Wednesday, December 3, 2008

Return to Camelot

"When just about all economists agree, should we rejoice or be scared? During the Weimar Republic, economists at the Reichsbank argued that printing money to finance a war was 'exogeneous' to the economy and thus not inflationary. Hyperinflation in the ensuing years proved them wrong. ... Obama [said], 'I think what's interesting about the time that we are in right now is that you actually have a consensus among conservative, Republican leaning economists and liberal, left leaning economists. And the consensus is this: that we have to do whatever it takes to get this economy moving again that we have to, we're going to have to spend money now to stimulate the economy and that we shouldn't worry about the deficit next year or even the year after that. That short-term, the most important thing is that we avoid a deepening recession.' ... We very much doubt that all this money will stay in the U.S. once the panic abates. Indeed, whereas just about everyone seems to be concerned about deflation, the risk of not only inflation, but hyperinflation increases with every step taken down this road", my emphasis, Axel Merk, 22 November 2008, at http://www.financialsense.com/fsu/editorials/merk/2008/1121.html.

I remember the 1960 election's three issues: the "missile gap", getting the country "moving again" and "pipeline to the Pope". There was no "missile gap". We had about 2,000 "deliverables" in 1960; the "Rooskies", only 67. We had a recession in 1958, anyone remember it? JFK's rhetoric concealed New Frontier inflationary policies. People figured we tamed the business cycle in 1961! They were wrong. Obama, Bill Clinton's claims to the contrary, is our first Negro president. JFK, our first Catholic. JFK went to Harvard College. Obama, Columbia followed by Harvard Law School (HLS). Jackie went to Vassar then GWU. Michelle Obama (MO), Princeton followed by HLS. Jackie wore nice clothes as does MO. The Kennedy's had nice kids, Caroline and John John. The Obama's have nice kids, Malia and Sasha. We return to Camelot! Most people now accept JFK didn't know what he was doing. But he sure sounded good. Will Obama suffer the same fate?

9 comments:

Anonymous said...

Let them spend and bail all they want it won't stop this train wreck. The problem is too much debt and regardless whether it is switched from the insolvent banks to the taxpayers. There is not enough income to service the debt. period.

Anonymous said...

Prez-O takes the old deficit spending model off the shelf...

He says "It worked before and I have Geithner who knows how to play with the bond markets... everyone assures me that we can use the tools we have to soften this thing..... I hope it works... \"

Printfaster said...

"I hope it works"

Hardy har. Using the same trick twice ain't gonna work. "knows how to play with the bond market"

Hoo boy. Play? With the bond market? What a perspective. Playing with the country's future and people's lives? Gravitas? Where is the gravitas?

I have more faith in O'Neill the first treasury secretary under Bush, than the mob of charlatans assembled under future Obama.

Wall Street really is in control. The rest of the country is simply a plaything.

Anonymous said...

Ah ha Printfaster... or should I say Printmaster?

Yes... "Wall Street really is in control. The rest of the country is simply a plaything."

Wall Street was badly beaten by some unnamed forces here in the last 18 months... there is lot of blood flowing downhill from Trinity Wall Street past the New York Stock Exchange and turning the corner to Broad Street...

But the Fed still has a liplock with the primary dealers... and GSG, MS et al are just subsidaries of the Open Market Committee... one day the Fed will die... but till then the dealers will use it to control the money supply... yes...

winged unicorn said...

in 1958 you were only 7 years old. you remember a recession? then again... i remember watching kennedy's funeral and i was 4.

winged unicorn said...

when everyone agrees, either they are right or they are crazy.

Human Head said...

JFK, the man who stated outright he would shatter the CIA into a thousand pieces, knew exactly what he was doing.

His big mistake was thinking the Office of the President had real power.

Printfaster said...

Look up the "pond" if you are in a conspiratorial mood.

It all gets weird when you talk about international finance. The H man and is efforts in " the breakdown in the enslavement of finance capital" is discussed in

http://www.scribd.com/doc/2434851/Wartburg-H[the H man]s-Secret-Bankers

I think that I will go take a bath. Yech.

Printfaster said...

Some quotes attributed to Warburg:

Money is power. The banker knows how to concentrate and manage it. The international banker carries on international politics. Whoever understands what was concealed behind the word "national" in the lsast few years and what is concealed there still also knows why the international banker cannot keep himself out of international politics.

And for IA, on Wilson:
"The American banking world had never been enthusiastic about Wilson. Bankers and financiers viewed his idealism as good enough for the study, but unsuited to the practical, international world of business."

And some humor:
"Look for the explanation in works on political economy, in examples of practical, international economy, in fat books on the subject containing much idiocy, all betray a complete lack of insight into reality. Political economists are, first of all primarily academics".