We're paying historic low rates. How's that hyperinflation thingie going for ya? So what's with this nonsense of following Greece's failed austerity plan instead of borrowing at historically low rates and rebuilding our infrastructure after years of conservative neglect?
uhmmmmm....the US is purposely pushing down interest rates to devalue the dollar.......they can get away with it for awhile......until the currency crisis hits.....then get ready for skyrocketing rates like in greece....yeah I know.....I dont expect you to believe or understand...so keep buying those soon to be worthless papaer assets
thats a good question actually. What does happen when interest rates rise? Can the US afford those higher payments?
the US will have two choices..... 1) default 2) buy up alot of treasuries in which hyper inflation is born too bad guys like dujac landrau and iriemon just cant understand that
Don't ou love wall street. They get 800 billion in tax free loans and then buy T bill and we have to pay them another 3% on our money. what a country. but hey show pot smoking hippies to deflect the criminality of Wall Street and our Elected. read this and weep.http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817 and then read this and vomit.http://www.rollingstone.com/politic...-look-whos-cashing-in-on-the-bailout-20110411
not to worry as those banks are still technically insolvent and need to be on life support. Interest rates are at artificially low rates right now but they can't stay that low forever.....sooner or later interest rates must rise. When that happens, watch out!
That would reflect an appropriate change to monetary policy. No need to get your end is nigh signs out. You'd need a fake libertarian political takeover for that!
remember that interest rates are artificially low....eventually that will backfire and interest rates will rise......they can hang on a little longer how long I dont know...but sooner or later interest rates will rise!
No, interest rates reflect monetary policy aims. This artificially low stuff is cobblers, designed only to avoid the importance of interventionism Of course they will eventually rise, reflecting how monetary policy will change. More than a bit obvious
interest rates have been pushed down thanks to QE 1 and 2. The end result is that most new debt is being purchased by the fed, who else would want to buy treasuries that pay less then 1% per anum for a bankrupt nation! Now again I say...they can get away with it for awhile....but eventually the bond vigilanties will demand higher interest rates or dump their holdings...effectively pushing rates higher. Now at this point the fed has one of two choices.....do nothing and watch interest rates hit the stratosphere or start buying all the bonds and this is when hyper-inflation kicks in!
You remind me of the monetarists in the 80s. They didn't understand reality either, using 'end is nigh' bobbins to hide from sound macroeconomic policy.
interest rates "DID" hit the stratosphere in 1981 did they not? So my projection is correct....they could of just bought up bonds and push down rates but then the 80's would of gone down in history a very different way!
The 1980s were characterised by monetarist folly. You don't seem to have shifted from it, despite it being proved to be complete cobblers
I don't know how you can arrive with that conclusion.....had interest rates not risen when they did then hyper-inflation was a real possibility by the mid 80's.
I arrived at it with reference to objectivity, failure of the doomsters and obvious reference to macroeconmic flaw
if you dont rein in inflation in time then usually it feeds on itself and eventually becomes out of control as people lose confidence in the currency....thus making the velocity of money mushroom out of control....you deny that?
And if you don't stabilise the economy you'll arrive at stagflation disaster. You're still ignoring the requirements of the economy in order to peddle a sub-monetarist simplicity. It won't wash
boy are you off base with that one. Stagflation comes from printing too much money.....why? Simple...as the money supply expands it first affects commodities so both food and gasoline go up in price.......so now average Joe needs to spend a larger % of his income on food and energy so has less disposable income to spend on non-essentials. Thus stagflation is born.....things like video stores, travel agencies, airlines, and electronics all suffer while the price in restaurants and grocery stores go up....along with gasoline of course!
No, I've just bothered to refer to economics. Deliberate bobbins! Stagflation only requires an economic shock with an economy characterised by market concentration. You don't understand the behaviour of the firm. That isn't surprising. Monetarists were clueless on that one too
