[quote=livinincali][quote=The-Shoveler]The ones left holding the bag will be anyone who is holding renminbi (RMB).
They have far far far out printed the whole world.
This is how we are losing the stimulus game LOL
They build infrastructure, we make enemies destroying it.
Turning dollars into smoke, noise and ash.[/quote]
No we are losing the stimulus game because demand is local and supply is global. In addition the stimulus game doesn’t work when you’re already deeply in debt (i.e. Japan). There is no fiscal solution to the too much debt problem we face. The solution is to embrace default and deflation and get back to a point where we can grow the economy again.
Granted that destroys plenty cities and pension funds but that already happened. There’s nothing you can do to change the fact that those plans are unfunded and there’s no way to make good on them. We just haven’t decided to realize that yet.[/quote]
Reducing pension benefits wouldn’t be a problem if we could eliminate all of the speculative price increases in the economy. One of the reasons that benefits have gone up is because costs have gone up so dramatically. Official CPI numbers are absolutely meaningless.
If we could roll everything back to say ~1995 levels — all wealth, income, purchasing power, pension benefits (and contributions), etc. — we would be much better off.
