Wot's in store for U$A?

[Leftwinger]

Boxy - consider slowly and carefully the meaning of the term "fiat currency".

Consider the implications of the fact that it is impossible for Australian denominated fiat currency - Australian dollars - to exist until our federal government has created with it's deficit (net) spending.

When our government borrows $AUSD, it is merely borrowing back something that only exists because it has already spent it previously. NOT my opinion - FACT. Borrowing in a foreign currency is another matter.

So after all the deficit spending, how is inflation going? Here and in the US? Come back when you can point to runaway inflation. Our inflation is within the (arbitary) RBA target band and moderating. The US looks to be facing possible deflation. Inflation becomes a problem when government net spending increases beyond the capacity of the economy to absorb it. Unless you have a private monopoly or oligopoly, the usual response of business firms to increased spending is to increase output before prices.

[boxy]

What don't you get?

The currency is only as good as the confidence that the global market has in it (people trade currencies). To much debt, compared with what we can produce as an economy (stuff that is actually wanted, and not just makework bullshite "service" industries), and the currency is devalued.

[Leftwinger]

You able to show me this serious inflation yet Boxy?

[boxy]

You able to show me this serious inflation yet Boxy?

Of course not... because no sane govt. would ever impliment your "theory" to spend a fuckzillion of their imaginary dollars to create your "utopian" economy, where we can have everything we want by just borrowing more, more, MOAR!!!!111ONE!

[Leftwinger]

What on Earth are you talking about Boxy? Did you miss the part where I said it is unwise to spend beyond the capacity of the economy to absorb it?

Consider the implications of the fact that it is impossible for Australian denominated fiat currency - Australian dollars - to exist until our federal government has created with it's deficit (net) spending.

When our government borrows $AUSD, it is merely borrowing back something that only exists because it has already spent it previously

Now read the above quote again. Then read it again. And again and again and again if necessary until reality dawns on you. Your name is not IQ SLROW so I'm sure there is nothing mentally impeding you from coming to grasp with the facts of modern monetary systems. You might feel compelled to believe that our government actually needs to borrow any $AUSD that it can't raise in tax dollars if it wishes to spend in excess of that, but staunchly believing something that is false won't magically make it true, it will just make you continually wrong. It may be true that there are political and ideological constraints here, but is certainly not true that there are any operational ones.

BTW, are you able to show me where $AUSD come from if not by the means I describe?

The US has spent enormous sums of $USD (though much of it was not direct stimulus as such but TARP and tax cuts - talk about political constraints). So we would expect to see US inflation running away after several years?


http://www.tradingeconomics.com/economi ... Symbol=USD

[IQSRLOW]

Did you miss the part where I said it is unwise to spend beyond the capacity of the economy to absorb it?

Did you miss the part where you said Odrama should just spend what he needs? You fucking Leftwing goober searching for a clue

[boxy]

In most real terms, the US national debt is fairly irrelivent. Obama should simply spend whatever it takes to get the US economy moving again. Note that while there are no real operational constraints here, ideological and political ones will most likely rule the day. Unfortunately.

[Outlaw Yogi]

Well for every dollar that OZ actually has/owns we have 18 in circulation, meaning a dollar is really only worth a little more than 5 cents.

In recent times [since 2008 finance crash] gold prices/values have gone from $700-$800 p/oz to $1000-$1100 p/oz and are now hovering around $1300-$1400 p/oz.

How'z that for inflation?

Meanwhile, according to economic doomsayers the reason silver has roughly doubled in price/value in very recent times is because govts worldwide are buying it up in preparation for the 'Greatest" depression, rumoured to be just around the corner.

Related graphs ect here
http://www.marketoracle.co.uk/Article24862.html

Gold likely to hit $1,600 in 2011 - Credit Suisse
http://www.mineweb.com/mineweb/view/min ... ail&pid=33

[Outlaw Yogi]

Wall Street's Pentagon Papers: Biggest Financial Scam In World History
$12.3 TRILLION in taxpayers' money.
http://www.globalresearch.ca/index.php? ... &aid=22291

What the report shows is that the Fed operated as a global pawnshop taking in practically anything the banks had for collateral. What is even more disturbing is that the Federal Reserve did not enact any punitive charges to these borrowers so you had banks like Goldman Sachs utilizing the crisis to siphon off cheap collateral. The Fed is quick to point out that “taxpayers were fully protected” but mention little of the destruction they have caused to the US dollar. This is a hidden cost to Americans and it also didn’t help that they were the fuel that set off the biggest global housing bubble ever witnessed by humanity. [read more]

“No strings attached.” Financial reporter Barry Grey unleashes the truth:

Fed report lifts lid on Great Bank Heist of 2008-2009

The banks and corporations that benefited were not even obliged to provide an account of what they did with the money. The entire purpose of the operation was to use public funds to cover the gambling losses of the American financial aristocracy, and create the conditions for the financiers and speculators to make even more money.

All of the 21,000 transactions cited in the Fed documents―released under a provision included, over the Fed’s objections, in this year’s financial regulatory overhaul bill―were carried out in secret. The unelected central bank operated without any congressional mandate or oversight.

[Leftwinger]

In most real terms, the US national debt is fairly irrelivent. Obama should simply spend whatever it takes to get the US economy moving again. Note that while there are no real operational constraints here, ideological and political ones will most likely rule the day. Unfortunately.

Boxy, do you have anything intelligent to add to this discussion?

Do you have evidence of an alternative source of creation of $AUSD or $USD? No, I thought not. Bank lending may appear to do it but the fact is that they are only leveraging the high-powered money spent into existence by sovereign government in the first place. So no net creation outside the vertical transactions.

Look mate, I expected better from you. IQ has an excuse - he's as thick as two short planks. You on the other hand, are just being stubborn. You just don't want to know the facts. Because they contradict your pre-concieved notions. They once contradicted mine as well but eventually I came to terms with the truth of how modern monetary systems actually operate. There is nothing "left wing" or "right wing" or any other wing about them - the facts are what the facts are, and when you come to understand and accept them, you will start to make correct observations about this sort of thing.

I continue to await the evidence you have thus far far failed to show.

Well for every dollar that OZ actually has/owns we have 18 in circulation, meaning a dollar is really only worth a little more than 5 cents

Heretic, come back when you canshow me a 95% collapse in the purchasing power of the Ausssie.


And IQ.............nah, forget it.