Replies to post #48932 on Your Economy (No Politics) (YE1)

[SilverSurfer]

"When I look at today’s economy, it’s screaming at me that the problem is people don’t have enough money to spend. It’s not telling me they have too much spending power and are over spending.

Who would not agree? (Money Contraction is the problem! and if the banks won't lend the Fed has to supply the money.. I hate that they pick winners to give it to instead of tax cuts)

Unemployment has doubled and GDP is more than 10% below where it would be if Congress wasn’t over taxing us and taking so much spending power away from us. (Now worse with the Health Care Bill)

-------------
Paying off the entire US national debt is but a matter of subtracting the value of the maturing securities from one account at the Fed, and entering adding that valued to another account at the Fed. These transfers are non-events for the real economy, and not the source of dire stress presumed by the mainstream economists, the politicians, business people, and the media.

http://moslereconomics.com/2009/12/10/7-deadly-innocent-frauds/

[SilverSurfer]

Here is a good site for you,,, http://inflation.us/hyperinflation.html
this and other broken records predict "a complete and total collapse in the value of the U.S. Dollar."
and
"All of the wealth and savings in the United States could soon be wiped out completely."

I read the articles and their logic just does not hold up. They say we are going directly to disaster, no transition. I don't buy it. If the money supply is somehow exploded that would stimulate production activity and asset reflation to begin with. Commodity prices up up up. So, for at least a while some sectors would profit and create jobs. It would be counter to the deflationary depression looming. right?

"What is Hyperinflation?

Hyperinflation is basically a very high level of inflation that eventually spirals out of control until the value of the currency becomes practically worthless.

Hyperinflation is caused by a massive and rapid increase in money supply without being supported by growth in the output of goods and services. The result is too much of a currency chasing too few products which leads to prices of consumer goods skyrocketing to astronomical levels. The imbalance between the supply and demand for the currency leads to a run on the currency with everybody rushing to purchase real things for their money."

See that happening? Deflation is the greater risk now. imho

If they would have passed a "stimulus" bill all for Infrastructure, like fixing all the crap roads and bridges in the U.S. that would have been money well spent. The problem is not deficit spending it's the pork barrell, knot head waste of the money that hurts.

A FICA tax holiday would remedy our ailing economy much more quickly and effectivey than Big Government Payola.