Is the reason we have big government due to the people’s demand for government services?

How do you cut back on the demands upon government to solve problems?

All the Best,
Thrash

You posted, “Isn’t inflation a sign of a collapsing currency?”

I don’t think so. A collapsing currency is one of the symptoms of inflation.

Mark: The only thing that is keeping our “official” inflation rate low is the deflation of so much of our economy.

me: Certainly devaluation of assets in certain sectors of the real economy is a curb on inflation. Compared to all the convoluted notions used to determine the “official” inflation rate, I would suggest deflation is secondary to the lies we’re being told.

Mark: Who are these Austrian schooled economists? Who are these right wing economists? Are you a progressive liberal?

me: Really? Okay, I’ll take the bait. Ludwig von Mises and Friedrich Hayek are probably the most famous of the Austrian School. Carl Menger is generally it’s catalyst and his Principles in Economics (1871) is considered a classic. Contemporaries of the Austrian School,include Chicago School of Economics grads and profs, Milton Friedman, Alan Greenspan, Bernard Bernanke and what may seem odd, Rep. Ron Paul, who has written 6 books on the subject.

Essentially, anyone advocating the classical liberalism of laissez-faire is of the Austrian School.

Not sure what you mean by “progressive liberal.” I’m now 57 Boomer Generation. Identified myself as a conservative until the mid-1980′s when I began to fear that the Reagan Revolution had nothing to do with traditional conservative values of balanced budgets and was the anti-thesis of the party of Lincoln.

I identify myself as a liberal today and have since the mid-90′s because it’s liberals who now advocate fiscal integrity and produce balanced budgets and deficit financing during recessions exactly as Keynes suggested. In the larger context I think the most serious threat to our Republic is the corporate-religious right coalition that promotes fascism as freedom.

Okay Mark, your turn.

Yes and it’s on the table. Not sure but I think it’s part of the financial regulation bill. As I posted here awhile back, pensions today are the gold of 1933.

As to your question, oh yes, it surely can and probably will happen. Is it a crazy and desperate move though? Certainly it is a response to a desperate situation but that doesn’t mean it’s a desperate move.

Only one fund that I’m aware of has survived this crisis unscathed. Imagine where many would be today had privatizing Social Security passed? Thankfully cooler heads prevailed and we didn’t entrust Social Security to the paper money boys.

Your contradictions are confusing me.

You wrote: “If you believe Williams and I do, higher inflation is already here.” “What hasn’t happened, though oft predicted by the Austrian schooled economists and their followers on the right is the collapse of the USD.” “For three years running economists on the right have been predicting the collapse of the USD.”

Isn’t inflation a sign of a collapsing currency? The only thing that is keeping our “official” inflation rate low is the deflation of so much of our economy.

Who are these Austrian schooled economists?

The comments I read and hear on TV and radio from conservative economists have not projected a TOTAL collapse of the dollar. They have warned about an expanding money supply and resulting inflation issues when “printed” money attains velocity. These economist are worried about huge deficits and insolvancy for our federal government.

Conservative economists I am familiar with have proved to be better at predicting economic growth, or lack thereof, than our Bolshevic president and his progressive operatives.

Who are these right wing economists?

Are you a progressive liberal?

FULL DISCLOSURE: Fiscally, I am an ultra-right winger. Culturally and socially, I am a moderate.

markm

What hasn’t happened, though oft predicted by the Austrian schooled economists and their followers on the right is the collapse of the USD.

The USD hasn’t collapsed as recently predicted in part because it already did from 2002-2005 when it lost approximately 40% of it’s value compared to other G7 currencies.

The primary reason we haven’t seen another collapse in the USD is because while the currency is expanding exponentially, the new money isn’t making it’s way through the economy.

As I pointed out a week or so ago on this site, banks are using the new money to shore up reserves and meet new higher capital requirements proposed in new regulations.

For three years running economists on the right have been predicting the collapse of the USD. For three consecutive years they’ve been wrong. For the reasons stated above and three more very compelling reasons.

First, paper money hasn’t gone out of style. Second, the USD is still perceived as the safe haven currency by the vast majority of investors.

Third, the collapse hit us first. In terms of this Great Recession, we are ahead of the curve compared to other nations. And if you think our numbers are fudged wait until you see what happens in China when they realize a thing produced is not GDP until it is sold. Even worse for the Chinese, they are still expanding their export production capacity at very time trade is contracting.

Yes the world is going to hell in a hand basket. All things considered, I’ll continue to make my bed in the USA.