Well this is pretty interesting. I think most of us who are paying attention have lost a lot of faith in cash over the past few years, but it sure is something when the head of the Federal Reserve admits on camera that the dollar isn’t a “convenient” store of value.
Fundamentally it comes down to whether one thinks one can get something for nothing. If it has been your experience that something can actually be gotten for nothing, no work, no money, no “other people’s money,” no blood, then congratulations. You live in an easier world than the rest of us. If however you are inclined to think that for every action there is an equal and opposite reaction, then perhaps you should be concerned about the piles of sovereign debt stretching into the wispy stratosphere.
The stakes are now so high for the proponents of central bank debt creation that even if they saw the error of their ways (unlikely) they will still run us off a cliff if unchecked.
“I don’t think another $trillion in purchases is enough to achieve what the ECB is trying to do.”
Probably not according to the Federal Reserve.
What a relief. The Fed still thinks it’s OK for us to – gasp – carry money in our wallets. Whew. At least we haven’t crossed that rubicon yet.
Give anyone who can register a pulse a student loan and guess what? All that money will find its way into the system and will inflate the cost of “education.” It’s simple. It seems obvious. And yet so many people fail to understand that the reason college is unaffordable is because of all the efforts to “make college affordable.”
It’s dark. It’s minus 10 degrees Fahrenheit. Your economy is imploding.
Merry Christmas Moscow.
Japan, you gave us karate, Godzilla, walkmans (remember those?), sushi, Hello Kitty, and cars which didn’t fall apart. Though we fought you bitterly in World War II America came to love you more than any other country in the world with the exception of the United Kingdom (and maybe Australia, Canada doesn’t count). We hate to see you in your current straits. One, because we have a general affinity for the Land of the Rising Sun. But two, because we are riding the same bullet train here in the States, just a little further down the track.
It has failed. It has failed for over 2 decades now.
But I attach an interesting debate featuring Peter Boockvar (in the Abenomics is a disaster camp) and David Zervos (in the Abenomics is proof that Keynesian huja buja works camp). They are diametrically opposed and it is fun to watch.
End the Fed. But Volker at least had the guts to raise rates to insane levels and effectively crushed 1970s inflation. If we had sound money he would not have had to do that of course. (Nor would he have had the power.)
Of the 4 chiefs still alive Volker is my favorite. Or at least the one I dislike least.