Monday, December 1, 2008

New Blogger in Town

Indy Mind is a new blogger. Here's a good post he did on Bambi and coming inflationary bubble.

7 comments:

  1. It's nothing new, it's been happening since Nixon.

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  2. actually, nixon inherited lbj's inflation. at the start of jfk, we were around 3%. with all of lbj's spending, it doubled to 6% - and we never got control of it until reagan in 1981+

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  3. What does "floating dollars" mean? I understand a little of why Nixon took or had to take the dollar off of the gold standard. I do not understand the term "floating dollars". Is it the mere fact that the dollar is not backed by gold? I read an article proposing going back to that standard. would that be safe?

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  4. that's exactly right. while we were on the "gold standard" it was literally true that every US dollar was backed by an amount of gold in the ownership and possession of the US Government. gold prices were fixed at $35 an ounce.

    once we left the gold standard, the dollar "floated" without a mooring. it is currently valued based upon market supply and demand, international feelings about our economy, etc.

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  5. Wow, really, why is the government bailing out any industry? Foreign countries are feeling the affect of our economy, trade has to be slow because Americans are not purchasing their products or investing in their stock as well. It seems this should right itself. Is it true countries like China will not honor the floating dollar, opting ,instead, to have the US purchase bonds?

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  6. great questions. why? because we have too many socialists in our government. the free market operates best when it is free. the problem is that the Community Reinvestment Act, our laws strongly protecting unions, and other laws have given us something other than a true capitalist system.

    there's a great concept you may enjoy research - creative destruction. it applies when a true capitalist system allows - as it should - a business or industry to fail. the result is not doom and gloom. people don't sit around. capital isn't wasted. it finds a new outlet, workers retrain, and the result is a healthy economy that provides more to the consumer than ever before.

    in some measure you can see the innovation in the stem-cell discussion. W says - no fetal stem cells except those lines already in existence. the libs cry. guess what? science found a way to create stem cell (from adult stem cells) that act just like fetal stem cells. let's not even discuss the fact that nothing has ever been productively produced from fetal stems - just from adult stems ...

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  7. Great post!

    Would you like a Link Exchange with our new blog COMMON CENTS where we blog about the issues of the day??

    http://www.commoncts.blogspot.com

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