GM faces rapid collapse without aid

[EfiOz]

There is no happy ending with a tool like "Helicoptor Ben" in charge of the printing press.

Remarks by Governor Ben S. Bernanke

I especially love this pearler

"But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation. "

Holy shit.

[TonyJZX]

I like that attitude. It was also proposed by the noted economist Pauline Hanson and the great haven of business activity called Zimbabwe.

[Captain_Slow]

Well, if the problem is deflation, that would be one way to solve it. If the problem is that you've run out of money, perhaps not so good

[IMOA]

A bit of reality though, while the US economy is struggling atm it's still ~ 3 times the size of the next largest national economy. To say they have nothing to back their bonds is a bit silly and yes, smacks of an anti american bias coming through.

And again, while pushing borrowing hard and running deficit budgets in a growing economy isn't the smartest as it creates a massive bubble that does not mean you shouldn't do it when things turn down. There's nothing wrong with priming the economy when things start to trend downwards, in fact thats exactly what the government should be doing. That they should have been doing the opposite for the last 4 years doesn't change what they should be doing now.

[arcane]

http://www.blueovalforums.com/forums...pic=28401&st=0

lol x 15 billion

Geez, there are a fair few one-eye'd posters in that lot.

[TonyJZX]

if you mean one-eyed like the tenant in your shorts... yeah... very much so

[BigMuz]

A bit of reality though, while the US economy is struggling atm it's still ~ 3 times the size of the next largest national economy. To say they have nothing to back their bonds is a bit silly and yes, smacks of an anti american bias coming through.

And again, while pushing borrowing hard and running deficit budgets in a growing economy isn't the smartest as it creates a massive bubble that does not mean you shouldn't do it when things turn down. There's nothing wrong with priming the economy when things start to trend downwards, in fact thats exactly what the government should be doing. That they should have been doing the opposite for the last 4 years doesn't change what they should be doing now.

Someone make this man treasurer :D Good post.

[Captain_Slow]

+1; it's called counter-cyclical fiscal policy.

[rj_astra]

+1; it's called counter-cyclical fiscal policy.

Keynesian economics??

[EfiOz]

A bit of reality though, while the US economy is struggling atm it's still ~ 3 times the size of the next largest national economy. To say they have nothing to back their bonds is a bit silly and yes, smacks of an anti american bias coming through.

And again, while pushing borrowing hard and running deficit budgets in a growing economy isn't the smartest as it creates a massive bubble that does not mean you shouldn't do it when things turn down. There's nothing wrong with priming the economy when things start to trend downwards, in fact thats exactly what the government should be doing. That they should have been doing the opposite for the last 4 years doesn't change what they should be doing now.

So if you're flat broke, will renovating your kitchen fix your problems?

[EfiOz]

On second thoughts, you should go buy US Treasury Bonds.

And lots of them

Today.

[IMOA]

So if you're flat broke, will renovating your kitchen fix your problems?

No, you wouldn't. But since the US is far from flat broke and what they're doing is putting money into income generating assets your analogy makes no sense in the context of this discussion

[Beavis]

On second thoughts, you should go buy US Treasury Bonds.

And lots of them

Today.

And enjoy the 0.03% yield the short-term ones are getting...

[EfiOz]

Your kidding. How do you figure they aren't broke?

[Beavis]

Your kidding. How do you figure they aren't broke?

If they were broke, they'd be much higher... risky investments FTMFW