Charlie Rose

JohnGelles  11/08/2011 05:25 AM Report

Aside from the fact that Gillian Tett talks too fast, this analysis of the EU's lack of political unity as it effects its failure to work with Bernanke enthusiastically to supply liquidity and reach full employment where nations are stuck way below the German standard, this discussion is much appreciated.

Ian Bremmer and Gillian Tett both recognize that substantial change in global trade and payments systems is percolating as we sit, ponder and write our individual opinions.

REMant says initially, "The real problem tho is not who will put up the money, but that the money in most cases isn't worth anything, because [it was] not earned by anybody."

..... REMant's verb, "earned" is a non-starter among people who understand anything about money, production and banking.

..... What the argument is about, among such better informed people, is WAS THE MONEY BORROWED FROM A CREDIT WORTHY (PROPERTIED) LENDER? or WAS THE MONEY SPENT INTO CIRCULATION BY A SOVEREIGN ECONOMY LIKELY TO PRODUCE THE GOODS THE MONEY MUST BE CAPABLE OF BUYING?

..... The Keynesian school wants our new system's great change to be a return to WW II's production based moneys that were not hostage to rentiers and speculators. The money was, as necessary, spent into circulation by the warring super-political-powers of the day.

..... The austerity (anti-liquidity) school, with no real doctrine at its back, wants to Hooverize the issues, spend less, and wait for the time it will take for worthless debt to be removed from the scene.

..... If we followed Krugman and Morrison (who authored Keynes Without Debt -- KWOD) we would be immediately into fast high growth, full employment, and happy days are here again.

REMant closes on a different point -- that is consistent with KWOD: "[we must] encourage people to save".

..... Here REMant is correct. People must save as government invests trillions for infrastructure, jobs, R&D, the brave new green world, etc.

..... KWOD, allows us to stimulate production and save money from the beginning until shelves are full at the high level of employment we create. Then private spending can be tolerated without hyper-inflation.

So my own opinion is half-in agreement with REMant. And inflation-protected savings, like TIPS securities, will be necessary; and WW II anti-inflation tools may also have to be recalled -- one at a time.

ADDENDUM:

Just watched Charlie Rose and Facebook leadership discuss internet partnering, platforms, missions and futures. Facebook is the CONNECTING COMPANY. They build peer-to-peer connections that individuals can control. Others then build on their platform. Programming engineers must turn such dreams into user-friendly screens and experiences. I hope so. So far they have not connected Americans sufficiently to protect their jobs, economic security or immediate futures.

www.ustaxreform.us/kwod.htm

www.ustaxreform.us/crs.htm

SharkswithfrikingLazers  11/08/2011 02:57 AM Report

A Marshall Plan for Greece?

You might mean a Truman Doctrine.

On March 12, 1947 Truman stated that the U.S. would support Greece and Turkey with economic and military aid to prevent their falling into the Soviet sphere. Historians often consider it as the start of the Cold War.

http://en.wikipedia.org/wiki/Truman_Doctrine

Yes, we might aid Greece if they were about to fall into some bad political system--not that great one they have now.

REMant  11/07/2011 11:18 AM Report

Well, I certainly don't agree with the idea banks anywhere need to be bailed out. I doubt the Chinese think so either. The real problem tho is not who will put up the money, but that the money in most cases isn't worth anything, because not earned by anybody. Everyone is now mortgaged or leveraged to the hilt. Even if you assume a Keynesian frame of reference, as these two obviously do. which tho I doubt everyone does, reflation isn't a matter of anyone's psychology, nor will solid growth be obtained by stirring up animal spirits. And while I'm all in favor of balancing budgets, I doubt moving a smidge closer to one is going to pull our fat out of the fire. Being able to continue to live off seignorage will undoubtedly put us in a stronger relative position, but that is not going to be much help in the long run. What we actually need is for banks and other institutions to stop printing money and encourage ppl to save, as well as, balance their budgets, and for countries to buy each other's goods and services.