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Thread: [Video] RT Mike Norman: 'US debt is a myth!'

  1. #1

    [Video] RT Mike Norman: 'US debt is a myth!'

    For those needing a good chuckle.




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  3. #2
    Gawd - I can just imagine Paul Krugman sending him a congratulatory text after that interview.

    Paraphrasing - "gov't spending is the capital that made this country great." Ugh. Just ugh.

    He is right, in a narrow sense, in the fact the United States cannot default - if it chooses to print instead. But basing his whole view of economics on that point is laughable. He is just so ignorant about the consequences of such action it's sad. And he's just plain wrong as far as saying "interest rates cannot rise." Any gov't debt in private hands will plummet (skyrocket in interest rates) if the United States gets downgraded and starts to print away all its debt. Only the newly printed monetized debt will be immune to interest rate worries.

  4. #3

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    He's technically correct of course, but in typical financial elitist form he ignores the ramifications on the citizenry.

    There's three way to pay any debt call.. Print it, take it out of the Treasury (budget), or take it from the citizens through seizures and taxes. All of which damage the people. Printing to pay debt causes inflation, and also scares our debtholders into possibly dumping and causing a run on the dollar which would snowball the printing (hello Weimar). Taking it out of the Treasury would drain the gov't cash reserves and then there would be riots once the welfare/SS/entitlement class goes bonkers when the checks don't show. Finally seizing citizen assets (stocks, gold, etc) leads to the same result. So yeah he's right that we can't "Default" in the sense of stop paying the debt service but we can either destroy the currency or destroy the average citizen, or worse do both at the same time.

    Finally, there's eventually a tipping point where servicing the debt becomes more than the budget itself can handle and then we really do go into full-on Weimar mode and print the dollar into trash just to SERVICE the debt, not even paying it off.
    Last edited by devil21; 04-06-2011 at 08:09 PM.
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book

  6. #5


    "What artificial lending standards are you talking about?"

    Mike Norman is just joking. He is like a comedian economist. He just says the keynsian view point in the most wildy outlandish way possible to prove how insane it actually is. Great job Norman! Your a true Austrian.









    Then again no...
    I am more and more convinced that man is a dangerous creature and that power, whether vested in many or a few, is ever grasping, and like the grave, cries, 'Give, give.'

    Abigail Adams

  7. #6
    Chester Copperpot
    Member

    this guy is wrong in the first minute.. America doesnt issue its own currency.. The federal reserve issues it..

  8. #7
    He's right on a couple points, we can print up as much as we want. The problem he has is that these guys have such a bizarre conception of inflation that by the time they realize it, and the folly of their decisions we will be carting wheel barrels full of cash for bread. Inflation is a nasty animal.
    Libertarians - trying to improve the world through ideas and free markets rather than legislation and prisons.

  9. #8
    So much to say, I really can't even post. Laugh is all I can do.



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  11. #9
    I was shocked when he asked why would anyone listen to the ratings agencies cause they got it wrong. Just, stunning.

  12. #10
    ARGHHHH


    cute semi-intelligent host didn't bring up inflation once!
    Those Who Do Not Move, Do Not Notice Their Chains.

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