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Obama will make economy far worse.
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<blockquote data-quote="wkmac" data-source="post: 449354" data-attributes="member: 2189"><p>We are IMO, truth be told, in a lull before the possible storm but not as a result of Obama nor is this to to suggest giving Obama a pass. Bad economic policy has passed from Presidential generation to Presidential generation and I suspect Obama will add his own mark to the whole mess. </p><p> </p><p>That said, a hint of what will come can be easily seen from the words of 2008' Nobel Prize in Economics winner Paul Krugman who suggests the only real course out is inflation and hyper inflation at that. </p><p> </p><p><a href="http://krugman.blogs.nytimes.com/2008/12/17/a-whiff-of-inflationary-grapeshot/" target="_blank"><span style="color: red"><strong>http://krugman.blogs.nytimes.com/2008/12/17/a-whiff-of-inflationary-grapeshot/</strong></span></a></p><p> </p><p>Krugman states:</p><p> </p><p></p><p> </p><p>A low interest rate does allow the free flow of money but there are consequences in that action. By increasing the money supply the net effect is inflation but Krugman's ideal is to push real interest rates down while inflating the money supply which devalues the currency itself. With a growing retirement population approaching a huge hit on Social Security and Medicare, is this a wise prescription advocated by what is considered a leading mind in economics? </p><p> </p><p>Inflation and low interest rates pull a double whammy on senior citizens who in their so-called golden years are out to preserve and protect wealth and thus rely on fixed investment instruments like CD and other interest only bearing investments. The double whammy of low interest rates and coupled with what I think will be very high single if not double digit inflation of which Krugman is not opposed would quickly erode fixed personal savings as well as pensions such as the majority of us here will receive. Add to that the pressures of inflation on wages and we all know that prices of goods and services always vastly outpace wages and salaries and take years if they ever catch up at all. The real scare is the appearance of stagflation as we had as a result of Nixonian economic policy in some sense similar to Bush policy of interventionism. The stagflation really ramped up during the Carter years <a href="http://economics.about.com/od/useconomichistory/a/stagflation.htm" target="_blank"><span style="color: red"><strong>http://economics.about.com/od/useconomichistory/a/stagflation.htm</strong></span></a></p><p>and caused a near critical mass effect. If Bush is Nixon in economics, I see so many comparisions that suggest Obama may be Carter and I don't used this in a type of trickery mocking but rather to suggest a model of history maybe repeating itself.</p><p> </p><p>This would also go to show that our gov't and those we elect are completely and totally incapable of new ideas and new thinking except in just repeating the same old mistakes of the past and continuing the cycles. Even Reagan instead of making a clean break from Keynesian economics adapted the neo-Keynesian "Supply" model and thus we made the circle complete and began the journey anew along the same road.</p><p> </p><p>Many voices have warned of the coming problems we face now and were ignored as kooks, nuts and the like. Easy to do when such small in number voice concerns. The ever so historically tried and true position of "well how can 95% of the population who believe otherwise be wrong?" History is volumes and volumes and volumes where 95% of the population were wrong time and time again and it's not that they were wrong as much as they were given false information to begin with that forces a wrong conclusion. </p><p> </p><p>Many have warned that in the not to distant future, inflation will spring forth like a California Firestorm and not a thing we can do to stop while remaining in the Keynesian (Fabian Socialist/Mercantile) system. Krugman knows this is the only out of the economic system he loves but in the meantime, working people, the poor and the otherwise disadvantaged of the system will suffer the consequences of inept so-called experts who have a hidden hand to their own agenda.</p><p> </p><p>Did it ever occur to anyone that how can the housing bubble in America, the lack of buyers of houses, Fannie Mae and Freddie Mack, the lack of loans being made in America could effect the economics literally across the globe? How could Americans not making house payments, buying homes, or big screens at Best Buy cause all this havoc? How could this cause the economy for example of Iceland to completely collaspe?</p><p> </p><p>The overwhelming common denominator in all this is fiat currency and fractional reserve banking. It's way past time we demand our Congress to audit the Federal Reserve which has never been done and then make the results public. Demand our gov't return at least to the priciples of US Copnstitution Art. 1, Sections 8 and 10 where it concerns money.</p></blockquote><p></p>
[QUOTE="wkmac, post: 449354, member: 2189"] We are IMO, truth be told, in a lull before the possible storm but not as a result of Obama nor is this to to suggest giving Obama a pass. Bad economic policy has passed from Presidential generation to Presidential generation and I suspect Obama will add his own mark to the whole mess. That said, a hint of what will come can be easily seen from the words of 2008' Nobel Prize in Economics winner Paul Krugman who suggests the only real course out is inflation and hyper inflation at that. [URL="http://krugman.blogs.nytimes.com/2008/12/17/a-whiff-of-inflationary-grapeshot/"][COLOR=red][B]http://krugman.blogs.nytimes.com/2008/12/17/a-whiff-of-inflationary-grapeshot/[/B][/COLOR][/URL] Krugman states: A low interest rate does allow the free flow of money but there are consequences in that action. By increasing the money supply the net effect is inflation but Krugman's ideal is to push real interest rates down while inflating the money supply which devalues the currency itself. With a growing retirement population approaching a huge hit on Social Security and Medicare, is this a wise prescription advocated by what is considered a leading mind in economics? Inflation and low interest rates pull a double whammy on senior citizens who in their so-called golden years are out to preserve and protect wealth and thus rely on fixed investment instruments like CD and other interest only bearing investments. The double whammy of low interest rates and coupled with what I think will be very high single if not double digit inflation of which Krugman is not opposed would quickly erode fixed personal savings as well as pensions such as the majority of us here will receive. Add to that the pressures of inflation on wages and we all know that prices of goods and services always vastly outpace wages and salaries and take years if they ever catch up at all. The real scare is the appearance of stagflation as we had as a result of Nixonian economic policy in some sense similar to Bush policy of interventionism. The stagflation really ramped up during the Carter years [URL="http://economics.about.com/od/useconomichistory/a/stagflation.htm"][COLOR=red][B]http://economics.about.com/od/useconomichistory/a/stagflation.htm[/B][/COLOR][/URL] and caused a near critical mass effect. If Bush is Nixon in economics, I see so many comparisions that suggest Obama may be Carter and I don't used this in a type of trickery mocking but rather to suggest a model of history maybe repeating itself. This would also go to show that our gov't and those we elect are completely and totally incapable of new ideas and new thinking except in just repeating the same old mistakes of the past and continuing the cycles. Even Reagan instead of making a clean break from Keynesian economics adapted the neo-Keynesian "Supply" model and thus we made the circle complete and began the journey anew along the same road. Many voices have warned of the coming problems we face now and were ignored as kooks, nuts and the like. Easy to do when such small in number voice concerns. The ever so historically tried and true position of "well how can 95% of the population who believe otherwise be wrong?" History is volumes and volumes and volumes where 95% of the population were wrong time and time again and it's not that they were wrong as much as they were given false information to begin with that forces a wrong conclusion. Many have warned that in the not to distant future, inflation will spring forth like a California Firestorm and not a thing we can do to stop while remaining in the Keynesian (Fabian Socialist/Mercantile) system. Krugman knows this is the only out of the economic system he loves but in the meantime, working people, the poor and the otherwise disadvantaged of the system will suffer the consequences of inept so-called experts who have a hidden hand to their own agenda. Did it ever occur to anyone that how can the housing bubble in America, the lack of buyers of houses, Fannie Mae and Freddie Mack, the lack of loans being made in America could effect the economics literally across the globe? How could Americans not making house payments, buying homes, or big screens at Best Buy cause all this havoc? How could this cause the economy for example of Iceland to completely collaspe? The overwhelming common denominator in all this is fiat currency and fractional reserve banking. It's way past time we demand our Congress to audit the Federal Reserve which has never been done and then make the results public. Demand our gov't return at least to the priciples of US Copnstitution Art. 1, Sections 8 and 10 where it concerns money. [/QUOTE]
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