Denninger: Reality Intrudes

chopper money_0

You mean people and governments can’t borrow money to infinity?

Another component of the 2017 friskiness en route.

i like money

3 responses to “Denninger: Reality Intrudes

  1. There will be two reactions to ‘free’ helicopter money —
    * Sane people: If they have any debt, they use it to pay it down.
    * Insane people: They will buy that 67″ LCD TV with it, the rest on the credit card.

    In a better world the sane people would be pre-eminent and the effects would be negligible to the overall economy. But the central banks know most of us better than ourselves. Sigh.

  2. Rational people might stop paying on unsecured debt and pay more on debt attached to things they actually need. They might decide that they need much less than they currently consume, and can save the rest of income in an unattachable way (at least not “point-n-click” attachable, like a bank/brokerage account). When an economy is steady and prosperous for a long time, most people aren’t so ambitious on savings vs. consumer spending “fun” (confident in job/pension/SS retirement/kids working, etc), but in a collapse the amount of money a person “needs” is enough to leave the system, so folks get seriously cheap while losing faith in banks or even gov’t money in-general (faith that lacks any economic basis currently, except for that the ATM still works, UPS delivers Amazon.com boxes, and the dot-gov website is up).

  3. Alfred E. Neuman

    Reblogged this on FOR GOD AND COUNTRY.