“If the world were a perfect place, I would be right!”

And you, Big Al, would also be the prettiest baby in the nursery!

I gotta admit Big Al, after you said K voted for Obammie twice there is nothing you can say that surprises me anymore!

Do you know the carrying cost of generating $2 trillion in Keynesian spending money if interest rates were normal, say 5%? The carrying cost would be $100 Billion per year. Neither the US nor the EU could afford that extra drag on the economy, even IF the money was perfectly spent on shovel-ready jobs. We are mathematically in an economical death-spiral. The can is being kicked down the road by printing more and more money to keep interest rates low via buying new debt. While it may appear this can go on indefinitely, it cannot and will not. Eventually it will end in default and EVERYONE who owns treasuries and other debt issued against Treasury collateral will be left with only pennies on the dollar.
Keynesian injection of government spending only works as a temporary measure and we are far beyond such band-aids. We are living in a fool’s paradise at the moment. The Government is still digging the hole deeper and deeper and will bring down the whole world economy; the only question is when and what triggers the collapse.

Sure I do Professor.

I believe we need a miracle. Don’ t fault me for that!

In my opinion, the dollars toward infrastructure would have worked in the past — before they decided to bail out the bankers and wall street. At least we would have been sitting today with something to show for the additional debt — updated roadways, bridges, electric grid, etc.

As it is, doing it know would just add to the debt burden that CFS addressed above.

Here is my idea on how to pull out of the mess. First, you hit the re-set button and allow the losses to be taken. A lot of money will go to ‘money heaven’, as bond holders lose big time. But a lot of debt would be removed from the system.

Secondly, create tax incentives to allow entrepreneurs to create the industries and jobs of tomorrow. Things like a renewed space program; advanced transportation systems; alternative energy; medical device technology; bio-technology.

We can grow a new and vibrant economy on the back of that. AND a bull market the likes of which you have never seen. Not one built upon debt or QE — one built on honest to God growth.

one after-thought…
when you have organic growth return to the economy, the tax revenues will explode. Not from increasing tax rates, but through exponential growth of the economy itself.

With that tax revenue, re-build the infrastructure (instead of fighting wars that nobody wants and which nobody wins). Do that and I won’t have to own gold or be frightened about the future of my children and grandchildren.

FYI: Interesting that the mainstream media is staring to call the dollar the ‘primary’ reserve currency. They used to call it ‘the’ reserve currency.

Re: Shovel ready politics and the big surprise to Obama. Remember when NBS and its affiliates were campaigning for Obama 24/7? Of course, their parent company, GE, stood to make lots of money in the renewable energy arena building wind turbines. So, ……. Obama gets elected, GE was shovel ready and so were its cronies in government. Problem is that GE didn’t create jobs in the US building those turbines, but instead saw greater tax free profits in building them outside the country–and so they did! Thus the primary benefit the stimulus went overseas and to a few corporate cronies that weren’t about to let much of it trickle down, save a few crumbs in the construction industry (where a good portion of the onsite assemblers may very have been illegal aliens working as subcontractors).

Also, I remember traveling the full length of Illinois at a reduced speed because the entire N/S interstate was a construction zone lined with comes and stimulus signs but no workers, much less heavy equipment! Not sure what country manufactured the cones or printed the signs, only know they there and not much else. What a mess.

Indeed, it is an imperfect world. Ina perfect world, we would have honest governments that spend responsibly. But we get this instead: http://goldsilverworlds.com/physical-market/ft-removes-article-gold-price-rigging-fears-put-investors-on-alert/

testing

i know I should not be surprised, but…..
Is it not funny how rational people can discuss the economics of Von Mises and Keynes in the abstract and agree that in every example where it has been used Keynes has failed as a permanent solution, and yet when it comes to any specific problem the first choice is always to throw money at the problem.
I think it must be built into the psyche of citizens of a wealthy country.
Americans! What part of “We are bankrupt”, do you not understand? Clearly that news has been slow in spreading, but it has not changed in the past 5 years.

I think some people allow their egos to overrule common sense when it is almost always the case that common sense is what got them where they are in the first place. DT

You will have to check with go-go Gomez on the weather Al.But,I can say you are right!At least until all the facts change and prove you something else.I do know that all I hear and read on your alternative site gives me the WAY to know more then I ever have before.I have some things in the works that will help me to get through the eye of the needle.(So to speak)The things you have contributed to in your purpose in life have helped me redefine where I go in mine.And that All has been and will be one of the biggest blessings of God I have ever known.I thank you for all you do and all you coordinate.And all of the intellects you bring here to your blogs.Just needed to say it.Thank You again!And all you attract!And allow.
God Bless You my friend!Beyond what you can even imagine!
Stevie

If the world were a perfect place, we wouldn’t need any money at all!