Stanford MBA hubby says that the reason we will force

[alittlelark]

inflation in the US is to make our Asian debt null. Argentina did it, it works.......


Any thoughts?

[billyoc]

1. Reagan did this too.

:shrug:

[Eloriel]

2. Yeah, and Argentina is all the better for it, right?

:-(

This is all above my head, frankly, but even *I* know what "Argentina" means in terms of the economy.

Again:

:-(

[alittlelark]

3. So do I and it scares the sh*t out of me.

Why is he not seeing the day to day reality?

[zmdem]

4. Doesn't China enter in here ?

China's currency is not freely traded. They peg the value of their currency to the US $, hences changes in the value of the $ doesn't change the relative value.

[alittlelark]

5. Hubby does not consider China to be an issue

the PNAC agenda (that China recognizes fully) has not yet sunk in... I keep trying.

[zmdem]

6. Hubby doesn't consider China to be an issue ?

In terms of debt held, how can China not be considered ?

[alittlelark]

11. We will go into inflation, or hyper-inflation

and reduce our real world debt dollars to a degree that our debtors are screwed.

[UdoKier]

13. You mean creditors, right?

nt

[chicagiana]

18. We need to withdraw from WTO and cutoff China ...

We are building a monster in the East.

China is no longer a "communist" society. They have castoff any pretense of having a socialized economy. They are now an unbridled fascist society.

WE are financing their industrial growth. At the same time, we're letting our manufacturing capacity lapse into NOTHING!!!! We are manufacturing all the techno-bobbles that our society now DEPENDS on in SE Asia and China at the footsteps of the Red Army!!!!

It is a nuclear holocaust waiting to happen!!!!

[Mayberry Machiavelli]

14. Was he a Bush voter?

[chicagiana]

15. China is biding their time ...

They're smart bastards. They're industrializing and watching us export our strength and power to the footsteps of the Red Army in Southeast Asia.

Once our way of life is manufactured in the shadow of the dragon, they'll have us by the balls. They'll be able to dictate to us. They'll be able to cut us off from all those techo-bobbles that our society depends on.

WHY O WHY, can't Democrats SEE THIS. GLOBALIZATION is the issue that will return Democrats to a controlling interest where they can do some good for this nation.

We are dazed and confused. We have moved to the center economically and the left socially. It should be the other way around. Politics is about harnessing popular sentiments and generating a majority consensus. What Democrats are doing right now is just plain STUPID and they're being rewarded in kind by the electorate!!!!

[alittlelark]

12. one word - inflation

of the US dollar.

[unblock]

7. that's actually kinda backwards

it's the big debts that cause the inflation, though mr. mba is correct in that inflation then in turn makes that debt more affordable.

oh, and germany did it in the 20's, too, and it led to hitler, so there.

massive debt is bad, period. a weak currency and/or inflation does help relieve the debt, but either way, the country is impoverished by the debt.

as in anything, debt is only ultimately enriching if it is invested very prudently and wisely, as in infrastructure and research and so on.

debt spent on consumption and the military is so soviet union....

[alittlelark]

9. I understand, but he was taught at the vestible of

Capitalistic Theory.


They are mostly good, intelligent, and brainwashed by their education (hubby is coming out of it slowly).

[unblock]

16. what i said IS capitalisic theory

never confuse the conservatives' rhetoric about capitalism with ACTUAL capitalist economic theory.

for instance, actual capitalist economic theory requires well functioning markets to have full information (labelling, etc.), have no monopoly (single supplier -- think microsoft) or monopsony (single purchaser -- think walmart), and have no externalities (third party effects of transactions -- think polution).

capitalism is actually pretty good in theory. too bad we've never actually given it a try!

[bemildred]

8. Your Hubby knows the score.

But it might not work so good this time.

[alittlelark]

10. I do not believe it will

:evilfrown:

[chicagiana]

17. They'll NEVER do it ...

You see, inflation wipes out savings. And all those trust fund babies rely on inflation being low to sustain themselves.

Home mortgages become a bitch with high inflation. Businesses cannot get loans at rates sufficient to "create the jobs" and turn a profit.

Besides, Greenspan has been 100% obsessed on keeping inflation down (a little too much in my opinion). He too, is a deficit hawk. He's going to be around for a while, and I do NOT think Bush will convince him to let interest rates get out of control.

THEIR version of inflation is not driven by worker salaries. And it's VERY obvious by looking at the distribution of wealth since the 60s. Except for a little bump during the Clinton years, salaries continue to go down. The "family value" of having one parent at work and one home/child caretaker is impossible to achieve for your ordinary joe worker.

Dan Quayle was right in a way. America DOES have lack of family values. And HE and his ilk are the ones who LACK THEM!!!!

[DuaneBidoux]

19. Tell you're MBA hubby that Bush is going to have to get rid of

Greenspan first. Greenspan will not willingly let it happen, and the bond market might not either, by selling off, raising rates, and slowing the economy. He'll know what all that means even if you don't.