Re: Gosford Motor Museum Closure - Packards for Auction

Posted by Tim Cole On 2020/6/21 9:42:09

I remember those days when you could buy those V-12 limos cheap. People didn't want them.

As for the comment that excess money floating around is good for the economy, if there is no value added there is no economic gain. Where does money come from? I have some qualifications to address that matter. Bank assets are in the form of loans collateralized by hard assets. In the old days National Banks would issue their own currencies backed by such collateralized loans. These were called National Bank Notes. If they issued loans backed by junk assets like WorldCom stock their notes would quickly fall in value and depositors would run on the bank and shut it down. This restrained the Federal government's ability to spend because they had to rely on foreigners and the private sector to purchase government bonds. They also didn't like the instability of periodic panics where banks would have to pay for being sloppy. Who wants to see crooked bankers going to jail? Without a new source of funding the USA also could not get involved in stupid overseas affairs like World War I, so they created their own bank called the Federal Reserve which is a printing press. Now the government would sell bonds to the Federal Reserve which would then issue Federal Reserve Notes collateralized by US Government debt. Lately the Fed has started proping up the bond market by issuing notes to buy bonds that are falling in value in response to free market forces. What? Since when is price manipulation of financial assets good for the economy? If the crooks on Wall Street got caught doing that they would go to jail. If the price of old cars starts falling will the Fed start buying those as well to bail out the rich spending money on antiques that don't create jobs? The fact of the matter is that US monetary policy is Marxist. And that is hurting the poor the same way it did in the USSR, Cuba, Yugoslavia, Romania, East Germany, and so on.

Sorry for all the hot air, but I have been watching this situation my entire life.