Taking notes
RTWT.
Labels: Economics, Ethics, Governmental Hooliganism
Thursday, February 17, 2011
About Me
- Name: theirritablearchitect
- Location: Kansas
A Fortysomething architect with a Wife, a boy!, a Dog (2 now), a House and a penchant for dicing the political left.
Currently off of the bookshelf
Previous Posts
- I can't help but laugh
- Who's going to go all in?
- But who's been getting the blame this whole time?
- No real surprise, is it?
- Festive, ain't it?
- Barry, you're a moron
- "Well, you just can't kill that many people with a...
- Laughing my ass off over here
- The Dictator is "losing patience"
- Way to roll back that spending, idiot.
The Architecture Thing
Daily Reads
- the Kraut
- Ann Barnhardt
- TFS Magnum
- theSmallestMinority
- DirtCrashr
- HoldtheMayo
- Thomas Sowell
- Billy Beck
- Zero Hedge
- Market Ticker
- The Woodpile Report
Economics
The III
News
Resources
Favorite Essays
- Reasonable People
- The George Orwell Daycare Center
- Why the Gun is Civilization
- Big Green Markers for Climate Fraud
- Making Amends Series
- You both get muddy and the pig's still retarded
- It really is War, just like they always said
- Fast-Times-at-Ridgemont-High-Justice
- The Indicator
- We're about Two Years Away...
- Rewarding Idiots with Democratic Totalitarianism
- Gutenberg's Nuke
- The Church of the High Left
2 Comments:
Something T.L. didn't mention is the deplorable, I'd almost say treasonous, behavior of the Federal Reserve. Something like 15 months ago the Treasury held a common-or-garden-variety instrument auction and when the Chinks and the House Of Saud failed to bid the T-bills down as the Treasury expected. So the Fed stepped in and bought something like $100 billion worth.
We are now officially in the business of monetizing our own debt.
I'm no economist, but I am a pretty fair amateur historian. That kind of behavior can do nothing but lead to inflation that'll make the Weimar Republic look like the paragons of fiscal responsibility.
Walter E. Williams has been saying for years that the Fed.gov will sooner or later repudiate its obligations with respect to nondiscretionary spending (i.e. Social Security) by deflating the currency to the point that your monthly S.S. check and a half-ounce gold piece might buy you a cup of coffee.
Might.
It started in 1994 when the Bureau Of Labor Statistics was directed to create the "core" Consumer Price Index, which shed the costs of foodstuffs and energy from the market-basket calculations. And Slick Willy and the then-Democrat-controlled Congress took credit for "controlling" Social Security costs. Because, you see, Cost Of Living Adjustments to Social Security benefits are tied to the "official" inflation rate calculation. The one published by the Bureau Of Labor Statistics.
The Fed.gov will have no choice when all this hits the fan. We're "printing" unbacked and unbackable worthless scrip at a rate unprecedented in our history -- even as a fraction of contemporaneous GDP -- and spending like drunken sailors during Fleet Week on pointless, worthless and even counterproductive shit. (Apologies to drunken sailors everywhere.)
When the house of cards collapses, all the spineless elected politicians will be pointing fingers at each other or, better yet, resorting to Blaming Bush™. Not to say Dubya doesn't deserve at least some of it. The unelected bureaucrats and political appointees will in turn be blaming Congress for regulatory and budgetary screwups and whoever happens to be the sitting President for "lack of leadership" on matters of fiscal policy and the economy. Hell, The Current Occupant is objectively so far at sea with respect to these matters he's long since sailed off the edge of the earth. There's not enough rope to go around . . .
We're going to hit the bottom of this mineshaft, and most of the sheep haven't thought to bring a parachute along for the trip. Landing's gonna be a cast-iron bitch.
'Berg
"Walter E. Williams has been saying for years that the Fed.gov will sooner or later repudiate its obligations with respect to nondiscretionary spending (i.e. Social Security) by deflating the currency to the point that your monthly S.S. check and a half-ounce gold piece might buy you a cup of coffee."
Before we even get near that metric in this country, we will have already started with the blood in the streets routine. That whole Mad Max thing will seem almost quaint, by comparison...it WILL be real.
Hell, looks at what's going on over in the fucking Middle East right effin' now. I can't be entirely sure of what's touched the whole bit off, but it doesn't matter. That situation is just an index for similar possibilities elsewhere, a bellweather.
I'd agree with Williams about almost everything with regard to the Fed. Outright default on debt is the most plausible outcome, and like you said, the entitlement ponzi scheme is going to bite us in the ass. I can't understand why everyone else doesn't see this the same way we do; A construct of Congress (The Fed), which is required to establish and control the monetary policy of the country, and keep the dollar stable (Ha!!!), have been buying US Treasury "Securities," with stacks of cash that have been printed by the US Mint...making it up out of thin air.
This is directly devaluing the currency.
Zimbabwe did the SAME thing a few years ago.
Dipshits.
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