Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I don't think at this point upping wages will help though it is the correct thing to do.
It wont fix everything all by itself. and it needs to be done everywhere.
Quote:
Originally Posted by richrf
The problem lies not here in the U.S. but in every country that has massive loans to pay off while demand declines for products, both commodities and goods.
Global debt bubble. Global wage inflation. One world economy.
Quote:
Originally Posted by richrf
They, and this includes China, resource dependent economies, and manufacturing economies, have to keep dropping prices in order to increase exports and maintain market share. However, as prices and wages drop, so does demand, this spiraling into a downward deflation. Increasing wages in the U.S. and Europe hardly fits into this equation.
Increase wages and put pressure to do it there as well means more demand. Print cash to cover the initial contraction. Inflation babby.
Quote:
Originally Posted by richrf
Actually, the only thing that would work would be massive taxes on the ultra-rich as well as grabbing back the hundreds of billions of dollars that were stolen by corrupt politicians and their cronies and using that money to pay off debt and give it back to the middle class all of the money that was stolen from them so as to reduce the concentration of wealth (which is causing the downward spiral in demand) but there is zero chance that will happen. Unfortunately, downward speaking deflation is inevitable as things stand.
Make the top pay the inflation tax. That is the only one they can't get out of paying.
It wont fix everything all by itself. and it needs to be done everywhere.
Global debt bubble. Global wage inflation. One world economy.
Increase wages and put pressure to do it there as well means more demand. Print cash to cover the initial contraction. Inflation babby.
Make the top pay the inflation tax. That is the only one they can't get out of paying.
It is unlikely that the thugs running China will do anything other that keep buying property everywhere with the cash they stole. It is particularly ludicrous in Vancouver. Everyone knows what is going on but no one stupid it because all of the governments are in on it.
I'd hate to see another economic depression like 2008 happen soon. I can't see the government bailing the banks out again. That might sound like good news, but if that happened, the banks might start calling in all their loans for houses, cars, whatever. That means that anyone who has a loan on their house, no matter how good of a job they have or what good a risk they are, is going to lose it.
I'd hate to see another economic depression like 2008 happen soon. I can't see the government bailing the banks out again. That might sound like good news, but if that happened, the banks might start calling in all their loans for houses, cars, whatever. That means that anyone who has a loan on their house, no matter how good of a job they have or what good a risk they are, is going to lose it.
What do you mean by "calling in all their loans"? How do you "call in" a loan on a party who is current and fulfilling their side of the contract? If you are talking about past foreclosed loans, money the bank may actually be entitled to, the process for obtaining that money from the original borrower is very involved.
What do you mean by "calling in all their loans"? How do you "call in" a loan on a party who is current and fulfilling their side of the contract? If you are talking about past foreclosed loans, money the bank may actually be entitled to, the process for obtaining that money from the original borrower is very involved.
I'm not talking about foreclosed-on loans. I'm talking about every day loans you take out when you want to buy a house or a car or what have you.
It used to be in the loan agreements and I think it still is in a lot of them. Banks reserve the right to demand all or partial payment whenever they want during the life of a loan. If that's in the contract you sign, then you don't have to be behind in your loan or a bad risk or anything. It's just a clause in the contract, but you both signed it and the fact that it never happens doesn't mean it can't.
This is the point I used to try to send home with people when they were blaming all the people who got loans for "more house than they could afford" for the 2008 crash and everyone was saying those people deserved to lose their houses. I would point out that unless your house is paid in full to the bank, no one owns their house and no one is immune to losing it until the loan is paid off and the title is in their hands.
Real work for real pay. GWP (Gross World Product) went down because they moved to many jobs from high paying labor pools to lower paying labor pools. Up the wages on those jobs to closer to where they came from and GWP expands closer to where it was.
Wealth is tied to productivity, not wages. Without productivity increases, throwing more money into the mix just a)deflates the value of money, or b)redistributes wealth (depending on who it gets thrown to, or c) both. This would be helpful at this time, no doubt.
Your earlier proposition of MW increases will help, as it will tend to redistribute wealth downward and increase consumption, which will increase investment in production. It also tends to increase productivity because labor is more expensive. Invest in machinery instead of more warm bodies.
What do you mean by "calling in all their loans"? How do you "call in" a loan on a party who is current and fulfilling their side of the contract? If you are talking about past foreclosed loans, money the bank may actually be entitled to, the process for obtaining that money from the original borrower is very involved.
If you have what is called a DEMAND loan yes your loan can be called in. Usually it's on specific types of loan or specifically property types like commercial or possibly investment property or hard money loans . Rarely on primary residences. As long as you are making a payment and are current banks won't foreclose. Banks don't want property. They want money.
I'm not talking about foreclosed-on loans. I'm talking about every day loans you take out when you want to buy a house or a car or what have you.
It used to be in the loan agreements and I think it still is in a lot of them. Banks reserve the right to demand all or partial payment whenever they want during the life of a loan. If that's in the contract you sign, then you don't have to be behind in your loan or a bad risk or anything. It's just a clause in the contract, but you both signed it and the fact that it never happens doesn't mean it can't.
This is the point I used to try to send home with people when they were blaming all the people who got loans for "more house than they could afford" for the 2008 crash and everyone was saying those people deserved to lose their houses. I would point out that unless your house is paid in full to the bank, no one owns their house and no one is immune to losing it until the loan is paid off and the title is in their hands.
I don't think that's very common these days, at least in my state, because of consumer protection regs and truth-in-lending laws.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
