DJ Fed’s Bullard: Notion Of ECB Riding To European Rescue Unlikely -CNBC

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12 Responses to DJ Fed’s Bullard: Notion Of ECB Riding To European Rescue Unlikely -CNBC

  1. James Hogan says:

    It is impossible to get blood from a stone. But that is what the Euromasters are going to try to do in Greece, Italy, Spain and other countries which “owe” money to the Eurozone. This is a recipe for a revolution, if ever there were one.

    How did this happen? It seems to me, and I’ll be the first to admit that I wasn’t paying close enough attention, that this happened right after a high-level meeting in the spring of 2010. It seems to me that I remember that there was some sort of a meeting in Europe after which some members of the media, notably the Washington Post (which should be a clue) started reporting that the new word of the millineum was “austerity.”

    What is actually happening here is the ritualized theft of several countries. How is the “civilized” world permitting this to happen? If they drove in with their Panzer divisions and actually took the property, would anyone object, at least in the measly western media? Judging from present experience, the answer is no.

    What sort of world do we live in?

    Reply

    Colin Reply:

    I think the words “labor arbitrage” and an episode of Jersey Shore would answer your question. Right? Isn’t that out of the textbook, that living standards are converging, that that is a mega-trend? An interesting article on how in Alabama, jobs are available after immigrants were driven out, but nobody wants them. Apparently, if given the choice between dirty hands and college for your kids, Americans choose basement dwelling and TV-watching if they can’t work in a cubicle.

    Reply

    KD Reply:

    @Colin,

    I know the point you’re making, but it seems to me that these articles pop up all the time, especially about immigration- basically some business owner complaining that his imported labor is the only way he can afford to harvest crops, clean fish guts, build cars, program computers etc. because Americans are too lazy, unskilled, stupid and so on. The crops have been ‘rotting in the fields’ for my entire adult life, but I never remember a catastrophic shortage of food. Steve Jobs bemoaned the dearth of low level engineers in America, but his company certainly had a few dollars he could have devoted to training or higher salaries. These guys have an agenda and a part of it is getting the government to support their companies’ interests over those of American citizens.

    Boomberg just had an article about how closely household debt tracks unemployment at the county level- surely it’s not the case that high debt counties also happy to contain people who won’t get their hands dirty or have no skills despite there being jobs out there just waiting for them.

    http://www.bloomberg.com/news/2011-11-17/how-household-debt-contributes-to-job-cuts-commentary-by-mian-and-sufi.html

    Reply

    James Hogan Reply:

    @Colin,
    Well, just let me say this (and several other things): I am probably one of a very, very few white people who ever picked cotton in Alabama in the early 1960’s. When I was about 15 or 16 (1960 or 1961) I inquired of the local cottonfield owner if I might pick cotton in his field. I thought I might make some spending money this way. (Ha)

    He told me that it’d be OK with him and to report to the field the next day, just as soon as the dew dried (they paid by the pound, and the dew added weight to the pickings) So I got there at about 8:30 the next morning.

    So I got a cotton sack and began picking… and picking… and picking bearing in mind that I was to only pick the cotton and not the bolls, because they couldn’t sell the bolls, besides they weighed more than the cotton). About 2:30 in the afternoon I decided I’d had enough. I dragged the sack and all its contents back to the wagon.

    So when I got back to the truck, the man on the wagon put my sack on the scales and it showed that I’d picked 60 pounds of cotton. “Come around to the front of the truck and I’ll pay you” he said,

    When I did, he gave me a dollar and two dimes. $1.20. I will never forget that moment. I worked my ass off for hours for $1.20. That was what I had earned for my effort. But the other people had no other choice, mainly because of the color of their skin.

    It’s all done now by a very sophisticated machine, which is a good thing.

    But there are some things that aren’t susceptible to machine harvesting, like peppers, and squashes, and several other vegetables. For that, human hands are the best “tools”. And if those tools are required, then the purchaser of those tools should be prepared to pay what the market will bear IN THE UNITED STATES, not in some foreign country. If it means that the price of peppers will be higher than normal so that the producer can pay his help a living wage, then so be it. C’est la vie.

    (Unfortunately some of the retailers want to blame price increases on something other than their own greed, but that’s life, too, isn’t it?)

    Later in my life I worked for several years on a drilling rig as a roughneck. It’s about as hard a life as can be imagined, working 12 hour shifts (“towers” or “tours”) for 7 days in a row, in all kinds of weather, swinging tongs that weighed over 260 pounds and running a “spinning chain” all day long. I feel, to this day, for people who have to make a living with their hands. They are the salt of the earth, without which none of us could live.

    They are also the consumers of this world, and to short-change them is to short-change ourselves. We’ve all heard the familiar refrain that “70% of the US economy is based on conusmer spending.” There was even an article in the NYT recently entitled “It’s consumer spending, stupid” (which I thought got to the heart of modern economics).

    To try to import a sufficient amount of labor in order to drive wages down is a very bad and unwise move. If a producer needs help, he can always fill any need he has simply by paying a higher wage.

    Now you’d be astounded at the coalition which wants to do just this–provide cheaper labor–in the US Congress, and I hope every one of their stinking behinds get voted out of office in the next election.

    Reply

    Colin Reply:

    All the Macroeconomic forces are hard to keep track. I toured a huge factory out here in Southern California, the Robinson Helicopter factory, and they were all Hispanic, even though there was a lot of advanced machinery being operated. They aren’t allowed to unionize and it looks like a soul-crushing job.

    Meanwhile pizza was just declared a vegetable and the Republican candidates are endorsing torture and Hermain Cain’s harassment allegations haven’t lowered his poll numbers?

    Can somebody please form a mutual fund that invests with a cynical strategy, so whenever I read another shocking headline like “pizza declared a vegetable by congress” I can smile instead of get heartburn?

    I think that would be a popular fund. I have no idea how it would work. Warren what’s the best way to make money on the sure thing that Congress is retarded?

    WARREN MOSLER Reply:

    its a work in progress

    Reply

  2. Colin says:

    I think we need to start thinking of deficits as a number that increases forever, like GDP and population. People are stupid, evidenced by how 50% vote, so the way to do it is through brainwashing, like how Fox News calls rich people “job creators” and any non-defense spending “socialism.”

    Just start saying “our deficit-to-population ratio is WAY TOO SMALL.” and start banging on a desk and blaming lazy occupy wall st protesters who don’t know what they want (jobs).

    Reply

  3. rodney says:

    Is this the German revenge? Are we watching the whole of Europe slip into some sort of modern day feudalism. Unelected leasers, suppression of dissent and a general subjugation of people they deem lazy and lesser. Most folks have no idea what is happening and they have no motivation to. Thoroughly depressing.

    Reply

  4. Adam (ak) says:

    The Second Blitzkrieg is apparently coming (please notice that I may not trust that newspaper):
    http://www.telegraph.co.uk/news/worldnews/europe/eu/8898044/Germanys-secret-plans-to-derail-a-British-referendum-on-the-EU.html

    I would say this will be a flop.

    They West Germans were barely able to swallow the DDR (GDR). They can draw any plans they want but as the harsh Russian winter killed off Wehrmacht in 1942, the nuclear winter of austerity will move Europe back not to the 1950ies but to 1933.

    Reply

    WARREN MOSLER Reply:

    actually the deficit spending associated with reunification produces the last real ‘boom’ in Germany

    Reply

  5. Kristjan says:

    What’s the outlook for Europe’s economy, a double dip, a V or or something different? A bathtub: A steep decline, a period of stagnation, and then down the drain.

    ā€œSo are you willing to accept a 50-per-cent haircut?ā€ This was asked by an Amsterdam hairdresser of a Reuters correspondent who’s Greek.

    Q: “How many European finance ministers does it take to change a light bulb?

    A: None. There’s nothing wrong with the light bulb.”

    Reply

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