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I love the cliches that the Right roll out here on economic issues
"The value of the dollar"
It's been a joke currency for years, backed by hot air.
"Look at unemployment"
US enemployment rates at the same level - as the Reagan era.
Were they whingeing back then?
Al Gore hadn't invented the internet, so we don't know if they were whingeing.
"we're losing jobs".
Yep that's what happen swhen the tariffs and duties that your lot used to protect your country, have been swept away.
Real competition has arrived.
Get used to it.
The rising DOW is a good sign : confidence is coming back, the worst of the recession is over.
Raising rates will likely cause the dollar to collapse faster but at least there'll be a floor. Iceland had double digit fed rates and their currency collapsed too.
No, rising rates will strengthen the dollar, that's pretty basic economics. But right now it is beneficial to keep the rates low, so people can afford a loan. Why did Iceland currency go through the roof before the collapse? Because their rates were higher than anyone else's, and foreign capital flowed into the country. Heck, their entire economy revolved around that, and their three banks. Why did they collapse? Because they were extremely foolish to keep paying rates like that for a prolonged period of time, and because they only had three banks. UK pulled the plug on one bank and the others followed, and the whole tiny island came crashing down. How did the 'great gold transfer' take place? By manipulation of the rates. The money (or gold in the old days) goes where they pay the best interest.
No, rising rates will strengthen the dollar, that's pretty basic economics. But right now it is beneficial to keep the rates low, so people can afford a loan. Why did Iceland currency go through the roof before the collapse? Because their rates were higher than anyone else's, and foreign capital flowed into the country. Heck, their entire economy revolved around that, and their three banks. Why did they collapse? Because they were extremely foolish to keep paying rates like that for a prolonged period of time, and because they only had three banks. UK pulled the plug on one bank and the others followed, and the whole tiny island came crashing down. How did the 'great gold transfer' take place? By manipulation of the rates. The money (or gold in the old days) goes where they pay the best interest.
Agree to disagree. Economists such as Schiff have claimed that the dollar can continue to collapse even as interest rates rise, because even though the supply of dollars dries up, the demand for them dries up even more because it causes massive bankruptcies among the consumers and businesses. Since consumption is 70% of GDP unlike the early 80s when this formula worked, it simply won't work this time. The good news is that even though the dollar will freefall as interest rates rise, it will find a floor. With interest rates at 0% the dollar will not find a floor.
You'll make money if the timing is right. It's the country will go bankrupt with that mentality.
Actually countries with free market economies always had bubbles. They date back to the 1600s Holland and the great Dutch Tulip Bubble. Actually they have existed even well before that, so there is certainly nothing new about them. They generate a lot of money.
The timing was right a year ago, and if you has seen it as opposed to listening to Schiff's gloom and doom, you would have made a profit, but you chose to not act. That's your bad, not mine.
Actually countries with free market economies always had bubbles. They date back to the 1600s Holland and the great Dutch Tulip Bubble. Actually they have existed even well before that, so there is certainly nothing new about them. They generate a lot of money.
The timing was right a year ago, and if you has seen it as opposed to listening to Schiff's gloom and doom, you would have made a profit, but you chose to not act. That's your bad, not mine.
Schiff's mining stocks are up 300%, far more than most Dow components. Schadenfreude can be extremely profitable.
Wrong. Unless gold and other specific commodities are you only comparison.
A person who had $1,000 in the Dow on March 9, has $1,600 to spend today.
Not everything has gone up in price.
Milk still costs around $2.25 a gallon in San Diego. Around the same as March.
And there are probably tens of thousands of other items that you can get for the same price now, as back in March.
Except, now you can cash in your stocks, and buy a lot more of these items.
You were pretty specific in stating that a person who PUT 1,000 in the stock market, meaning an investment, has 1600 to SPEND, meaning cash, today.
Quote:
Originally Posted by RD5050
And please tell me what method of taxation on capital gains would take a $1000 investment which grows to $1600, and somehow make it worth $1000 less than the $1600 (i.e. $600 spendable)? Even if the person held it for less than one year, the most the $600 gain (assuming the money was invested on March 9, 2009) would be taxed, is at the current tax rate for the person (maybe 40% - 50% - if they are in a high tax bracket). So the most they would lose is $300 in spendable dollars. So they would have $1300 to spend.
First of all, the max capital gains tax is 15%, obviously you do not know the difference between capital gains and income taxes. The max a person would lose is $90 (I stated $100 for a nice round figure).
Second, obviously one of those 0's was a typo. Obviously capital gains taxes are not over 100%. You probably should have had enough common sense to gather that and put two and two together.
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Schadenfreude can be extremely profitable. 
