Comments on: Bound for the Zero Bound, or, Will They Accept Dollars in Exchange for Helicopter Fuel? http://alephblog.com/2008/10/07/bound-for-the-zero-bound-or-will-they-accept-dollars-in-exchange-for-helicopter-fuel/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Mon, 13 Feb 2012 17:14:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: David Merkelhttp://alephblog.com/2008/10/07/bound-for-the-zero-bound-or-will-they-accept-dollars-in-exchange-for-helicopter-fuel/comment-page-1/#comment-19510 David Merkel Wed, 22 Oct 2008 17:16:53 +0000 http://alephblog.com/?p=1002#comment-19510 It could be that simple – in the 19th century, we debased the currency via bimetallism to aid debtors. I suspect we will do so again. It could be that simple – in the 19th century, we debased the currency via bimetallism to aid debtors. I suspect we will do so again.

]]> By: vfwhhttp://alephblog.com/2008/10/07/bound-for-the-zero-bound-or-will-they-accept-dollars-in-exchange-for-helicopter-fuel/comment-page-1/#comment-19246 vfwh Wed, 08 Oct 2008 17:23:06 +0000 http://alephblog.com/?p=1002#comment-19246 Ah, actually, I've been wondering about that : if printing money is inflationary, then surely the solution to a deflationary risk must be to print money? Is that abissally simplistic? Ah, actually, I’ve been wondering about that : if printing money is inflationary, then surely the solution to a deflationary risk must be to print money?

Is that abissally simplistic?

]]> By: Simonhttp://alephblog.com/2008/10/07/bound-for-the-zero-bound-or-will-they-accept-dollars-in-exchange-for-helicopter-fuel/comment-page-1/#comment-19237 Simon Wed, 08 Oct 2008 05:29:00 +0000 http://alephblog.com/?p=1002#comment-19237 What does it actually matter if the fed lends money to a firm which fails anyway? Can't the money be created more or less out of thin air anyway? Isn't all this debt distruction causing deflation which means the fed can just print more money and hand it out to the survivors without any worry about inflation? The only hazard is moral hazard and... well...To me that is the one that should have had much more thought much earlier on in the piece before all this non-scense started. In fact that is the one that makes me furious because that's the one that allowed banksters to buy off Congress to allow relaxation of rules for said banksters so they had an unhindered playing feild on which to destroy the world if it so took their mindless frenzy of greed. They were allowed to pile up there plates with slavery certificates in the form of securitzed mortgages and live like kings while the rest of the world drowned in debt. This is all absolutely wrong, criminally wrong. What are the chances that the criminals will be tried? Zero. The whole world has been fooled....again. Sorry for the uncontrolled rant. Feel free to delete What does it actually matter if the fed lends money to a firm which fails anyway?

Can’t the money be created more or less out of thin air anyway?

Isn’t all this debt distruction causing deflation which means the fed can just print more money and hand it out to the survivors without any worry about inflation?

The only hazard is moral hazard and… well…To me that is the one that should have had much more thought much earlier on in the piece before all this non-scense started.

In fact that is the one that makes me furious because that’s the one that allowed banksters to buy off Congress to allow relaxation of rules for said banksters so they had an unhindered playing feild on which to destroy the world if it so took their mindless frenzy of greed.

They were allowed to pile up there plates with slavery certificates in the form of securitzed mortgages and live like kings while the rest of the world drowned in debt.

This is all absolutely wrong, criminally wrong. What are the chances that the criminals will be tried? Zero.

The whole world has been fooled….again.

Sorry for the uncontrolled rant. Feel free to delete

]]> By: matthttp://alephblog.com/2008/10/07/bound-for-the-zero-bound-or-will-they-accept-dollars-in-exchange-for-helicopter-fuel/comment-page-1/#comment-19230 matt Tue, 07 Oct 2008 21:36:39 +0000 http://alephblog.com/?p=1002#comment-19230 Sheesh. I'm going to give a super weight to TIPS in my 401(k) tomorrow. Sheesh. I’m going to give a super weight to TIPS in my 401(k) tomorrow.

]]> By: acchttp://alephblog.com/2008/10/07/bound-for-the-zero-bound-or-will-they-accept-dollars-in-exchange-for-helicopter-fuel/comment-page-1/#comment-19229 acc Tue, 07 Oct 2008 20:25:52 +0000 http://alephblog.com/?p=1002#comment-19229 It seems to me that Treasury is trying to meet the demand for Tbills. Which is madness in a panic: Let the money market funds figure out what to do when Treasury yields fall below zero (i.e. close their funds to new investment and force the money somewhere else). In the month of Sept alone, Tbills held by the public increased by $260 billion and in the four business days of October to date Tbills increased by $108 billion(http://fms.treas.gov/dts/index.html) for a 30% increase since August 31. Is there anyway a policy like this can end well? What are these guys thinking? It seems to me that Treasury is trying to meet the demand for Tbills. Which is madness in a panic: Let the money market funds figure out what to do when Treasury yields fall below zero (i.e. close their funds to new investment and force the money somewhere else). In the month of Sept alone, Tbills held by the public increased by $260 billion and in the four business days of October to date Tbills increased by $108 billion(http://fms.treas.gov/dts/index.html) for a 30% increase since August 31.

Is there anyway a policy like this can end well? What are these guys thinking?

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