[ExI] Justifiable Lies
spike66 at att.net
Wed May 11 20:50:29 UTC 2016
From: extropy-chat [mailto:extropy-chat-bounces at lists.extropy.org] On Behalf Of John Clark
Sent: Wednesday, May 11, 2016 1:31 PM
To: ExI chat list <extropy-chat at lists.extropy.org>
Subject: Re: [ExI] Justifiable Lies
On Wed, May 11, 2016 at 2:44 PM, spike <spike66 at att.net <mailto:spike66 at att.net> > wrote:
States must balance their budgets by law. Currently the Fed need not, does not and cannot.
That lecherous adulterous fellow Bill Clinton that you think should have been kicked out of office did…
If he really did that (not just by accounting tricks such as raiding Social Security) then we should be working to repeal the 22nd amendment and instead elect Bill. We will also need his House counterpart Newt Gingrich. Instead we are looking to Mrs. Clinton who has nothing on her resume but one senate term and an epic fail as SecState. Does this make sense? Why didn’t the Newtster do any better in his half-hearted run?
>…Republicans have been making that
"easily foreseeable" prediction for well over a decade so if they were right you'd think we'd see at least a hint of it by now like rising interest rates and growing inflation, but instead both have been at historic lows for years … John K Clark
John, you do realize why interest rates are not going up, ja? If they do, the federal government cannot pay the interest on its own debt. We are then bankrupt: the Fed has run out of other people’s money. In the current paradigm, the Fed not only is unable to pay normal interest rates, it cannot even maintain normal operations without continuous new borrowing. OK now what? My obvious conclusion: the Fed is too big by about a factor of 2, possibly more.
Having interest rates at 1% for years has consequences: it discourages personal savings. That creates (in the long run) dependence, either on jobs or government safety nets, which results in more concentration of power, which results in more concentration of corruption.
Interest rates aren’t going up because they cannot. See what happens to all those pension funds set up assuming an average of 6% growth: they are forced into riskier options to maintain the assumed growth.
There are other dire consequences for artificially holding interest rates down. No need for me to list them: you can find out if you want to know.
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