"It is easy to confuse what is with what ought to be, especially when what is has worked out in your favor."
- Tyrion Lannister

"Lannister. Baratheon. Stark. Tyrell. They're all just spokes on a wheel. This one's on top, then that's ones on top and on and on it spins, crushing those on the ground. I'm not going to stop the wheel. I'm going to break the wheel."

- Daenerys Targaryen


"The Lord of Light wants his enemies burned. The Drowned God wants them drowned. Why are all the gods such vicious cunts? Where's the God of Tits and Wine?"

- Tyrion Lannister


"The common people pray for rain, healthy children, and a summer that never ends. It is no matter to them if the high lords play their game of thrones, so long as they are left in peace. They never are."

- Jorah Mormont


"These bad people are what I'm good at. Out talking them. Out thinking them."

- Tyrion Lannister


"What happened? I think fundamentals were trumped by mechanics and, to a lesser extent, by demographics."

- Michael Barone

"If you want to know what God thinks of money, just look at the people he gave it to."
- Dorothy Parker

Friday, November 18, 2011

Deflation or Devaluation?

That's the choice. I'm rereading Liaquat Ahamed's Lords of Finance and he portray's the Bank of England's choice in the early 20s as one between deflation and devaluation. Going on the gold standard would be deflationary, while the other choice would be devaluing the currency.

So when people say they are against devaluation, they are saying in effect that they are for deflation.

The other option is fiscal stimulus and creating government debt by funding job programs. This will create demand. At the moment it's politically impossible.

Was the ARRA better than nothing? Was the ACA better than nothing?

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