What if we consider that due to the Fed's action that tax payers are being bent over a little bit less hard when being siphoned of their life blood so that the ultra rich may be doused with giddily glee in the sacrifice?
Consider interest rate 4% on the national debt without Fed involvement. That 4% is stapled to the back of American Taxpayers and it largely goes to feed the owners of the debt who also own the monetary system. The Fed has effectively taken down the interest rate below 2% and if continued may get it around 1% in future years. Can't this be argued as a force that helps curb redistribution of wealth? In this example consider if in some effect the Fed is printing money that taxpayers don't have to cough up. We know the system is itself highly skewed for the wealthy, parts of what the Fed does may tip the scales a bit. Perhaps the spread between 4 and 1 percent interest rates on 20trillion of national debt can go to public works at some point instead of to the pockets of the owners of the debt (china included).
Texas, it appears what you consistently are drawing towards is how incredibly wasteful government is. How can such substantial money as what the Fed is coughing up each month not be showing a material difference in public works and infrastructure??? It's a shame, but yea, it highlights how wonky our government and monetary system are. The 85bil of conjured money doesn't have a lot to show for it, but the reason is that it goes to grease the incredibly inefficient gears of our monetary system and theres nothing left for massive public works. I think most folks agree that infrastructure and public works (not california train to nowhere type BS boondoggle stuff) is good. The Fed *can* print it, additional monies, out of nowhere to pay for that stuff. Congress would have to allocate additional spending for it. Congress probably soon will do just that. So the fed instead of printing 85 bil a month would have to print 85 bil a month to keep things running, plus an additional 20bil a month to pay for additional public works. A lot of keynsians argue exactly for this (and of course more), the massive vig in this thinking that goes unaccounted for by them is just how little would actually get done by the government (this inefficiency being a substantial beggining to inflation that burdens everybody) if it were allocated an additional 20bil a month. One of the lynchpins of failed keynsian economic thought that looks good in a model but not in the real world is just how monstrously inefficient the government is with money. This inefficiency requires constantly greater sums of money to pay for on a compounding and self feeding basis,... government inefficiency breeds more inefficiency and it's very expensive to pay for. Few get that this inefficiency gets, in effect, paid for by things like 85 bil of printed money each month and additional deficit spending. Fewer get that the 85 billion of printed money is, in part, a transfer of wealth from every American to the government and banking sector.
It is not by chance that we are at 17trillion+ of national debt, it won't be by chance that we get to 40trillion within 10-15 years. In 2004 few dreamed we'd be close to 17trillion of debt in 2013. Takes a lot of money to keep feeding a growing beast, it's key to realize the money doesn't represent anything other than control over the current setup, the money will be conjured and wasted/spent as needed. They key when we get to 40 trillion will to be ensure that gas is at 8-10 bux a gallon and that average pay is at 80-100k (with current tax rates lightly changed) and everything else much higher in price to offset the burden of debt to GDP. There is high probability there will be additional consumption taxes by that point given the power such policy grants to control/contain over 40 trillion of debt service costs in a rising cost of goods monetary system.
Cliffs: Quality of living will go down unless something fundamental changes. Which is I think Texas's other trajectory of his argument.
Facebook
Twitter