10-11-2016, 04:49 PM
David Horn
Before Shinzo Abe, Japan had even worse results without QE: negative rates.
I'm not sure about that. Pension funds, insurance companies, retirees , and banks depend on interest income and QE/NIRP destroys their income stream. My guess is that the EU zone's grand experiment with ZIRP/QE played a role in Deutche Bank's mess. Of course they messed up by messing around with derivatives as well.
Speaking for the US only, I love to point a huge finger of blame on globalization and the wage arbitrage it has wrought. I have a fantastic plan for that. I call it the Rags trade deficit dividend program.TM
First, we have to dispel some notions as to what meaning a trade deficit entails. Of course it's the difference in dollars between net imports vs. net exports. However, we have nations like Germany and China who are just begging to own pieces of green paper or the digital equivalents thereof. That's why they cheat! The solution and I know this program will be very popular. As such:
1. We take the trade deficit and print out the same amount of replacement dollars. This is more of a MMT refill the fish pond action.
2. Since the fish pond does not have a bunch of extra dollars, that won't send inflation sky high.
3. Folks who lost their jobs from globalization get a trade deficit dividend.
4. The other $ can go for infrastructure or whatever.
So, what's not to love? I have no problem whatsoever with China and Germany paying for some things we need to do.
(10-10-2016, 06:19 PM)Ragnarök_62 Wrote: Rags blames QE for a lot of this because QE fucks up returns on bonds and causes "risk on" behavior.Rags hates QE because it fucks with his IRA returns. Hopefully folks in large voting block states like California and Illinois will see the light and conclude QE is fucking up their IRA's and their state finances.
Before Shinzo Abe, Japan had even worse results without QE: negative rates.
I'm not sure about that. Pension funds, insurance companies, retirees , and banks depend on interest income and QE/NIRP destroys their income stream. My guess is that the EU zone's grand experiment with ZIRP/QE played a role in Deutche Bank's mess. Of course they messed up by messing around with derivatives as well.
Quote:The problem is lack of growth and the low rate of inflation it creates. We have a new economic model emerging, but no one knows what to do with it yet. We can try a heavy handed application of Keynesian stimulus one more time. What's to lose at this point.
Speaking for the US only, I love to point a huge finger of blame on globalization and the wage arbitrage it has wrought. I have a fantastic plan for that. I call it the Rags trade deficit dividend program.TM
First, we have to dispel some notions as to what meaning a trade deficit entails. Of course it's the difference in dollars between net imports vs. net exports. However, we have nations like Germany and China who are just begging to own pieces of green paper or the digital equivalents thereof. That's why they cheat! The solution and I know this program will be very popular. As such:
1. We take the trade deficit and print out the same amount of replacement dollars. This is more of a MMT refill the fish pond action.
2. Since the fish pond does not have a bunch of extra dollars, that won't send inflation sky high.
3. Folks who lost their jobs from globalization get a trade deficit dividend.
4. The other $ can go for infrastructure or whatever.
So, what's not to love? I have no problem whatsoever with China and Germany paying for some things we need to do.
---Value Added