Originally Posted by Mad Max (Post 11077231)

Well, on December 23, 1913, that system was destroyed by a private banking cartel

Originally Posted by MRM (Post 11077621)

You have to read Zero Hedge with a critical eye. It is a Russian propaganda organ

Originally Posted by MRM (Post 11082868)

I think that's the point that both classical economic theory and MMT miss. The currency will have value for as long as the market has confidence in the economy. If the market has confidence, it doesn't matter how much money the government prints. If the market loses confidence, it doesn't matter how much contraction the government attempts, no one wants the currency. The government can get away with printing infinite money until it can't. The difference is that it is easier for the market to lose confidence if it sees large debts as unsustainable. And if the market starts to lose confidence, it is harder to recover if the government has huge debt and causes a bigger crash if it can't.

Originally Posted by MRM (Post 11077621)

Rational discussion is unlikely to change any minds, but I feel compelled to give it a try anyway.

The article is talking about the returns bondholders are seeing these days when the company goes bankrupt, not the returns on investment grade bonds. It's not exactly shocking that the bond holders lose their investment when the company goes bankrupt. The company wouldn't go bankrupt if it could pay its bondholders. The point of the article is nothing more that when there is cheap credit and investors are chasing yield, some of those willing to take risks on junk bonds end up with little to nothing on their investment.

You have to read Zero Hedge with a critical eye. It is a Russian propaganda organ that publishes just enough real news to stay credible to the credulous while pursuing its real mission of spreading doom and gloom conspiracy theories to weaken the social fabric of America and further the Motherland's interests. The more people read articles like this and post threads the the OP, the less credible America's institutions appear and the better off America's foreign adversaries are. Next time you read an article about an upcoming oil shock or crash in the auto industry, remember that Russia is one of the world's largest oil exporters. When you read articles about how unstable the US Dollar or how close we are to economic collapse, remember how low Russia's foreign currencies are (and that oil is priced in Dollars).

There are plenty of reasons to question the government's free spending policies and fear the adverse consequences of artificially low interest rates, but none of those reasons are found in Zero Hedge's articles and the "solutions" offered are conveniently counterproductive to the US economy and would benefit its adversaries. And as a double whammy, wacky conspiracy theories about the Fed destroy the credibility of serious thinkers who legitimately question Fed policy. The crazier Zero Hedge can convince fiscal conservatives to act, the more they discredit the entire conservative monetary movement.

By the way, if the Fed was so powerful, how come it hasn't been able to manufacture even its stated goal of 2.5% inflation?

Originally Posted by MRM (Post 11084416)

It is owned by ABC Media Limited, not CBS. But this ABC Media is a Bulgarian corporation, not the American Broadcasting Company, which is owned by Disney.

Zerohedge is a Russian propaganda organ designed to discredit US institutions and fray the social fabric of the nation.

Originally Posted by group911@aol.co (Post 11084599)

Always amazing how little effort it takes to find the truth but how few people take even that little effort to do so. What mindset do you suppose it takes to get in that groove?

Originally Posted by jyl (Post 11084607)

The internet makes it easy to exploit people who don’t think hard?

Originally Posted by group911@aol.co (Post 11084706)

That doesn't really explain the whole thing. It also makes it easy to search for the truth. There's something that's taken away the normal need for facts that we used to associate with cults except that back then, the cults usually isolated their followers and fed them news. Now, not so much.