12/4 Fed's guide to save the economy (feel free to add):
-print more money
-lower interest rate
\_ that sounds more like a recipe for inflation to me.
\_ Inflation might save the economy by allowing us to pay back
debts with cheap dollars. In fact, I think this is the idea.
\_ Is there a less painful way to get rid of the huge debt than
inflating it to insignificance?
\_ Exactly. Inflation isn't always bad from the government's
perspective. Inflation has worked before, and it'll work again.
-finish collapsing the dollar so we can switch to the Amero!
- Bushonomics in action
\_ What exactly is Bushonomics? More tax cuts? Unlikely in
the light of the Federal deficit.
\_ Massive deficit spending, tax cuts, more defence spending.
Continuing to drive down the value of the dollar in hopes
of closing the trade gap.
\_ How are we supposed to close the trade gap when the US
doesn't actually produce much that the world wants to buy?
Start selling US properties?
\_ Developing countries buying US properties is an
interesting situation. By buying a US asset, they
are effectively investing in the US economy, instead
of their own. Buying a US asset or US services pumps
money into the US economy.
Obviously, if US stuff was cheap enough the world
would want to buy it. They already buy lots of our
big ticket items like jumbo jets, large industrial
equipment, etc. Most Chinese manufacturing is not
so specialized that you couldn't just do it here if
it was cost effective.
\_ It will never be as cost effective, because the
US cares more about worker rights, the
environment, consumer safety, and so on.
\_ Never is a long time.
-Start a new war
-Stop foreclosures by bailing out dumb asses. |
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