rocket reroutes in outer space and destroys the fermented battleship in the inner liners of the ocean peg.
The world economy continues to strengthen as the war escalates the booming effect of rich lives matter.
Filthy rat scrunch blue beetle noose eggs. The cross paddles through inscription. Do not let the tea party activate plutonic relationships. The tunnel passage must be secured and controlled. USA spend 3.4 trillion to conquer world power with double aid to fund the IDF and build the New X Tunnel gateway to sink Russia within the sandbox geography.
Trim the world banking system and completely monopolize the fiat if you hope to gain unmovable control Candy man.
The motto of our new MMT devotees(which is the entire extant money class) should be “Après nous, Le Dèluge!”
is it possible to make the charts to be able to increase in size to make it easyer to see after you click on them?
In a simple sentence: Whatever the Fed's target, it will miss.
And the second point: It will miss egregiously.