[jficquette]

[quote=kewp]The 70’s prove that the Fed can overpower recessionary deflation and cause something worse. Oddly, I hope I’m wrong.

You almost certainly are.

The dominant economic trends are all deflationary. All the Fed printing is doing is keeping the banks *barely* operational. There isn’t enough excess liquidity available for price/salary inflation.

All our past over-consumption basically amounted to money-burning. Foreclosures, bankruptcies, unemployment, credit card defaults etc. are all the equivalent of dollar destruction and ultimately deflationary. The Fed printing isn’t even close to keeping up.

[/quote]

Net new money isn’t created unless its borrowed. If no debt is in involved then its simply cash to cash.

The Fed doesn’t print money. It sets conditions to influence how much of it is borrowed. Its the borrowing that expands the money supply.

Low rates won’t help anything if people are not willing to borrow it.

John

[jficquette]

[quote=kewp]The 70’s prove that the Fed can overpower recessionary deflation and cause something worse. Oddly, I hope I’m wrong.

You almost certainly are.

The dominant economic trends are all deflationary. All the Fed printing is doing is keeping the banks *barely* operational. There isn’t enough excess liquidity available for price/salary inflation.

All our past over-consumption basically amounted to money-burning. Foreclosures, bankruptcies, unemployment, credit card defaults etc. are all the equivalent of dollar destruction and ultimately deflationary. The Fed printing isn’t even close to keeping up.

[/quote]

Net new money isn’t created unless its borrowed. If no debt is in involved then its simply cash to cash.

The Fed doesn’t print money. It sets conditions to influence how much of it is borrowed. Its the borrowing that expands the money supply.

Low rates won’t help anything if people are not willing to borrow it.

John

[jficquette]

[quote=kewp]The 70’s prove that the Fed can overpower recessionary deflation and cause something worse. Oddly, I hope I’m wrong.

You almost certainly are.

The dominant economic trends are all deflationary. All the Fed printing is doing is keeping the banks *barely* operational. There isn’t enough excess liquidity available for price/salary inflation.

All our past over-consumption basically amounted to money-burning. Foreclosures, bankruptcies, unemployment, credit card defaults etc. are all the equivalent of dollar destruction and ultimately deflationary. The Fed printing isn’t even close to keeping up.

[/quote]

Net new money isn’t created unless its borrowed. If no debt is in involved then its simply cash to cash.

The Fed doesn’t print money. It sets conditions to influence how much of it is borrowed. Its the borrowing that expands the money supply.

Low rates won’t help anything if people are not willing to borrow it.

John

[jficquette]

[quote=kewp]The 70’s prove that the Fed can overpower recessionary deflation and cause something worse. Oddly, I hope I’m wrong.

You almost certainly are.

The dominant economic trends are all deflationary. All the Fed printing is doing is keeping the banks *barely* operational. There isn’t enough excess liquidity available for price/salary inflation.

All our past over-consumption basically amounted to money-burning. Foreclosures, bankruptcies, unemployment, credit card defaults etc. are all the equivalent of dollar destruction and ultimately deflationary. The Fed printing isn’t even close to keeping up.

[/quote]

Net new money isn’t created unless its borrowed. If no debt is in involved then its simply cash to cash.

The Fed doesn’t print money. It sets conditions to influence how much of it is borrowed. Its the borrowing that expands the money supply.

Low rates won’t help anything if people are not willing to borrow it.

John

[jficquette]

[quote=kewp]The 70’s prove that the Fed can overpower recessionary deflation and cause something worse. Oddly, I hope I’m wrong.

You almost certainly are.

The dominant economic trends are all deflationary. All the Fed printing is doing is keeping the banks *barely* operational. There isn’t enough excess liquidity available for price/salary inflation.

All our past over-consumption basically amounted to money-burning. Foreclosures, bankruptcies, unemployment, credit card defaults etc. are all the equivalent of dollar destruction and ultimately deflationary. The Fed printing isn’t even close to keeping up.

[/quote]

Net new money isn’t created unless its borrowed. If no debt is in involved then its simply cash to cash.

The Fed doesn’t print money. It sets conditions to influence how much of it is borrowed. Its the borrowing that expands the money supply.

Low rates won’t help anything if people are not willing to borrow it.

John

[jficquette]

All governments use Fiat currencies now. Fiat currencies are backed by the strength of the country that issues it.

You can’t have a world currency without a world government to back it.

The US is in for some big problems but Europe and Asia will get hurt worst and can not provide an alternative to the dollar.

So for now we are and will remain the reserve currency.

John

[jficquette]

All governments use Fiat currencies now. Fiat currencies are backed by the strength of the country that issues it.

You can’t have a world currency without a world government to back it.

The US is in for some big problems but Europe and Asia will get hurt worst and can not provide an alternative to the dollar.

So for now we are and will remain the reserve currency.

John

[jficquette]

All governments use Fiat currencies now. Fiat currencies are backed by the strength of the country that issues it.

You can’t have a world currency without a world government to back it.

The US is in for some big problems but Europe and Asia will get hurt worst and can not provide an alternative to the dollar.

So for now we are and will remain the reserve currency.

John

[jficquette]

All governments use Fiat currencies now. Fiat currencies are backed by the strength of the country that issues it.

You can’t have a world currency without a world government to back it.

The US is in for some big problems but Europe and Asia will get hurt worst and can not provide an alternative to the dollar.

So for now we are and will remain the reserve currency.

John

[jficquette]

All governments use Fiat currencies now. Fiat currencies are backed by the strength of the country that issues it.

You can’t have a world currency without a world government to back it.

The US is in for some big problems but Europe and Asia will get hurt worst and can not provide an alternative to the dollar.

So for now we are and will remain the reserve currency.

John

[jficquette]

[quote=peterb]I saw a bunch back when they were trying to sell condo’s in SD. We may begin to signs of net migration out of the area. Or those foreclosures are turning into rental homes.[/quote]

I think a lot of people are leaving and I think it will get worst as job losses begin to accelerate.

Real job loss may be hard to estimate because of the underground economy we have with illegals. They occupied/occupy a lot of dwelling units and won’t hang around without work.

John

[jficquette]

[quote=peterb]I saw a bunch back when they were trying to sell condo’s in SD. We may begin to signs of net migration out of the area. Or those foreclosures are turning into rental homes.[/quote]

I think a lot of people are leaving and I think it will get worst as job losses begin to accelerate.

Real job loss may be hard to estimate because of the underground economy we have with illegals. They occupied/occupy a lot of dwelling units and won’t hang around without work.

John

[jficquette]

[quote=peterb]I saw a bunch back when they were trying to sell condo’s in SD. We may begin to signs of net migration out of the area. Or those foreclosures are turning into rental homes.[/quote]

I think a lot of people are leaving and I think it will get worst as job losses begin to accelerate.

Real job loss may be hard to estimate because of the underground economy we have with illegals. They occupied/occupy a lot of dwelling units and won’t hang around without work.

John

[jficquette]

[quote=peterb]I saw a bunch back when they were trying to sell condo’s in SD. We may begin to signs of net migration out of the area. Or those foreclosures are turning into rental homes.[/quote]

I think a lot of people are leaving and I think it will get worst as job losses begin to accelerate.

Real job loss may be hard to estimate because of the underground economy we have with illegals. They occupied/occupy a lot of dwelling units and won’t hang around without work.

John

[jficquette]

[quote=peterb]I saw a bunch back when they were trying to sell condo’s in SD. We may begin to signs of net migration out of the area. Or those foreclosures are turning into rental homes.[/quote]

I think a lot of people are leaving and I think it will get worst as job losses begin to accelerate.

Real job loss may be hard to estimate because of the underground economy we have with illegals. They occupied/occupy a lot of dwelling units and won’t hang around without work.

John

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