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

Posted by BadTux at 11/19/2009 07:04:00 PM
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3 comments:

  1. Underground Carpenter20/11/09 9:23 AM

    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?

    Dave

    ReplyDelete
  2. Jazzbumpa20/11/09 1:35 PM

    Krugman mentions this in passing today.

    http://krugman.blogs.nytimes.com/2009/11/20/interest-rates-the-phantom-menace/

    Here is some rather deep thought on the deflation question.

    http://www.thoughtofferings.com/2009/11/deflation-watch-october-2009-price.html

    My assessment: We are SO screwed.

    Cheers!
    JzB the screwed trombonist

    ReplyDelete
  3. Distributorcap22/11/09 6:22 AM

    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

    ReplyDelete

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