US economic fix: print money

Discussion in 'The Fire For Effect and Totally Politically Incorr' started by jack404, Oct 18, 2010.

  1. jack404

    jack404 Former Guest

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    This from the Australian news service

    pity they wont print the story about the anti Obama protest here today

    signs everywhere , "he can come as a VIP , we'll send him home as air freight" after his spokesperson explained why we have to charge our troops with murder but no-one ( from the enemies side) is yet charged for any crimes of terror


    http://www.news.com.au/business/us-economic-fix-print-money/story-e6frfm1i-1225940206587

    Dollar trading at post-float record
    US resorting to printing money
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    US AUTHORITIES are boosting the Australian dollar by turning to the "disastrous" economic tactics deployed by Zimbabwean dictator Robert Mugabe, a finance expert says.
    Mr Mugabe has printed so much money over such a long period that its national currency has become almost worthless, with hyper-inflation leading to a loaf of bread costing billions of Zimbabwean dollars.
    The US Federal Reserve, the equivalent to the Reserve Bank, hinted last weekend it would pursue another round of "quantitative easing", effectively printing more money, in an effort to stimulate its economy and reduce the likelihood of deflation, said Peter Swan, a finance professor from the Australian School of Business, University of New South Wales.

    Deflation, or the threat of deflation, tends to reduce economic activity as people defer spending and can lead to higher unemployment.
    Dollar boost: strong Australia, weak US
    The hints by the US Fed that it would print more money, together with the strength of the Australian economy, has led to an unprecedented rise in the Australian dollar this year.
    Last week, the dollar briefly touched parity with the greenback, for the first time since the currency was floated in 1983. At midday (AEDT) today, the dollar was trading at US98.75c, down from Friday's close of US99.28c.
    Since the Global Financial Crisis, the US has failed to boost its economy using the traditional tools of monetary and fiscal policy, Professor Swan said.
    "The US Federal Reserve has lowered interest rates to close to zero again, as it did in the lead up to the Sub-Prime Crisis (forerunner of GFC)," he said.
    "(And) the US Government has tried to use stimulus spending to boost the economy.
    "This transferred bad debts from the private to the public sector and has led to the US Government's record $US1.3 trillion budget deficit.
    "But this stimulus didn't work and US unemployment still rose to a very high rates of about 10 per cent and there is still the prospect of a double-dip recession there."
    Plan C: print money
    And with nowhere to go on interest rates to spur a recovery, the US Federal Reserve is now looking to another round of quantitative easing, where the central bank buys up US treasuries, or government debt, to increase the supply of money in the economy.
    "Basically they want to stimulate their economy by driving down the value of the US dollar," Professor Swan said.
    "This will make American exports cheaper and their imports dearer. The hope of this very misguided policy is to create more jobs.
    "One way to do this is to reduce the purchasing power of money, to essentially print a lot more money and make the US dollar much less valuable.
    "One consequence of doing this, and one desired consequence of doing this, is to make investors around the world want to hold fewer US dollars."
    "They want to do a mild version of what (Mr) Mugabe did."
    Other countries, such as Japan and the UK are also trying similar ploys.
    "I think this is a disastrous policy," Professor Swan said.
    "Regulators have been trying for 80 years, since we went off the gold standard, to maintain the purchasing power of the US dollar and avoid high inflation by acting responsibly to protect the currency.
    "They can't lower interest rates much more, but they can flood the market with US dollars.
    "One economy such as Australia which was never really seriously affected by the GFC is a beneficiary of these very strange policies as it is putting downward pressure on prices of imports and hence inflation."


    Read more: http://www.news.com.au/business/us-...ey/story-e6frfm1i-1225940206587#ixzz12giVqzIV

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    to me its great i see a price in a catalouge and its about the same cost

    beats the days when i'd have to double it

    i know this aint good for you US folks , but sadly this is the US's own fault for electing a socialist government , one that gets its plays from the same book Robert Mugabe' does
  2. hogger129

    hogger129 Active Member

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    Spending will only make the situation worse. They need to cut spending.
  3. NRA_guy

    NRA_guy Member

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    Yeah, but we are talking about politicians here.

    What do they care about? Getting re-elected.

    Who elects for politicians? People who are on the government dole.

    What's the chances politicians will cut benefits to their supporters? Zero.

    The Congressional Budget Office (CBO) published a report outlining all this and the various options several months ago.

    Most likely end game: the US will flood the world with US dollars.

    REPORT

    My thought: We will eventually get where Germany was post WW I. And we will come up with the same solution.
    Last edited: Oct 18, 2010
  4. Jeff Midguard

    Jeff Midguard New Member

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    It worked for Hitler, didn't it. Created the conditions that set the stage for him, I mean.

    Apologies NRA guy, didn't read your post before I responded. At least we're on the same wavelength.
    Last edited: Oct 18, 2010
  5. Trouble 45-70

    Trouble 45-70 New Member

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    Wonder how the next Congress will do. All the money is spent. Americas credit card is over drawn. Business is hogtied by not knowing what the govt. is going to do to them next or even if Obama wont nationalize them too. I can't see the Congress creating a non hostile business climate for business to make plans for the future. Then there is the collusion and corruption between the Executive branch and friends of Obama. I don't think we have seen anything yet.

    Obama will probably veto anything that might help save the country.

    It will be counted a blessing if the dollar is only devalued 50%. The next 2 years are going to be bitter.
  6. Gun Geezer

    Gun Geezer Well-Known Member

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    Of course, the Dem's will blame everything that happens after Nov. on the Rep.'s and everything that's occurred prior will still be blamed on Bush. If the Rep. gain the majority, they will blame all the troubles on the Dem.'s all the way back to Clinton. The result, business as usual.
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