We’ve linked to ReasonTV’s Remy before: he’s original, he’s funny, and he’s right.
And with his latest entry (at the bottom), he has really outdone himself.
But before we get to the video, let’s briefly discuss his subject matter. I’m all too aware that as soon as most folks hear the words “Quantitative Easing”, their eyelids start to flutter. Yeah, I’m with you. But our nation’s fiscal policy is a GIGANTIC part of what allows us to actually enjoy our freedom, and right now it’s a ticking time-bomb.
Posted in Economy, money, politics
Tagged Economics, Federal Reserve, fiscal policy, politics, print money, Q3, Quantitative Easing, REASON TV, Remy
A great article from Mr. Will, which makes a nice companion piece to our post from a week or two ago (“When the Fed has to Print Money, …Just to Print Money“).
There’s no happy ending to all this, merely a selection of worse ones.
Political Musings-At the Sunset of My Life
RICHMOND— A display case in the lobby of the Federal Reserve Bank here might express humility. The case holds a 99.9 percent pure gold bar weighing 401.75 troy ounces. Minted in 1952, when the price of gold was $35 an ounce, the bar was worth about $14,000. In 1978, when this bank acquired the bar, the average price of gold was $193.40 an ounce and the bar was worth about $78,000. Today, with gold selling for around $1,600 an ounce, it is worth about $642,800. If the Federal Reserve’s primary mission is to preserve the currency as a store of value, displaying the gold bar is an almost droll declaration: “Mission unaccomplished.”
Today the Fed’s second mission is to maximize employment, and Chairman Ben Bernanke construes the dual mandate as a single, capacious assignment — “promoting a healthy economy.” But the Fed’s hubris ignores the fact that it anticipated neither the…
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I’m not an economist, I don’t play one on TV, and staying at a Holiday Inn Express wouldn’t help me one iota. But these days, anytime I hear the words ‘Federal Reserve‘ and ‘print money‘ in the same sentence, I start paying reeeeaaal close attention.
I carved out as much of the economics minutiae in the article below as possible, to make it easier for everyone to follow, …including me.
“…we once again refer readers to the paper released yesterday by Morgan Stanley’s Greenlaw and Deutsche Bank’s Hooper, which discusses not only the parabolic chart that US debt yield will certainly follow over the next several decades, but the trickier concept known as the Fed’s technical insolvency, or that moment when the Fed’s tiny capital buffer goes negative [***which the ZeroHedge guys refer to as the “D-Rate” ].
In short what would happen is that the Fed will be then forced to print money, just so it can continue to print money.“
Hey, THAT doesn’t sound very good! And this sounds worse: