Jim Grant likes cash now

[LARS]

Who cares how big the debt is, if it bears 0% interest? We can have all the wars, all the entitlements, all the bloated federal wages and pensions, all the welfare for illegals, all the goodies that we could possibly imagine on the Big Rock Candy Mountain. This shouhld really give asset prices a kick in the pants.

In theory, yes, and maybe in practice, but only if the Government "states" that CPI is zero. Otherwise, the pesky cola-ed expenses of the government will eat its lunch overtime.

The unintended consequences of actions at this point in our centrally controlled financial system (yes, we are the old Central Planning Committee of the USSR at this point from a financial management sense) are so far reaching and complicated as to make them nearly unknowable.

 

[Lancelot]

Who cares how big the debt is, if it bears 0% interest? We can have all the wars, all the entitlements, all the bloated federal wages and pensions, all the welfare for illegals, all the goodies that we could possibly imagine on the Big Rock Candy Mountain. This should really give asset prices a kick in the pants.

I think you put your finger on it Ha, near 0% financing sure is handy

Below is a quote from Wikipedia:

Bernanke is particularly interested in the economic and political causes of the Great Depression, on which he has published numerous academic journal articles. Before Bernanke's work, the dominant monetarist theory of the Great Depression was Milton Friedman's view that it had been largely caused by the Federal Reserve's having reduced the money supply. ....Bernanke has cited Milton Friedman and Anna Schwartz in his decision to lower interest rates to zero.http://en.wikipedia.org/wiki/Ben_Bernanke#cite_note-reason1-46