From Plunger at the Chartology Forum
Things are a little slow here so here’s something to discuss
“After mentioning this in the weekend report I ran across this in an article. Unreal, people can actually believe this. Free money which doesn’t even cost anybody anything… what’s not to like in a GREEN NEW DEAL?
“Calls for a Universal Basic Income have been increasing, most recently as part of the Green New Deal introduced by Rep. Alexandria Ocasio-Cortez (D-NY) and supported in the last month by at least 40 members of Congress. A Universal Basic Income (UBI) is a monthly payment to all adults with no strings attached, similar to Social Security. Critics say the Green New Deal asks too much of the rich and upper-middle-class taxpayers who will have to pay for it, but taxing the rich is not what the resolution proposes. It says funding would primarily come from the federal government, “using a combination of the Federal Reserve, a new public bank or system of regional and specialized public banks,” and other vehicles.
The Federal Reserve alone could do the job. It could buy “Green” federal bonds with money created on its balance sheet, just as the Fed funded the purchase of $3.7 trillion in bonds in its “quantitative easing” program to save the banks. The Treasury could also do it. The Treasury has the constitutional power to issue coins in any denomination, even trillion dollar coins. What prevents legislators from pursuing those options is the fear of hyperinflation from excess “demand” (spendable income) driving prices up. But in fact the consumer economy is chronically short of spendable income, due to the way money enters the consumer economy. We actually need regular injections of money to avoid a “balance sheet recession” and allow for growth, and a UBI is one way to do it.”
Hi Fully,
Even though it is from Plunger, I am still very wary of starting political discussions on this site. I am happier with technical analyses of precious metals and the conclusions various people draw from their work. I fear opening an unnecessary can of worms.
Thanks Norwegian. I value your input as you know.
Lets see for a bit. I think we can handle this in a civil manner. I don’t see it as left vs right. I see it as end game .
It is very apropos wrt Gold Investing as this could lead to run away inflation if it actually gets executed.
Feel free to tell me “I warned you Fully” if this gets me in trouble.
I agree Norwegian. This is part of such a much great topic that we could fill the entire site for who knows how long.
Please don’t get me started………!!!!
I am willing to listen Sir Steins 🙂
An event like this is WHY we are “investing” / “insuring” in Gold
You are right that it is the character of the population of our countries and the world why we are hedging with gold.
The short answer is that there is evidence that humanity has all but wiped itself out possibly five times now.
It looks like we are headed for a sixth.
Just where I live alone, the marine life in Puget Sound has been decimated.
Just the tip of the iceberg…..
But I will add, that hitting bottoms are a good thing. It gives the chance for renewal.
Cheers Sir Steins
Hahahhahahahaha!
Maybe we should fund a scientific project to turn lead into gold.
While I am certainly aware that something needs to be done, writing checks drawn from funds from who knows where is not the answer and, Social Security w is contract between the government and those who contribute to it as I did for 40 years.There was a trust fund from whence the funds to pay the retirees was to be drawn.
>> A Universal Basic Income (UBI) is a monthly payment to all adults with no strings attached, similar to Social Security. <<
I don't get it. Is it meant to be a payment to ALL adults, regardless of income? or payment to seniors, underemployed, handicapped, and/or low income people? Is UBI meant to be a social safety net, or something more? This could be a very bad idea.
…………………………………………………………………………………………………………………….
Remember, when you give a dollar to someone who hasn't earned it you must first take that dollar from someone who earned it but didn't receive it. Else you must "print" it, in which case what is the value of currency created perpetually from nothing.
What UBI means, if they are not careful, is a loss of confidence in the currency. As the economy slips toward to the Zimbabwe/Venezuela inflationary syndrome, ultimately it would lead to the collapse of social order.
I am all for giving the needy a hand up, but not at all keen on giving a perpetual hand out. Marxist ideas lead to anarchy. Let us beware.
Another attempt to keep the party going and we are not yet even in a recession.