Comments:June jobs report shows rising US unemployment, economic outlook worsens

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Reflation, the Wise Compromise318:03, 11 July 2011

Reflation, the Wise Compromise

There’s a way out of stagnation without increasing deficits, tax cuts, increases or benefit cuts: “reflation.” Reflate Americas’ crash - impoverished households by granting them money created without debt. Panic asset deflations (1929, 2008) differ from gradual recessions. Business decision makers (not government) crashed the market, closed workplaces, and killed jobs. There’s no limit to interest rate hikes to stop inflations, but decreases, to encourage lending, are limited to 0%. Consuming households lost $13 trillion. Corporate bailouts and easing money supply couldn’t re-money or re-employ millions of households. Republicans and Democrats have applied cheap cosmetic programs, unemployment compensation, “Home Affordable” (to mortgage servicers.) But the household’s still comatose. Now, they playact “Deficit Deadlock,” misdirecting media attention, hoping it will turn away. They have no breakout ideas. The government could spend greenbacks on employing people, in temporary cleanup work for income, in buying and renting “underwater” houses, leaving revenue to fund Social Security and Medicare. Before complaining “That would be inflationary,” note: greenbacks sustained our armies to win independence, and free slaves. They regained parity with gold by 1879. The Greenback Party elected House Representatives to 28 terms in 10 years (1879 – 89.) A controlled reflation, some lowering the dollar’s value, isn’t a panacea, but helps all debtors (including the U.S.) The debtor gets to pay his/its nominal debt balances in cheaper dollars. We’re 3 years into stagnation. Will we suffer as long (10 years) as the Great Depression only to be pulled out by another World War?

Counselor1 (talk)13:03, 10 July 2011

What? maybe i don't understand this logic but it seems flawed. How does one grant money with out creating debt or affecting our trade/world value?

Crazynomad (talk)17:28, 11 July 2011

Not passing judgment on the merits or demerits of the idea —

The answer to the first half of your question seems perfectly clear: How does one grant money without creating debt? By fiat. Say the money is there, and it's there. (Back in the day, we'd talk about "printing more money", but most money isn't in physical form these days anyway.) On the second half of the question, it is perhaps worth noting that anything at all we do for our economy affects our trade/world value, one way or another.

Pi zero (talk)17:42, 11 July 2011

Seems like it would be more harmful to create more money. Can anyone produce a source which supports this idea on the scale which we are talking.

Crazynomad (talk)18:03, 11 July 2011