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Old 01-02-2013, 08:10 PM
 
Location: North East
657 posts, read 693,550 times
Reputation: 243

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U.S. producers continue to get squeezed year after year. That's what the government spending has done... don't blame it on greedy rich, blame it on greedy spineless politicians for destroying the value of the dollar and for creating imbalances in the economy which have driven away businesses.

We will soon meet our maker, but everyone is oblivious to this fact. The last time it happened it left a scar on those that lived through it leaving those to be much more frugal. Indeed we have too much debt today and are about to get more of it.

Printing money and handing it to people will NEVER, EVER, EVER, EVER fix anything, but will destroy the banks.

1) more currency doesn't create wealth, it simply redistributes it. Meaning, the government can double the money supply, send checks to every american, and the next day, every single item on the shelf will be worth twice the amount it was on the previous day.

2) Since citizens can technically pay back their loans with the new money, the banks will receive half what they lent out (in real terms) for fixed loans. In other words, since the money being paid back can only purchase half what it previously did (proven by demand curve), banks would lose half of their investment. Their capital will be destroyed. Most banks will go belly up and those remaining will jack up rates to levels not seen in 40 years.

In other words, printing money and sending it to people is not beneficial and can wreck havoc within the financial system. If you are wondering why this ponzi worked, it's thanks to savings and capital which was sitting in the hands of producers. That was slowly diminished to peanuts (hence they moved away); while consumers, instead of receiving salary increases received increased credit lines. This is the imbalance I refer to above.

The Fed appears to be control of rates. The Fed is simply a market maker, it is not the market by any stretch of the imagination. If it was the market, there would be no market, period. Go look at the Fed's balance sheet, it's something like 3 trillion while the entire market is 100 times bigger than that. You can take a guess at who decides where rates are headed.

We are at the mercy of the market and we are pretty close to having a rude awakening.
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Old 01-03-2013, 04:58 AM
 
Location: Baldock, hertfordshire, England
769 posts, read 877,915 times
Reputation: 254
Quote:
Originally Posted by SarasotaBound1 View Post

We are at the mercy of the market and we are pretty close to having a rude awakening.
Possibly. But not close enough. Japan is taking 20+ years.

Obama could gut america in half that. Even the GOP would do it in well under 20 years.
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Old 01-03-2013, 05:53 AM
 
Location: North East
657 posts, read 693,550 times
Reputation: 243
Quote:
Originally Posted by LAWS View Post
Possibly. But not close enough. Japan is taking 20+ years.

Obama could gut america in half that. Even the GOP would do it in well under 20 years.
You are right, it has taken Japan 20 years to deplete their savings, but they've managed to do it. They are a casualty waiting to happen.

The US does not have the luxury to tap into savings like Japan did. Additionally, we are no longer in a stable bond market environment, there are a handfull of countries that can blow up at any minute creating instability and increasing risk premiums. Now, just think for a minute what would happen to bond market risk premiums if one, any one (even Greece), country has to default or devalue their currency to worthlessness.

Nobody knows when the turn will be, but when it does, nations will fall in a dominoe fashion.
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Old 01-03-2013, 06:04 AM
 
4,130 posts, read 4,453,354 times
Reputation: 3041
Quote:
Originally Posted by SarasotaBound1 View Post
We will soon meet our maker, but everyone is oblivious to this fact. The last time it happened it left a scar on those that lived through it leaving those to be much more frugal.
We are about to meet Jesus, and it has happened before?
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Old 01-03-2013, 06:22 AM
 
Location: Tampa Florida
22,229 posts, read 17,817,801 times
Reputation: 4585
Yep! really goin' down the tubes...

Private Sector Jobs Surge by 215,000; Construction Leads
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Old 01-03-2013, 06:35 AM
 
1,291 posts, read 2,889,232 times
Reputation: 1264
Quote:
Originally Posted by florida.bob View Post
If you think 215,000 jobs is a big gain you're sadly mistaken. It's a drop in the bucket!
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Old 01-03-2013, 06:46 AM
 
17,290 posts, read 29,347,433 times
Reputation: 8691
Quote:
Originally Posted by Inoxkeeper View Post
If you think 215,000 jobs is a big gain you're sadly mistaken. It's a drop in the bucket!

When your bucket had a huge hole in the bottom that needed to be patched, new drops are always welcome sign that the hole is patched.

Now if only people would learn to adapt and thrive in the world we live in, that'd be great.
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Old 01-03-2013, 06:50 AM
 
Location: Tampa Florida
22,229 posts, read 17,817,801 times
Reputation: 4585
Quote:
Originally Posted by Inoxkeeper View Post
If you think 215,000 jobs is a big gain you're sadly mistaken. It's a drop in the bucket!
I know! How do they expect us to dis Obama if they keep adding jobs?
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Old 01-03-2013, 06:50 AM
 
1,291 posts, read 2,889,232 times
Reputation: 1264
Quote:
Originally Posted by TriMT7 View Post
When your bucket had a huge hole in the bottom that needed to be patched, new drops are always welcome sign that the hole is patched.

Now if only people would learn to adapt and thrive in the world we live in, that'd be great.
I agree new jobs are great but when the *******s tout a couple of hundred thousand as some big
achievement they need to be called on it.

It's a very small drop in a very big bucket.
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Old 01-03-2013, 06:54 AM
 
17,290 posts, read 29,347,433 times
Reputation: 8691
Quote:
Originally Posted by Inoxkeeper View Post
I agree new jobs are great but when the *******s tout a couple of hundred thousand as some big
achievement they need to be called on it.

It's a very small drop in a very big bucket.

In December the UE rate dropped to its lowest rate in four years. And it's been steadily dropping for over a year:




And don't give me crap about this "discouraged people leaving the workforce" crap.

After 99 weeks if you haven't figured out you need to either a) retrain, b) move, or c) take any damn job you can get until your dream job comes along (or back from being outsourced or shipped offshore to increase shareholder profits), then there is something wrong with you: Laziness.
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