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View Diary: A guide to the conservative movement in one handy chart (219 comments)

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  •  You've got about all the Cons, which is what I'm (4+ / 0-)
    Recommended by:
    fumie, rat racer, yella dawg, The Marti

    calling them now, because they are conmen all.
    The Confidence Man, there's a long tradition of them, even in American literature.

    Anyway, I've got a graph for you, now that I've figured out how to post one in a comment. It's from the St. Louis Fed and it's an eye opener. It tells us that the problem with "trickle down" wasn't the direction, but that the flow of our currency has been reduced to a trickle.

    What has caused that? I'd argue it's rationing by the Congress and hoarding by the private sector.

    We organize governments to deliver services and prevent abuse.

    by hannah on Thu Mar 07, 2013 at 11:32:44 AM PST

    •  Interesting (2+ / 0-)
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      mmacdDE, yella dawg

      though I would probably say that income inequality has a lot to do with that graph. If you're in, say, the top 5% or so, you're not going to make a whole lot of purchases in any given year, and thus velocity will slow down. Maybe you'll make a real estate purchase here, a stock purchase there, and a car purchase whenever you need it, but it's not like someone making 300,000 or 3 million will spend all of that money as soon as they get it on consumer products.

      I'm surprised that economists have barely even broached this issue (and its relation to income inequality).

      •  You can't have incoming what the Treasury (2+ / 0-)
        Recommended by:
        hmi, tle

        is not outputting.
        The way congress has arranged it by putting the Fed nominally in charge, is that the Fed is supposed to distribute dollars to the banks and then the banks lend them out to the producers of goods and services. Instead, what the banks have been doing is depositing the dollars with the Treasury to collect a premium. Why the Treasury pays out a premium for keeping dollars that people aren't using safe is a puzzlement, unless you consider it a sweetener to the bankster class so they'll be supportive of their sugar daddies in Congress.
        The Fed has been making noises about paying no dividends on bonds and test the hypothesis that especially other nations just appreciate having a safe currency as a fall-back.

        I'd suggest that the quantity of money is less signficant than the rate at which it travels can be demonstrated by the fact that the crash supposedly caused $40 trillion to evaporate. If that much value can disappear in a few months, then it wasn't real to begin with.
        Hoarding money is a problem, just as it would be a problem if people were hoarding nails or stop signs. We can make more, but it's a gross inconvenience.

        And we should not extend plaudits to people who hoard dollars.

        We organize governments to deliver services and prevent abuse.

        by hannah on Thu Mar 07, 2013 at 11:51:24 AM PST

        [ Parent ]

    •  uh, huh (3+ / 0-)
      Recommended by:
      marsanges, yella dawg, The Marti

      or better known as the concentration of wealth at the very top of the food chain...

      Once you figure out they are lying to you about race, you start to question everything. —molly ivins

      by fumie on Thu Mar 07, 2013 at 11:39:20 AM PST

      [ Parent ]

    •  By pumping money in the hands (0+ / 0-)

      of people more likely to save (or invest or speculate) than to spend on consumer goods or services, it stands to reason M2 would slow down.

      Difficult, difficult, lemon difficult.

      by Loge on Thu Mar 07, 2013 at 12:00:34 PM PST

      [ Parent ]

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