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LWW
07-22-2011, 02:59 AM
This is where current round of stupidonomics is taking us.

The average leftist cannot comprehend, some day I think maybe they actually lick their chops at, the idea that the US losing it's status as the world currency would cause chaos of unimagined proportion.

The US gubmint has gotten away with it's irresponsible spending because it has almost always had to repay it's debt in dollars.

Once the debt can only be repaid by monetizing the debt ... which is what proponents of continually raising the debt ceiling forever are actually demanding ... the US will no longer be able sell bonds abroad that are to be repaid in dollars.

Once that happens ... disaster becomes quite likely.

We last approached this edge of destruction under Imam Carter, and luckily dodged the bullet due to a pro economic growth regime that followed him.

This regime has, however, placed the US economy in a far more precarious position than Jimmuh ever dreamed of doing.

THE RESULT OF STUPIDONOMICS: (http://en.wikipedia.org/wiki/Carter_bonds)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Carter bonds are a series of Treasury bonds issued by the United States in 1978 to prevent a fall of the US Dollar. The name comes from the US President Jimmy Carter. It was enacted under the Exchange Stabilization Fund.
In contrast to typical Treasury bonds, which are denominated in US dollars and so do not expose the US Government to currency risk, Carter bonds were denominated in West German Deutschmarks and Swiss Francs. </div></div>

Soflasnapper
07-22-2011, 02:28 PM
You've misunderstood this, apparently. Or just taken the analysis that I found out there to look up this history, at face value.

Here's the deal. Denominating repayment in other currencies makes for an exchange risk premium the US might have to pay upon the bonds' redemption. However, how would we pay it? In the very dollars we can create out of nowhere. It isn't a game changer, just a price changer.

LWW
07-22-2011, 02:55 PM
Again you get it without getting it.

Back where the air is thick ... if it cost more dollars to buy a Mark then we pay more dollars to repay the same number of Marks, which would involve monetizing the debt.

Soflasnapper
07-22-2011, 03:35 PM
Given an unlimited ability to create dollars, the need for more of them is not onerous.

LWW
07-23-2011, 03:16 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Soflasnapper</div><div class="ubbcode-body">Given an unlimited ability to create dollars, the need for more of them is not onerous. </div></div>

This is, sadly, typical of the economic ignorance most of the US left is using.

Here's a basic concept of economics ... the more you make of anything, the less valuable it becomes.

BTW ... what followed the issuing of the "CARTER BONDS" way back then?

What's that?

Huge inflation?

If we use the same measurement of inflation used then, what's the current result of Obama's stupidonomic agenda?

What's that?

Huge inflation?

Imagine that.

Soflasnapper
07-23-2011, 08:24 PM
Typical backwards reality.

Carter issued the so-called Carter bonds BECAUSE there had been huge inflation. After he issued them, the inflation he'd inherited at 7%, and then the oil price explosion (4-fold price increase) related inflation, and the G. William Miller policy-related inflation, all subsided, as Carter replaced Miller with Volcker, and had a short shallow recession.

In the current economic situation, although the federal government has borrowed and spent at record levels, there is considerably less total debt in the system considering bankruptcies, ending or trimming back the limits for home equity loans, decreases in credit card lines or their outright cancellations, less new debt from consumers who either are cautious or unable to borrow, etc.

The Fed has put out additional trillions in loans beyond the federal government's borrowing, and inflation is quiescent, and the dollar far stronger than anyone should imagine it would could be.

Why? Because we lost $20 trillion in wealth in this country, demand is way down, plus we're aided by Europe's problems that make the US dollar attractive.

LWW
07-24-2011, 03:07 AM
Let me guess ... Jimmy won the Cold War also?

Your ability to redo history as needed to advance the agenda is quite Orwellian.

"CARTER BONDS" were issued because the US dollar was being sold off on the world markets, gold prices were skyrocketing, the US dollar was on the verge of losing world reserve status due to Carter's round of stupidonomic policy, and the world's then largest holder of US greenbacks ... Germany ... was in desperate need of finding a way to prop up the sagging dollar.

Stupidonmics had caused a worldwide industrialized nation inflation rate of nearly 9% and GDP was growing at a pathetic 1.8%, the world had long looked to the US to lead the world out of slumps ... but then saw only weak and indecisive leadership with clueless policy decisions. Any of this sound familiar ... let me guess, you are now scurrying to see how it was all Bush's fault.

In the US that inflation rate was at 18.2% with UE still rising. Carter was busy kissing union arse by exempting union wages from wage and price controls. The Saudis were threatening to stop selling oil in dollars ... Carter was calling for more taxes ... Carter's stupidonomic monetary policy had taken world leaders from complaining about a "DOLLAR GAP" where there weren't enough dollars in circulation for international trade to a "DOLLAR GLUT" where nobody wanted to get caught holding them.

HISTORY (http://www.time.com/time/magazine/article/0,9171,916948-1,00.html) as recorded by the reich wing TIME magazine.

Qtec
07-24-2011, 03:18 AM
You have the gall to link to a 5 PAGE article but not to a specific paragraph!!!!!!!!!!!!!

We see through your crap. You are not fooling anyone,... except your own posse.

This is what I say, "YOU ARE WRONG!!!!!! SoFla has already proved you are wrong but you are too dumb to get it."

Q

Qtec
07-24-2011, 03:22 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Let me guess ... Jimmy won the Cold War also? </div></div>

Was that Reagan? Did just the fact that good old Cowboy Ronnie became POTUS put the shits up the USSR so bad that they just decided to surrender?

Let me just remind you again that your HERO TRIPLED the Nat Debt and INCREASED TAXES.

Q..........

LWW
07-24-2011, 03:41 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body">You have the gall to link to a 5 PAGE article but not to a specific paragraph!!!!!!!!!!!!!

We see through your crap. You are not fooling anyone,... except your own posse.

This is what I say, "YOU ARE WRONG!!!!!! SoFla has already proved you are wrong but you are too dumb to get it."

Q </div></div>

Are you incapable of reading?

What's that ... you prefer spoon fed snippets that exp[lain to you what it is that you "THINK."