control asset prices with the same instruments
you use to control

product prices and employment ???

the troika fed

multiple targets for credit flow rates
begin to come into focus

the commanding federal heights
loom all the more uber-commanding

bridle the privateering speculators ???

by god
there'll be war

i can hear them now:

“how many divisions does chairman thoma have ?”

Posted by js paine at 09:07 PM

speaking of
“individual nodes of the network”

as nodes go

seems to me

Sack's appeal

hardly cascades anymore

like a lipless trumpeter
he honks kazoo like

you're noise making jeff

THE NETWORK
NEEDS TO CANCEL HIS NODECASTINGS

Posted by js paine at 09:04 PM

karl you start so well

uncle's 7 trillion backing
gives the wall street casinos

a potential 7 trillion in pre funded loses

far better uncle insures

the entire home morgage debt of amerika

and then you add a nice passage
on

a social necessity :

serious household debt relief

but……then this:

“fair-minded people might conclude that The Federal Reserve is in fact broke and lying about their own solvency”

and you start the climb up the sunny side
of ron paul mountain

the thin air makes you dizzy and the movement of money

makes you see goblins

where only the late 70's in reverse

are passing by

“instantaneous run on money market accounts across the United States”

ya ?????? and ?????

Posted by: paine | Link to comment | December 17, 2008 at 08:29 AM

paine says…
“Why should recent house buyers (or people who have used the housing ATM liberally) be favoured over everybody else.”

they shouldn't
it should be an offer u can't refuse

open to all

if it were done by say
a fed land bank

as a 30 year

balloon re fi at a zero first five year rate

on the full value of your lot

uncle strip teaser might tempt even the thrifty

Posted by js paine at 09:02 PM

“Why do so many have so much faith in central planning?”

when it comes to macro plans
it isn't faith its necessity

a system of markets have no guiding over soul
that keeps their aggreagate or ” macro ” elements

in balance

we live in a moment

rare for its imbalances

today's global economy has arrived
at the spot in time

where macro “plans” become necessary

Posted by: paine | Link to comment | December 17, 2008 at 08:17 AM

paine says…
“Why do so many have so much faith in central planning?”

when it comes to macro plans
it isn't faith its necessity

a system of markets has no guiding over soul
that keeps their aggreagate or ” macro ” elements

in balance

we live in a moment

rare for its imbalances

today's global economy has arrived
at the spot in time

where macro “plans” become necessary

Posted by js paine at 09:01 PM

maybe in the long haul
to avoid these lot bubbles

we need to set up

a federal land bank

ready to loan to all comers

at sub mortgage rates on the full market value

any lot

the present system would soon be driven out

of the biz

of loaning on lot values by the lower rates

relegating them to the far more stable
new consumer durable category of ” non mobile houses”

— land locked house boats —-

obviously the land bank would always
be second to any pri sec or gse mortgage debt

consider it a voluntary national george tax by other means

in fact net proceeds oughta
get rabated on a pro rata basis

to the local authorities

for communal uses

Posted by js paine at 09:00 PM

payroll tax cut:

“if this works(it all gets spent)
you get more widgets instead of a new bridge.”

yup

” …But this may not be what you want if consumption has been to high and must be ratcheted down to a new level as part of the long-run adjustment process”

what needs ratcheting down is not household spending (consumption)only household spending out of borrowings
increasing take home pay based spending creates no debt shadow over future earnings

indeed household debt needs lowering
but i submit the best way to do that

is to flow back the SSI trust funds

to the pay iners themselves

in other words shift household debt to uncle sam

obviously the trust fund isn't big enough to get us back to
sound household debt levels

that looks like about 4 trillion at least

but its a start

and the trsut funds are “they're money ..they earned it “

maybe in the long haul
to avoid these lot bubbles

we need to set up

a federal land bank

ready to loan to all comers

at sub mortgage rates on the full market value

any lot

the present system would soon be driven out

of the biz

of loaning on lot values by the lower rates

relegating them to the far more stable
new consumer durable category of ” non mobile houses”

— land locked house boats —-

obviously the land bank would always
be second to any pri sec or gse mortgage debt

consider it a voluntary national george tax by other means

in fact net proceeds oughta
get rabated on a pro rata basis

to the local authorities

for communal uses

Posted by js paine at 08:56 PM

this post
contains pure trans nat poison

i love it i love it

capital exporters of the world
take note

your finest hour has arrived

a half emerged but swooning hemisphere

awaits your credit lines

Posted by js paine at 08:54 PM

1.5 1.1 whatever
its all about

pulling the production system back to full utilization of existing facilities

pedal to the metal time

the strength of the multiplier hardly changes
the target

if its weak and getting weaker …

that only incresases the task

in times like these
deficits oughta be

whatever it takes

that is the wisdom of 75 years of macro policy

unless u want
protracted high unemployment

and capacity slack

maybe

to teach moral lessons to the wage smurfs

or the jay birds or whatever…

smart macro policy
runs deep bright fiscal deficits

till

“recovery is at hand” as super K might have put it …

“Care to tell me who is going to boost your economy if not the workers”

right on det

off with
laff track's flibullous gedanken macro

on with

the full tried and true

keynes treatment

rumbelings

reads like a burp from the belly of a simpleton

we can't “borrow from the future”
and

cutting payroll taxes from the bottom up

to increase effective demand

isn't “the deployment of capital “

in any sense worth the words used

its the re-employment of idled capacity

here's a regime not up to its multipliers:

1977 ( 0.6) Carter
1978 (- 0.3)

1979 (- 4.9)

1980 (- 3.5)

that run of numbers makes me weep

and tremble

“the problem of current account leakages that can sink any attempt to stimulate our way out of the current economic woes. (And which may, in fact, turn the stimulus into a disaster….” don

sink em ???

no

only weaken em unless the marginal prop

to import out of additional nat income

plus the tax take increment

is above one

is it … ????

stimulus a disaster ???

i'm lost by the leap here

“insolvency of U.S. Treasuries ” ???

with the limitless dollar mine at hand ???

dY/dD = (1-m)/[1 - (1-t)(1-m)c - t(1-m)]

linearizing assumptions
( ie mp = ap

thru the relevent intervals)

add a bag of plausible parameter values
and a one world gub

where the above becomes

dY/dD = (1)/[1 - (1-t)(c - t)

starts looking kool jay-son sir

econ con macro wise that is

sorry to tilt at you
feudal fantasy gamester that u are

but you look so much like a ewe

the demons make me do it

Posted by js paine at 08:46 PM

“We all race to the bottom together”

uncle hegemonic needs to remain spender of last resort
despite leaks that will grow and further weaken the government spending multiplier effect

from the trans nat board room window
adequate macro policy

looks like this :

in order to keep the globe safe
for free range corporate profiteering

we

(thru our duly owned and operated

advanced nation states )

need “fiscal thrusters”
just large enough

to keep employment high enough

to stave off

rampant protectionism

ie
a contained depression

but from the split ranch picture window
on oak street

we need deficit max till we restore full employment

whilst our uncle wrangles
over the existing international non system

a wrangle that starts all trading states on the road

to a rapid re balancing current accounts hi fi structure

thru trade rebalance not credit flows

and while unc's at it
set up a mechanism

to fund adequate emerging state

fiscal deficits

this post seems slap happy
not slap dash mind u slap happy

is there dizzinesss here

over the chanels dollar forex movements

might cause vs reflect as the various national effective demand mangement tools work for or against each other ??

dizzy ??
well maybe i ought to re read more carefully

Posted by: paine | Link to comment | December 15, 2008 at 07:18 AM

paine says…
TD

the balance tradde dollar is exceedingly south of its present trading range vis a vis our asian trade partners eh ???

so fall it must controled or uncontroled

as to excessive foreign borrowing in the mean time

put some ceilings and floors and time frames on it for us

lets talk stylized ratios here not cloud colors

Posted by: paine | Link to comment | December 15, 2008 at 07:47 AM

paine says…
bark use corporate va

to be fair here

but i love the intent baby

“This recesssion, or the next, marks the end of the American Imperium”

even the wise need rose glasses ..sometimes bruce

but don't bet on uncle staying on his stool after the next couple rounds
even if

this recession becomes this depression

uncle's empire has legs

unlike Spain's

the one we ate to get started

“In the end, (domestic)investment has to make up the gap”

right

hence the project
to build a lean clean green production machine

able to turn out trade products

that we can swap even steven

for what ever else in this world

we might want or need

Posted by js paine at 08:42 PM