In Bankrupt City, Crime Rises Again

[Cutlass]

Seriously? Of course the Fed is manipulating the stock market.
http://www.latimes.com/business/la-fi-calpers-return-20130115,0,5255546.story

Of course the Fed is manipulating the bond market.
http://www.bloomberg.com/news/2012-12-03/treasury-scarcity-to-grow-as-fed-buys-90-of-new-bonds.html

The Fed doesn't manipulate inflation rates? That's pretty much their main job.
http://useconomy.about.com/od/inflationfaq/f/Control_Infla.htm

The point is that none of those things mean what you appear to think that they mean.

The Fed exists for the purpose of preventing the banks and Wall St from tanking the economy. Now we had a partial failure of that because conservatives and libertarians called too many of the shots for too many years, and so the Fed wasn't regulating the way it is supposed to do. But that does not change the fact that savings is not earning interest because savings is not being invested. The demand for higher interest rates is a demand for money for nothing.

 

[Kaitzilla]

The point is that none of those things mean what you appear to think that they mean.

The Fed exists for the purpose of preventing the banks and Wall St from tanking the economy. Now we had a partial failure of that because conservatives and libertarians called too many of the shots for too many years, and so the Fed wasn't regulating the way it is supposed to do. But that does not change the fact that savings is not earning interest because savings is not being invested. The demand for higher interest rates is a demand for money for nothing.

The Fed should be handling monetary policy, not buying up all the new U.S. Treasuries and Mortage backed securities. That is madness.

http://www.forbes.com/sites/afontev...b-a-month-until-unemployment-falls-below-6-5/

Explain to me how $85 billion a month in printed money is supposed to reduce the unemployment rate? I can't make the mental jump from printing press to economic prosperity.

And yes, interest rates would be low even without the manipulation. The credit expansion has hit a wall and there really isn't a demand for more new loans. But they wouldn't be as low as they are right now.

 

[Formaldehyde]

Just FYI, San Bernardino is historically (other than 2008 and 2012 presidential elections) a much more conservative CA district.

But it is clearly the "liberals'" fault for trying to take common sense measures to reduce crime, and their "ideals" like actually paying for things instead of burdening their own children and grandchildren with debt because they don't want to pay their fair share of taxes.

 

[Cutlass]

The Fed should be handling monetary policy, not buying up all the new U.S. Treasuries and Mortage backed securities. That is madness.

http://www.forbes.com/sites/afontev...b-a-month-until-unemployment-falls-below-6-5/

Explain to me how $85 billion a month in printed money is supposed to reduce the unemployment rate? I can't make the mental jump from printing press to economic prosperity.

And yes, interest rates would be low even without the manipulation. The credit expansion has hit a wall and there really isn't a demand for more new loans. But they wouldn't be as low as they are right now.

Monetary policy is buying up bonds. That is the primary method of monetary policy. Always has been, always will be. Without it the economy would be in even far worse shape.

 

[Kaitzilla]

Monetary policy is buying up bonds. That is the primary method of monetary policy. Always has been, always will be. Without it the economy would be in even far worse shape.

Clearly our definitions of far worse shape are different.

I don't care how bad the economy would be without the bond purchases.
Printing money to fund our government is the start of something very bad.
Printing money to buy bad loans from banks is very bad.

There is never an end to it.
They think a little printing to fight the deflation from the credit collapse is warranted?
Let's see what kind of moral hazard/secondary effects kick in when banks and politicians start expecting the Fed to buy their stuff from now until the end of time.

 

[Cutlass]

The Fed should be handling monetary policy, not buying up all the new U.S. Treasuries and Mortage backed securities. That is madness.

http://www.forbes.com/sites/afontev...b-a-month-until-unemployment-falls-below-6-5/

Explain to me how $85 billion a month in printed money is supposed to reduce the unemployment rate? I can't make the mental jump from printing press to economic prosperity.

And yes, interest rates would be low even without the manipulation. The credit expansion has hit a wall and there really isn't a demand for more new loans. But they wouldn't be as low as they are right now.

Monetary policy is buying up bonds. That is the primary method of monetary policy. Always has been, always will be. Without it the economy would be in even far worse shape.

 

[Kaitzilla]

Monetary policy is buying up bonds. That is the primary method of monetary policy. Always has been, always will be. Without it the economy would be in even far worse shape.

http://en.wikipedia.org/wiki/Monetary_policy

Say the U.S. government raised taxes, had a surplus every year, and paid off the national debt. What would the primary method of monetary policy be in such a world?

 

[Core Imposter]

http://en.wikipedia.org/wiki/Monetary_policy

Say the U.S. government raised taxes, had a surplus every year, and paid off the national debt. What would the primary method of monetary policy be in such a world?

Monetary policy is buying up bonds. That is the primary method of monetary policy. Always has been, always will be. Without it the economy would be in even far worse shape.

 

[Cutlass]

http://en.wikipedia.org/wiki/Monetary_policy

Say the U.S. government raised taxes, had a surplus every year, and paid off the national debt. What would the primary method of monetary policy be in such a world?

The Fed can then buy private debt instead. It already does so. If you think you are ready to debate monetary policy with me, Start HERE.

 

[MobBoss]

But it is clearly the "liberals'" fault for trying to take common sense measures to reduce crime, and their "ideals" like actually paying for things instead of burdening their own children and grandchildren with debt because they don't want to pay their fair share of taxes.

What kind of bizarro switcheroo is this?

I mean really...

The simple fact is liberals are soft on crime, and really big on adding crippling debt via social programs subject to levels of fraud unimaginable.

Its liberals that are putting the albatross around our childrens necks. This fantasy that you give above is exactly that: fantasy.

 

[downtown]

The simple fact is liberals are soft on crime, and really big on adding crippling debt via social programs subject to levels of fraud unimaginable.
.

So none of that ridiculous statement is true

 

[FriendlyFire]

I mean really...

The simple fact is liberals are soft on crime, and really big on adding crippling debt via social programs subject to levels of fraud unimaginable.

Its liberals that are putting the albatross around our childrens necks. This fantasy that you give above is exactly that: fantasy.

1) California has the 3 strikes and your in laws, which means you face 20 years imprisonment for simple theft. These are the toughest laws in the nation

2) Canada and Australia spend less % of there GDP on social programs then the US dose. Except our social programs actually are good and work. Why are social program in the US so expensive, ineffective and poor ?

3) The fantasy is that tax cuts and deregulation had nothing to do the economic collapse that were trying to dig our way out of. Thanks to Republicans and fiscal conservatives for that.

 

[MobBoss]

1) California has the 3 strikes and your in laws, which means you face 20 years imprisonment for simple theft. These are the toughest laws in the nation

Actually, more than half the nation has such laws on the books.

 

[Zelig]

So none of that ridiculous statement is true

Liberals are by definition a Bad Thing and anything bad is by definition because of liberals.

 

[FriendlyFire]

Actually, more than half the nation has such laws on the books.

We'll liberals have proposed laws for chopping off the hands of thieves but Republicans are against such laws.

 

[Janusi]

I love how the conservative commentators on this thread immediately jump on how this is clearly the liberals fault for abolishing all those government services, while harping on how liberals are evil because they want to expand the government in every other thread.

 

[Patroklos]

If you take your savings and stick it under a mattress, are you entitled to a positive interest rate? If not, how does refusing to invest it in any other way justify entitling you to a positive interest rate? If they want a return on their savings, they have to invest it. If they are refusing to invest it, then demanding a return on it is demanding a welfare transfer.

I assumes you knew that whe your bank says you have X in your savings account that is actually just a promise to pay you that if you withdraw, not that you actually have that money.

In other words if your money is in a savings account, which is where the vast majority of savings is (under a matress wouldn't get you any interest under any circumstances) it is being invested. By your bank.

The people with the printing press are doing no such thing. People who reject an understanding of economics sometimes claim that they are. But you know who else makes the claim? People who are demanding welfare from the government for their savings.

Seeing as you just denied the existence of inflation I see no reason to listen to you wax on about others denying economic reality.

What are you even talking about? Clearly capitalism is a subject you have no background or foundation in.

Says the guy who doesn't understand how banks work...

 

[hobbsyoyo]

(under a matress wouldn't get you any interest under any circumstances)

Ever heard of deflation? We recently had a short bout of it.

 

[Patroklos]

Inflation/deflation is not the same thing as interest. You will note I only mentioned interest.

 

[hobbsyoyo]

If it works the same as interest with respect to the money under your mattress, tell me how it's functionally different?