Economy, Maine... (China: brokers, home, buying)

[GregW]

Maineah et al -
Get a copy of Kevin Phillips book "BAD MONEY" and you will find out in detail why we are in economic trouble.

To summarize during the 1990s it became more profitable and fashionable to make money by manipulating money than making and selling things. Most of us have not had enough extra money, even with our IRA’s because 200k is trivial in this league, to be as well paid as the hedge funds and Citibank.

The base problem is that financial manipulation does not create actual goods; it only rearranges money from the many to the few. In this the speculation of the last 15 years has been spectacularly successful for the few. We have been the people creating the wealth that was transferred. Now we are suffering because a few financiers effectively stolen out savings.

[Nor'Eastah]

Originally Posted by GregW

The base problem is that financial manipulation does not create actual goods; it only rearranges money from the many to the few. In this the speculation of the last 15 years has been spectacularly successful for the few. We have been the people creating the wealth that was transferred. Now we are suffering because a few financiers effectively stolen out savings.

And so goes the way of all mankind, thoughout history. Mises would call the abyss we are looking into a "crack-up boom" (google). No way to avoid it, just a matter of when.

Right about now is a good time to exit the financial games before getting a closer haircut. Those who ignore the warning shots and continue "living large" as per the last few years, will suffer most. As Ranger and Maineah have posted, "country folks can survive" (from Hank Williams Jr) and the real wealth will be in "land, farming, hunting, and food preservation".

Words to live by (literally).

[Labamba]

Originally Posted by Nor'Eastah

The price of oil is just a symptom, it isn't the whole disease. The disease is buried in our banking system. Does anyone remember Bear Stearns? Are you aware that the Fed is loaning treasuries (= money) to large Wall Street banks in exchange for their bad paper (mortgages, car loans, student loans, credit cards - all gone/going bad)? When the Fed loans money, it prints it out of thin air. This concept seems to unsettle a lot of people. They have some idea that when you take out a mortgage or a loan, you're 'borrowing' someone else's 'deposit'. Not so. The Fed creates digital money out of thin air and distributes it to major banks.

Isn't what you are referring to the concept that used to be called "inflation"?

[Nor'Eastah]

Originally Posted by Labamba

Isn't what you are referring to the concept that used to be called "inflation"?

Yes, it is. I try to avoid that word (inflation) because so many people associate it with rising prices. Inflation is not really rising prices. The prices just rise because the money is being debased (over-printed). Plus, the gov't figures for "inflation" are so far off-target they may as well stop printing them.

I'm also very gratified that so many on the Maine forum already understand the whole concept of this. I have posted in other economic forums here, and was literally shouted down as being crazy or un-American to suggest some of the truths that have been written here, by others as well as myself.

[Maineah]

Originally Posted by GregW

Maineah et al -
Get a copy of Kevin Phillips book "BAD MONEY" and you will find out in detail why we are in economic trouble.

To summarize during the 1990s it became more profitable and fashionable to make money by manipulating money than making and selling things. Most of us have not had enough extra money, even with our IRA’s because 200k is trivial in this league, to be as well paid as the hedge funds and Citibank.

The base problem is that financial manipulation does not create actual goods; it only rearranges money from the many to the few. In this the speculation of the last 15 years has been spectacularly successful for the few. We have been the people creating the wealth that was transferred. Now we are suffering because a few financiers effectively stolen out savings.

That's why the dot com bubble with the internet burst so quickly. People found they were investing in an idea that provided no service and made nothing tangible. They used to call that snake oil!

[Labamba]

Originally Posted by Nor'Eastah

Yes, it is. I try to avoid that word (inflation) because so many people associate it with rising prices. Inflation is not really rising prices. The prices just rise because the money is being debased (over-printed).

So, how about "inflation of the money supply" (by the Federal Government) which results in decreasing buying power, and ultimately higher prices, pretty much across the board? If this is the case, isn't this something that we should be able to obtain some relief from from our Congressional representatives?

[RANGER.101ST]

Originally Posted by Labamba

So, how about "inflation of the money supply" (by the Federal Government) which results in decreasing buying power, and ultimately higher prices, pretty much across the board? If this is the case, isn't this something that we should be able to obtain some relief from from our Congressional representatives?

if people think congress is going to help them they have a rood awakening comeing.them people cant help them self.

[Labamba]

Originally Posted by RANGER.101ST

if people think congress is going to help them they have a rood awakening comeing.them people cant help them self.

Yea, but people can at least let off some steam by going to meetings attended by Olympia, Susan, Tom &/or Mike and do a little ranting and see if they have any idea about whats going on that passes the straight face test.

[flycessna]

Originally Posted by forest beekeeper

I did have a lot of fun last summer with the Farmer's Market, overall when the books were closed we lost money.

So this year I am working trying to expand, to produce more food, and hopefully when the season is done, we hope that our losses will have also grown.

Do you factor in how much you save yourself growing/raising your own food.

[GregW]

Please remember that the Federal Reserve Bank and the Regional Federal Reserve Banks are not owned or controlled by the Federal government but are private banks set up to provide loans to other private banks. We do NOT have any political control over the Federal Reserve Bank. We are not supposed to have any political control. It was set up that way a long time ago.