It would have been very hard. But not as hard as what will happen in the next ten years when interest rates go to 20%+ USD is no longer the gold standard for oil and our debtors come calling for their money. :2 cents:

What do you want me to say? Some people agree some people don't. One thing is for sure Keynesian economics has failed and has made economies very unstable.

That's pretty vague. I'm going to go out on a limb and say this is a large understatement. :1orglaugh

I don't doubt that rates will move higher at some point, but you are offering an extreme speculation that may or may not unfold. You say this based on a future realization by the market based on things that are happening today as if you know something that the market as a whole does not. That's not very convincing.

I can certainly envision the dollar losing the dominant role that it has enjoyed, but your ending statement is either misstated or based on a lack of understanding of the debt in question.

First, they are creditors, not debtors. Second, there are no put options on treasury debt. The issuer sets the rules, not the purchaser. The best the creditor can do is sell it on the open market.

That's simply a bare assertion. If anything, Keynesian economics to this specific point in time saved us from a global deflation and depression -- something that you don't seem to appreciate.

I think the attempt was better than letting it collapse, even if it ultimately proves unsuccessful.


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Yeah was about to edit the debtor thing.

The 20% interest rate is using history as an indicator. 20% is actually on the low side of some economists projections. The fed will have to start reeling in the dollars at some point or hyper inflation will happen. You can not inject this much money into the system without a plan to reel it in.


http://thisistheendoftheworldaswekno...ney-supply.jpg

If creditors are selling, they are not lending, where does that leave us? Printing more? Taxing more? Cutting more?

Im way to tired to be explaining this been working hard making money :(

I have serious doubts that the interest rate will ever be 20%.

Yet in the face of all that you are saying, the market for 30 year treasury debt is almost at record low yields. That means that the market place which consists of every buyer of our debt is not yet scared to lend money at very low rates for extended periods of time.

It's true that if there is a sustained, strong recovery (which is no sure thing in the near future) the FED will have to mop up the liquidity.

It's also true that retired loans and defaults contract the money supply (ie; destroy money).

You are looking at one side of the situation and are not differentiating between the short end and long end of the yield curve. The market sets the rates out the yield curve, not the FED. 20% rates in the late 70's / early 80's was fed funds, etc.


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Hoaxed :2 cents:

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50 workouts without Tony the bozo dude in a leotard.

Ultimately, it would be better to have the republicans in charge for the rest of this decade, because whoever is in charge is going to be blamed for the economic doldrums followed by further steps downward that is coming.

The republicans have no plan at all, except to give the multinationals and the plutocrats complete control of everything while engaging in a kind of morality theatre about the gays, abortion, drug wars, prisons, the coloreds, and the poor.

I say let them have the government - they can't do any more harm than we americans have already done to ourselves by the poor choices we 've made since reagan was elected.

Sadly, the republicans don't have what it takes to defeat that corporate sack licker obama.

So they will continue to whine and backstab and do everything they can to damage the economy, setting up the democrats to take the blame.

You notice the republicans aren't saying a word about their own plans for job creation and economic revival - they know it's a trap, so they concentrate on moral theatre.

By 2016 things will be really bad tho, and the republicans won't be able to wiggle out of taking power - then when things really go to shit they will end up taking the biggest blame anyway.

So there's that.

Let banks run the world.. Worked out good for white people back in the 1800's!

When you look at the lineup of republicans throwing their hat in the ring, you can see clearly what their 2012 strategy really is - to lose, and continue to let obama accrue blame for an economy that can't be fixed because we as a people are afriad to look at root causes.

Romney, Santorum, Pawlenty, Gingrinch, and Palin - all of them terribly flawed candidates, with a stack of negatives as long as your arm.

The real republican powers aren't even trying to cultivate a viable candidate.

Please please please you republicans - run Ron Paul, with Santorum as VP - nothing in the world could be better than that.

And the republicans crush moe of their own candidates, including the only one with any chance to appeal to the center.

Romney has been declared anathema by republican capo Limbaugh.

http://www.google.com/hostednews/can...?docId=7103793

And Newt, the inly other centrist, just lost his whole team, as we all have heard. So he's dead as a candidate.

Pawlenty Santorum Bachmann and Palin are now the front of the pack - you republicans sure do know how to pick em.

It's like you intentionally want to throw the election.

1/2 the new jobs are McDonalds... GREAT JOB!!!