tag:blogger.com,1999:blog-8515247115132134144.post4350785944414883659..comments2024-02-17T12:34:01.400-08:00Comments on Illusion of Prosperity: Not Living Up to Our Reduced PotentialStagflationary Markhttp://www.blogger.com/profile/04568993350246477976noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8515247115132134144.post-56984982523172160572012-08-23T13:58:42.882-07:002012-08-23T13:58:42.882-07:00In other news, Bondmageddon 2 has been cancelled d...In other news, Bondmageddon 2 has been cancelled due to bad weather and the lack of interest (pun intended) in <a href="http://illusionofprosperity.blogspot.com/2012/05/2012s-anti-bondmageddon.html" rel="nofollow">Bondmageddon</a>. Big shocker.*<br /><br />It's too bad. I heard it was going to star Pauly Shore. I'm confident that he would have won an Oscar for his performance.*<br /><br />It would have been a huge blockbuster. No doubt about it.*<br /><br />* Denotes extra sarcasmStagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-82967585498215923802012-08-23T13:46:23.557-07:002012-08-23T13:46:23.557-07:00Troy,
^ probably going to happen, too.
Why does ...Troy,<br /><br /><i>^ probably going to happen, too.</i><br /><br />Why does everyone just assume that savers won't be able to make money in the aftermath of the next recession?<br /><br />Oh yeah, <a href="http://www.imdb.com/title/tt0066769/quotes?qt=qt0385637" rel="nofollow">now I remember</a>.Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-10975921233059484392012-08-23T13:25:07.344-07:002012-08-23T13:25:07.344-07:00Mr Slippery,
After 4 years of ZIRP and gross debt...Mr Slippery,<br /><br /><i>After 4 years of ZIRP and gross debt knocking on 16 trillion, I am looking forward to the government response to the next recession.</i><br /><br /><i>I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones.</i> - Albert Einstein<br /><br />I know not with what economic weapons the next recession will be fought, but the one following will be fought with <a href="http://en.wikipedia.org/wiki/Sticks_and_Stones_%28nursery_rhyme%29" rel="nofollow">words</a>.<br /><br /><i>"Sticks and Stones" is an English language children's rhyme. It persuades the child victim of name-calling to ignore the taunt, to refrain from physical retaliation, and to remain calm and good-natured.</i><br /><br />Please remain calm. There is no reason to panic. Our economy is a resilient economy with innovative financial creativity and resiliency.Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-30967828161825166822012-08-23T07:54:53.999-07:002012-08-23T07:54:53.999-07:00^ probably going to happen, too.
This whole Green...^ probably going to happen, too.<br /><br />This whole Greenspan Commission idea that we'd set FICA rates to overtax the baby boom a total of $1.5T+ 1989-2009 and then raise income taxes when they retired to pay the resulting multi-trillion dollar treasury position off was either colossally naive or colossally corrupt, par for the course with Greenspan of course.<br /><br />The current holding is $2.6T. Paying that off over the next 20-odd years is going to take $130B/yr in higher income taxes.<br /><br />To put that in perspective, $130B is basically TWICE the Bush tax cuts on the top brackets that are the difference in the present deadlock in TC.<br /><br />(estate tax change is a $30B hit, while the top marginal bracket change is $50B/yr)<br /><br />We're not going to be able to raise marginal rates 600 basis points on the upper brackets to effect the back end of the Greenspan deal, so (short of finding a deep-pockets foreign buyer) the alternative to blowing them off completely is printing the money as we need it by having Uncle Ben hold them for us.<br /><br />Why the hell did I ever come back to this place 12 years ago. My original idea to GTFO in 1992 was entirely correct.<br /><br />One thing I learned recently wrt the doommobile was that natural gas is <a href="http://www.cngprices.com/station_map.php?location=vancouver%2C+bc&lat=49.261226&lng=-123.1139268" rel="nofollow">essentially free</a> in BC . . .<br /><br />And I also discovered that they're working on <a href="http://greenbigtruck.com/2010/06/capstone-gets-carb-certified-for-microturbine-range-extender/" rel="nofollow">CNG-fueled microturbine</a> hybrid electric vehicles.<br /><br />That is a very interesting powerplant for the doom-mobile. Only one moving part, and 20,000-hr major service intervals (run 3 hrs/day that's 18 years). At current US CNG prices it produces electricity at 22c/kwhr, and teamed with a PV installation would provide all my household energy needs without breaking a sweat.<br />Troynoreply@blogger.comtag:blogger.com,1999:blog-8515247115132134144.post-23174616294621572172012-08-23T05:41:56.299-07:002012-08-23T05:41:56.299-07:00From the wikipedia link to recession,
Governments...From the wikipedia link to recession,<br /><br /><i>Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation.</i><br /><br />After 4 years of ZIRP and gross debt knocking on 16 trillion, I am looking forward to the government response to the next recession.<br /><br />Next moves:<br />1. Monthly stimulus check to every household<br />2. Suspend all federal taxes for 2 years<br />3. Set interest rates negative up to 3 years on the curve and cap it at 1% out to 20 years.<br /><br />Now that would be a stimulus.Mr Slipperynoreply@blogger.com