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ORIGINAL: rulemylife

So my question is what is he defining as total debt versus public debt?

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ORIGINAL: willbeurdaddy
Give it time, my friend. You can't print money as fast as the presses will run unaccompanied by economic growth, without causing massive inflation.

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ORIGINAL: LaTigresse

What was Bush's worst, 34%? Something like that.

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ORIGINAL: Crush

Isn't it time to move this thread to Polls and Other Random Stupidity?

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ORIGINAL: Lucylastic

Well bugger, I thought it was CruelnUnusual reincarnated.

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ORIGINAL: cadenas

quote:

ORIGINAL: willbeurdaddy
Give it time, my friend. You can't print money as fast as the presses will run unaccompanied by economic growth, without causing massive inflation.

I think you are overlooking three things.

1) If money really is being printed, it would be done by Bernanke, a Bush appointee and confirmed by a Republican Senate. The government cannot print money, only the Fed - which is independent from the government. It is only semi-independent, the Fed ultimately reports to Congress. It doesnt matter ultimately, because money is "printed" based on spending/cash flow needs which are driven by Congress.

2) Both running the money press and the inflation has already happened - during the Bush administration, and to a lesser extent during the Clinton administration. absolutely. Now multiply that by the quadrupling of the deficit under Obama's proposals and watch the crispy bills fly.

And money was printed the way the Fed always prints money: by making low-interest loans. In this case, these loans resurfaced as mortgages. The lack of standards and regulation aggravated the problem. It was worse than "lack of standards and regulation". It was politically mandated lower lending standards that aggravated the problem, along with the repeal of Glass Steagall.

All this was aggravated by Bush's deficit spending. Deficit spending will boost the economy - that's why we need to do it right now. But when the economy is already running at peak capacity, as it was when Bush inherited it, a boost is the last thing you want - just as you wouldn't want to revv up an engine that is already running close to the red line.

3) What we are seeing today isn't "running the money press" but rather scrambling to cover for having run the money press continuously from 1995 to 2008. And we are seeing the unwinding of this superinflation of the late 1990s and early 2000s. If Obama's policies go through, you havent seen "superinflation" like you will. The evidence plain to be seen in the inflation and interest rates of the 1970s and could pale in comparison to the 2010s

quote:

Who owns the Federal Reserve?
The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.
As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."

The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

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Why did Congress want the Federal Reserve to be relatively independent?
The intent of Congress in shaping the Federal Reserve Act was to keep politics out of monetary policy. The System is independent of other branches and agencies of government. It is self-financed and therefore is not subject to the congressional budgetary process.

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Since the Federal Reserve has considerable discretion in carrying out its responsibilities, to whom is it accountable?
The Federal Reserve's ultimate accountability is to Congress, which at any time can amend the Federal Reserve Act. Legislation requires that the Fed report annually on its activities to the Speaker of the House of Representatives, and twice annually on its plans for monetary policy to the banking committees of Congress. Fed officials also testify before Congress when requested.

To ensure financial accountability, the financial statements of the Federal Reserve Banks and the Board of Governors are audited annually by an independent outside auditor. In addition, the Government Accountability Office, as well as the Board's Office of Inspector General, can audit Federal Reserve activities.

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ORIGINAL: willbeurdaddy

quote:

ORIGINAL: cadenas

quote:

ORIGINAL: willbeurdaddy
Give it time, my friend. You can't print money as fast as the presses will run unaccompanied by economic growth, without causing massive inflation.

I think you are overlooking three things.

1) If money really is being printed, it would be done by Bernanke, a Bush appointee and confirmed by a Republican Senate. The government cannot print money, only the Fed - which is independent from the government. It is only semi-independent, the Fed ultimately reports to Congress. It doesnt matter ultimately, because money is "printed" based on spending/cash flow needs which are driven by Congress.

quote:

ORIGINAL: willbeurdaddy
2) Both running the money press and the inflation has already happened - during the Bush administration, and to a lesser extent during the Clinton administration. absolutely. Now multiply that by the quadrupling of the deficit under Obama's proposals and watch the crispy bills fly.

quote:

ORIGINAL: willbeurdaddy
And money was printed the way the Fed always prints money: by making low-interest loans. In this case, these loans resurfaced as mortgages. The lack of standards and regulation aggravated the problem. It was worse than "lack of standards and regulation". It was politically mandated lower lending standards that aggravated the problem, along with the repeal of Glass Steagall.

quote:

ORIGINAL: willbeurdaddy
3) What we are seeing today isn't "running the money press" but rather scrambling to cover for having run the money press continuously from 1995 to 2008. And we are seeing the unwinding of this superinflation of the late 1990s and early 2000s. If Obama's policies go through, you havent seen "superinflation" like you will. The evidence plain to be seen in the inflation and interest rates of the 1970s and could pale in comparison to the 2010.

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ORIGINAL: BamaD

First off I am amused by people who reffer to what we have had lately as "superinflation".  They clearly don't remember the last two Carter years when the inflation rate was in excess of 10 percent. And that doesn't compare to true superinflation like the Wermark (sp) Republics 100 percent per hour rate.  Also do describe the economy Bush inherited as running along just fine is a gross exageration.  He was instatntly hit with a recession as a result of the dot.com bubble bursting.  Those with short memories forget that on 9/10 he wasn't supposed to be concerned about anything but fixing the ressecion.  While this is not directly relevant to todays situation you should know what you are talking about.