Texas Bill Would Prepare for Federal Meltdown

people who think the federal government will run out of money don't understand money. people who think the federal government will stop spending money are the ones advocating that they stop spending money, which will be pointless and bad. the stupidity here is layered.

you'll see it soon enough...when the Fed has to CREATE FICTITIOUS DIGITAL MONEY to buy 80% of the new bonds the government issues, because NOBODY IS BUYING THEM, that should set off a bunch of alarms in your head, if you knew anything about how money works. Then on top of not buying them, when those who DO have them decide to bail out and dump them on the market, it will just turn a disaster into a calamity.

but carry on burying your head in the sand.

I challenge if you understand money. If Greece had their own currency prior to their economic destruction.. where would they be now.. probably actually in a worse place off then today. Running out of money is not possible in a system that prints money and sell bonds etc.. but its entirely feasible for that money to be virtually worthless to other countries. Thus all imports will be astronomically priced and we'd be almost become purely self reliant. What would the effects of $20/gal do? How about all electronics at x5 the cost? (which primarily also include medical equipment).

We'd also be pushed into a China like role and common workers would make wages equivalent.. well to China.. we'd have to regain economic strength through cheap labor and exporting till our currency level rises.

Currently in terms economic power we are slated at #1. In 10 years we are predicted to fall to #2 (to China). In 20 more we are predicted to fall to #3 (below India). Notice that Both China and India have rather low debt to GDP values..

we are one of the very few modern countries that have an estimated rising debt to GDP number for the next 5 years. The only other country predicted to rise at our rate is Japan, who is #1 in Debt to GDP.

STEPHANIE KELTON: Well, it would be a significant constraint if we didn’t have the excess capacity and the millions and millions of unemployed workers. So you expect price pressures when your markets get tight, when you’re running your factories very near their capacity, when the labor market gets so tight that, you know, you have basically a job opening for every job seeker. Then you know you’re really close to full employment.

You know, you don’t get hyperinflation by running your economy at full employment. Let’s not forget that under the Clinton years, the so-called Clinton boom, we had full employment in this country. We had as close as what I am comfortable referring to as full employment where we actually had one job vacancy for every job seeker. And that was the first time in 35 years that we’d achieved those kinds of numbers. Our inflation rate was so low, nobody even talked about inflation. Inflation was not even on the radar screen. We had high rates of growth of GDP, our unemployment rate officially was 3.7%. We had high growth, low unemployment, and modest inflation. So we did this before and we did it in the not-so-distant past.

All I’m saying is that the way we’re running the economy right now, this is not fiscally responsible. This is dysfunctional finance. We’re getting everything wrong. We’ve got all kinds of room to run here and we can safely crank up aggregate demand. We can safely cut taxes on those that we think will be most likely to go out and spend, and that spending leads to the sales that then lead to job creation, and we can safely increase government spending on programs like infrastructure, education and the kinds of things that we believe generate real economic growth and prosperity and leave our children and grandchildren better off than they would be otherwise.

i challenge you don't. greece would probably be in a better situation right now.

the government should only be looking at two economic indicators. inflation and unemployment. inflation is low, unemployment is high. government deficit spending is public surplus. public surplus leads to hiring. right now things like factory output and production are low. print money, spend money, hire people, people produce, production increases, inflation remains low. taxation also checks inflation.

it's clear who's understanding of monetary theory stops at around the turn of the century. 1900 that is.

read this interview with stephanie kelton:

http://harryshearer.com/transcrip...interview/

The latest figures put the country's annual rate at 516 quintillion per cent – 516 followed by 18 zeros – overtaking Yugoslavia in 1994 and putting it behind only Hungary in 1946.
With goods unavailable and official statistics widely distrusted, the Cato Institute in Washington calculated the figures based on exchange rate movements and market data.
In post Second World War Hungary monthly inflation reached 12,950,000,000,000,000 per cent, with prices doubling every 15.6 hours – Zimbabwean prices are currently doubling every 1.3 days.

if people who aren't working can be put to work via spending, and produce goods we won't have inflation.

people who think the federal government will run out of money don't understand money. people who think the federal government will stop spending money are the ones advocating that they stop spending money, which will be pointless and bad. the stupidity here is layered.

um.. printing money creates hyperinflation which increases unemployment......

No it doesn't. They've killed velocity. At least thikthird is right about something; hyperinflation is nonsense. Why he bows at the MMT and Krugmanite altar when they just keep pissing up a rope, though is beyond me.

Investopedia explains 'Hyperinflation'
When associated with depressions, hyperinflation often occurs when there is a large increase in the money supply not supported by gross domestic product (GDP) growth, resulting in an imbalance in the supply and demand for the money. Left unchecked this causes prices to increase, as the currency loses its value.

Causes

Hyperinflation occurs when there is a continuing (and often accelerating) rapid increase in the amount of money that is not supported by a corresponding growth in the output of goods and services.

The turn of the century eh.. or maybe Greece learned from the mistakes they comitted around 75 years ago..

in 1944 Greece Inflation hit 13,800% with a daily rate of 20.9 because war left them in debt.. so they PRINTED MONEY!! There economy was basically destroyed the Central Banks started issuing Gold Franc coins.

Or how about something more recent..

http://www.telegraph.co.uk/news/w...weeks.html



there are dozens upon dozens of major instances like this.. Maybe you should brush up on your history first.

and what is the solution to these problems? Typically to abandon their currency and go with another county's.

or maybe you'd like some more examples..

http://www.businessinsider.com/10...011-3?op=1

or maybe you'd like a list of all of them in pdf format..

http://upload.wikimedia.org/wikip..._Table.pdf





um.. printing money creates hyperinflation which increases unemployment......