I’ve been thinking about the argument that any sort of agreement with prevailing US monetary policy is just buckling under to the Cathedral. I don’t know … maybe it’s true. But I don’t see any realistic way to do it any differently than how it’s now being done for the mass of people. And an individual is always free to run his personal life on a de facto gold standard, more or less …

Here are 4 big ways ways:
(1) QE boosts asset prices, increasing tax revenues.
(2) QE keeps interest rates low, reducing the cost of government borrowing to incredibly low levels
(3) QE gooses the economy, keeping expenses like unemployment benefits down
(4) QE takes the place of sharply raising revenue by taxes, avoiding an enormous recession that is seen in Europe

The thing is, QE is running at about 1 trillion dollars per year. They wanted to taper just a little but feared it would send the economy back into recession.

If QE were cut off tomorrow, there would be a monster recession and sky-high deficits. How has anything been solved?

We want it to Fail.. Some because they want it to fall, some because they want to take over the Cathedral as they believe they can run it better. Neither a High Bar.

And you may want to consider the people you are trusting here with the endless money are criminals.

Summers for instance. How’d he get rich again? Public service. Clinton privatized and criminalized government. The two are not identical but the nexus is the Beltway. This isn’t surprising when you know both the Rodhams and Clintons have convicted siblings – on drug trade charges. This is who they are. They happen to have had a political genius in the family – Bill. Or they’d all be in jail, like most of their associates.

Forbes may be zealots but that’s a good thing in certain parts. It also tells us something good about Steve Forbes, who might understand the government are criminals now. Or perhaps he’s a mere Zealot.

We never run out of money because we print our own. That’s the Plan. You’re going to run out of money because they are stealing it as fast as they can before the music stops . They’re not running an economy. They’re looting it. An ancient practice of course.

It’s only new to America, that’s all.

Silly ol me, I was thinking in % not basis points. Or bips. Or beeps.

Or f**king squeals.

Full steam ahead. You see..Quantum Economics says what the Titantic needed to do was go full steam ahead but shunt the water over to the untorn side of the ship. That way according to Quantum economics the Fat Tail of a jagged tear in the Hull is distributed along the standard deviation centerline, allowing the Titantic to make New York..just on an angle. It’s all about tails, distributions, quantum physics and the velocity of quantums. No problem can’t be overcome, I’ve proved it with money and I’ll prove in time…when I go back and take Command of the Titantic immediately after the “water market correction”. When they ask for my qualifications I shall burnish my Shiny Nobel Prize.

BTW can you put in a word with the Committee? If they say yes I’ve got a great market for dynamite.

But on the government default thing … it’s almost a technical impossibility in the US since we print our own money. So it’s not a useful track to go down. Another way to think about it is that the world gives us an endless supply of things to park money in: Currencies, bonds and stocks from over 100 countries, plus metals, real estate, art … you name it. I don’t think we have a real problem with money and store-of-value options. If one doesn’t like our currency, one can simply buy Swiss bonds, or Sberbank stock, or an Indonesian mutual fund, or an apartment in Sydney, a bag of silver coins or a small beachfront hotel in Costa Rica. Lots of options. Currency management seems as much about crowd control as anything. In a democracy where everybody gets to vote (and vote themselves free stuff) you’ve gotta let the currency wriggle around during crisis periods …

I’ll put up a post for a serious back-on-forth on this quite soon (next week seems plausible).

One could certainly use an alternative currency instead of the dollar (bitcoin etc) — or just index all one’s transactions to gold — but I don’t see any huge problems with the way the dollar is being run right now …

This notion of defaulting on the debt … it’s ludicrous. The budget deficit as a percentage of GDP is declining nicely and is actually low by historical standards. The sequester process has been keeping government spending under control.

For a bit of common sense on the matter, here is a good piece by Grannis, “The incredible shrinking budget deficit.”

http://scottgrannis.blogspot.com/2013/09/the-incredible-shrinking-budget-deficit.html