Thursday, November 19, 2009

Still hitting the herring sauce

Negative interest rates on t-bills.

This is crazy. Money is fleeing the economy and disappearing under mattresses so fast that people are actually paying to put it under mattresses (what putting money into t-bills basically is at this point in time). That indicates deflation -- serious deflation. Deflation so severe that even if you *pay* to stash your money away in vaults, you *still* make money thanks to the value of money increasing due to fewer dollars actually circulating as vs. sitting under mattresses. Yet President Obama is lunatically talking to Fox News about how he wants to reduce the deficit -- which is a deflationary act.

I have to figure out some way to get out of this lunatic asylum...

-- Badtux the Depressed Depression Penguin


  1. Hi BadTux,
    "lunatically"? If that isn't a word, it sure should be.
    I have no idea whether or not Obama is sincere about wanting to reduce the deficit, but every president except one has said the same thing. The one exception is "deficits don't matter" Cheney. How's that for irony?


  2. Krugman mentions this in passing today.

    Here is some rather deep thought on the deflation question.

    My assessment: We are SO screwed.

    JzB the screwed trombonist

  3. spending bad, deficits bad, banks get rich, wars are endless, insurance companies are heroes to the populists

    somewhere George Orwell is saying I Told You So


Ground rules: Comments that consist solely of insults, fact-free talking points, are off-topic, or simply spam the same argument over and over will be deleted. The penguin is the only one allowed to be an ass here. All viewpoints, however, are welcomed, even if I disagree vehemently with you.

WARNING: You are entitled to create your own arguments, but you are NOT entitled to create your own facts. If you spew scientific denialism, or insist that the sky is purple, or otherwise insist that your made-up universe of pink unicorns and cotton candy trees is "real", well -- expect the banhammer.

Note: Only a member of this blog may post a comment.