According to what a number of other analysts have already mentioned, and the preponderance of data points in that direction, the US dollar is based upon home mortgage loans (at least that's its present underpinning), hence a rise in interest rates may collapse the dollar, while no rise seriously jeopardizes the sale of US debt (not to mention that missing compound interest thing).
My oh my what a conumdrum the masters of fantasy finance have gotten the rest of us into.
When the rest of the world abandons the dollar as the worlds currency reserve (make no mistake this will happen within the next 10 years)then the days of the US printing at will will end.
policy on purpose. It helps keep the people crowing at each other. Each bird pecking at their personal crumb, their group of choice.
Instead of giving the birds the power to produce their own crumbs, government seem intent to limit the crumbs, so that we peck each others eyes out. It all happens before the birds the game at hand.
Now the birds are getting a bit restless, the birds are flying over the heads of those in Washington, they are worried. They are putting up their umbrellas to protect from the bird droppings but the birds are tired of the crumbs. The birds see the wasteful lifestyle of those in Washington, the expensive wines, the expensive meats. All the while there are more birds that see the bleak future for their little birds.
For a while the birds believed the siren song that the USA didn't need capital producing manufacturing, that the USA would be the brains of the world. But eagles are appearing on the horizon to tell the flocks it was a ruse.
Ok....enough of my bird analogy. The point being that people are waking up to the lies and waste.
watching closely. I only assumed that the government was going about their business-as-usual printing of that there good old fiat.
But apparently the supply chart headed down. If a gun were held to my head I would swear I just checked but time passed me by, something that is accelerating the closer I get to age 60.
Both historically, and perhaps traditionally, the bulk of those offshored jobs are going to countries which also happen to purchase the bulk of America's debt.
I've always suspected -- and it has long been rumored -- of an existing quid pro quo.
Again, the rising debt and deficit spending is directly connected to the increase in all those debt-financed billionaires and multi-millionaires in America (and elsewhere). Without the one, there wouldn't be the others.
Labor arbitrage is intimately related to debt arbitrage; especially since those corporations most likely to offshore jobs are also those corporations least likely to pay federal income taxes.
Instead, all I see is a continuation of business as usual in the American Empire. The person in the White House once again proposes a budget with increased war spending, decreased domestic spending.
Next, he claims he's going to raise taxes on corporations.
Huh???? The majority of the corporations -- beginning at the top richest ones, then going down -- don't pay fed taxes. Therefore, the tax burden is shifted further onto the smaller companies and businesses, which will further affect the lower echelon workers normally.
Next, they claim that healthcare spending is the single largest piece of the GDP? Or the deficit? Or something else equally confusing?
Simply stated, the single largest spending -- non-military, non-imperialism, is the phantom spending from the loss or lack of tax recovery from the richest corporations and individuals.
A lot of reframing going on; very little real logic in the matter.
Everything appears to be to squeeze every last cent from the Future Serfs of America (FSA).
I'll agree with that one and I think a good example of a common sense is missing post is midtowng's new one on the budget deficit and spending.
So often taxes, spending, deficits are used to divide people into political niches, but the real issue is the waste, the spending that doesn't give any bang for the buck.
There is so much policy like this, where it's obviously no common sense and it's also where people of different philosophies on government, taxation and so forth I think can come together.
a point of dysfunctional ? Ha, some people would say we are already there.
Throughout history people miscalculated how fast things can change or how hard it hits. Try upsetting the food distribution system and you'll see how long it takes for things to go dysfunctional.
You think people can't or won't revolt if taxes get too egregious? The middle class has yet to find its real voice or its real power. There aren't enough Praetorian Guards on staff to put all the citizens in jail that could reach the boiling point.
Ya all like the idea that China, (who I don't think has been one of our long time allies), owns us? Not the first financial master that I would choose.
Economists can spin it, turn it upside down, inside out but financial responsibility is something that is good for government. Most economists I've known during my business years seem to sometimes leave something out of their process of theory. It doesn't matter if they are Keynesian, Post-Keynesian or go way back to Mr. Smith. They so often leave out common sense. Common sense is lacking in our Washington leaders and therefore they can / will glean onto their chosen economic theory as if it were their basis of God.
How long can they inflate the money supply? Does that not matter anymore? I personally did not enjoy the days of inflation during the Carter years. It was a nasty thief.
Funny story (based on YouTube video): I told my youngest son that if you typed "google" in Google that you can crash the internet. I said to him watch - he was freaking out watching - I hit send. By absolute coincidence, a few minutes later Google was actually down - at which point he was in tears worried that I was in trouble. It took a while to reassure him that it wasn't my fault and it what I said about google was a joke.
But, I still disagree with your original point: "the entire world is spending its way out of the recession". Look at countries that couldn't "spend their way out", countries that don't have a sovereign currency - Spain, Ireland, Greece. Germany didn't have to. Canada didn't have to. Brazil didn't have to. Who else?
As for interest rates and deficits, besides our low long-term interest rates, look at Japan. Japan has had very high deficits to GDP and their interest rates are just as low.
An "implied promise" is worth jack in the bond market - either you can pay or you can't. Interest rates are still pretty low so I guess the bond market is thinking we can pay and I don't care what CDS market is saying.
The entire world is not spending their way out of recession at same time. Australia pulled back - China has even pulled back.
China has hardly pulled back. They might have the biggest bubble economy in the world at present. As a percentage of GDP, China's stimulus was much larger than ours.
There is NO promise to repay be in dollars of near equal worth - there is a certain amount of inflation risk even in U.S. government debt. What matters is that private/foreign savers get those coupon payments and principal repayments at end of term - U.S. Treasury does that and it fulfills its obligations.
There damn well is an implied promise. If there wasn't then interest rates would be sky high right now.
There is a GOP memo to destroy any and that means anything, financial reform.
As much as we're railing on any so called representative in Congress and the Obama administration, the GOP should be impeached. This is one thing Obama's call out was true...these guys don't care if this country goes down in absolute flames. All they want is more political power and they don't give a rats ass about the national interest or what happens to Americans.
According to what a number of other analysts have already mentioned, and the preponderance of data points in that direction, the US dollar is based upon home mortgage loans (at least that's its present underpinning), hence a rise in interest rates may collapse the dollar, while no rise seriously jeopardizes the sale of US debt (not to mention that missing compound interest thing).
My oh my what a conumdrum the masters of fantasy finance have gotten the rest of us into.
Its likely this was shown for Bernankes confirmation.
When the rest of the world abandons the dollar as the worlds currency reserve (make no mistake this will happen within the next 10 years)then the days of the US printing at will will end.
Problem solved.
policy on purpose. It helps keep the people crowing at each other. Each bird pecking at their personal crumb, their group of choice.
Instead of giving the birds the power to produce their own crumbs, government seem intent to limit the crumbs, so that we peck each others eyes out. It all happens before the birds the game at hand.
Now the birds are getting a bit restless, the birds are flying over the heads of those in Washington, they are worried. They are putting up their umbrellas to protect from the bird droppings but the birds are tired of the crumbs. The birds see the wasteful lifestyle of those in Washington, the expensive wines, the expensive meats. All the while there are more birds that see the bleak future for their little birds.
For a while the birds believed the siren song that the USA didn't need capital producing manufacturing, that the USA would be the brains of the world. But eagles are appearing on the horizon to tell the flocks it was a ruse.
Ok....enough of my bird analogy. The point being that people are waking up to the lies and waste.
watching closely. I only assumed that the government was going about their business-as-usual printing of that there good old fiat.
But apparently the supply chart headed down. If a gun were held to my head I would swear I just checked but time passed me by, something that is accelerating the closer I get to age 60.
Money Supply
to answer your question:
1) America's economic engine: more consumer debt and asset price inflation - homes & stocks
2) Our economy left decades ago when neoliberal policies took over.
RebelCapitalist.com - Financial Information for the Rest of Us.
1) What is America's economic engine?
2) Dude, where's our economy?
Both historically, and perhaps traditionally, the bulk of those offshored jobs are going to countries which also happen to purchase the bulk of America's debt.
I've always suspected -- and it has long been rumored -- of an existing quid pro quo.
Again, the rising debt and deficit spending is directly connected to the increase in all those debt-financed billionaires and multi-millionaires in America (and elsewhere). Without the one, there wouldn't be the others.
Labor arbitrage is intimately related to debt arbitrage; especially since those corporations most likely to offshore jobs are also those corporations least likely to pay federal income taxes.
The data correlates.
Instead, all I see is a continuation of business as usual in the American Empire. The person in the White House once again proposes a budget with increased war spending, decreased domestic spending.
Next, he claims he's going to raise taxes on corporations.
Huh???? The majority of the corporations -- beginning at the top richest ones, then going down -- don't pay fed taxes. Therefore, the tax burden is shifted further onto the smaller companies and businesses, which will further affect the lower echelon workers normally.
Next, they claim that healthcare spending is the single largest piece of the GDP? Or the deficit? Or something else equally confusing?
Simply stated, the single largest spending -- non-military, non-imperialism, is the phantom spending from the loss or lack of tax recovery from the richest corporations and individuals.
A lot of reframing going on; very little real logic in the matter.
Everything appears to be to squeeze every last cent from the Future Serfs of America (FSA).
Malthus, Friedman & Naomi Klein (repeating Friedman, I think..).
Last time I checked, growth in money supply - M1 & M2 - was heading south fast. Did I miss something?
RebelCapitalist.com - Financial Information for the Rest of Us.
Fiscal policy can work and it should be done in the most efficient manner in terms of costs and full employment.
RebelCapitalist.com - Financial Information for the Rest of Us.
I'll agree with that one and I think a good example of a common sense is missing post is midtowng's new one on the budget deficit and spending.
So often taxes, spending, deficits are used to divide people into political niches, but the real issue is the waste, the spending that doesn't give any bang for the buck.
There is so much policy like this, where it's obviously no common sense and it's also where people of different philosophies on government, taxation and so forth I think can come together.
a point of dysfunctional ? Ha, some people would say we are already there.
Throughout history people miscalculated how fast things can change or how hard it hits. Try upsetting the food distribution system and you'll see how long it takes for things to go dysfunctional.
You think people can't or won't revolt if taxes get too egregious? The middle class has yet to find its real voice or its real power. There aren't enough Praetorian Guards on staff to put all the citizens in jail that could reach the boiling point.
Ya all like the idea that China, (who I don't think has been one of our long time allies), owns us? Not the first financial master that I would choose.
Economists can spin it, turn it upside down, inside out but financial responsibility is something that is good for government. Most economists I've known during my business years seem to sometimes leave something out of their process of theory. It doesn't matter if they are Keynesian, Post-Keynesian or go way back to Mr. Smith. They so often leave out common sense. Common sense is lacking in our Washington leaders and therefore they can / will glean onto their chosen economic theory as if it were their basis of God.
How long can they inflate the money supply? Does that not matter anymore? I personally did not enjoy the days of inflation during the Carter years. It was a nasty thief.
Nice joke, there is something wrong with the site, I've got it narrowed down but it's not fixed yet.
Funny story (based on YouTube video): I told my youngest son that if you typed "google" in Google that you can crash the internet. I said to him watch - he was freaking out watching - I hit send. By absolute coincidence, a few minutes later Google was actually down - at which point he was in tears worried that I was in trouble. It took a while to reassure him that it wasn't my fault and it what I said about google was a joke.
RebelCapitalist.com - Financial Information for the Rest of Us.
Household and business debt is still too high.
RebelCapitalist.com - Financial Information for the Rest of Us.
But, I still disagree with your original point: "the entire world is spending its way out of the recession". Look at countries that couldn't "spend their way out", countries that don't have a sovereign currency - Spain, Ireland, Greece. Germany didn't have to. Canada didn't have to. Brazil didn't have to. Who else?
As for interest rates and deficits, besides our low long-term interest rates, look at Japan. Japan has had very high deficits to GDP and their interest rates are just as low.
An "implied promise" is worth jack in the bond market - either you can pay or you can't. Interest rates are still pretty low so I guess the bond market is thinking we can pay and I don't care what CDS market is saying.
RebelCapitalist.com - Financial Information for the Rest of Us.
China has hardly pulled back. They might have the biggest bubble economy in the world at present. As a percentage of GDP, China's stimulus was much larger than ours.
There damn well is an implied promise. If there wasn't then interest rates would be sky high right now.
There is a GOP memo to destroy any and that means anything, financial reform.
As much as we're railing on any so called representative in Congress and the Obama administration, the GOP should be impeached. This is one thing Obama's call out was true...these guys don't care if this country goes down in absolute flames. All they want is more political power and they don't give a rats ass about the national interest or what happens to Americans.
Such as choice between Tweedledum and Tweedledee.
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