Comments on: Top ten economic wishes for 2009 http://www.creditwritedowns.com/2009/01/top-ten-economic-wishes-for-2009.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Stevie b. http://www.creditwritedowns.com/2009/01/top-ten-economic-wishes-for-2009.html#comment-2043 Stevie b. Fri, 02 Jan 2009 10:46:07 +0000 http://www.creditwritedowns.com/?p=3166#comment-2043 Q -A weak currency for debtors means high import prices and inflation. While this is an economic burden, it certainly helps avoid debt deflation and it definitely encourages savings and discourages overconsumption- UNQ Ed - I like your points, and would add that a weak currency should of course also stimulate import substitution. However, I'm not so sure about the -definitely encourages savings- bit in the quote above. Depends perhaps on the real rate or indeed degree of negative real rate of interest as well as the degree of interest rate manipulation along the curve by the Fed under QE? With inflation and unemployment and serious wage pressure, it's hard to see how people will really be able to save - so assuming you agree that savings are an integral part of the solution, how do we square this particular circle? Q -A weak currency for debtors means high import prices and inflation. While this is an economic burden, it certainly helps avoid debt deflation and it definitely encourages savings and discourages overconsumption- UNQ

Ed – I like your points, and would add that a weak currency should of course also stimulate import substitution. However, I'm not so sure about the -definitely encourages savings- bit in the quote above. Depends perhaps on the real rate or indeed degree of negative real rate of interest as well as the degree of interest rate manipulation along the curve by the Fed under QE? With inflation and unemployment and serious wage pressure, it's hard to see how people will really be able to save – so assuming you agree that savings are an integral part of the solution, how do we square this particular circle?

]]> By: Ranger Turtle http://www.creditwritedowns.com/2009/01/top-ten-economic-wishes-for-2009.html#comment-2039 Ranger Turtle Fri, 02 Jan 2009 04:32:11 +0000 http://www.creditwritedowns.com/?p=3166#comment-2039 What about? a. Reduce private debt; pay off those credit cards. b. Increase personal savings; buy U.S. Saving Bonds etc. c. Reduce public debt; stop the bailouts. d. Increase Food Stamp delivery (temporarily) e. Invest to get America manufacturing again; if we don't produce anything, we'll stay being a third world nation that depends on China, Japan ( and the Fed) to buy our T-Bills. f. Get rid of derivatives, regulate Hedge Funds. make SEC accountable. Show some leadership in getting the public to do its part, and show example by government doing its part. What about?
a. Reduce private debt; pay off those credit cards.
b. Increase personal savings; buy U.S. Saving Bonds etc.
c. Reduce public debt; stop the bailouts.
d. Increase Food Stamp delivery (temporarily)
e. Invest to get America manufacturing again; if we don't produce anything, we'll stay being a third world nation that depends on China, Japan ( and the Fed) to buy our T-Bills.
f. Get rid of derivatives, regulate Hedge Funds. make SEC accountable.

Show some leadership in getting the public to do its part, and show example by government doing its part.

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