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Why will we all be poor?
You think? And then we'll all be poor.
Why will we all be poor?
The world has never had this sort of fiat currency before.
They've had it for several decades now.
like you said, when the inflation hits and interest rates go up we won't be able to afford our imports. We won't have the production means right away to make them ourselves (if we ever do), and so we won't have as much stuff. In other words we'll be poor.
Yea, the 1970's is ancient history. So much time to analyze what's really going to happen when you go down this path.
So I guess there's nothing to do but kill yourself.
I don't think it will be as apocalyptic as that.
Time enough to jot down your God Formula.
I'm sorry for not being infallible.
But the God Formula is!
You're the one who coined that term.
And I only ever said I wanted something good enough. Not perfect.
You're the one who said how awesome it would be.
Again, I'm sorry I believe what I say.
Oh, I know you believe. It's good to have faith in God Formula.
Just like its good to have faith in Bernanke
Well I don't think it would be a simple formula but shouldn't it be possible to come up real measures of the economy, look at economic history and then come up with a range of where interest rates should be given the economic realities? It could be a rather large range to give plenty of flexibility but still take reality into account.
I actually have some faith in Bernanke. I think when the time is right he'll be as ruthless as Volkner with interest rates. It's the guys after Bernanke leaves that I worry about.
I think it kind of works like that already.
I feel the same way, but one can never be sure.I actually have some faith in Bernanke. I think when the time is right he'll be as ruthless as Volkner with interest rates. It's the guys after Bernanke leaves that I worry about.
Not under Greenspan it didn't.
Like I said, it was a weird economy.
That's why there needs to be some restriction on the Feds ability to manipulate interest rates. Think about it, if the magic formula would have said interest rates had to be between 8 - 12% then not only would it have limited the size of the bubble but it would have forced Bush to address some of the glaring weaknesses in our economy instead riding the housing bubble and declaring everything was just peachy.
What part of the formula would have determined that rates should have been that high?
Eh, you're impossible. I already said I'm not that smart but little things like this might have indicated that money was just a tad too cheap...
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