This makes a lot of sense. Clearly, this is what Treasury is doing: Allowing the banks to inventory as assets their shiny new clothes when they haven’t even been made yet.
Author Archive | susie
The Seekers, who were the first Australian group to hit the pop charts, live on Hullabaloo in 1965:
The Lovin’ Spoonful:
An upper layer of Earth’s atmosphere recently collapsed in an unexpectedly large contraction, the sheer size of which has scientists scratching their heads, NASA announced Thursday.
The layer of gas – called the thermosphere – is now rebounding again. This type of collapse is not rare, but its magnitude shocked scientists.
“This is the biggest contraction of the thermosphere in at least 43 years,” said John Emmert of the Naval Research Lab, lead author of a paper announcing the finding in the June 19 issue of the journal Geophysical Research Letters. “It’s a Space Age record.”
The collapse occurred during a period of relative solar inactivity – called a solar minimum from 2008 to 2009. These minimums are known to cool and contract the thermosphere, however, the recent collapse was two to three times greater than low solar activity could explain.
“Something is going on that we do not understand,” Emmert said.
When the Great Depression hit governments didn’t know how to counteract the crisis, to solve the problem of unemployment. Further they were constrained by the Gold Standard (which the U.S. finally abandoned in 1933). Today we know exactly what to do to solve the issue of underutilization of labor resources. But unfortunately we are constrained by myths. I wonder what the economists, who propagate these myths, would say if they were in the ranks of the unemployed. Would they say that Congress should not extend unemployment benefits because it will further contribute to the deficit? Would they say that more stimulus is unsustainable? I suggest we leave them unemployed for a while. They will have more free time to do some Modern Monetary Theory reading and more “economic incentives” (i.e. lack of income to support themselves and their families) to rethink their position. Professional economists are a major impediment on the way to using our economic system for the benefit of us all. And Ms. Reinhart and Mr. Rogoff are no exception.
James Gammon, aka “That guy that’s in all that stuff.”