I see deflation everywhere..

[Jay]

Re: I see deflation everywhere..

We can pay for this with tax HIKES, especially for the high income earners. We can also pay for this with a consumption tax such as a GST in the US.

The real high income earners don't pay taxes.

[blazespinnaker]

Re: I see deflation everywhere..

Reaganomics got the USA into this mess, lest we forget. We did not grow our way out of deficits; we drowned in our deficits. But oh how these supply-siders like to re-write recent history! WE DROWNED IN THE DEFICITS THAT REAGANOMICS CREATED THROUGH TAX-CUTS such as Proposition 13 in California.

This is wrong.. We drowned in the government expenditure by George Bush. Regan and Clinton basically created wealth in this country. Regan cut taxes and Clinton/Gore/Gingrich balanced the budget. I'll give Regan credit for breaking the back of the recession coming out of the 80s. But the real credit, economically, goes to Clinton/Gore/Gingrich for making it stick.

Regan can be given some more credit for bankrupting the USSR and winning the cold war which gave a peace-time bonus to Clinton.

George Bush thought he'd do the same as Regan .. what he didn't realize is that he abused his position so heavily it made Americans sick to death of his style of politics and jumped into the arms of bigger government. He also started the stupid war (Iraq) and made his position extra untenable. Historically he'll be known as the worst post WWII president, even worse than Nixon... no mean feat!

[Starving Steve]

Re: I see deflation everywhere..

Did we need to win the Cold War? What was gained? After the so-called victory against an imaginary enemy (Russia) in the Cold War, both the USSR and the USA went bankrupt.... It just took longer for the latter to do so.

I mean: Let's call a spade, "a spade" and not deceive ourselves. NOTHING came out of the Cold War. The entire war was ridiculous. All of the money was wasted to build atomic weaponry that was USELESS to both countries, and useless to the world.

Perhaps we may now harvest the enriched uranium in these weapons and build atomic power plants to help solve our energy needs and lower our cost of living. That would be using our brains!

[blazespinnaker]

Re: I see deflation everywhere..

Well, the whole communistic fascist thing was pretty bad. It might have just fallen apart on its own I suppose. Regan helped it along. Or maybe it was Charlie Wilson. Who knows!

Still, Regan *did* cut taxes and Clinton/Gingrich did balance the budget with the ReGov done by Al Gore.

[Fiat Currency]

Re: I see deflation everywhere..

This is wrong.. We drowned in the government expenditure by George Bush. Regan and Clinton basically created wealth in this country. Regan cut taxes and Clinton/Gore/Gingrich balanced the budget. I'll give Regan credit for breaking the back of the recession coming out of the 80s. But the real credit, economically, goes to Clinton/Gore/Gingrich for making it stick.

Regan can be given some more credit for bankrupting the USSR and winning the cold war which gave a peace-time bonus to Clinton.

Observationally, I would agree with that. However, I would argue that all the ingredients needed to get us in the current mess were put in place long before any of the individuals you cited. It was only a matter of time ...

Good thread BTW.

[jtabeb]

Re: I see deflation everywhere..

They don't need SHIT! They Fucked UP! Get out of the way of people that can ACTUALLY DO. (And not just get free ******* money from the FED). TBTF can kiss my ass. (Other wise known as rewarding failure, Ah what a concept, fuck-up, move up, and get more hand-outs).

Love your solution BTW, I love it when you can be guilty of criminal fraud and your reward is more FED liquidity. Makes one PROUD to BE AN AMERICAN, does it not?

[jtabeb]

Re: I see deflation everywhere..

"I do NOT agree with debt forgiveness .. that would be a crime of the first order. I do believe however in turning everyone's debt repayment into 0% interest rates Or at least the ones that are on variable rates at the very least.."

Fine, then BANKRUPT the banks you ******* ASSHOLE! (And debt forgiveness will take it's natural course through debt being liquidated at 10 cents on the dollar). Which is what was happening PRIOR to the government interfering in a market process.

I love how it's okay to provide an unlimited safety net for bank balance sheets, and unlimited liability to debtors (with the added double whammy of being individuals being taxed to PAY FOR the a fore mentioned government provided safety net to bank balance sheets).

So just to make sure I get this correct, banks take no write-downs, due to government backstops. Debtors get no debt relief because the marking of assets to market prices would have forced bankruptcy of the banks AND AND AND the debt taken on by the government to allow these bailouts to occur will be paid by everyone but the banks?

Man, I should have been a banker, what was I thinking? (Oh yeah, I remember now. I'm not a ******* scumbag who committed criminal fraud, that's it.)

See, No crime done by the financial class, but for GOD's SAKE, make sure and hold those DEBTORS accountable.

My mistake, I can clear see that I am wrong now, thank you so much for the illumination that you provide. I understand it PERFECTLY now.

[jtabeb]

Re: I see deflation everywhere..

Really? Regan rode on the tail winds of multiple asset bubbles in a disiflationary environment thanks to Volker, and had the benefit of a rising stock market due to new Tax Deductible IRA rules funneling huge volumes of money into equities. ( And grew the government faster than any of his predecessors).

But, hey, I like revisionist history. Do you have some more?

[Fiat Currency]

Re: I see deflation everywhere..

My mistake, I can clear see that I am wrong now, thank you so much for the illumination that you provide. I understand it PERFECTLY now.

Well, I said on Finster's "GS is getting charged" thread - that I haven't really seen anybody behind bars yet. (How's that investigation going anyway?)

Time is slowly running out for US citizens to take back control of their country.

[blazespinnaker]

Re: I see deflation everywhere..

Yeah, that's a little hard to swallow I'll agree. They're best placed though .. and this what they do better than anyone else.

Ensuring the money doesn't just get filtered down to hedge funds would probably be a good idea. Anything else? I guess really any kind of finance service company. Everything else should be OK ..services, manufacturing, importing,exporting,resource sector?

Can't think of anything else that'd be a problem.

To make it might more interesting is that the banks should be forced to take an equity position in exchange for the loan and they're not allowed to sell until they get a 10x payoff...