drosera January 11th, 2010 12:49 pm
What's "money multiplier"? What's "MZM money supply"? What's the "Case-Shiller Index"? "Core PCE"? Somebody step forward and translate this jargon, please!
GUEST NUMBER TWO
squidd January 11th, 2010 2:14 pm
"money multiplier" - a $1 of spending... will produce more than $1 in the economy... if i give you $1... you go to the 7-11 and buy coffee... 7-11 pays it's employees who rang it up... the 7-11 suppliers sold 7-11 coffee... cups... filters... then the 7-11 and coffee suppliers employees go out an buy something... and that original $1 gets 'recycled' several times... right now... i think the "multiplier" effect is $1.75... in the real economy... that's why in recession/deprssions... govt spending... the only ones who can print money... each $1 spent actually spends more than $1... now... taxes come back to the govt... and govt services can be provided... that's a simplistic explanation
"Case-Shiller" is the gold standard of housing trends...
you need to try tor read more... like Thom Hartmann... Matt Tabbai... Mike Whitney... Pam Martens... Dean Baker... they all have articles around the web... Dean Baker writes at http://www.prospect.org/csnc/blogs/beat_the_press...
and these folks educate as they expose... you have to get motivated... these terms are deliberately being used to bamboozle people...
like the "U6" unemployment rate... back in the 80's and 90's reagan AND clinton "jiggered" the numbers to remove underemployed and people unemployed more than a year... to make the real unemployment numbers look better... so unemployment will "go down"... just by the number of people unemployed more than a year dropping off the rolls every month... they can look good by DOING NOTHING...
NO ONE is going to explain this FOR you... and that's what they count on... it'll be a little confusing at first... but you'll pick it up in no time...
there was a time... i didn't know what "points" on a mortgage were... today... i can explain CDO's... MBS's... and several other obscure acronyms that caused 1/2 my housing value to go poof...
GUEST NUMBER THREE
drosera January 11th, 2010 8:30 pm
Thanks, Squidd, for your explanation of the "multiplier effect." I guess the multiplier effect goes under 1.00 if the government is buying "toxic assets." What they buy isn't worth what they are paying. And that, I suppose, is why bailing out the banks isn't as good as getting money to people directly. That money--what goes to people--gets recycled. Thanks for the lesson.
GUEST NUMBER FOUR
AGG January 11th, 2010 8:40 pm
Well said.
And let's not forget the CPI. Williams at Shadow statistics has shown how the Consumer Price Index was gamed to under represent inflation for the past 30 years or more. This threw a wrench in all the labor contracts that adjusted wages using the CPI, not to mention pensions and social security. Finally the effect on the government's poverty line amount was to move it lower and lower (even as the figure gradually rises in nominal dollars) due to the gamed CPI. Rather than correct this crap, they are allowing poverty level "multiples" to qualify for certain programs. It's just one lie after another.
The main culprit here is the master criminal, Alan Greenspan.
UNITY-PROGRESS COMMENT
Don't waste your time with wildly inaccurate US unemployment numbers. Use the Bureau of Labor Statistics employment numbers and the latest population numbers of your choice and figure out for yourself and according to your standards what the real unemployment rate is.
GUEST COMMENT NUMBER FIVE
TheProf January 12th, 2010 1:43 am
According to TrimTabs the Bureau of Labor Statistics collects the most reliable number but doesn't use it, that is the withholding from salaries submitted to the IRS and reported daily. Its been on a continually decline since the Depression started.
GUEST COMMENT NUMBER SIX
squidd January 16th, 2010 12:18 pm
Thanks! "professor"... too simple... like duh... that makes perfect sense... daily tracking of witholding...
Ross Perot would say often.. a strong vibrant economy is millions and millions of workers and their tax dollars going into the treasury...
guess the "new pardigm" turns that whole thing on it's head... now that labor can be arbitraged... and they've perfected raiding the worker classes' assets... pensions... bennys... 401(k)'s... housing... health care costs... hmmm... what's left?
oops... forgot about those pesky socialist programs... social security and medicare...
ahhhh... but the night's still young...
The above frightfully rebellious discussion of economics was in response to this article.
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