Article

2009-08-07 Economy

Fed Tries to Hide Money Printing Operations.

Archived material is restricted to Rantburg regulars and members. If you need access email fred.pruitt=at=gmail.com with your nick to be added to the members list. There is no charge to join Rantburg as a member.

Posted by badanov 2009-08-07 02:25|| || Front Page|| [3 views ] Top

#1 Also
http://market-ticker.org/archives/1304-BLATANT-Monetization-Uncovered.html

Posted by Bright Pebbles 2009-08-07 08:44|| 2009-08-07 08:44|| Front Page Top

#2 All governments are printing money at the moment. The UK is probably the worst offender.

Posted by phil_b 2009-08-07 09:06|| 2009-08-07 09:06|| Front Page Top

#3 and we all know how successful printing money is ... *facepalm*

Posted by Tyranysaurus 2009-08-07 09:07|| 2009-08-07 09:07|| Front Page Top

#4 and we all know how successful printing money is ...

?

It financed the War of the Revolution
The War Between the States
The Trans Continental Railroad
WWI
WWII
The Korean War
The Interstate Highway System
and a damn fuckload of most of the shit you take for granted. Hell yes, the folks in 1898 were paying off the debts of the War Twixt the States... you think they bitched about it? Of course they did! This country is all about bitching and the odd moaning. Still it got done.

Nao let's look at assets, the feds only do simple book-keeping which is so it can be explained to you.

For example deh CVN-68 (Nimitz the first) is purdy was costed to build 4.8 billion dollars. Which is roughly the cost of Congressional Airlift. However, that building cost is not amortized over the life of the carrier... nope it's a dead cold expense of the years built. So in some ways the deficit is a way of getting our kidz to pay for not being damn commie skum. Shut up pay up and your kidz won't be hippys.

Posted by .5MT 2009-08-07 12:48|| 2009-08-07 12:48|| Front Page Top

#5 If they were actually spending that money on defense infrastructure, there might be a point to that. Instead a lot of it's going to pork barrel stuff, and 20 billion of it is going to further political agitation to make sure our kids do grow up to be hippies.

We're getting out of Iraq, and looking for an exit strategy for Afghanistan, which is nothing but a set of scattered tribes anyway, but it's still necessary to keep spending money at this rate at the federal level?

Bush's deficit wasn't this high back when we were actually fighting the Iraq war.

Fannie Mae and Goldman Sachs aren't vital to our national security.

Posted by Thing From Snowy Mountain 2009-08-07 13:03|| 2009-08-07 13:03|| Front Page Top

#6 Our grand kidz gonna live in dem houses thar CabbageMan. The allocation of cost is the same.

Posted by .5MT 2009-08-07 13:15|| 2009-08-07 13:15|| Front Page Top

#7 If they have jobs.

We didn't fight WW2 with printed money, btw, although other allied countries did, like China.

Shortly after the war was over they had a violent communist revolution with a couple million killed.

Inflation also didn't work for Weimar Germany.

Posted by Thing From Snowy Mountain 2009-08-07 14:59|| 2009-08-07 14:59|| Front Page Top

#8 IIRC, the federal debt run up to finance the Civil War was paid off by the USA over the next 10-20 years, which were years of financial pain & difficulty for many Americans on the winning side. On the other side, the debt run up by the CSA to finance the War between the States was simply dishonored, disowned, dumped, not paid, etc.
The process alluded to in the article has been given the euphemism "Quantitative Easing," or QE. QE will work, until it doesn't. Let's hope it doesn't come to that. We are in a hell of a fix.

Posted by Anguper Hupomosing9418 2009-08-07 15:53|| 2009-08-07 15:53|| Front Page Top

#9 Chile's a nice place. They have almost not government debt and presently have a massive surplus from the commodities run of the past few years.

Posted by AzCat 2009-08-07 18:34|| 2009-08-07 18:34|| Front Page Top

#10 We didn't fight WW2 with printed money, btw, although other allied countries did, like China.

That was what all the War Bond drives were about. To put off the cost of the war to a later date. The money printed to run the war was in turn absorbed back through the Bonds. That meant that a large sums of money was not sitting around when the economy switch from war time to consumer production and many dollars chasing few goods. Over the course of the war 85 million Americans purchased bonds totaling approximately $185.7 billion.

That's the problem with the Fed buying back bonds with dollars. Instead of deferring the flood of cash to a future date via bonds, it's injecting that cash right now into the system.

Posted by Procopius2k 2009-08-07 23:53|| 2009-08-07 23:53|| Front Page Top

23:58 OldSpook
23:53 Procopius2k
23:53 Capsu78
23:41 GirlThursday
23:39 Procopius2k
23:34 Procopius2k
23:22 GirlThursday
23:18 Cornsilk Blondie
23:16 Redneck Jim
23:15 Cornsilk Blondie
23:12 Redneck Jim
23:11 lotp
23:08 GirlThursday
23:08 Redneck Jim
23:04 Redneck Jim
22:59 Frank G
22:57 Skunky Glins 5***
22:44 Procopius2k
22:33 trailing wife
22:31 OldSpook
22:29 OldSpook
22:28 OldSpook
22:13 trailing wife
22:13 GirlThursday