Thank God Our Systems Protect Us From Idiots

[menmon]

The Eskimo Bimbo is on the campaign trail bashing quanitative easing (QE) and the Fed Chairman.

First observation is that she doesn't know what QE is nor how it works, and it is obvious she is listening to Glenn Beck who probally does not know how it works but can make big statements about inflation and scare everybody into tuning in and helping him sell ads.

Second observation is that she does not understand the function of the Fed Chairman nor the Federal Reserve, but is telling the people we need to fire him. My guess again is she is listening to Glenn Beck who know everyone is looking for someone to blame and it keeps them tuned in when he tell them how he screwed everything up.

Now I challenge you to prove to me that you more qualified than Eskimo Bimbo to be President.

[gman0046]

Eskimo Bimbo???? What an intelligent Man. She couldn't do worse then Obongolo. You Sambo are the idiot

[menmon]

Eskimo Bimbo???? What an intelligent Man. She couldn't do worse then Obongolo. You Sambo are the idiot

Prove it...explain QE and tell me why it is not the right thing for the Fed to do?

[Franco]

Sambo, are you talking about the Fed's plan to print more money to pay down debt?

[road kill]

The Eskimo Bimbo is on the campaign trail bashing quanitative easing (QE) and the Fed Chairman.

First observation is that she doesn't know what QE is nor how it works, and it is obvious she is listening to Glenn Beck who probally does not know how it works but can make big statements about inflation and scare everybody into tuning in and helping him sell ads.

Second observation is that she does not understand the function of the Fed Chairman nor the Federal Reserve, but is telling the people we need to fire him. My guess again is she is listening to Glenn Beck who know everyone is looking for someone to blame and it keeps them tuned in when he tell them how he screwed everything up.

Now I challenge you to prove to me that you more qualified than Eskimo Bimbo to be President.

I agree, you are guessing!

Nice name calling....is that page 6??


RK

[menmon]

Sambo, are you talking about the Fed's plan to print more money to pay down debt?

That is not how it works, but that is what Glenn is telling you. You might be qualified to run as a republican for president. You are clearing unqualified.

[menmon]

I agree, you are guessing!

Nice name calling....is that page 6??


RK

So are you implying she knows the function of the Fed Chairman and the Federal Reserve?

RT you are a pretty straight shooting guy, so be careful answering this question.

[road kill]

So are you implying she knows the function of the Fed Chairman and the Federal Reserve?

RK(fixed) you are a pretty straight shooting guy, so be careful answering this question.

I am implying YOU don't.
And to me, that would put you, me, Obama, Biden, Pelosi, Reid and Palin all on the same level in regard to this.

Do you deny money is being printed??


RK

[YardleyLabs]

Sambo, are you talking about the Fed's plan to print more money to pay down debt?

Quantitative Easing (round 2 or QE2) actually involves "printing more money" to purchase private sector bonds. The theory (right or wrong) is that this will increase liquidity in the credit markets, thereby lowering interest rates, hopefully encouraging lenders to extend more loans, and producing an overall expansion of economic activity. It is not clear to what extent that will happen. It is also possible that lenders will simply use the new cash to purchase more treasury notes instead. Most economists believe that the economy needs additional stimulus. Normally, this would come by reducing the Fed Fund Rate and reduce the cost of the money loaned out by banks. Given that the rate is already almost zero, that arrow has lost its power. In fact, many banks are profiting by borrowing Fed funds at little to no interest and using the funds to buy treasury notes that pay a greater interest. The banks, and their shareholders, profit at the direct expense of taxpayers (sort of high end welfare). The more effective stimulus tool now would be to put money into the pockets of those who would immediately spend it on goods and services rather than use it to pay down debt or add to savings (neither of which does anything to stimulate the economy, even while making sense for the individual). There are two problems with that.

First, the elections have made it highly unlikely that anything further will be done to stimulate the economy, rightly or wrongly.

Second, the assumption implicit in further stimulus efforts is that the downturn is transitory and that spending will increase once the economy returns to "normal". If the downturn simply reflects the reality of what our economy will be if we live within our means, we should be learning to live with the pain rather than thinking of new band aids. We may eventually grow back economically, but it will be based on true increases in productivity and will likely take years.

While many recognize this possibility, no one wants to be the person who tells the American people that current housing prices reflect the real value of their homes and that those prices will remain depressed for years because the boom resulted in over supply. And no one wants the be the person telling the unemployed that they are likely to remain unemployed until American salaries, measured by value of economic output, are more competitive with salaries in other parts of the world.

Our own businesses are sending the jobs they produce to other countries because that is the best way to remain competitive and increase profits. What our own businesses are NOT doing is increasing investments in the US to improve the productivity of American labor. That is the real challenge that government needs to address. Over the next decade, I suspect that immigration will decline not because of improved enforcement, but because America will no longer be such an attractive destination for those wanting jobs. That is a trend that has already started.

PS: I doubt that Palin has the slightest notion of how the Fed operates.

[road kill]

Quantitative Easing (round 2 or QE2) actually involves "printing more money" to purchase private sector bonds. The theory (right or wrong) is that this will increase liquidity in the credit markets, thereby lowering interest rates, hopefully encouraging lenders to extend more loans, and producing an overall expansion of economic activity. It is not clear to what extent that will happen. It is also possible that lenders will simply use the new cash to purchase more treasury notes instead. Most economists believe that the economy needs additional stimulus. Normally, this would come by reducing the Fed Fund Rate and reduce the cost of the money loaned out by banks. Given that the rate is already almost zero, that arrow has lost its power. In fact, many banks are profiting by borrowing Fed funds at little to no interest and using the funds to buy treasury notes that pay a greater interest. The banks, and their shareholders, profit at the direct expense of taxpayers (sort of high end welfare). The more effective stimulus tool now would be to put money into the pockets of those who would immediately spend it on goods and services rather than use it to pay down debt or add to savings (neither of which does anything to stimulate the economy, even while making sense for the individual). There are two problems with that.

First, the elections have made it highly unlikely that anything further will be done to stimulate the economy, rightly or wrongly.

Second, the assumption implicit in further stimulus efforts is that the downturn is transitory and that spending will increase once the economy returns to "normal". If the downturn simply reflects the reality of what our economy will be if we live within our means, we should be learning to live with the pain rather than thinking of new band aids. We may eventually grow back economically, but it will be based on true increases in productivity and will likely take years.

While many recognize this possibility, no one wants to be the person who tells the American people that current housing prices reflect the real value of their homes and that those prices will remain depressed for years because the boom resulted in over supply. And no one wants the be the person telling the unemployed that they are likely to remain unemployed until American salaries, measured by value of economic output, are more competitive with salaries in other parts of the world.

Our own businesses are sending the jobs they produce to other countries because that is the best way to remain competitive and increase profits. What our own businesses are NOT doing is increasing investments in the US to improve the productivity of American labor. That is the real challenge that government needs to address. Over the next decade, I suspect that immigration will decline not because of improved enforcement, but because America will no longer be such an attractive destination for those wanting jobs. That is a trend that has already started.

PS: I doubt that Palin has the slightest notion of how the Fed operates.

But you do??



RK