Wednesday, Nov 26, 2008
Something must be done! Won't someone think of the children!
Independent: Stephen King: If interest rate cuts cannot solve the money shortage, turn on the printing press
As people hoard money, so output weakens and prices fall, as in the 1930s. For the world's central banks, it is time for unconventional acts of bravery. These acts are needed because the financial crisis is mutating. No longer is this a story simply about the unwillingness or inability of banks to lend. It is fast becoming a crisis of liquidation. Something must be done. The printing press has to be turned on. // Stephen King is managing director of economics at HSBC
Posted by drewster @ 02:03 AM (7433 views) Add Comment
77 Comments
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1. bystander said...
Looks like Stephen King is trying to write a truly frightening horror story for us all. Hyperinflation - A monster is created to fight another, only one can win, at risk the future of mankind itself - don't miss this sensational new book, available everywhere the moment the printing presses are turned on.
2. it_is_going_with_a_bang said...
Printing money? thats a very simple way of trying to get out of a problem.
Why don't we all just do it. The reason we don't... because it would become worthless.
3. gardeniadotnet said...
This article is a 'heads up' if ever I read one.
The denial evident in the comments is equally enlightening.
4. Mark Grindell said...
If anyone had been thinking about children, the housing boom would have been stopped, oh, way back in 2002 - or even earlier.
5. theboltonfury said...
me thinks the author is in quite a lot of debt!
6. Wadisgaod said...
Why take advice from one of the fools who allowed this mess to evolve. my god who is responsible for to getting us out of this mess, Brown (and darling) the biggest fool of all!
We are well and truly b=gg==d.
7. lierbag said...
We've already had our own personal printing presses - they were called 'credit cards'. They didn't work out all that well, really.
8. denzil said...
lierbag said:
"We've already had our own personal printing presses - they were called 'credit cards'. They didn't work out all that well, really."
Exactly! We have also had cash machines installed in residential gardens up and down the land. In olden days those cash machines were called homes.
9. mountain goat said...
Drewster nice title :-)
10. letthemfall said...
Credit card spending is borrowing, which is not quite the same thing as printing money, is it? There was an item on Today this morning which said that the US was already beginning to do this. The idea is to stave off deflation, but the corollary is inflation later on, which might or might not be choked off with appropriate policies. Watch the bond prices.
11. jackas said...
I'm starting become a little bewildered by the media portraying a fall in the rate of inflation as a fall in prices.
I can't believe deflation is being touted as the new bogeyman.
12. stillthinking said...
I don't think we can print anyway because of signed agreements with Europe.
13. planning4acrash said...
This is the same Steven King who advocated no more inflation targeting, during the summer.
Remember that lots of the money printed is printed by banks like HSBC. These are the guys who are destroying our future, sucking is in, so we claim ownership of the system, to learn to love our servitude, via mortgages and credit cards.
Oi King, stick these solutions up yer ass:
Join the fledgeling End the Bank of England group at RestoretheRepublic.net : http://www.restoretherepublic.net/group.php?group_id=259
14. drewster said...
Credit where due: HSBC didn't engage in reckless lending and have thus far avoided the need for a bailout.
mg - thanks, it's the Maude Flanders line from the Simpsons
p4ac - The problem for banks is that they aren't creating any more money because nobody is borrowing. See article below about net borrowing going negative.
For the purposes of this article, let's not confuse actual central bank printing with fractional reserve lending. There are important differences between the two.
15. planning4acrash said...
16. planning4acrash said...
"For the purposes of this article, let's not confuse actual central bank printing with fractional reserve lending."
I totally disagree. 9/10ths of the a Central Bank's role is to sustain fractional reserve banking. The central bank lends to banks beneath their reserve ratio when the banks don't have enough to lend to each other at a cheap price. Bailouts are bailouts of the fractional reserve system. When banks are beneath their reserve ratio, they get a cash injection. Fractional Reserve banking is inherently unstable, so there is a constant trickle of lending from the central bank, which also sets reserve ratio levels. So, a Central bank is the capstone of the fractional banking system. It is a partnership between government and big business, aka fascism.
17. lierbag said...
lethemfall: 'Credit card spending is borrowing, which is not quite the same thing as printing money, is it?'
You're technically correct of course, but you know what I'm getting at. Credit cards have allowed us to generate our own, unearned, wealth at will. And with the number of expected repayment defaults meaning that no productive work need actually be done to rectify the debts, then it's been exactly like having our own personal printing presses.
18. planning4acrash said...
Lierbag, same holds true for liberty, no productive work need be done to get rid of the blasted debt, which is just IMAGINARY fraud. All we have to do is bring folk to justice and declare their debt demands on us as TOTAL FRAUD. That way, those living in houses will retain them, BTL landlords just give up their houses to the free market, declared rightly as feudal overlords.
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