Comments on: Of boom, bust but maybe not the Black Death

By: Matthew

Matthew — Tue, 13 Jan 2009 14:11:48 +0000

When facing a financial crisis, would your advisor recommend taking on more debt to get out of debt? You or I would consider that option to be ludicrous, yet the forthcoming administration believes this is sound financial policy; take on more debt, spend more, tax more, and print more money. Inflation and lower returns for investors are looming, dark and foreboding, upon the horizon. It is a scary thought that America may be heading for its first default. What happens when we can no longer boast a platinum credit rating?

By: Quintin

Quintin — Tue, 13 Jan 2009 10:16:52 +0000

No… it is about what we believe. We either believe that the government will manage to claw back on the deficit within an acceptable time frame, or like James we believe that the world is at an end and now the skies are gray, the flowers are dead and the birds have flown South. And like James, we can then drag out this tome and study it while we listen to La Traviata and drink cups of bitter wine.

As confidence flags, investors, brokers run around wanting guarantees. Well, I’m sorry James (and every other investor, broker and columnist in this space)… but is doesn’t work that way. If you want a guarantee, buy a toaster. Otherwise, play the game… after all, it is only money.

By: Tom Swartz

Tom Swartz — Mon, 12 Jan 2009 21:58:03 +0000

Additionally, our currency is controlled by a Treasury Secretary and Federal Reserve - all selected and voted on by our elected representatives - Congress.
Posted by m. plunkett

Sorry to inform you Mr. Plunkett the Fed is not controlled by Congress . The Fed is not part of the government or cotrolled by the government. For more info go to : http://www.rense.com/politics6/fedres.ht m If this site is no help Google it and find out the ugly truth.

By: ArthurPina

ArthurPina — Mon, 12 Jan 2009 13:43:24 +0000

What’s funny is that my wife and I have given back almost $1300.00 per month in wage cuts.We are fortunate enough to still have decent paying jobs.But we have accumilated some c/c debt.Even if we wanted to apply for some kind of loan,we would probably be turned down.Why doesn’t the government or some bank with my tax money give us an immeadiate very low intrest consolidation loan to improve our balance sheet and in the long run improve are spending power. I’m sure there are alot like us,still able to pay but unable to borrow.

By: check your listings

check your listings — Mon, 12 Jan 2009 03:45:44 +0000

the monetary system itself is whats wrong
a fractional reserve system is what we run on and is
completely ridiculous. the federal reserve is a private entity no one is elected. money is backed by nothing and is created out of nothing the idea of legal tender is perpetual debt. so enjoy and see you in hell

By: Greg

Greg — Sun, 11 Jan 2009 20:23:17 +0000

Oh Lordy, Negative Jim is in rolling in dead fish heaven now! “Black Death!” My God man, your negativity is astounding, even while you keep some of your personal funds in the markets. If things are really this bad then we should all just short every stock and fund we can find and we’ll all be billionaires within the year if Saft is right! Why isn’t Saft shorting all his personal finances? Hmmm. Doesn’t beleive his own negative spewing? Happy new year Jim!

By: paul kalsbeek

paul kalsbeek — Sun, 11 Jan 2009 11:40:27 +0000

What planet do you live on?? Hope ia NOT a plan! When you print money - tons of money….inflation will follow..That you can depend on!

By: mlee

mlee — Sun, 11 Jan 2009 03:39:06 +0000

“And of course there is also the possibility that we will pass into a true period of equilibrium…

In the past, such periods have included the Renaissance, the Enlightenment and the prosperity of the Victorian period.”

Indeed, in each case also accompanied by an increase in the speed of communication.

At today’s rate of international communication, we’ll either reach the equilibrium of the turbulence of a high-pressure water faucet or the resonance of fine Austrian crystal.

Note, however, both equlibrium states are quite different in their effects.

By: Bill

Bill — Sun, 11 Jan 2009 01:23:57 +0000

If Mr. Saft thinks there is the remotest possibility that we can escape hyperinflation at this point in history, he hasn’t studied his history very well.

By: Youri Carma

Youri Carma — Sat, 10 Jan 2009 18:43:00 +0000

Well the proven monetary cycle I know about is, Printing Press - Inflation assured in three years.

To many treasury bonds will make the milk watery in value and a two trillion deficit reached easily doesn’t help the leverage either.

Foreigners can not longer lend cause they are getting into financial dangers waters themselves now.

The problem now is on the demand side where credit is dry. A devaluation war is eminent.