[4plexowner]

“but Mr Bernanke will put a stop to that”

by this comment I assume you mean that he will buy US Treasuries all along the curve in order to suppress both short and long-term interest rates – how else can he stop rates from rising?

in order to buy US Treasuries the Fed is already engaging in “quantitative easing” (which is just the latest mind-fuck for printing fiat currency as fast as possible) and you are proposing that they will increase these efforts

“Only in extremis will it proceed to the next step, where these exporters feel the future value of the dollar is so unreliable that they will not accept ANY AMOUNT of future dollars in exchange for a real good today.”

so how much “quantitative easing” can the Fed perform before we reach the “extremis” state?

[4plexowner]

“but Mr Bernanke will put a stop to that”

by this comment I assume you mean that he will buy US Treasuries all along the curve in order to suppress both short and long-term interest rates – how else can he stop rates from rising?

in order to buy US Treasuries the Fed is already engaging in “quantitative easing” (which is just the latest mind-fuck for printing fiat currency as fast as possible) and you are proposing that they will increase these efforts

“Only in extremis will it proceed to the next step, where these exporters feel the future value of the dollar is so unreliable that they will not accept ANY AMOUNT of future dollars in exchange for a real good today.”

so how much “quantitative easing” can the Fed perform before we reach the “extremis” state?

[4plexowner]

“but Mr Bernanke will put a stop to that”

by this comment I assume you mean that he will buy US Treasuries all along the curve in order to suppress both short and long-term interest rates – how else can he stop rates from rising?

in order to buy US Treasuries the Fed is already engaging in “quantitative easing” (which is just the latest mind-fuck for printing fiat currency as fast as possible) and you are proposing that they will increase these efforts

“Only in extremis will it proceed to the next step, where these exporters feel the future value of the dollar is so unreliable that they will not accept ANY AMOUNT of future dollars in exchange for a real good today.”

so how much “quantitative easing” can the Fed perform before we reach the “extremis” state?

[4plexowner]

“but Mr Bernanke will put a stop to that”

by this comment I assume you mean that he will buy US Treasuries all along the curve in order to suppress both short and long-term interest rates – how else can he stop rates from rising?

in order to buy US Treasuries the Fed is already engaging in “quantitative easing” (which is just the latest mind-fuck for printing fiat currency as fast as possible) and you are proposing that they will increase these efforts

“Only in extremis will it proceed to the next step, where these exporters feel the future value of the dollar is so unreliable that they will not accept ANY AMOUNT of future dollars in exchange for a real good today.”

so how much “quantitative easing” can the Fed perform before we reach the “extremis” state?

[4plexowner]

“but Mr Bernanke will put a stop to that”

by this comment I assume you mean that he will buy US Treasuries all along the curve in order to suppress both short and long-term interest rates – how else can he stop rates from rising?

in order to buy US Treasuries the Fed is already engaging in “quantitative easing” (which is just the latest mind-fuck for printing fiat currency as fast as possible) and you are proposing that they will increase these efforts

“Only in extremis will it proceed to the next step, where these exporters feel the future value of the dollar is so unreliable that they will not accept ANY AMOUNT of future dollars in exchange for a real good today.”

so how much “quantitative easing” can the Fed perform before we reach the “extremis” state?

[4plexowner]

supply vs demand – the planet is producing some 34 million more cars per year than needed (http://www.businessweek.com/magazine/content/09_02/b4115040763998.htm)

it seems pretty obvious to me that some of this productive capacity is going to go away

its all well and good to consider the jobs that will be lost as the auto industry right-sizes (remember that phrase?), but economic reality says the industry must be right-sized

~

… or we can continue to pretend that there is an unlimited supply of money that can be thrown at every declining industry in America …

subsidize the manufacturing of automobiles (auto industry bailout), subsidize the consumer to purchase automobiles (0% loans, tax incentives), subsidize the cost of gas so the consumer can drive automobiles (we pay this subsidy in the form of 140 military bases around the world), subsidize the cost of maintaining roads and highways (“shovel-ready jobs” anyone?) …

[4plexowner]

supply vs demand – the planet is producing some 34 million more cars per year than needed (http://www.businessweek.com/magazine/content/09_02/b4115040763998.htm)

it seems pretty obvious to me that some of this productive capacity is going to go away

its all well and good to consider the jobs that will be lost as the auto industry right-sizes (remember that phrase?), but economic reality says the industry must be right-sized

~

… or we can continue to pretend that there is an unlimited supply of money that can be thrown at every declining industry in America …

subsidize the manufacturing of automobiles (auto industry bailout), subsidize the consumer to purchase automobiles (0% loans, tax incentives), subsidize the cost of gas so the consumer can drive automobiles (we pay this subsidy in the form of 140 military bases around the world), subsidize the cost of maintaining roads and highways (“shovel-ready jobs” anyone?) …

[4plexowner]

supply vs demand – the planet is producing some 34 million more cars per year than needed (http://www.businessweek.com/magazine/content/09_02/b4115040763998.htm)

it seems pretty obvious to me that some of this productive capacity is going to go away

its all well and good to consider the jobs that will be lost as the auto industry right-sizes (remember that phrase?), but economic reality says the industry must be right-sized

~

… or we can continue to pretend that there is an unlimited supply of money that can be thrown at every declining industry in America …

subsidize the manufacturing of automobiles (auto industry bailout), subsidize the consumer to purchase automobiles (0% loans, tax incentives), subsidize the cost of gas so the consumer can drive automobiles (we pay this subsidy in the form of 140 military bases around the world), subsidize the cost of maintaining roads and highways (“shovel-ready jobs” anyone?) …

[4plexowner]

supply vs demand – the planet is producing some 34 million more cars per year than needed (http://www.businessweek.com/magazine/content/09_02/b4115040763998.htm)

it seems pretty obvious to me that some of this productive capacity is going to go away

its all well and good to consider the jobs that will be lost as the auto industry right-sizes (remember that phrase?), but economic reality says the industry must be right-sized

~

… or we can continue to pretend that there is an unlimited supply of money that can be thrown at every declining industry in America …

subsidize the manufacturing of automobiles (auto industry bailout), subsidize the consumer to purchase automobiles (0% loans, tax incentives), subsidize the cost of gas so the consumer can drive automobiles (we pay this subsidy in the form of 140 military bases around the world), subsidize the cost of maintaining roads and highways (“shovel-ready jobs” anyone?) …

[4plexowner]

supply vs demand – the planet is producing some 34 million more cars per year than needed (http://www.businessweek.com/magazine/content/09_02/b4115040763998.htm)

it seems pretty obvious to me that some of this productive capacity is going to go away

its all well and good to consider the jobs that will be lost as the auto industry right-sizes (remember that phrase?), but economic reality says the industry must be right-sized

~

… or we can continue to pretend that there is an unlimited supply of money that can be thrown at every declining industry in America …

subsidize the manufacturing of automobiles (auto industry bailout), subsidize the consumer to purchase automobiles (0% loans, tax incentives), subsidize the cost of gas so the consumer can drive automobiles (we pay this subsidy in the form of 140 military bases around the world), subsidize the cost of maintaining roads and highways (“shovel-ready jobs” anyone?) …

[4plexowner]

“I too don’t understand why sovereign US debt (denominated in dollars) wouldn’t always be AAA-rated.”

At what point does common sense tell people that a debt that can’t be repaid, won’t be repaid?

If the existing liabilities are already un-payable, how can we maintain that new debt is rated AAA?

The US liability list is currently $60 or $70 trillion dollars and most of this is unfunded – our president is acknowledging trillion dollar per year deficits for the next 10 years taking our liabilities to the $70-80 trillion range

At the same time we have this mountain of unfunded liabilities, we have a major demographic shift occurring where 25% of our workforce wants to retire and enjoy their golden years

This demographic shift will open up jobs for younger generations but place a larger and larger burden on Social Security and Medicare programs

I read recently that future generations would have to be three times as productive as us and pay 100% of their earnings towards taxes to ever pay off this debt load

Obviously this isn’t going to happen so we are back to my underlying premise: a debt that can’t be repaid won’t be repaid

~

The most recent default of US debt occurred in 1971 when Nixon closed the gold window on international trade – the world had little option other than to go along with that default – now there are options as China is demonstrating (as an aside, we are seeing history in the making here as China converts the yuan to the world’s reserve currency of choice – this type of change only occurs every 200 or 300 years)

[4plexowner]

“I too don’t understand why sovereign US debt (denominated in dollars) wouldn’t always be AAA-rated.”

At what point does common sense tell people that a debt that can’t be repaid, won’t be repaid?

If the existing liabilities are already un-payable, how can we maintain that new debt is rated AAA?

The US liability list is currently $60 or $70 trillion dollars and most of this is unfunded – our president is acknowledging trillion dollar per year deficits for the next 10 years taking our liabilities to the $70-80 trillion range

At the same time we have this mountain of unfunded liabilities, we have a major demographic shift occurring where 25% of our workforce wants to retire and enjoy their golden years

This demographic shift will open up jobs for younger generations but place a larger and larger burden on Social Security and Medicare programs

I read recently that future generations would have to be three times as productive as us and pay 100% of their earnings towards taxes to ever pay off this debt load

Obviously this isn’t going to happen so we are back to my underlying premise: a debt that can’t be repaid won’t be repaid

~

The most recent default of US debt occurred in 1971 when Nixon closed the gold window on international trade – the world had little option other than to go along with that default – now there are options as China is demonstrating (as an aside, we are seeing history in the making here as China converts the yuan to the world’s reserve currency of choice – this type of change only occurs every 200 or 300 years)

[4plexowner]

“I too don’t understand why sovereign US debt (denominated in dollars) wouldn’t always be AAA-rated.”

At what point does common sense tell people that a debt that can’t be repaid, won’t be repaid?

If the existing liabilities are already un-payable, how can we maintain that new debt is rated AAA?

The US liability list is currently $60 or $70 trillion dollars and most of this is unfunded – our president is acknowledging trillion dollar per year deficits for the next 10 years taking our liabilities to the $70-80 trillion range

At the same time we have this mountain of unfunded liabilities, we have a major demographic shift occurring where 25% of our workforce wants to retire and enjoy their golden years

This demographic shift will open up jobs for younger generations but place a larger and larger burden on Social Security and Medicare programs

I read recently that future generations would have to be three times as productive as us and pay 100% of their earnings towards taxes to ever pay off this debt load

Obviously this isn’t going to happen so we are back to my underlying premise: a debt that can’t be repaid won’t be repaid

~

The most recent default of US debt occurred in 1971 when Nixon closed the gold window on international trade – the world had little option other than to go along with that default – now there are options as China is demonstrating (as an aside, we are seeing history in the making here as China converts the yuan to the world’s reserve currency of choice – this type of change only occurs every 200 or 300 years)

[4plexowner]

“I too don’t understand why sovereign US debt (denominated in dollars) wouldn’t always be AAA-rated.”

At what point does common sense tell people that a debt that can’t be repaid, won’t be repaid?

If the existing liabilities are already un-payable, how can we maintain that new debt is rated AAA?

The US liability list is currently $60 or $70 trillion dollars and most of this is unfunded – our president is acknowledging trillion dollar per year deficits for the next 10 years taking our liabilities to the $70-80 trillion range

At the same time we have this mountain of unfunded liabilities, we have a major demographic shift occurring where 25% of our workforce wants to retire and enjoy their golden years

This demographic shift will open up jobs for younger generations but place a larger and larger burden on Social Security and Medicare programs

I read recently that future generations would have to be three times as productive as us and pay 100% of their earnings towards taxes to ever pay off this debt load

Obviously this isn’t going to happen so we are back to my underlying premise: a debt that can’t be repaid won’t be repaid

~

The most recent default of US debt occurred in 1971 when Nixon closed the gold window on international trade – the world had little option other than to go along with that default – now there are options as China is demonstrating (as an aside, we are seeing history in the making here as China converts the yuan to the world’s reserve currency of choice – this type of change only occurs every 200 or 300 years)

[4plexowner]

“I too don’t understand why sovereign US debt (denominated in dollars) wouldn’t always be AAA-rated.”

At what point does common sense tell people that a debt that can’t be repaid, won’t be repaid?

If the existing liabilities are already un-payable, how can we maintain that new debt is rated AAA?

The US liability list is currently $60 or $70 trillion dollars and most of this is unfunded – our president is acknowledging trillion dollar per year deficits for the next 10 years taking our liabilities to the $70-80 trillion range

At the same time we have this mountain of unfunded liabilities, we have a major demographic shift occurring where 25% of our workforce wants to retire and enjoy their golden years

This demographic shift will open up jobs for younger generations but place a larger and larger burden on Social Security and Medicare programs

I read recently that future generations would have to be three times as productive as us and pay 100% of their earnings towards taxes to ever pay off this debt load

Obviously this isn’t going to happen so we are back to my underlying premise: a debt that can’t be repaid won’t be repaid

~

The most recent default of US debt occurred in 1971 when Nixon closed the gold window on international trade – the world had little option other than to go along with that default – now there are options as China is demonstrating (as an aside, we are seeing history in the making here as China converts the yuan to the world’s reserve currency of choice – this type of change only occurs every 200 or 300 years)

[Author]

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