What is Digg?248 Comments
- Dweller99, on 01/31/2008, -1/+147When your only tool is a hammer, every problem looks like a nail.
- Ineedanap, on 01/31/2008, -0/+84They keep this up and, we'll have 0% interest rates by April!! What then???
- koicho, on 01/31/2008, -10/+74I am surprised this is not on the front page... this news is BIG!!!
This shows how desperate and how f$#cked the economy is!
good bye dollar... it was nice being the leading currency for awhile, but we can only print so much... - allaboutdatiki, on 01/31/2008, -3/+54Lets print more money ... woo hoo!
- andyboyd, on 01/31/2008, -1/+49Sorry to bash Digg ... but ... this happened yesterday. It was highly anticipated by the general public in the USA and around the world.
There's something wrong with the 'algo' when it takes a story of this magnitude so long to hit the front page, where it *should* currently be. - TheTaoOfBill, on 01/31/2008, -0/+38Soon banks will be paying us interest for loans.
- rancemo, on 01/31/2008, -4/+37Hyperinflation!
- Napoleone, on 01/31/2008, -1/+27"good bye dollar... it was nice being the leading currency for awhile, but we can only print so much..."
Actually, we can print as much of it as we want. That's the problem. - midoritsuru, on 01/31/2008, -7/+33Next stop: the amero. He's putting the dollar in freefall to force dollar devaluation and acceptance of a new currency.
- embarkadero, on 01/31/2008, -3/+28Doesn't seem to matter if banks are non responsive in reducing mortgage rates. Mortgage rates haven't budged much since last week's rate cut. The average American won't feel any of these rate cuts. This is complete BS tactic for the benefit of banks.
- rory096, on 01/31/2008, -1/+26The Fed has dug a hole for itself by repeatedly showing it'll just pander to the markets. It should have at least started to break that perception by only cutting 25 bp at most; it's now cut 125 points in a week! Absurd...
- sjbdallas, on 01/31/2008, -0/+24I heard the next step was that the Fed would post PDFs of 20 dollar bills that we can download and print on our home printers.
- edstate, on 01/31/2008, -3/+27I can't buy stocks because they're plummeting... I can't buy bonds because they're in the toilet... and now I can't keep cash because the rates ***** miserable... AWESEOM!
- BohicaTwentyTwo, on 01/31/2008, -0/+20Time to refinance?
- rhabd0mancer, on 01/31/2008, -0/+20Stagflation.
- yankeeblue, on 01/31/2008, -0/+19This is still news. Because a majority of Americans do not know what this means OR its significance. Just b/c its old news (a day?) doesn't mean it has less value.
On topic -> I thought our economy was strong. At least thats what President Bush told me on TV Monday night. - Burento, on 01/31/2008, -0/+17I was just about to post that same exact thing. By the time this hits front page it is 24 hours old.
- alvinrod, on 01/31/2008, -0/+15Just because they're not worried about it doesn't mean that I'm not. The dollar is becoming weaker every month and there's no indication that there's a plan to turn that around or even stop it from getting worse.
- strafefire, on 01/31/2008, -1/+14Most insightful quote that I have read all week. Thank you.
- pugs909, on 01/31/2008, -8/+22Hair growth is in a deep recession. He should cut his beard a 1/2 point and staple the hair to the top of his head. Problem solved.
- dvandewalle, on 01/31/2008, -0/+13how about cutting up the credit cards? seems most of the problems with the sub-prime mortgage scheme was people living well outside their means.....
- leerayIG88, on 01/31/2008, -3/+16America should convert to the Euro Dollar.
my 0.0134435. - rune420, on 01/31/2008, -0/+13Most new money isn't even printed, it's simply bits on a computer.
- TomK88, on 01/31/2008, -5/+16Huh? The market falling is an investor's dream. Buy low, sell high.
- Napoleone, on 01/31/2008, -8/+20Ask yourself this: Why does the economy have to constantly grow? Only pyramid schemes depend on such arrangements. ... That's what we have here.
The Fed creates money based on projected income to the United States Treasury. Banks borrow that money without offering up collateral. Banks then loan that money to you, and pay off their own debt with the interest you pay. Unlike the banks though, you have to put up collateral.
If you default, the bank loses nothing, because they created nothing. They take your house, your car, etc..., they write it off and they borrow more money. If they lose liquidity, they go bankrupt. But not really, cos' they never put up collateral anyways.
Everytime the Fed creates money to loan to the banks, your purchasing power is diminished as a percentage of the money already introduced into the market.
The government then taxes you to pay off the debt it owes the Fed, which created money backed by no assets, i.e., out of thin air. Since it's easy to create money that doesn't need to be backed by assets, it can create as much as it wants. Since our government loves to spend, it can borrow as much as the Fed is willing to create. Since there's no restraint in this creation and borrowing of money, that deficit accrues into a debt, that is now approaching $10 trillion dollars.
What does this mean? This means the government would have to tax every single individual in the U.S. young and old alike, $42,000 in order to pay off what is currently owed. Since they can't afford to tax us at that rate, they can never hope to keep up with their obligations to the Fed.
The only answer to this problem is to cut spending. And if we don't cut it our country will be in absolute financial ruin before long. People in financial ruin sell their stuff for cheap, just so they can get by. That's where other countries come in. They will buy our companies, they will buy our land, they will buy our ports, they will by our loans. And when you default, they will own everything.
Now, it's nice to talk about all this, but that achieves nothing if we don't act. SPAM SPAM SPAM.
Only Ron Paul wants to confront this problem at the heart of it. All the others want to increase spending, either through more entitlements or more war or a combination of both. It's your vote. It's your decision.
Don't ***** it up. - theghoul, on 01/31/2008, -2/+12Buy stock when there's blood in the streets. Google, Apple and Microsoft arent going anywhere.
- jfujita, on 01/31/2008, -0/+10Harbinger67 if you have no idea what you are talking about please do not comment false information. If you know anything about the Japanese economy, you would know that the low interest rate is because of a recession caused by the popping of the bubble economy that lasted from 1986 to 1990. Bank of Japan has lowered the overnight rate from 6% in 1991 to the current 0.25%.
- DiggLive, on 01/31/2008, -0/+10I'm turning Japanese I think I'm turning Japanese I really think so.
- Napoleone, on 01/31/2008, -1/+10Yikes. I hope no one has ED.
- DeFex, on 01/31/2008, -1/+10Its not meant for you. its meant for corporate buddies to mop up the little money that they haven't taken yet.
- SparkyMaGee, on 01/31/2008, -1/+9From the Magombo: Well, if interest rate cuts are all that is needed to cause problems and then solve them, then this brings up the philosophy of Homer Simpson, who famously said that, "Alcohol [is both] the cause of, and solution to, all of life's problems."
- jeffiek, on 01/31/2008, -1/+9Negative interest rates of course. They're giving it away now. That would just bring some honesty to the table.
- Napoleone, on 01/31/2008, -3/+11That just goes to prove you're an ideologue, cos' everything I wrote is based off his own work.
And a shill is someone who hides their support, mine is out there. Too bad you're too dumb and too ***** blind to accept the truth regardless of the source. - rficwizard, on 01/31/2008, -1/+9Maybe we should try killing dolphins. I'm sure you mentioned it because it was relevant.
- quantumslip, on 01/31/2008, -0/+8I'm going to take a big loan and then I'm going to invest in some foreign currency CD's!
- RAdams, on 01/31/2008, -0/+7Perfectly said. No real standard, no real money. Enough of a private corporation making a toy and mockery of our financial system, I say. It's high time to return to an actual standard
- TomK88, on 01/31/2008, -0/+7The answer, in my opinion, is adopting inflation targeting as your monetary policy. It has a great track record and makes the most sense from an economic standpoint. It allows for transparency, predictability, and stability!
- JBmtk, on 01/31/2008, -1/+8...Wheres me Gold..
- CedEx, on 01/31/2008, -0/+6That's how you get rewarded; for taking a risk. Also, any gains he makes would be taxed as capital gains, rather than income, so his tax rates would be even lower than had he actually worked for it.
- TomK88, on 01/31/2008, -7/+12The stock market went down? What is going on? Let's all panic!
The lack of even a basic understanding of economics on Digg is hilarious. Then people say ridiculous things like switching to a gold standard will fix all of the monetary problems. Ignorance breeds ignorance. - oldhick, on 01/31/2008, -0/+6Loss of sovereignty?
- wrxpert, on 01/31/2008, -0/+6Wow this is just getting to the front page now. Digg needs help.
- koicho, on 01/31/2008, -0/+5It increases the money supply as people borrow USD at low interest rates and purchase other currencies (a.k.a. "carry trade" - profiting from the interest difference). This will increase demand for high yielding currencies such as GBP, EUR, AUD, NZD...
- inactive, on 01/31/2008, -0/+5Refinance your oven? http://wildthing.co.in/blog/wp-content/uploads/200 ...
- Herostratos, on 01/31/2008, -0/+5Actually - yes it is. Prinitng money and lending them out cheap is the mechanism for keeping down interest rates.
- intangible, on 01/31/2008, -0/+5Printer paper will cost more than the money printed on it is worth, unless they commission some larger denominations.
/notjoking - DeFex, on 01/31/2008, -0/+5yeah it would suck to lose your sovereignty to Mexico and Canada.
oh wait. us already took ours. - inactive, on 01/31/2008, -0/+5Partyyyy !!! PartyYYY !!! Print for your LIVES, and hope the voters will pick up the hidden tax in double digit inflation rates !!!
And pray, all you members of the US political cast they wont realise your game because they will LYNCH you when they find out how they have been *****. - Napoleone, on 01/31/2008, -1/+6@seand
But he is the only one to do so who is running for president. - Uchikoma, on 01/31/2008, -1/+6The longer they try to delay the inevitable, the harder its going to be when it does hit.
...and to the person who says "I can see the economy improving over the next few months, so go out and buy" should just go and take his/her own advice and come back to us a couple months/years later. -
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