Monetizing the Debt
11-08-2010, 03:10 PM
#11
Banned
Joined APC: Nov 2010
Position: 727
Posts: 78
Originally Posted by Coto Pilot
The WSJ was a scary read this morning. The top three clips on the left side of the front page were that one of the Fed members was opposed to the recent moves, the German finnace minister was opposed and the Japanese prime minister was opposed.
11-08-2010, 04:11 PM
#13
Gets Weekends Off
Joined APC: Nov 2005
Position: AA A320
Posts: 1,624
Originally Posted by Fresh Hot Pizza
A little inflation would be a good thing right now, it would screw the chinese and reduce our actual national dept.
Our bonds are issued short term. When it comes time to look for more money (outside the printing press) the chinese/japanese that we just screwed are going to want a higher interest rate. Then who's screwed? Our bond rating WILL be downgraded, just a matter of when. Estimated at 2020, but likely much sooner.
According to a recent IMF report (Fiscal Monitor: Navigating the Fiscal Challenges Ahead), the US is in the second worst shape of all advanced economies. Worse than greece, portugal, and spain. Japan is atop the list.
Out of curiosity, can you please explain why inflation would be a positive thing, or do you just like spitting out one liners like "screw the chinese?"
11-08-2010, 04:30 PM
#15
Retired
Joined APC: Feb 2008
Position: whale wrangler
Posts: 3,527
Sorry Viper for the harshness.
Originally Posted by viperdriver
Well the Chinese send us valuable goods and we give them worthless paper in return. That is good for us.
Fred
11-08-2010, 07:00 PM
#17
Happy to be here
Joined APC: Jun 2006
Position: A-320A
Posts: 18,563
Originally Posted by KiloAlpha
Not only did I watch his Tv show today, I'm also reading his new book.
Yes I did, whats it to you?
Yes I did, whats it to you?
11-08-2010, 07:02 PM
#18
Happy to be here
Joined APC: Jun 2006
Position: A-320A
Posts: 18,563
Originally Posted by viperdriver
Well the Chinese send us valuable goods and we give them worthless paper in return. That is good for us.
Problem is that we are paying them with money we borrowed from them. So in effect they produce a product that we pay for using their money, and we pay them interest too. Sounds like they are getting rich off of us!
11-08-2010, 08:48 PM
#20
Gets Weekends Off
Joined APC: May 2009
Posts: 100
Originally Posted by DYNASTY HVY
No, the Communist Chinese send us cheap goods which we have to buy again later on when those goods wear out or break down and we give them paper in order to build up their military and to bail us out .Have we become so conditioned that we call Communist Chinese by anything other than what they truly are ?
Fred
Fred
The Chinese government may still call themselves communist, but there is very little that is communist about them anymore. And any leftover communist policies are slowly being changed.
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