R.I.P. UK

[Arraya]

“Little by little every arrow in the bullish quiver is taken away. The only thing remaining, is the last recourse of the Keynesian radioactive fall out: more money borrowed from the future. Alas, as John Taylor pointed out earlier, there is no growth. The global death spiral is complete. We disagree with Edwards – the next recession is not coming by the end of 2010 – we never left it in the first place. We would agree with Rosenberg, however, that the second coming of the Second Great Depression is now upon us, after the brief Fed-moderated extension, which merely allowed Wall Street to extract yet another record round of bonuses on the backs of the middle class.”

http://tinyurl.com/23ew98g

[CA renter]

[quote=Arraya]”Little by little every arrow in the bullish quiver is taken away. The only thing remaining, is the last recourse of the Keynesian radioactive fall out: more money borrowed from the future. Alas, as John Taylor pointed out earlier, there is no growth. The global death spiral is complete. We disagree with Edwards – the next recession is not coming by the end of 2010 – we never left it in the first place. We would agree with Rosenberg, however, that the second coming of the Second Great Depression is now upon us, after the brief Fed-moderated extension, which merely allowed Wall Street to extract yet another record round of bonuses on the backs of the middle class.”

http://tinyurl.com/23ew98g%5B/quote%5D

I love your posts and links, Arraya.

[CA renter]

[quote=Arraya]”Little by little every arrow in the bullish quiver is taken away. The only thing remaining, is the last recourse of the Keynesian radioactive fall out: more money borrowed from the future. Alas, as John Taylor pointed out earlier, there is no growth. The global death spiral is complete. We disagree with Edwards – the next recession is not coming by the end of 2010 – we never left it in the first place. We would agree with Rosenberg, however, that the second coming of the Second Great Depression is now upon us, after the brief Fed-moderated extension, which merely allowed Wall Street to extract yet another record round of bonuses on the backs of the middle class.”

http://tinyurl.com/23ew98g%5B/quote%5D

I love your posts and links, Arraya.

[CA renter]

[quote=Arraya]”Little by little every arrow in the bullish quiver is taken away. The only thing remaining, is the last recourse of the Keynesian radioactive fall out: more money borrowed from the future. Alas, as John Taylor pointed out earlier, there is no growth. The global death spiral is complete. We disagree with Edwards – the next recession is not coming by the end of 2010 – we never left it in the first place. We would agree with Rosenberg, however, that the second coming of the Second Great Depression is now upon us, after the brief Fed-moderated extension, which merely allowed Wall Street to extract yet another record round of bonuses on the backs of the middle class.”

http://tinyurl.com/23ew98g%5B/quote%5D

I love your posts and links, Arraya.

[CA renter]

[quote=Arraya]”Little by little every arrow in the bullish quiver is taken away. The only thing remaining, is the last recourse of the Keynesian radioactive fall out: more money borrowed from the future. Alas, as John Taylor pointed out earlier, there is no growth. The global death spiral is complete. We disagree with Edwards – the next recession is not coming by the end of 2010 – we never left it in the first place. We would agree with Rosenberg, however, that the second coming of the Second Great Depression is now upon us, after the brief Fed-moderated extension, which merely allowed Wall Street to extract yet another record round of bonuses on the backs of the middle class.”

http://tinyurl.com/23ew98g%5B/quote%5D

I love your posts and links, Arraya.

[CA renter]

[quote=Arraya]”Little by little every arrow in the bullish quiver is taken away. The only thing remaining, is the last recourse of the Keynesian radioactive fall out: more money borrowed from the future. Alas, as John Taylor pointed out earlier, there is no growth. The global death spiral is complete. We disagree with Edwards – the next recession is not coming by the end of 2010 – we never left it in the first place. We would agree with Rosenberg, however, that the second coming of the Second Great Depression is now upon us, after the brief Fed-moderated extension, which merely allowed Wall Street to extract yet another record round of bonuses on the backs of the middle class.”

http://tinyurl.com/23ew98g%5B/quote%5D

I love your posts and links, Arraya.

[briansd1]

[quote=CA renter]
I’m not opposed to some govt spending, but think that what we’re doing (focusing on asset prices instead of useful jobs) is a huge mistake. Perhaps, once deflation has really done its job, the govt can spend a bit in order to jump-start the economy. In doing this, we can be assured that we are printing *stronger* dollars that will have a greater effect per dollar printed, vs. printing when things are already so wildly inflated. The effects of our printing are muted if we try to prevent the deflation from happening in the first place, vs. printing once deflation has been allowed to fully wipe-out any excesses and misallocations. .

The longer we try to prevent deflation from happening in the first place, the bigger our problems will become down the road, IMHO.[/quote]

CA renter, if you look at Europe (PIIGS), you will see that deflation is happening because individual countries don’t have currency flexibility.

The way to deal with economic crises is by printing money or internal deflation.

Deflation means wage reductions. So governments needs to pay public employees less — wages, pensions and health benefits need to be negotiated downward.

Deflation is more dangerous than you think.

[briansd1]

[quote=CA renter]
I’m not opposed to some govt spending, but think that what we’re doing (focusing on asset prices instead of useful jobs) is a huge mistake. Perhaps, once deflation has really done its job, the govt can spend a bit in order to jump-start the economy. In doing this, we can be assured that we are printing *stronger* dollars that will have a greater effect per dollar printed, vs. printing when things are already so wildly inflated. The effects of our printing are muted if we try to prevent the deflation from happening in the first place, vs. printing once deflation has been allowed to fully wipe-out any excesses and misallocations. .

The longer we try to prevent deflation from happening in the first place, the bigger our problems will become down the road, IMHO.[/quote]

CA renter, if you look at Europe (PIIGS), you will see that deflation is happening because individual countries don’t have currency flexibility.

The way to deal with economic crises is by printing money or internal deflation.

Deflation means wage reductions. So governments needs to pay public employees less — wages, pensions and health benefits need to be negotiated downward.

Deflation is more dangerous than you think.

[briansd1]

[quote=CA renter]
I’m not opposed to some govt spending, but think that what we’re doing (focusing on asset prices instead of useful jobs) is a huge mistake. Perhaps, once deflation has really done its job, the govt can spend a bit in order to jump-start the economy. In doing this, we can be assured that we are printing *stronger* dollars that will have a greater effect per dollar printed, vs. printing when things are already so wildly inflated. The effects of our printing are muted if we try to prevent the deflation from happening in the first place, vs. printing once deflation has been allowed to fully wipe-out any excesses and misallocations. .

The longer we try to prevent deflation from happening in the first place, the bigger our problems will become down the road, IMHO.[/quote]

CA renter, if you look at Europe (PIIGS), you will see that deflation is happening because individual countries don’t have currency flexibility.

The way to deal with economic crises is by printing money or internal deflation.

Deflation means wage reductions. So governments needs to pay public employees less — wages, pensions and health benefits need to be negotiated downward.

Deflation is more dangerous than you think.

[briansd1]

[quote=CA renter]
I’m not opposed to some govt spending, but think that what we’re doing (focusing on asset prices instead of useful jobs) is a huge mistake. Perhaps, once deflation has really done its job, the govt can spend a bit in order to jump-start the economy. In doing this, we can be assured that we are printing *stronger* dollars that will have a greater effect per dollar printed, vs. printing when things are already so wildly inflated. The effects of our printing are muted if we try to prevent the deflation from happening in the first place, vs. printing once deflation has been allowed to fully wipe-out any excesses and misallocations. .

The longer we try to prevent deflation from happening in the first place, the bigger our problems will become down the road, IMHO.[/quote]

CA renter, if you look at Europe (PIIGS), you will see that deflation is happening because individual countries don’t have currency flexibility.

The way to deal with economic crises is by printing money or internal deflation.

Deflation means wage reductions. So governments needs to pay public employees less — wages, pensions and health benefits need to be negotiated downward.

Deflation is more dangerous than you think.

[briansd1]

[quote=CA renter]
I’m not opposed to some govt spending, but think that what we’re doing (focusing on asset prices instead of useful jobs) is a huge mistake. Perhaps, once deflation has really done its job, the govt can spend a bit in order to jump-start the economy. In doing this, we can be assured that we are printing *stronger* dollars that will have a greater effect per dollar printed, vs. printing when things are already so wildly inflated. The effects of our printing are muted if we try to prevent the deflation from happening in the first place, vs. printing once deflation has been allowed to fully wipe-out any excesses and misallocations. .

The longer we try to prevent deflation from happening in the first place, the bigger our problems will become down the road, IMHO.[/quote]

CA renter, if you look at Europe (PIIGS), you will see that deflation is happening because individual countries don’t have currency flexibility.

The way to deal with economic crises is by printing money or internal deflation.

Deflation means wage reductions. So governments needs to pay public employees less — wages, pensions and health benefits need to be negotiated downward.

Deflation is more dangerous than you think.

[CA renter]

Wages are stickier than prices. Workers’ purchasing power rises, while “capitalists” lose purchasing power. It reverses an unhealthy wealth disparity that almost always precedes deflationary periods — there is no more money to be pulled from the bottom.

Deflation is healthy and necessary. It is what restores equilibrium and corrects unhealthy imbalances.

Yes, deflationary collapses can be hard; jobs are lost, and people see the value of their assets fall, but there is always a floor in a deflationary collapse. There is no ceiling in an inflationary collapse, and inflation causes far, far more damage over the long run, IMHO.

[CA renter]

Wages are stickier than prices. Workers’ purchasing power rises, while “capitalists” lose purchasing power. It reverses an unhealthy wealth disparity that almost always precedes deflationary periods — there is no more money to be pulled from the bottom.

Deflation is healthy and necessary. It is what restores equilibrium and corrects unhealthy imbalances.

Yes, deflationary collapses can be hard; jobs are lost, and people see the value of their assets fall, but there is always a floor in a deflationary collapse. There is no ceiling in an inflationary collapse, and inflation causes far, far more damage over the long run, IMHO.

[CA renter]

Wages are stickier than prices. Workers’ purchasing power rises, while “capitalists” lose purchasing power. It reverses an unhealthy wealth disparity that almost always precedes deflationary periods — there is no more money to be pulled from the bottom.

Deflation is healthy and necessary. It is what restores equilibrium and corrects unhealthy imbalances.

Yes, deflationary collapses can be hard; jobs are lost, and people see the value of their assets fall, but there is always a floor in a deflationary collapse. There is no ceiling in an inflationary collapse, and inflation causes far, far more damage over the long run, IMHO.

[CA renter]

Wages are stickier than prices. Workers’ purchasing power rises, while “capitalists” lose purchasing power. It reverses an unhealthy wealth disparity that almost always precedes deflationary periods — there is no more money to be pulled from the bottom.

Deflation is healthy and necessary. It is what restores equilibrium and corrects unhealthy imbalances.

Yes, deflationary collapses can be hard; jobs are lost, and people see the value of their assets fall, but there is always a floor in a deflationary collapse. There is no ceiling in an inflationary collapse, and inflation causes far, far more damage over the long run, IMHO.

[Author]

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