|03-22-2009, 07:35 AM||#1 (permalink)|
the next dictator of MLSE
fresh and clean
Join Date: Oct 2008
Location: uʍop ɹǝpun
Why can't I create money out of thin air?
The U.S. government just borrowed another trillion dollars from the treasury and they are going to 'assume' the debt.
Basically borrowing money from yourself
Why can't I ask my brother for a million dollars and he assumes my debt?
I thought the whole problem with the economy was giving low credit worthy people 'US gov' cash
one more thing
Its also funny that the government is trying to artificially keep up prices
Shouldn't fixing the economy be done by paying down debt and letting the prices of goods go down.
Again why are they forcing people to spend when that was the problem to begin with
Last edited by Windex; 03-22-2009 at 07:37 AM.
|03-22-2009, 02:41 PM||#2 (permalink)|
with pink peppercorns
In the Paint
Join Date: Dec 2007
The problem was not spending - it was spending money they didn't have, and not saving anything. And there was a problem with giving people who couldn't afford anything mortgages - not govt cash. That was only a small part of the problem though. The enormity of the problem comes with self-regulated companies selling shit that is derived from the shit mortgages. It was one big ponzi scheme that everyone became dependent upon.
So now that you have that - the last thing you want is deflation. That is what happened in the great depression. None of the solutions look incredibly attractive, but the need to pump money into the economy in order to stabilize it, and to avoid the complete collapse that deflation would bring, is undeniable.
The next step is to re-regulate instead of deregulate, and to start paying down a debt that was well on it's way to being paid off until W too over. The US economy has become addicted to having its pumps primed artificially through insane military spending for decades now. They need to develop a real economy, and barring that, at least come up with a bubble that actually leaves behind things of lasting value.
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