XPost: fl.politics, houston.politics, tx.politics
XPost: az.politics, alt.abortion
Floyd wouldn't have committed the crime he did, if he'd had money.
The Fed's target inflation rate is 2%. Currently inflation is 0.1%, which means
there is tons of money for our people:
https://www.usinflationcalculator.com/inflation/current-inflation-rates/
The Fed is a creation of Congress, We own the Fed.
The Fed buys the bonds Congress sells to fiscally expand to spend. Otherwise there would be a countering Monetary Contraction as bonds were sold. The Fed can
just write off any bonds it buys from Congress. The National Debt is a fugazi. We
pay yesterday's debts yesterday, today's debts today, and tomorrow's debts tomorrow. That number of $23 Trillion doesn't matter, and can be carried forever.
It's only an issue of inflation, and resultingly higher interest rates. Interest
rates are at rock bottom.
The U.S. dollar is Fiat money, not backed by anything but belief. There will be
no default on the debt at $40 Trillion.
It's our cyclical duty to spend. Inflation is low. Rates are low. The economy
is in a recession. Business protectionism, and individual protectionism, are in
order.
It is as foolhardy to not spend during a recession, and not have fiscal and monetary expansions, as it is to have expansions during a boom and blow money.
If you don't agree with this, you're stupid.
The other side, spending in a boom, would lead to permanently higher inflation or
resultingly, permanently higher rates. It's Unemployment vs. Inflation, Inflation
vs. Interest Rates, and Interest Rates vs. Price to Book Values.
Here the trade off between Inflation and Interest Rates, would be shifted out. This is not the case right now, until inflation gets to at least 2%. Additionally
rates are rock bottom, and can be permanently higher for the sake of protecting and supporting the American people and the American Economy.
The ridiculum of talking about potentially negative interest rates, while not spending more on capital and labor at least, and more on consumer spending and thereby sales revenues more easily, is ridiculous. I take it negative rates means
the Fed only, buys the bonds at $100, and The American people/Congress pay back $99. The Fed could just as well write off bonds as well, or Congress could push
inflation up by spending, and rates up by selling, more bonds without the Fed buying, and increasing the National Debt. Do you really think increasing the National Debt right now will hurt the long term prospects of the American Economy
more? Because no one ought to care about a number, but about its affects.
The entire burden of COVID should go into the National Debt. We should all bear
this cost together. You're alternatively suggesting you want to build the economy
on the backs of dying people.
We need to eradicate COVID and do everything we can to minimize it before it gets
worse. Other nations have defeated COVID. People cannot stay at home from work
and shelter in place, any longer, without money from the Federal Government.
For the sake of COVID the Fed can additionally have an inflation target higher than 2%. This may eventually lead to higher rates, either on its own, or by Fed
action in the future.
Here's another good plan for you people. If we have inflation, the money we borrowed from other countries becomes worth less to pay off. So the Fed can write
off the $9 Trillion in debt it owns, and we can inflate the currency. Then we can
pay back other countries pennies on the dollar, for the sake of transferring money
to our own citizens equally at $1,250 per month until COVID is eradicated + 1 year
(probably by the County or State). This is $400 Billion per month into the National Debt - fiscal expansion. $5 Trillion per year into the National Debt -
fiscal expansion. We can also spend on infrastructure and provide jobs, purchasing capital and labor at the same time. California needs a couple reservoirs in the North:
https://groups.google.com/forum/#!topic/ca.water/y5tkrEW4Gkk
We need protectionism of businesses and people. Demand $1,250 per month for every
man, woman, and child now. If the recipients don't spend it, it won't cause inflation, but of the Stock Market - or Bond Market which causes rate to go down.
It's all circumlocutous. All that could be, is more currency in the Country. You
don't know if that guy who made $2 million last year, spent it all, and is making
nothing now. That's an extreme. A rich person is not liable to spend, and there's little vacation spending going on right now. You don't know if the youth's dad is a drunk, who won't buy meat for him. We need to build the bottom,
and support our Supermarkets, and our menially necessary consumer products. Economies of scale bring prices down. We should not want at the bottom. $1,250
per month for every man, woman, and child, eliminates petty crimes of desperation,
and reduces degeneracy probably tenfold. Why deal drugs, when you don't need to?
Be more productive and feel good about yourself working an essential activity or
telemarketing from home. Drug dealers only make minimum wage anyhow, it's the drug traffickers who are raking it in. Drugs ought to be legally marketed as the
poison and medicine they are, and possibly sold out of sight, out of mind.
The demand for bonds is the supply of loanable funds. The supply of bonds is the
demand for loanable funds. And then Congress issues the bonds, and increases the
National debt. The Fed buys the bonds to any amount it wants, as well as increases banks' credit. The other side of an expansion (monetary or fiscal), is
inflation, which is not the problem/concern right now. Listen to Ben Burnanke on
60 minutes, (scroll down):
https://www.marketplace.org/2020/04/10/federal-reserve-assistance-extra-credit/
Debtors, and renters, and mortgages debtors have all intent and ability to repay
in the future. The banks are not holding troubled assets. If we have a forbearance on old debt and old rent, this could be an Economic Pause, not a Recession, and not a Great Depression, if the above is done. If some criticism is
that the forbearance is forever, then that means COVID is forever, and can we not
eradicate it now?
The Fed buys the bonds to any amount it wants, to have inflation, vs. if it doesn't; a monetary contraction countering inflation, and resulting in higher interest rates.
So in addition to the Fed lending by buying bonds, the Fed lends by increasing banks' credit:
"The Federal Reserve System was designed as an attempt to prevent or minimize the
occurrence of bank runs, and possibly act as a lender of last resort when a bank
run does occur. Many economists, following Nobel laureate Milton Friedman, believe that the Federal Reserve inappropriately refused to lend money to small banks during the bank runs of 1929; Friedman argued that this contributed to the
Great Depression."
https://en.wikipedia.org/wiki/Federal_Reserve#Addressing_the_problem_of_bank_panics
June 2020 Treasury Bulletin:
https://www.fiscal.treasury.gov/files/reports-statements/treasury-bulletin/b2020-2.pdf
Coronavirus Cases:
https://www.worldometers.info/coronavirus/country/us/ +27,924 New Cases 6/18/2020 x 30 Days = 837,720 New Cases in one month by July 19,
2020.
@ current 5.33% death rate = 44,663 dead in 1 month = 535,962 dead in 12 months.
But this is not even winter. Dr. Rick Bright, fired for NOT making Hydrocholoquine more readily available outside of hospitals by computer (maybe bad
judgement, who knows), predicts that COVID combined with Flu could result in the
"darkest winter in human history," "If we fail to develop a national coordinated
response."(perhaps the computer system for the dispensation of the drug was being
set up for just such a situation and he didn't know, who knows).
Personally, I'd rather be in an aircraft carrier in calm seas. We don't buy a $800 Billion yearly army because we want to believe things will just "work-out" and "be okay." And we don't hope to win any war with sticks and stones. The whole point of fire extinguishers is to have them, and never need them. And if COVID goes away sooner, we can stop paying the American people spending money for
consumption sooner. The whole purposes of guns and insurance likewise, is to have
them and never need them. Once in your life, a fire extinguisher or a gun could
prolong your the life of your property, or body 30 years. This is obviously no time to Bet the Farm. If COVID goes away, the American people have the money equally. It's not lost. But it's a good time to try out "not $0 at the bottom"
and see how it goes.
Some places in the U.S. are getting better, while others are getting worse. While
New York & New Jersey had 803 and 430 new cases on 6/18/2020 x 30 days = 24,090 &
12,900, California, Texas, and Florida had 3,787, 3,357, and 3,207 new cases x 30
days = 113,610, 100,710 and 96,210 new cases by July 19.
The daily new infection rate is the most concerning factor. While some in Singapore have found the recovery rate to be as high as 9% per day = 11 days of contagium; some in America have had the disease for 50+ days. 100%/50 days = 2% a
very low rate of recovery. If it were 30 days of contagium 100%/30 days = 3.33%
perhaps a good guesstimate. Perhaps a healthy diet, or fresh air, or love, or something could help people recover faster. I believe love is a highly overlooked
aspect of athletic performance. But based on worldometers "Active Cases" the daily new infection rates for New York and New Jersey are 803/290,469= 0.28% and
430/123,049= 0.35%, while the daily new infection rates for California, Texas, and
Florida are 3,787/115,923= 3.3% , 3,357/36,704= 9.1% , and 3,207/66,311= 4.8%. Meanwhile, California is very disparate. While Los Angeles is 1,038/75,200= 1.4%,
and San Francisco 38/2,973= 1.3%, San Diego, San Bernardino, and Riverside Counties are much higher at 238/2,599= 9.2% , 440/3,311= 13.3%, and 516/5,543= 9.3%. This is much higher than the 2.5% or so they had it down to during the stay-at-home order! Ideally we want it below 2% or 1%!
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Free Spreadsheet to facilitate calculations:
https://docs.zoho.com/embed/cs6eab29f117fec84421c9c13fb84913ab066
[Spreadsheet will always reload when you reload html,
Response lag time is 4 seconds+ when used as an html.
If you download, you to have right click, Properties, Unblock, to open.
((if you make INPUTS, and scroll far down, sometimes the html takes additional time to update the far down cells, the upper Results are already calculated. You
can highlight a cell, and press enter and wait, and the cells on the screen should
change, this won't be an issue if you download))]
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