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01 décembre 2010

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François 1

Voici qui viendra plus ou moins confirmer votre position:

http://www.iedm.org/fr/node/33825

Matt

Vous serez heureux d'apprendre que Krugman a eu sa tribune sur le site Web de la chaîne télé d'État belge francophone (la RTBF).

Évidemment, ce sont les libéraux les responsables de la crise...
http://www.rtbf.be/info/economie/chronique-de-paul-krugman/quand-les-zombies-lemportent-287840

Denys

Martin.

There is big a difference in cases such as Ireland, Greece and European countries as compare to the United States. Europe standard is not remotely similar to the modern monetary system in which the Federal Government of the USA functions. In a union of independent countries a single currency systems is inherently flawed. The way to look at the Euro countries would be more like looking at a state with in the US. (They can go bankrupt). The so called sovereign countries in Europe are not really sovereign any more since they now are in the same position as if they had a convertible currency. Not convertible in Gold of course but those debts being in a currency they do not control (The Euro) they are at risk of default unless they submit to the European Central Planer debt payments agreements.

The US, England and Japan do not operate this way at all.

The idea of a standard such as the Euro is not applicable to the monetary system in which the USA exists.

You call it "des socialistes monétaires" that is correct and an understatement especially considering that rates are totally artificial and have not been reflecting risk. Low rates and guaranties have obviously sent the wrong signal at a time when a real free market would have flashed the red light.

That is nothing less than dictatorial Central Planning. It allocates funds where funds should not go and perpetuates malinvestment. It never worked and never will but no politicians’ wants to have a recession during is or her term until its to late and a massive bubble burst. When this occur it is to late and we have a depression. It is not surprising that addicted borrowers demand a magical solution from their government to perpetuate this charade.

The real term for this system I think is closer to "Chartalism"
http://en.wikipedia.org/wiki/Chartalism and its not as simple as to say that the Fed is printing money using quantitative easing.

Its a system with no debt therefore the US is not money constrained and can not default. The bond market is a monetary tool and not a fiscal financing tool.

The real issue is not bankruptcy since its not going to happen unless congress suicidal.In an asset depression at first it really does not matter how much the money base is increased since it will not reflect as an increase in the money supply for a long period. (Look at bank reserves they are still at an all time high).

I sense that the big problem is more down the road when eventually all the banks reserves moves back in to the monetary supply and also how will the FED manage to exit from all those mysterious toxic purchases they made.

There may be no debt but there will be dilution. The real questions are:

Are we going to have "Hyper Inflation", devaluation or some kind of new debased currency and when?

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Citations

  • « L'État, c'est la grande fiction à travers laquelle tout le monde s'efforce de vivre aux dépens de tout le monde. »

    – Frédéric Bastiat, 1848

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