Comments on: Payroll Week http://alamedalearning.com/reality/2010/02/03/payroll-week/ Separating fact from fiction in finance and economics Thu, 28 Apr 2011 10:38:31 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: reality http://alamedalearning.com/reality/2010/02/03/payroll-week/comment-page-1/#comment-2006 reality Thu, 04 Feb 2010 18:46:10 +0000 http://alamedalearning.com/reality/?p=3418#comment-2006 I'm sure they are hoping for massive inflation. The Japanese have been trying to get inflation going for years, without success. Japan is still in deflation, now almost twenty years after their credit bubble popped. The Fed will try too, but it will not be successful either. Eventually their Keynesian views will be discredited. But their will be much pain associated with learning that they are wrong. I’m sure they are hoping for massive inflation. The Japanese have been trying to get inflation going for years, without success. Japan is still in deflation, now almost twenty years after their credit bubble popped. The Fed will try too, but it will not be successful either.

Eventually their Keynesian views will be discredited. But their will be much pain associated with learning that they are wrong.

]]> By: luc v http://alamedalearning.com/reality/2010/02/03/payroll-week/comment-page-1/#comment-2005 luc v Thu, 04 Feb 2010 17:58:36 +0000 http://alamedalearning.com/reality/?p=3418#comment-2005 dag reality, this will all end badly. debt will have to be wiped out indeed. there are 3 options available in my opinion. option 1: drastically cut spending and increase taxes, meaning political suicide, so lets forget about it because that will not happen option 2: default in ons way or another, for instance by "consolidating" outstanding debt (perpetuals at a 1% rate, or something like that - put the "debt" on a shelve and forget about it - we have seen that in europe after both wars) option 3: inflate it away, the "painless" solution that only wipes out the savers, quantité négligable as we all know i bet they are all hoping for massive inflation luc dag reality,

this will all end badly. debt will have to be wiped out indeed. there are 3 options available in my opinion.

option 1: drastically cut spending and increase taxes, meaning political suicide, so lets forget about it because that will not happen

option 2: default in ons way or another, for instance by “consolidating” outstanding debt (perpetuals at a 1% rate, or something like that – put the “debt” on a shelve and forget about it – we have seen that in europe after both wars)

option 3: inflate it away, the “painless” solution that only wipes out the savers, quantité négligable as we all know

i bet they are all hoping for massive inflation

luc

]]> By: gigi http://alamedalearning.com/reality/2010/02/03/payroll-week/comment-page-1/#comment-2004 gigi Thu, 04 Feb 2010 14:33:26 +0000 http://alamedalearning.com/reality/?p=3418#comment-2004 Realty, I have been wondering about the 10%+ GDP deficits, closer to 15% by my back of the envelope calculation using what I consider to be more realistic assumptions. Greece is in trouble at 12.5% GDP. So why are we not in trouble? Seems like just a matter of time. When someone keeps borrowing more to pay previous loans, you stop lending to them, right? I am not going to argue with the market about lending to the US government, but I keep reaching the conclusion that I would be a fool to lend money to the government (or anyone for that matter) for 1+ years. The crises cometh, and the debt will be wiped one way or the other. Realty, I have been wondering about the 10%+ GDP deficits, closer to 15% by my back of the envelope calculation using what I consider to be more realistic assumptions.

Greece is in trouble at 12.5% GDP. So why are we not in trouble? Seems like just a matter of time.

When someone keeps borrowing more to pay previous loans, you stop lending to them, right? I am not going to argue with the market about lending to the US government, but I keep reaching the conclusion that I would be a fool to lend money to the government (or anyone for that matter) for 1+ years.

The crises cometh, and the debt will be wiped one way or the other.

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