[mattduke]

The only thing difficult about printing money is coming up with the fresh lies all the time. Man, this is rich.

nytimes

[Hermes]

Needs "login" to see the article... can you post the relevant parts plz?

[cube]

$this->bbcode_second_pass_quote('Hermes', 'N')eeds "login" to see the article... can you post the relevant parts plz?

[TWilliam]

$this->bbcode_second_pass_quote('Hermes', 'N')eeds "login" to see the article... can you post the relevant parts plz?

[niknak]

Burn a credit card and
Starve a luminati



great bumper sticker.

[copious.abundance]

This is not a lie, I have been reading about this for at least 3-4 years.

[copious.abundance]

Here ya go - from 2005:

--> Business Week <--
$this->bbcode_second_pass_quote('', ' ')JULY 11, 2005
Too Much Money
A global savings glut is good for growth -- but risks are mounting

[...]

But that's not what is happening. Long-term interest rates are falling and have now dipped below 4%. The total of residential and business investment has been rising and now stands at 16.5% of gross domestic product, well above the average for the 1990s. And there are few signs that the economy is stalling.

These surprising events are forcing economists, investors, and policymakers to think more globally than ever before. In just the past few months, they've begun to consider seriously two intertwined and heretical notions: What really matters for interest rates is the global economy, and there the problem may be too much savings, rather than too little.

Look around the world, and extra money is piling up in all sorts of places. Japanese corporations are recording record profits, but not doing much spending. Chinese companies are on an investment tear, but the country is getting so much money from exports that it has billions to spare, including $18.5 billion that China National Offshore Oil Corp. (CNOOC) bid for Unocal. The surge in oil prices -- now about $60 a barrel -- is giving oil-producing countries such as Russia and Saudi Arabia far more money than they can use right away. And the aging workers of Europe are building nest eggs for an uncertain future.

The International Monetary Fund predicts that in 2005 the worldwide savings rate should hit its highest level in at least two decades. Surprisingly, even in the profligate U.S., businesses have been accumulating huge sums as undistributed corporate profits -- running at a record annual rate of $542 billion in the first quarter -- have almost doubled in the past two years. This corporate hoarding explains why the U.S. national savings rate, which includes governments and businesses as well as households, rose to 14.7% of national income in the first quarter, up from 12.8% two years ago.

[...]

[smallpoxgirl]

$this->bbcode_second_pass_quote('cube', 'I') do not doubt that spending has dropped and people are saving more, but when the hell did saving money become a bad thing?

[mattduke]

Keynes was an idiot. Check out this gem from his "General Theory":
$this->bbcode_second_pass_quote('', '
')"If the Treasury were to fill old bottles with bank-notes, bury them at suitable depths in disused coal-mines which are then filled up to the surface with town rubbish, and leave it to private enterprise on well-tried principles of laissez-faire to dig the notes up again (the right to do so being obtained, of course, by tendering for leases of the note-bearing territory), there need be no more unemployment and, with the help of repercussions, the real income of the community, and its capital wealth, would probably become a good deal greater than it actually is."

[Falconoffury]

Any talk about a "savings glut" is just the rich complaining about the poor giving them less money.

Deflation is good because it cleanses the economy of waste, prevents bubbles, and makes money more productive.