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Reply #32: It's not theory, it's economic facts. [View All]

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OrwellwasRight Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-31-11 08:07 PM
Response to Reply #26
32. It's not theory, it's economic facts.
Do you really think it is important to somebody who has no job cares if there is inflation or not? If you have no income, it does not matter what the dollar is worth. Moreover, why do you think wages have been STAGNANT since the 70s? Because we don't have full employment. When the employers can play us off each other because there is a huge surplus population of workers, of course wages won't grow. If we stop focusing on controlling inflation and focus on creating full employment, people WILL have enough money to pay for groceries.
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  -Minting the $1 Trillion platinum coin would NOT be inflationary. girl gone mad  Jul-31-11 05:49 PM   #0 
  - K&R  amborin   Jul-31-11 05:50 PM   #1 
  - The other concern is the platinum/precious metals market. Can you address this, please ?  steve2470   Jul-31-11 05:55 PM   #2 
  - The effect on the precious metals market is no different than any individual buying an oz or so of..  JVS   Jul-31-11 06:03 PM   #4 
  - They could use about $100 worth of platinum to create a coin with a $1 Trillion face value  Egalitariat   Jul-31-11 06:08 PM   #6 
  - No effect. This is coinage, not volume/weight.  Ruby the Liberal   Jul-31-11 06:35 PM   #14 
     - I heard that there are standards for the vaue of the coin  OrwellwasRight   Jul-31-11 06:56 PM   #23 
        - I think this is why the requirement for platinum was added  Ruby the Liberal   Jul-31-11 07:09 PM   #25 
  - How does that get any of the bills paid?  dkf   Jul-31-11 05:55 PM   #3 
  - When a bond is retired/redeemed, the debt is removed from the books.  girl gone mad   Jul-31-11 06:06 PM   #5 
  - Why stop at $1 trillion?  dkf   Jul-31-11 06:14 PM   #11 
     - Why stop at the entire amount ($14T)?  Zebedeo   Jul-31-11 06:37 PM   #15 
        - The argument is if you use it to retire current debt you cause no inflation.  dkf   Jul-31-11 06:48 PM   #20 
        - It looks like you answered your own question.  girl gone mad   Jul-31-11 06:48 PM   #21 
  - When we retire $1T worth of debt  drm604   Jul-31-11 06:08 PM   #7 
  - Question  woolldog   Jul-31-11 06:08 PM   #8 
  - No. Retiring the bonds would put us $1T below the current ceiling,  drm604   Jul-31-11 06:10 PM   #9 
     - I saw your repsonse to the other poster after I posted my question.  woolldog   Jul-31-11 06:14 PM   #10 
     - one more question:  woolldog   Jul-31-11 06:17 PM   #12 
        - Good question.  drm604   Jul-31-11 06:30 PM   #13 
  - Great  Zebedeo   Jul-31-11 06:38 PM   #16 
  - I agree with you for the most part. However, there is a limit to this, and that is the amount of  BzaDem   Jul-31-11 06:38 PM   #17 
  - Dupe. Sorry.  drm604   Jul-31-11 06:46 PM   #18 
  - I think you may be misunderstanding the idea.  drm604   Jul-31-11 06:48 PM   #19 
     - The problem is that if we buy the bonds from any non-Fed entity, that is injecting a huge amount of  BzaDem   Jul-31-11 07:04 PM   #24 
        - Money supply would be unchanged.  girl gone mad   Jul-31-11 07:18 PM   #27 
        - If the Treasury uses the trillion dollar coin to buy bonds from private markets, it will increase  BzaDem   Jul-31-11 07:55 PM   #29 
           - It has no impact on money supply.  girl gone mad   Jul-31-11 09:46 PM   #33 
              - Your entire theory relies on bonds being equivalent to cash, and that is ONLY true in a liquidity  BzaDem   Jul-31-11 11:08 PM   #34 
                 - No, it doesn't and no it isn't  girl gone mad   Jul-31-11 11:36 PM   #36 
        - I think buying them from the Fed is the better idea.  drm604   Jul-31-11 07:51 PM   #28 
           - Exactly. It would result in QE/QE2 staying in the economy, which is likely what the Fed was going to  BzaDem   Jul-31-11 07:56 PM   #30 
           - That's another option..  girl gone mad   Jul-31-11 08:05 PM   #31 
              - Yes, exactly. Buying them from the Fed would truly have no effect, and the Fed would be FORCED to  BzaDem   Jul-31-11 11:10 PM   #35 
  - PS Inflation is good for people who owe money (i.e., US) . . .  OrwellwasRight   Jul-31-11 06:52 PM   #22 
     - That's great in theory, however, it's not like everyone's wages  iris27   Jul-31-11 07:13 PM   #26 
        - It's not theory, it's economic facts.  OrwellwasRight   Jul-31-11 08:07 PM   #32 

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