Forum Replies Created
-
AuthorPosts
-
March 27, 2009 at 4:50 PM in reply to: What approval would our goverment need to change our currency? #373908March 27, 2009 at 4:50 PM in reply to: What approval would our goverment need to change our currency? #374191
Diego Mamani
Participant[quote=esmith]Economists will fight tooth and nail against any global currency.[/quote]
Why? I’m an economist (not tied to the banking or real estate sectors) and I feel no desire to fight something that makes no sense to begin with.
BGinRB: You’re one of the few grownups in this thread! Thank you for educating the younger, more passionate Piggs, who apparently envisioned the end of national currencies. More than a unit for global trade, what is being discussed is a ‘currency’ that can be used by countries to be held as foreign reserves. (Wasn’t the SDR created for this very purpose decades ago? It just never became as ubiquitous as the greenback).
Arraya: Thank you for sharing the very lucid atimes.com article. I’ll read the rest of it.
March 27, 2009 at 4:50 PM in reply to: What approval would our goverment need to change our currency? #374363Participant[quote=esmith]Economists will fight tooth and nail against any global currency.[/quote]
Why? I’m an economist (not tied to the banking or real estate sectors) and I feel no desire to fight something that makes no sense to begin with.
BGinRB: You’re one of the few grownups in this thread! Thank you for educating the younger, more passionate Piggs, who apparently envisioned the end of national currencies. More than a unit for global trade, what is being discussed is a ‘currency’ that can be used by countries to be held as foreign reserves. (Wasn’t the SDR created for this very purpose decades ago? It just never became as ubiquitous as the greenback).
Arraya: Thank you for sharing the very lucid atimes.com article. I’ll read the rest of it.
March 27, 2009 at 4:50 PM in reply to: What approval would our goverment need to change our currency? #374408Participant[quote=esmith]Economists will fight tooth and nail against any global currency.[/quote]
Why? I’m an economist (not tied to the banking or real estate sectors) and I feel no desire to fight something that makes no sense to begin with.
BGinRB: You’re one of the few grownups in this thread! Thank you for educating the younger, more passionate Piggs, who apparently envisioned the end of national currencies. More than a unit for global trade, what is being discussed is a ‘currency’ that can be used by countries to be held as foreign reserves. (Wasn’t the SDR created for this very purpose decades ago? It just never became as ubiquitous as the greenback).
Arraya: Thank you for sharing the very lucid atimes.com article. I’ll read the rest of it.
March 27, 2009 at 4:50 PM in reply to: What approval would our goverment need to change our currency? #374526Participant[quote=esmith]Economists will fight tooth and nail against any global currency.[/quote]
Why? I’m an economist (not tied to the banking or real estate sectors) and I feel no desire to fight something that makes no sense to begin with.
BGinRB: You’re one of the few grownups in this thread! Thank you for educating the younger, more passionate Piggs, who apparently envisioned the end of national currencies. More than a unit for global trade, what is being discussed is a ‘currency’ that can be used by countries to be held as foreign reserves. (Wasn’t the SDR created for this very purpose decades ago? It just never became as ubiquitous as the greenback).
Arraya: Thank you for sharing the very lucid atimes.com article. I’ll read the rest of it.
March 27, 2009 at 4:33 PM in reply to: How is this not a formula for looting the U. S. Treasury? #373888Participant[quote=UCGal]One small quibble with this… as I read it, the non-recourse loan is backed by the FDIC. Now the FDIC doesn’t have enough money to bail out the banks that are failing, but they do have a line of credit… But, in theory, they will charge the remaining (non-failed) banks higher premiums to make up for these losses…
So at least some of the transfer of wealth is from healthy banks to sick banks – with the taxpayer covering the losses in the meantime.
I forgot where I read this, but it made sense.[/quote]
Insurance premiums are peanuts compared to the dollar amounts we’re talking here. The FDIC may run out of money. So what? It has an unlimited line of credit. We’re talking dollars, remember? Who prints the dollars? Uncle Sam!
Very different from the situation in Argentina in 2001. They could print all the pesos they wanted, but they needed to come up with U.S. dollars to pay back their loans. I’m not saying that we’re on easy street here in the USA. Just because we can print all the dollars we want only means that we (FDIC included) will never run our of cash. But there are costs: namely, high or very high 1970’s style inflation.
In any case… having healthy banks subsidize insolvent banks will make the latter survive longer than what they should. We’ll have a long slump as they had in Japan since their asset bubble bursted in 1989-90. That doesn’t make sense to me.
March 27, 2009 at 4:33 PM in reply to: How is this not a formula for looting the U. S. Treasury? #374171Participant[quote=UCGal]One small quibble with this… as I read it, the non-recourse loan is backed by the FDIC. Now the FDIC doesn’t have enough money to bail out the banks that are failing, but they do have a line of credit… But, in theory, they will charge the remaining (non-failed) banks higher premiums to make up for these losses…
So at least some of the transfer of wealth is from healthy banks to sick banks – with the taxpayer covering the losses in the meantime.
I forgot where I read this, but it made sense.[/quote]
Insurance premiums are peanuts compared to the dollar amounts we’re talking here. The FDIC may run out of money. So what? It has an unlimited line of credit. We’re talking dollars, remember? Who prints the dollars? Uncle Sam!
Very different from the situation in Argentina in 2001. They could print all the pesos they wanted, but they needed to come up with U.S. dollars to pay back their loans. I’m not saying that we’re on easy street here in the USA. Just because we can print all the dollars we want only means that we (FDIC included) will never run our of cash. But there are costs: namely, high or very high 1970’s style inflation.
In any case… having healthy banks subsidize insolvent banks will make the latter survive longer than what they should. We’ll have a long slump as they had in Japan since their asset bubble bursted in 1989-90. That doesn’t make sense to me.
March 27, 2009 at 4:33 PM in reply to: How is this not a formula for looting the U. S. Treasury? #374343Participant[quote=UCGal]One small quibble with this… as I read it, the non-recourse loan is backed by the FDIC. Now the FDIC doesn’t have enough money to bail out the banks that are failing, but they do have a line of credit… But, in theory, they will charge the remaining (non-failed) banks higher premiums to make up for these losses…
So at least some of the transfer of wealth is from healthy banks to sick banks – with the taxpayer covering the losses in the meantime.
I forgot where I read this, but it made sense.[/quote]
Insurance premiums are peanuts compared to the dollar amounts we’re talking here. The FDIC may run out of money. So what? It has an unlimited line of credit. We’re talking dollars, remember? Who prints the dollars? Uncle Sam!
Very different from the situation in Argentina in 2001. They could print all the pesos they wanted, but they needed to come up with U.S. dollars to pay back their loans. I’m not saying that we’re on easy street here in the USA. Just because we can print all the dollars we want only means that we (FDIC included) will never run our of cash. But there are costs: namely, high or very high 1970’s style inflation.
In any case… having healthy banks subsidize insolvent banks will make the latter survive longer than what they should. We’ll have a long slump as they had in Japan since their asset bubble bursted in 1989-90. That doesn’t make sense to me.
March 27, 2009 at 4:33 PM in reply to: How is this not a formula for looting the U. S. Treasury? #374388Participant[quote=UCGal]One small quibble with this… as I read it, the non-recourse loan is backed by the FDIC. Now the FDIC doesn’t have enough money to bail out the banks that are failing, but they do have a line of credit… But, in theory, they will charge the remaining (non-failed) banks higher premiums to make up for these losses…
So at least some of the transfer of wealth is from healthy banks to sick banks – with the taxpayer covering the losses in the meantime.
I forgot where I read this, but it made sense.[/quote]
Insurance premiums are peanuts compared to the dollar amounts we’re talking here. The FDIC may run out of money. So what? It has an unlimited line of credit. We’re talking dollars, remember? Who prints the dollars? Uncle Sam!
Very different from the situation in Argentina in 2001. They could print all the pesos they wanted, but they needed to come up with U.S. dollars to pay back their loans. I’m not saying that we’re on easy street here in the USA. Just because we can print all the dollars we want only means that we (FDIC included) will never run our of cash. But there are costs: namely, high or very high 1970’s style inflation.
In any case… having healthy banks subsidize insolvent banks will make the latter survive longer than what they should. We’ll have a long slump as they had in Japan since their asset bubble bursted in 1989-90. That doesn’t make sense to me.
March 27, 2009 at 4:33 PM in reply to: How is this not a formula for looting the U. S. Treasury? #374505Participant[quote=UCGal]One small quibble with this… as I read it, the non-recourse loan is backed by the FDIC. Now the FDIC doesn’t have enough money to bail out the banks that are failing, but they do have a line of credit… But, in theory, they will charge the remaining (non-failed) banks higher premiums to make up for these losses…
So at least some of the transfer of wealth is from healthy banks to sick banks – with the taxpayer covering the losses in the meantime.
I forgot where I read this, but it made sense.[/quote]
Insurance premiums are peanuts compared to the dollar amounts we’re talking here. The FDIC may run out of money. So what? It has an unlimited line of credit. We’re talking dollars, remember? Who prints the dollars? Uncle Sam!
Very different from the situation in Argentina in 2001. They could print all the pesos they wanted, but they needed to come up with U.S. dollars to pay back their loans. I’m not saying that we’re on easy street here in the USA. Just because we can print all the dollars we want only means that we (FDIC included) will never run our of cash. But there are costs: namely, high or very high 1970’s style inflation.
In any case… having healthy banks subsidize insolvent banks will make the latter survive longer than what they should. We’ll have a long slump as they had in Japan since their asset bubble bursted in 1989-90. That doesn’t make sense to me.
Participant[quote=partypup] Actually, I completely expect the USD to collapse. I expect ALL paper to go *poof*. (…) Just because I don’t expect a total collapse to happen overnight does not by any means suggest that I don’t expect a total collapse to ever happen. (…) What are the fundamentals that would sustain high stock prices in the event of a dollar collapse and 30% unemployment? (…) How on earth will companies remain profitable enough to warrant skyrocketing stock prices if the dollar collapses and people are laid of en masse?[/quote]
In other words, you do expect the dollar to be worth zero and also you expect a “total collapse.” And you wrote that I have a Marvel Comics view of the world? Until you provide some evidence of a collapse (at whatever speed), I remain unconvinced. Our country, and the U.S. dollar, have survived far worse calamities (Civil War, Great Depression) than what we have today.
Participant[quote=partypup] Actually, I completely expect the USD to collapse. I expect ALL paper to go *poof*. (…) Just because I don’t expect a total collapse to happen overnight does not by any means suggest that I don’t expect a total collapse to ever happen. (…) What are the fundamentals that would sustain high stock prices in the event of a dollar collapse and 30% unemployment? (…) How on earth will companies remain profitable enough to warrant skyrocketing stock prices if the dollar collapses and people are laid of en masse?[/quote]
In other words, you do expect the dollar to be worth zero and also you expect a “total collapse.” And you wrote that I have a Marvel Comics view of the world? Until you provide some evidence of a collapse (at whatever speed), I remain unconvinced. Our country, and the U.S. dollar, have survived far worse calamities (Civil War, Great Depression) than what we have today.
Participant[quote=partypup] Actually, I completely expect the USD to collapse. I expect ALL paper to go *poof*. (…) Just because I don’t expect a total collapse to happen overnight does not by any means suggest that I don’t expect a total collapse to ever happen. (…) What are the fundamentals that would sustain high stock prices in the event of a dollar collapse and 30% unemployment? (…) How on earth will companies remain profitable enough to warrant skyrocketing stock prices if the dollar collapses and people are laid of en masse?[/quote]
In other words, you do expect the dollar to be worth zero and also you expect a “total collapse.” And you wrote that I have a Marvel Comics view of the world? Until you provide some evidence of a collapse (at whatever speed), I remain unconvinced. Our country, and the U.S. dollar, have survived far worse calamities (Civil War, Great Depression) than what we have today.
Participant[quote=partypup] Actually, I completely expect the USD to collapse. I expect ALL paper to go *poof*. (…) Just because I don’t expect a total collapse to happen overnight does not by any means suggest that I don’t expect a total collapse to ever happen. (…) What are the fundamentals that would sustain high stock prices in the event of a dollar collapse and 30% unemployment? (…) How on earth will companies remain profitable enough to warrant skyrocketing stock prices if the dollar collapses and people are laid of en masse?[/quote]
In other words, you do expect the dollar to be worth zero and also you expect a “total collapse.” And you wrote that I have a Marvel Comics view of the world? Until you provide some evidence of a collapse (at whatever speed), I remain unconvinced. Our country, and the U.S. dollar, have survived far worse calamities (Civil War, Great Depression) than what we have today.
Participant[quote=partypup] Actually, I completely expect the USD to collapse. I expect ALL paper to go *poof*. (…) Just because I don’t expect a total collapse to happen overnight does not by any means suggest that I don’t expect a total collapse to ever happen. (…) What are the fundamentals that would sustain high stock prices in the event of a dollar collapse and 30% unemployment? (…) How on earth will companies remain profitable enough to warrant skyrocketing stock prices if the dollar collapses and people are laid of en masse?[/quote]
In other words, you do expect the dollar to be worth zero and also you expect a “total collapse.” And you wrote that I have a Marvel Comics view of the world? Until you provide some evidence of a collapse (at whatever speed), I remain unconvinced. Our country, and the U.S. dollar, have survived far worse calamities (Civil War, Great Depression) than what we have today.
-
AuthorPosts
