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Re: Ned Naylor Leyland on the Pan Asian Gold Exchange
Originally posted by don View Post
interesting that max brings up slugman in this - at appx 22:00 in - mentioning something to the effect that slugman wrote recently that he thinks 'people buying gold are unpatriotic and trying to create hyperinflation' (and that, of course, its the 'pubs fault)
apparently it was this one: http://krugman.blogs.nytimes.com/201...geddon-caucus/
which eye found ref'd in this one:
http://www.thegoldstandardnow.org/ke...-over-the-gopq
but the nobel'd one writes:
July 6, 2011, 1:22 pm The Armageddon Caucus
In general I’m not big on worrying about how we’re setting ourselves up for the next crisis; after all, we’re nowhere near done with the current crisis. Yet it is worth noting that current trends in our policy and political discourse, in addition to blocking efforts to promote recovery, is also setting the stage for a much worse crisis further down the line.
Consider a question some of us ponder now and then: this was bad, but it wasn’t a full replay of the Great Depression. Why?
I think we know the answer:
1. Central banks intervened massively to provide liquidity, preventing a replay of the 1931 global banking crisis. They were able to do this because, as an interesting paper I missed (pdf) points out, they weren’t constrained by the gold standard.
2. Although there wasn’t much effective discretionary stimulus, automatic stabilizers that didn’t exist in 1931 did a lot to cushion the economy.
On the latter point, let me repost a figure I’ve used before:
So it wasn’t just the fact that taxes fell while spending didn’t; the safety net programs also kicked in (and were about the only thing that did).
So consider, now, what’s going on politically. Gold bugs have taken over the GOP; even if they can’t reimpose the gold standard, they will make it very hard for future Bernankes to do even as much as the current one did to fight the crisis. And there’s a big push on not just to downsize government, but to convert federal programs like Medicaid and unemployment insurance into block grants,more or less ensuring that they will be cut rather than expanding in a slump.
In short, what we now have is a political drive that will, in effect, undo all those institutional changes that prevented the Great Recession into turning into another Great Depression. -
Re: Ned Naylor Leyland on the Pan Asian Gold Exchange
Bernanke delayed the inevitable. He has given us time to prepare. Hopefully, our dear leaders have prepared something behind the scenes to keep the country together.
If your like your house, He has given you a low rate to ride out the next 10 years of inflation.
If you like gold, He has given you the opportunity to buy it cheap.
If you like bonds, He has been a ready buyer of them.
If you had your money in stocks, He got that back for you too.
Bernanke has given you a chance to save your wealth. We should be grateful for the time He has given us.Comment
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Re: Ned Naylor Leyland on the Pan Asian Gold Exchange
uh.... 'we' havent seen a damn thing to be 'thankful' for.Originally posted by aaron View Post
now the banksters, the auto and municipal unions, the medical insurance industry (and assoc lawyers), et al
along with the welfare class (and the assistant deputy directors)
MAYBE _they_ have something to be grateful for...
but 'we' - as in The Rest of US ? (aside from the mil/industrial complex, since it would appear the O man has been bought by them too)
please.... dunno about you, but i'd prefer to go quickly and painlessly, vs 1000 little cuts to slowly bleed to death...
cuz that appears to be their 'plan' and hope some kinda 'miracle' happens?Comment
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Re: Ned Naylor Leyland on the Pan Asian Gold Exchange
Has Bernanke won the Nobel Prize?Originally posted by aaron View Post
Not yet?
Obama . . . Krugman
I get confused . . . .Comment
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