Comments on: Terrifying http://www.papadeltabravo.com/blog/?p=977 Rated MATURE for STRONG LANGUAGE, CRUDE HUMOR, NUDITY and CARTOON VIOLENCE. Thu, 09 Sep 2010 21:16:45 +0000 http://wordpress.org/?v=2.1 By: gator http://www.papadeltabravo.com/blog/?p=977#comment-129246 gator Sun, 25 Jan 2009 22:45:30 +0000 http://www.papadeltabravo.com/blog/?p=977#comment-129246 And then there's <a href="http://www.historycompany.com/productdetails.php?p=128" rel="nofollow">this</a>. On a tip from <a href="http://massbackwards.blogspot.com/2009/01/compare-and-contrast-compare.html" rel="nofollow">Bruce</a>. And then there’s this.

On a tip from Bruce.

]]> By: Ahab http://www.papadeltabravo.com/blog/?p=977#comment-129294 Ahab Mon, 26 Jan 2009 19:57:12 +0000 http://www.papadeltabravo.com/blog/?p=977#comment-129294 Thanks for ruining my afternoon. Thanks for ruining my afternoon.

]]> By: TJP http://www.papadeltabravo.com/blog/?p=977#comment-129604 TJP Sat, 31 Jan 2009 18:58:14 +0000 http://www.papadeltabravo.com/blog/?p=977#comment-129604 You know those "stimulus" payments we received during the last administration? Yeah, well they were more of a short term, involuntary loan than a tax cut. You see, since federal spending wasn't reduced by canceling projects, firing people and eliminating positions, the shortfall was made up by borrowing. Now it's being done again, but it's an order of magnitude larger. Like Tam K said, they're trying to build a wall by taking bricks from the bottom and placing them on top. You know those “stimulus” payments we received during the last administration? Yeah, well they were more of a short term, involuntary loan than a tax cut. You see, since federal spending wasn’t reduced by canceling projects, firing people and eliminating positions, the shortfall was made up by borrowing. Now it’s being done again, but it’s an order of magnitude larger.

Like Tam K said, they’re trying to build a wall by taking bricks from the bottom and placing them on top.

]]> By: Steven Den Beste http://www.papadeltabravo.com/blog/?p=977#comment-129628 Steven Den Beste Sun, 01 Feb 2009 03:47:04 +0000 http://www.papadeltabravo.com/blog/?p=977#comment-129628 Things aren't quite what you think they are. The Fed is trying to prevent deflation, and what they're looking at is that the "velocity of money" (which is to say, how often a given dollar gets spent per year) has plummeted in nearly that same period. The only way to prevent a huge liquidity crisis followed by a huge spike of deflation is to pump currency into the system. http://research.stlouisfed.org/fred2/series/MULT Basically, if the money isn't moving very fast, then there needs to be a lot more money out there in order to keep things going at all. It may cause inflation later; indeed it's likely it will cause some. But not as much as you seem to be thinking it will, and when the time comes it can be dealt with. Deflation, on the other hand, can be terribly debilitating and once it settles in it can really be hard to break. Think "1990's Japan stagnation" for an example. Or think of the Great Depression. That's what the Fed is trying to prevent. They've reduced interest rates to just about zero, and they're pumping currency into the system like mad, in hopes of preventing the system from freezing up. Or so I understand it. Things aren’t quite what you think they are. The Fed is trying to prevent deflation, and what they’re looking at is that the “velocity of money” (which is to say, how often a given dollar gets spent per year) has plummeted in nearly that same period. The only way to prevent a huge liquidity crisis followed by a huge spike of deflation is to pump currency into the system.

http://research.stlouisfed.org/fred2/series/MULT

Basically, if the money isn’t moving very fast, then there needs to be a lot more money out there in order to keep things going at all.

It may cause inflation later; indeed it’s likely it will cause some. But not as much as you seem to be thinking it will, and when the time comes it can be dealt with. Deflation, on the other hand, can be terribly debilitating and once it settles in it can really be hard to break. Think “1990’s Japan stagnation” for an example. Or think of the Great Depression.

That’s what the Fed is trying to prevent. They’ve reduced interest rates to just about zero, and they’re pumping currency into the system like mad, in hopes of preventing the system from freezing up.

Or so I understand it.

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