[quote=SK in CV][quote=dumbrenter][quote=SK in CV][quote=dumbrenter]That said, to be clear, I have no “conclusive evidence” other than a set of correlations.[/quote]
What set of correlations leads you to the conclusion that the US “faces an either/or choice: (a) inflate massively to get out of this hole
(b) raise taxes and at the same time cut welfare across the board.”[/quote]
And what makes you think this is not an either/or choice?[/quote]
You made the assertion. You claimed you have evidence in the form of correlations. Back it up.
There are all kinds of other possibilities. Deflation. Controlled growth. A black swan event preceding a deep depression. Or even as is currently projected, slow growth leading to decreased deficits over the short term, and growing over the intermediate term. None of those require massive inflation or increased taxes/decreased welfare.[/quote]
Context, Context….You might want to re-read what I wrote. My observations about correlation relate to actions of moneyed class and general availability of arms & ammunition. This was in response to your specific question “Irrespective of that, I would think that if there is a connection between the monied crowd and gun control, it could be identified. Is Monsanto funding gun control advocacy? JP Morgan? Goldman Sachs?”
I did not make an “assertion” nor claimed “evidence”.
It would be my pleasure to provide you with my reasoning (fully acknowledging I could be wrong) but your distortion of context (deliberate or otherwise) make it harder for me to communicate with you.
Going back to what you “thought” I was referring to: deflation is already being tried, interest rates have been kept low and QE game of buying up treasuries to lower the yield is what is going on now. please enlighten us what else can be done to keep the deflation going?
I’ll discount black swan events (and alien attacks) since the very nature of those, by definition, are hard to predict and quantify.
The option of slow growth is dictated not by monetary policy but by the patience of the holders of paper assets and those countries in whose interest it is to keep buying treasuries. I honestly do not know how long they’d want to go but it cannot be forever.
so, by elimination, the only two remaining options are what I mentioned before. You can already see elements of option ‘b’ beginning this year.
Now, I’d love for you to tell my why either of those options will not be considered.
