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pretty much the same effect ha ha ha ..... it's the fed , the fed , the fed .....
in the mean time we have a pretty good economy , certainly a whole lot less bad then we have had in a long time . unemployment is low and many are doing well financially . many of those who are not would not likely prosper under any condition .
especially if they sit in the same job capacity year after year and expect to earn more other than inflation adjusting , doing what they always did .
But we need the cycle of deflation as much as we need the cycle of inflation. The crime that the American Ruling Class committed with their helmsman Mister Greenspan in 2001 was to curse the Night and to try to make believe it would not come if they merely pretended it wasn’t part of the reality.
The longer the inflation goes on, the more debt that is taken on, the longer will be the period of deflation during which that karmic and economic debt are unwound. In words that might appeal to the religious people here God is a banker and he gives us credit, packets of Light, if you will. But, in the contract we sign when we take on this loan from God we also are told that we will have to pay God back. Deflation is the nature of Humanity giving back energy to God.
The Darkness in Human Society – poverty, despair, hopelessness, tragedy – is the process by which Humanity is drawn back to God. ‘Falls off its high horse’ might be another way of expressing this metaphor.
I think you need to "get off your high horse" Mathjack. You think you are the "winner" in our society, successful and rich, but those people like you are usually the ones who are farthest from God. We look at the ‘winners’ in our society, and what do we see? We see – along with mansions, expensive cars, glamorous vacations and sophisticated friends and entertainment -divorce, addiction, crime, perversion, excess, loneliness, often early death, sometimes suicide. The ‘winners’ in human society, the rich, the powerful, the famous, are often ‘the losers’ before God calls them home again. The ‘winners’ are Icarus before he falls. The ‘losers’ are Icarus before he flies.
Psychological or Spiritual Deflation is the means by which God throws a human being to his knees. Economic Deflation is the means by which God throws a society to its collective knees. Do you have any idea how important DEFLATION season is and why it's build into our system? We need DEFLATION SEASON as much as we need INFLATION SEASON. Are you able to understand that? I think most of you are simply brainwashed my the mainstream media and only understand CNBC or Bloomberg economics.
actually it is you that needs to stop wishing a depression and deflation on people . if i remember your family gave you your wealth so what do you care if the working people get wiped out in another depression .
The thing is that mortgages are a seesaw. Rates go up prices go down payment doesn’t really change much. Quick and dirty calculation
525,000 house price 20% down 425,000 loan balance at 30 years you’re at 2400 PITI
At 5.5 that house would need drop about 20% in asking price to
410,000 house price 20% down 337,000 at 30 years you’re at 2400 PITI
Regardless it still requires 20% down. So anywhere from 80-100,000. Forget all the additional sundry costs associated to buying and moving. For me I’ll gladly pay the additional 20,000 to get a 3.5 rate. I would do 20% down to avoid PMI. That’s just throwing money away. If I’m buying at 5.5 I may never see those lower rates so I may never be able to refi. Even if I refi I’m paying to refi and it may not happen later due to whatever circumstances....
Most people can avoid PMI with 80-10-10 mortgages, rather than an 80-20.
Quote:
Originally Posted by Electrician4you
Anything less than 20% throws PMI on your loan and unless you can refi you’re paying that firvthe rest of the loan lifetime. And as time goes on the money I buyght a house with today will be worth less n the future.
Even if someone is stuck paying PMI at the outset, it many cases it can be eliminated once your equity is over 20%. Even if you don't refi, you wouldn't be stuck paying it for the entire length of the loan.
How Interest Rate Hikes Will Trigger The Next Financial Crisis
periods of low interest rates help to create credit and asset booms in the following ways:
By encouraging more borrowing by consumers, businesses, and governments
By discouraging the holding of cash versus spending and speculating in riskier assets & endeavors
Investors can borrow cheaply to speculate in assets (ex: cheap mortgages for property speculation and low margin costs for trading stocks)
By making it cheaper to borrow to conduct share buybacks, dividend increases, and mergers & acquisitions
By encouraging higher rates of inflation, which helps to support assets like stocks and real estate
When central banks set interest rates and hold them at low levels in order to create an economic boom after a recession (as our Federal Reserve does), they interfere with the organic functioning of the economy and financial markets, which has serious consequences including the creation of distortions and imbalances. By holding interest rates at artificially low levels, the Fed creates “false signals” that encourage the undertaking of businesses and other endeavors that would not be profitable or viable in a normal interest rate environment.
The businesses or other investments that are made due to artificial credit conditions are known as “malinvestments” and typically fail once interest rates rise to normal levels again. Some examples of malinvestments are dot-com companies in the late-1990s tech bubble, failed housing developments during the mid-2000s U.S. housing bubble, and unfinished skyscrapers in Dubai and other emerging markets after the global financial crisis.
But we need the cycle of deflation as much as we need the cycle of inflation. The crime that the American Ruling Class committed with their helmsman Mister Greenspan in 2001 was to curse the Night and to try to make believe it would not come if they merely pretended it wasn’t part of the reality.
The longer the inflation goes on, the more debt that is taken on, the longer will be the period of deflation during which that karmic and economic debt are unwound. In words that might appeal to the religious people here God is a banker and he gives us credit, packets of Light, if you will. But, in the contract we sign when we take on this loan from God we also are told that we will have to pay God back. Deflation is the nature of Humanity giving back energy to God.
The Darkness in Human Society – poverty, despair, hopelessness, tragedy – is the process by which Humanity is drawn back to God. ‘Falls off its high horse’ might be another way of expressing this metaphor.
I think you need to "get off your high horse" Mathjack. You think you are the "winner" in our society, successful and rich, but those people like you are usually the ones who are farthest from God. We look at the ‘winners’ in our society, and what do we see? We see – along with mansions, expensive cars, glamorous vacations and sophisticated friends and entertainment -divorce, addiction, crime, perversion, excess, loneliness, often early death, sometimes suicide. The ‘winners’ in human society, the rich, the powerful, the famous, are often ‘the losers’ before God calls them home again. The ‘winners’ are Icarus before he falls. The ‘losers’ are Icarus before he flies.
Psychological or Spiritual Deflation is the means by which God throws a human being to his knees. Economic Deflation is the means by which God throws a society to its collective knees. Do you have any idea how important DEFLATION season is and why it's build into our system? We need DEFLATION SEASON as much as we need INFLATION SEASON. Are you able to understand that? I think most of you are simply brainwashed my the mainstream media and only understand CNBC or Bloomberg economics.
Explain one economist who factors God into monetary or economic theory?
Explain one economist who factors God into monetary or economic theory?
Plato writes that: "The Laws of Nature are the thoughts of God". None of the modern economists or so called experts factor the Laws of Nature and God and that's why they are so clueless and wrong. Krugman has been wrong for decades. When you are wrong for decades, they give you a Nobel Prize, and hope you will retire in confusion ("Why did they give that to me?"). These mainstream so called economists or experts have largely proven themselves inept and blind the last 20 years or so. We need NEW experts.
You want to understand how economy should really work - learn the Laws of Nature and don't pay attention to those cluelles so called economists or experts.
Plato writes that: "The Laws of Nature are the thoughts of God". None of the modern economists or so called experts factor the Laws of Nature and God and that's why they are so clueless and wrong. Krugman has been wrong for decades. When you are wrong for decades, they give you a Nobel Prize, and hope you will retire in confusion ("Why did they give that to me?"). These mainstream so called economists or experts have largely proven themselves inept and blind the last 20 years or so. We need NEW experts.
You want to understand how economy should really work - learn the Laws of Nature and don't pay attention to those cluelles so called economists or experts.
Plato was not an economist--but a philosopher.
He was a polytheist, a man of his era, and scion of one of the wealthiest, more politically powerful family in Athens...one reason he was not killed when his teacher Socrates was forced to drink hemlock...
Plato likely never had to work for his bread, clean his own clothing, cook his own meals. Surely he owned slaves and saw nothing wrong with doing so as long as he treated them humanely--which of course might differ from the slave's own opinion...Plato throught the world was flat...didn't have the concept for 0 at that time I believe...
So of course any "economy" he theorized was just that a theory--not based in fact but in idealized concepts, never tested and thus never validated...
Last edited by loves2read; 10-07-2018 at 11:06 PM..
Plato was not an economist--but a philosopher.
He was a polytheist, a man of his era, and scion of one of the wealthiest, more politically powerful family in Athens...one reason he was not killed when his teacher Socrates was forced to drink hemlock...
Plato likely never had to work for his bread, clean his own clothing, cook his own meals. Surely he owned slaves and saw nothing wrong with doing so as long as he treated them humanely--which of course might differ from the slave's own opinion...Plato throught the world was flat...didn't have the concept for 0 at that time I believe...
So of course any "economy" he theorized was just that a theory--not based in fact but in idealized concepts, never tested and thus never validated...
Our previous and current leaders are philosophically bankrupt, devoid of a comprehensive understanding of nature. Not only have Greenspan and Bernanke been remiss and philosophically bereft, I believe they have also been criminal. Funding stock market rallies, in collusion with Wall Street, is insider trading running wild. Both men should be investigated for crimes of graft and misuse of power. And Wall Street should be forced to pay back all of the free money they have received from Federal Reserve policy that ‘stole’ money from bank depositors through forced 0% interest payment policies.
Alan Greenspan was, perhaps, the most powerful (invisible) man in the world for the decade after Bill Clinton’s reputation was disfigured by his Cigar Shenannigaans – Greenspan retired in 2006. Greenspan was a devoted student of the causes of the Great Depression in the 1930’s, a devoted disciple of the ‘rugged individualism’ espoused by novelist Ayn Rand, and a favorite of Ronald Reagan, who appointed Greenspan as the Chairman of the Federal Reserve Board in 1987.
What was Greenspan’s crime - Greenspan’s sin? Greenspan’s real crime was philosophical - and spiritual. He, and many other academic economists, devoted huge amounts of time, energy and intellectual resources to the proposition that the so-called Great Depression, which ran from 1929 through 1947 (some say 1942), was not inevitable, and was avoidable. If the Federal Reserve and American financial and governmental institutions at the time had only been more skilled in denial, had flooded the system with liquidity – had apparently continued to fill the empty glass for an eternity -- then the Great Depression could have been avoided. Death could have been cheated. The Devil’s return to claim the Soul he had been guaranteed could be tricked through a form of legal or semantic maneuvering. Hadn’t the Business Class already proved that taxes were not inevitable? Why couldn’t they show the same about death, and about the the death of an idea, such as the American Dream?
This was a philosophic flaw in Mister Greenspan’s set of principles. The flaw is the misunderstanding of the nature of the ‘positive energy’ factor – the energy to build – which Greenspan apparently felt was eternal and inexhaustible, and his belief that the ‘negative energy’ factor, the Night – the energy to disembody or to de-construct - could be avoided, ignored, or simply negated by an excess amount of positive energy, literally, by flooding the financial system with liquidity – by borrowing and borrowing and borrowing mor money – and spending, spending, spending.
Of course, the Bible teaches us that too much liquidity led to the Flood, the Deluge, to the destruction of the world, and to Noah’s lonely survival on the top of Mount Ararat until the end of that earlier Night-Cycle.
What Mr. Greenspan and later that Knucklehead Bernanke did not accept, understand or count on was the fact that ‘positive energy’ runs out, and turns, itself, into negative energy. The force that builds the world is also the same force that destroys it.
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