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Thread: Fed cuts rate to nearly 0% - Average American EFF'd even harder

  1. #21
    [QUOTE=Vilma;2917208]I respectfully disagree.

    World War II ended the Great Depression, you know why?

    It created millions of jobs and increased labor output, EXACTLY what we need to navigate out of this mess.[/QUOTE]

    you could make that argument that it took until WWII

    But the DJIA is the mass psychology indicator and that bottomed right around when FDR formally devalued the dollar. It's all about the stock market and people seeing their 401k go up to turn around the psychology.
    War may also be needed to get us out of this depression, but entertaining that thought terrifies me beyond belief.

  2. #22
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    [QUOTE=Vilma;2917208]I respectfully disagree.

    World War II ended the Great Depression, you know why?

    It created millions of jobs and increased labor output, EXACTLY what we need to navigate out of this mess.[/QUOTE]

    The government PAID PEOPLE to do real work back then. People earned more and spent more and the economy was roaring again

    Now, the government is GIVING BANKS FREE MONEY that goes to no one!!

  3. #23
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    [QUOTE=JetsCrazey;2917175][IMG]http://research.stlouisfed.org/fred2/data/BASE_Max_630_378.png[/IMG]

    Consider the effects of this when the money multiplier effect comes back into play (aka banks start to lend out at fractional reserves)

    This is NOT a wash, that is a lie told by establishment academics. It doesn't work that way in real life.

    Why would the Fed and the bankers want it to happen? Because the end of the dollar era opens the door for international government. This is the realization of Daddy Bush's "New World Order"[/QUOTE]

    Yes I agree with the Monetary policy, my point is that if banks own a ton od debt that becomes worthless won't they be screwed just like those of us with money in the bank?

    Come to think of it, if they sell off all of their debt as investments, it won't matter to the banks either

  4. #24
    [QUOTE=CTM;2917250]Come to think of it, if they sell off all of their debt as investments, it won't matter to the banks either[/QUOTE]

    The thing is, the Fed has bought this worthless debt at its original "hold to maturity" value.
    This is pure monetization of bad debt

  5. #25
    [QUOTE=Vilma;2917208]I respectfully disagree.

    World War II ended the Great Depression, you know why?

    It created millions of jobs and increased labor output, EXACTLY what we need to navigate out of this mess.[/QUOTE]

    No No No. This is a commonly held FALLACY.

    There is no free lunch. None. If you take from one side, you deprive the other. If there was a free lunch, government would always "stimulate" because who doesn't love free stuff? It comes at a hidden but REAL cost.

    Money used for "jobs" comes from somewhere. When you take it from the taxpayer or cause inflation in order to pay for the policies, you make the flow of capital much less efficient. We don't see it, because it's an alternative scenario (opportunity cost) but it absolutely harms us.

    War in particular is very harmful economically, when you factor in the death and injuries to productive human beings and destruction of valuable property and capital.

    If someone knocks down your front door, the door repair man benefits -- he has work to do -- but society overall is harmed.

  6. #26
    [QUOTE=Vilma;2916666]Convert that cash into Euro's - Dollar will be worthless in the near future.[/QUOTE]

    The Euro is overvalued too... they are doing as much as they can to inflate their currency as we are.

  7. #27
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    [QUOTE=BrooklynBound;2917742]No No No. This is a commonly held FALLACY.

    [B]There is no free lunch. None. If you take from one side, you deprive the other. If there was a free lunch, government would always "stimulate" because who doesn't love free stuff? It comes at a hidden but REAL cost.[/B]

    Money used for "jobs" comes from somewhere. When you take it from the taxpayer or cause inflation in order to pay for the policies, you make the flow of capital much less efficient. We don't see it, because it's an alternative scenario (opportunity cost) but it absolutely harms us.

    War in particular is very harmful economically, when you factor in the death and injuries to productive human beings and destruction of valuable property and capital.

    If someone knocks down your front door, the door repair man benefits -- he has work to do -- but society overall is harmed.[/QUOTE]

    :yes:

    Another version of the Broken Window Fallacy!

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