Here is a bit of information which all, but especially Students, should read. I imagine that taking a economics course under Jodi Beggs would be fun, with a preponderance of learning through simply letting it sink in. I will give Jodi a little Hint: the place to find both Giffin Goods and Veblin Goods are the economies of a military occupation. The Poor utilizes Giffin Goods under such striated performance, while the raised leadership become fascinated with preeminence. I have some doubt as to the validity of her second set of graphs, finding an upward shift in the Demand curve, rather than an outward shift in the Supply curve, but what do I know? Life is too short to spend arguing with a pretty lady!
I feel like Paul Vigna, though I care a lot less. Things are truly bad, and bound to degenerate. I may be a Burnout Case as Things might be going to Hell in a Handbasket, but what will the Morning After bring? The seeds of our destruction lay in Lenders getting tired of buying Government securities; an Event which will come sometime. Still, what comes after? The population is still there; the Production schedules are still there; and people will continue to Shop even if they have to use Wampum. I have witnessed so many crises that I almost hope for the Big Bang, just to prove that We could live through it. We will someday have to ride the Snake Oil salesmen out of Town on a rail again, and go back to work; still, it might be refreshing for our jaded personalities. One should remember that Few would advocate throwing Us all into Debtors’ Prison; the Support Costs of such a refined system could not be borne by Anyone but Americans.
The Fed may think they are copying my Playbook, but they are not! Only two things will save the Dollar and American economy–higher taxation, or much higher Interest rates. Both can substitute partially for the Other, though it takes both to get the real position required; individually, neither can accomplish more than 30% of the impact necessary. With neither on our Plate, then We will lose 30% of the Value of the Dollar within 3 years. A lot of economists believe this will aid our Trade position, though Trade could not make up even a Tenth of the loss; and the Transport systems would be heavily stressed. The later Event would cause a mandated increase in capital construction at much higher Price levels; bound to be Budget-defeating without a massive Tax increase. The Situation seems rather bleak, but remember this is all relative; Americans simply forced to go back to being only marginally better Paid than the rest of the World. lgl