Re P & Gold standard...and the Econ argument threads....

[alice wellintown]

I’ve been getting questions about Carmen Reinhart’s new paper on
financial repression (pdf) in the aftermath of large debt buildups,
which asserts that said repression was a large part of the way the US
and UK, in particular, dealt with their war debts.

http://krugman.blogs.nytimes.com/2011/06/02/financial-repression/

On Sun, Jan 6, 2013 at 9:23 AM, alice wellintown
<alicewellintown at gmail.com> wrote:
> Well...of course. The Wars have to be paid for with inflation and a
> repression of the worker pensions and savings, held, often by law, in
> government debt, that is then liquidated through monitary policy, the
> Fed or a Central Bank lowers interest rates, buys up the higher coupon
> debt, pushes in some inflation, and like magic, the debt disappears.
> The Fiscal side of things is, for the most part, simply a political
> game that the press, fiscal cliffing the public to numbness, plays
> along with. Austerity, or raising taxes on the workers while cutting
> back on the spending that help these workers, even as spending
> continues, on defense and all that pork that keeps the same rotten
> government in power...
>
> How the bank and government alliance works this out is the key. Do
> they pay fines? Do that clean up their greedy act? Do they toss a bone
> to the workers? Well, so far, we got Obama and Ben tossing us a few
> scraps and a bone. And, of course, when we look at standards of
> living, as Krugman shows in his NY Times repsonse to the study on
> finacial repression, what we see after WWII, is growth and incomes up
> up and away. Not so bad. So hurray for financial repression! Yeah.
> But, here is the thing....the rub, the conscience of the king is
> rotten to the core, and, nobel prize winning academics, liberals with
> a conscience,  don't get to play president. Bernanke has been a good
> friend. Not a greaat one, but better than expected. He has learned
> from Japan and from his foolish predecessor. And, I believe, he cares
> about us poor and powerful people out here.
>
> On Sun, Jan 6, 2013 at 9:01 AM, Markekohut <markekohut at yahoo.com> wrote:
>>
>>
>> www.businessinsider.com/chart-inflation-since-1775-2013-
>>
>>
>>