Comments on: freeing the country from the credit trap http://www.ordinary-gentlemen.com/2009/03/freeing-the-country-from-the-credit-trap/ Sun, 14 Mar 2010 21:25:45 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: nativist http://www.ordinary-gentlemen.com/2009/03/freeing-the-country-from-the-credit-trap/#comment-4054 nativist Thu, 02 Apr 2009 16:40:44 +0000 http://www.ordinary-gentlemen.com/?p=2033#comment-4054 Quite right. The recent questioning of the role of the dollar by the Chinese premier was prompted solely by the fear that in inflating it's money supply at double digit rates, the U.S. is effectiviely repudiating it's debt. If 10 year Treasuries bought today by China buy only 1/2 the goods in 2019 that they buy today, China and all other creditors of the U.S. are losers. Quite right. The recent questioning of the role of the dollar by the Chinese premier was prompted solely by the fear that in inflating it's money supply
at double digit rates, the U.S. is effectiviely repudiating it's debt. If 10 year
Treasuries bought today by China buy only 1/2 the goods in 2019 that they
buy today, China and all other creditors of the U.S. are losers.

]]> By: whig http://www.ordinary-gentlemen.com/2009/03/freeing-the-country-from-the-credit-trap/#comment-4037 whig Thu, 02 Apr 2009 00:49:39 +0000 http://www.ordinary-gentlemen.com/?p=2033#comment-4037 China's price was to buy trillions in US govt debt. How long until the US tells them they can't or won't pay? Who wins then? China's price was to buy trillions in US govt debt. How long until the US tells them they can't or won't pay? Who wins then?

]]> By: Whig http://www.ordinary-gentlemen.com/2009/03/freeing-the-country-from-the-credit-trap/#comment-4036 Whig Thu, 02 Apr 2009 00:48:14 +0000 http://www.ordinary-gentlemen.com/?p=2033#comment-4036 Wall St. has been dismantled. Govt ife support is bad for the country and bad for the street. The proper course would be an orderly unwind of firms deemed too large to fail and regulations that prohibit firms from growing too large to threaten the economy going forward. The option to fail must be implicit to avoid moral hazard. Our system has failed. Wall St. has been dismantled. Govt ife support is bad for the country and bad for the street. The proper course would be an orderly unwind of firms deemed too large to fail and regulations that prohibit firms from growing too large to threaten the economy going forward. The option to fail must be implicit to avoid moral hazard. Our system has failed.

]]> By: whig http://www.ordinary-gentlemen.com/2009/03/freeing-the-country-from-the-credit-trap/#comment-4035 whig Thu, 02 Apr 2009 00:44:56 +0000 http://www.ordinary-gentlemen.com/?p=2033#comment-4035 I'm sorry, I beg to differ. The source of real wealth is innovation. Maunfacturing or financial makes little difference. Wall st. and investors lost trillions on bad debt. Amazing but true, markets self regulate. I'm sorry, I beg to differ. The source of real wealth is innovation. Maunfacturing or financial makes little difference. Wall st. and investors lost trillions on bad debt. Amazing but true, markets self regulate.

]]> By: malclm http://www.ordinary-gentlemen.com/2009/03/freeing-the-country-from-the-credit-trap/#comment-4003 malclm Wed, 01 Apr 2009 19:11:28 +0000 http://www.ordinary-gentlemen.com/?p=2033#comment-4003 ""Ideas drive profit" is a good summation of the thinking that drove us to this crisis. What drives profit is the production and marketing of valuable goods and services that produces real growth" What! haven't you heard of the 'creative class' and " whole new mind" it's a whole new paradigm, the old rules don't apply! ""Ideas drive profit" is a good summation of the thinking that drove us to this crisis. What drives profit is the production and marketing of valuable goods and services that produces real growth"
What! haven't you heard of the 'creative class' and " whole new mind" it's a whole new paradigm, the old rules don't apply!

]]> By: malcolm http://www.ordinary-gentlemen.com/2009/03/freeing-the-country-from-the-credit-trap/#comment-3998 malcolm Wed, 01 Apr 2009 18:59:43 +0000 http://www.ordinary-gentlemen.com/?p=2033#comment-3998 ...and I would add, the only 'victors' of free trade are those countries which practiced stealth or overt restriction - like China - and yet every time they complain about any measure to protect our industry, the WJS et all prints their complaints verbatim as if they were legitimate. …and I would add, the only 'victors' of free trade are those countries which practiced stealth or overt restriction – like China – and yet every time they complain about any measure to protect our industry, the WJS et all prints their complaints verbatim as if they were legitimate.

]]> By: malcolm http://www.ordinary-gentlemen.com/2009/03/freeing-the-country-from-the-credit-trap/#comment-3997 malcolm Wed, 01 Apr 2009 18:57:58 +0000 http://www.ordinary-gentlemen.com/?p=2033#comment-3997 Mr. Whig:: manufacturing has been left of fend for itself AND be forced into relationships with destructive unions by the government. On the other hand WALL STREET , courtesy of the government got acess to special interest rates, 'free money', exclusive licenesens and of course, bail out after bailout every time they became too big to fail. Before I hear another wall street type advocate free markets FOR US, I'd like to see you guys practice it a little yourselves. Mr. Whig:: manufacturing has been left of fend for itself AND be forced into relationships with destructive unions by the government. On the other hand WALL STREET , courtesy of the government got acess to special interest rates, 'free money', exclusive licenesens and of course, bail out after bailout every time they became too big to fail. Before I hear another wall street type advocate free markets FOR US, I'd like to see you guys practice it a little yourselves.

]]> By: Freddie http://www.ordinary-gentlemen.com/2009/03/freeing-the-country-from-the-credit-trap/#comment-3996 Freddie Wed, 01 Apr 2009 18:42:50 +0000 http://www.ordinary-gentlemen.com/?p=2033#comment-3996 <i>Innovation drives profit. New ideas for new products create profit. Innovation in manufacturing techniques drive profit. IDEAS drive profit. Picket lines and union demands do not. If you want prosperity for the middle class, then invest in education and lower the barriers of entry for new businesses. You won't get jobs/wage growth because you are good at marching in a picket line.</i> I'd say that the claim that "Ideas drive profit" is a good summation of the thinking that drove us to this crisis. What drives profit is the production and marketing of valuable goods and services that produces real growth. What destroyed our economy is more and more clever ideas about how to say "I'll pay you back later." Innovation drives profit. New ideas for new products create profit. Innovation in manufacturing techniques drive profit. IDEAS drive profit. Picket lines and union demands do not. If you want prosperity for the middle class, then invest in education and lower the barriers of entry for new businesses. You won't get jobs/wage growth because you are good at marching in a picket line.

I'd say that the claim that "Ideas drive profit" is a good summation of the thinking that drove us to this crisis. What drives profit is the production and marketing of valuable goods and services that produces real growth. What destroyed our economy is more and more clever ideas about how to say "I'll pay you back later."

]]> By: Whig http://www.ordinary-gentlemen.com/2009/03/freeing-the-country-from-the-credit-trap/#comment-3994 Whig Wed, 01 Apr 2009 18:33:49 +0000 http://www.ordinary-gentlemen.com/?p=2033#comment-3994 Why do you think unionism is the answer? Most manufacturing jobs left this country because its cheaper to pay Chinese labourers a fraction of US union scale wages. GM and Chrysler are going into bankruptcy because they overpaid and overpromised to the UAW for years. What a great idea, more the same for the rest of the US manufacturers! Innovation drives profit. New ideas for new products create profit. Innovation in manufacturing techniques drive profit. IDEAS drive profit. Picket lines and union demands do not. If you want prosperity for the middle class, then invest in education and lower the barriers of entry for new businesses. You won't get jobs/wage growth because you are good at marching in a picket line. Why do you think unionism is the answer? Most manufacturing jobs left this country because its cheaper to pay Chinese labourers a fraction of US union scale wages. GM and Chrysler are going into bankruptcy because they overpaid and overpromised to the UAW for years. What a great idea, more the same for the rest of the US manufacturers!

Innovation drives profit. New ideas for new products create profit. Innovation in manufacturing techniques drive profit. IDEAS drive profit. Picket lines and union demands do not. If you want prosperity for the middle class, then invest in education and lower the barriers of entry for new businesses. You won't get jobs/wage growth because you are good at marching in a picket line.

]]> By: Whig http://www.ordinary-gentlemen.com/2009/03/freeing-the-country-from-the-credit-trap/#comment-3995 Whig Wed, 01 Apr 2009 18:33:18 +0000 http://www.ordinary-gentlemen.com/?p=2033#comment-3995 IMHO, this article is pretty much nonsense. Your thesis rests on a supposed crowding out effect whereby finance took the productive captial of the country at the expense of manufacturing. That thesis is unequivocally incorrect. Until last year there was so much captial available that the threshold to get debt or equity financing was lower than at any point over the last century. A good idea in manufacturing or finance could get find debt or equity financing more readily than at any point in our history. IMHO, this article is pretty much nonsense. Your thesis rests on a supposed crowding out effect whereby finance took the productive captial of the country at the expense of manufacturing. That thesis is unequivocally incorrect. Until last year there was so much captial available that the threshold to get debt or equity financing was lower than at any point over the last century. A good idea in manufacturing or finance could get find debt or equity financing more readily than at any point in our history.

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