Quote from: jehst on September 09, 2015, 06:03:12 PM

Quote from: TPTB_need_war on September 09, 2015, 02:18:51 PM

Not likely again before 2032. The political climate in the USA will have changed so much by 2017.9, it will be impossible for them to get away with another QE. The problem is confidence. Once the people have decided to exit stocks and put their cash under their mattress, then the Fed is powerless. What the government will have to do instead is stop people from getting cash to put under their mattress. This is why the coming attack on cash, capital controls, bail-ins, nationalization of pension plans, etc..

The shit coming is going to make you wish for QE. But your prayers will not be answered.

I have been trying to take the bull by the horns and work on the crypto-coin attributes we will need coming 2017ish.

Let's say I'm government. You put cash under your mattress because you don't believe in government bonds nor do you believe in stocks anymore. I raise UST rates to 20% but you simply don't believe in government anymore and I can't keep the rate at 20% for very long without instantly being unable to service my debt. So I can't raise money anymore through UST. That leaves me with two options:

1) I hunt down your cash, raise real estate taxes, confiscate gold, etc.
2) I print money.

Isn't the problem with Option 1 that there's USD all over the world? Am I going to hunt down cash in the Caribbean, Switzerland, Saudi Arabia, and all over the world? Option 1 seems a lot harder to pull off than Option 2. With Option 2, I just borrow money at 0%, use it for government spending (create governments jobs, finance huge government projects, service the debt) and stealthily (and heavily) tax everyone who is hoarding dollars through inflation. Only when that stops working am I forced to do Option 1.

Interesting remarks, jehst.

Re No. 1, my guess is that most/all .govs will go ahead and try to seize what they can that is EASY for them. True, it would be very hard to seize foreign dollars. Raise taxes, yes. But many taxes can be avoided by not making (much) income, not owning too much real estate, etc. Seizing gold, naah. They might try to TAX gold sales and purchases though.

Re No. 2, another guess is that with monetary velocity near zero now that printing money may not stop DEFLATION. They would have to print a WHOLE LOTTA MONEY (QE^QE... I do not see political (nor bankster) will to do that in the short-term. Longer-term, printing money becomes more likely.