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Old 10-02-2019, 11:44 AM
 
1,203 posts, read 666,545 times
Reputation: 1596

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Quote:
Originally Posted by craigiri View Post
So the dude working hard and honestly on a Farm in Mexico or even in the Toyota plant there - day in and day out - and yet still living in a shack even though he is producing vast amounts more than his own consumptions......he is somehow deficient and if he would declare being a member of the GOP he would somehow get rich?

It's a zero sum game my friend.....in a general sense. That is, when you "make money" in the stock market someone else loses it (all things being equal and a stock market like the last two years)....

If I pay the people "producing more than they consume" lower wages and benefits.....I make MORE money and they make less.

That doesn't seem to match your claims.

Which is why......the many millionaires I know generally drive a Lexus. Or maybe an Audi or a Benz, but more likely these days a Lexus. Granted, these are not "unit" millionaire (100 million plus), just plain old normal millionaires.

Tell you what. Head down to Pacific Palisades in SoCal or to Bal Harbor in N. Miami Beach and go to the mall there and tell me what cars you see??? I can tell you right now that you will see Maseraties, Jags, Bentleys and Ferraris and even McClarrans (sp?).

Here is the local dealership in Sarasota where everyone walks in and gawks. Who is buying these?
https://thesarasotastudio.com
Please explain how the stock market is a zero sum game. I don't follow. In order for it to be a zero sum game then the number of people holding every single stock long and short would have to be identical. This isn't true...
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Old 10-02-2019, 11:48 AM
 
Location: Houston
26,979 posts, read 15,879,874 times
Reputation: 11259
My wealth is primarily increased when my 401k does well. Won’t be voting for Trump.
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Old 10-02-2019, 12:36 PM
 
Location: Houston
26,979 posts, read 15,879,874 times
Reputation: 11259
Quote:
Originally Posted by bad debt View Post
Please explain how the stock market is a zero sum game. I don't follow. In order for it to be a zero sum game then the number of people holding every single stock long and short would have to be identical. This isn't true...
What he is saying is when the market is realizing zero real returns on investments that is a zero sum game.
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Old 10-02-2019, 01:38 PM
 
Location: Santa Monica
36,856 posts, read 17,350,188 times
Reputation: 14459
Quote:
Originally Posted by whogo View Post
My wealth is primarily increased when my 401k does well. Won’t be voting for Trump.
Another reason to pull your money out of the State-run economy.

Took me a long time to finally realize it but it can be done.
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Old 10-02-2019, 01:55 PM
 
Location: Prepperland
19,013 posts, read 14,188,739 times
Reputation: 16727
Quote:
Originally Posted by wallbuilder View Post
How the economy works can be summarized like this:

If you produce more than you consume, you can gain wealth, and you gain exponentially more if you invest your surplus production. If you consume as much or more than you produce, you don't gain wealth.

A direct consequence of this fact is the fact that welfare payments are money down the drain. If you redistribute money from a producer to a consumer, it leads to less production and more consumption. Any of society's "consumers" could already become producers if they simply consumed less (And this would grow the economy overall because surplus production would be invested into creating more production).

Case in point: The most popular automobile brands for millionaires are Honda, Toyota and Ford.
This post is unworkable because it fails to address the little problem with 'funny munny' / dollar bills and usury.
Usury was and is an abomination, mathematically unsustainable in a finite money token system, due to the exponential equation used for compound interest (requires an infinite money supply to operate). So right off, your premise is flawed.
Current monies (aka "dollar bills") are not dollars (precious metal coin) but IOUs (debt) denominated in dollars - minus value. Until redeemed, they are not 'positive.' Yet millions believe these pieces of paper have value as money when by law, they are not. [see Title 12 USC sec. 411]

Money, as a medium of exchange to facilitate the trade of goods and services, when barter is insufficient, has a long history of madness. When people will 'sell their grandmother when the price is right,' you know something is terribly wrong.

Part of the reason is the belief that money has intrinsic value independent of the marketplace. IMHO, when the marketplace is empty, no amount of money will refill it. But the belief that money must have value is embedded in the minds of billions. Just try spending millions when you're stranded on a deserted island (Playing Gilligan's Island theme in the background).

This poses a problem, when one realizes that the laborers and producers of surplus goods and services are not the ones with the power to create new money tokens with which to trade their surplus. Those who do control the emission and relative value become fabulously wealthy taking a small skim. It adds up quickly, especially when there has been a money drought for generations. (Do you still believe inflation is 'too much money chasing too few goods'?)

If only workers and businesses could issue new money, in proportion to their products and services in the marketplace, usurers (bankers) would be wiped out. Who needs to borrow credit, when you can issue your own private promissory notes?
And when unemployed labor can 'spend' their promises to work into circulation, who needs socialist charity? BAM, another parasite wiped out.
And once free people have their own liberty money, one can challenge the fraud of the public debt (22+ trillion dollars were never lent to CONgress), voiding it. Which then makes all "dollar bills" into worthless toilet paper, and billionaires become zero-aires overnight. Fun, fun, fun, fun.
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Old 10-02-2019, 03:15 PM
 
1,203 posts, read 666,545 times
Reputation: 1596
Quote:
Originally Posted by whogo View Post
What he is saying is when the market is realizing zero real returns on investments that is a zero sum game.
I am honestly quite confused. A zero sum game implies that for every dollar I make, there is some other party that loses a dollar. Zero real returns on the other hand just means that for the past 12 months there has been zero yield on equity investments. These two things are completely unrelated.

Just because the S&P has been near break even for the past 12 months does not mean that people can't make money. You could pick individual stocks. You could invest in VIX instruments. You could just sell covered calls. Any of these things don't cause someone who was long S&P on October 1, 2018 to lose money just because they made money.
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Old 10-02-2019, 03:18 PM
 
Location: Houston
26,979 posts, read 15,879,874 times
Reputation: 11259
Quote:
Originally Posted by bad debt View Post
I am honestly quite confused. A zero sum game implies that for every dollar I make, there is some other party that loses a dollar. Zero real returns on the other hand just means that for the past 12 months there has been zero yield on equity investments. These two things are completely unrelated.

Just because the S&P has been near break even for the past 12 months does not mean that people can't make money. You could pick individual stocks. You could invest in VIX instruments. You could just sell covered calls. Any of these things don't cause someone who was long S&P on October 1, 2018 to lose money just because they made money.
Yes. But if there is no return over a period of time then that means that the losses and gains even out. A zero sum game for that time period. Some people gain some people lose but it evens out.

It’s like a game of poker where five players come in with say a $100 bucks each. At the end someone may have 300 and someone else zero but the total will still be 500.
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Old 10-02-2019, 03:22 PM
 
1,203 posts, read 666,545 times
Reputation: 1596
Quote:
Originally Posted by jetgraphics View Post
This post is unworkable because it fails to address the little problem with 'funny munny' / dollar bills and usury.
Usury was and is an abomination, mathematically unsustainable in a finite money token system, due to the exponential equation used for compound interest (requires an infinite money supply to operate). So right off, your premise is flawed.
Current monies (aka "dollar bills") are not dollars (precious metal coin) but IOUs (debt) denominated in dollars - minus value. Until redeemed, they are not 'positive.' Yet millions believe these pieces of paper have value as money when by law, they are not. [see Title 12 USC sec. 411]

Money, as a medium of exchange to facilitate the trade of goods and services, when barter is insufficient, has a long history of madness. When people will 'sell their grandmother when the price is right,' you know something is terribly wrong.

Part of the reason is the belief that money has intrinsic value independent of the marketplace. IMHO, when the marketplace is empty, no amount of money will refill it. But the belief that money must have value is embedded in the minds of billions. Just try spending millions when you're stranded on a deserted island (Playing Gilligan's Island theme in the background).

This poses a problem, when one realizes that the laborers and producers of surplus goods and services are not the ones with the power to create new money tokens with which to trade their surplus. Those who do control the emission and relative value become fabulously wealthy taking a small skim. It adds up quickly, especially when there has been a money drought for generations. (Do you still believe inflation is 'too much money chasing too few goods'?)

If only workers and businesses could issue new money, in proportion to their products and services in the marketplace, usurers (bankers) would be wiped out. Who needs to borrow credit, when you can issue your own private promissory notes?
And when unemployed labor can 'spend' their promises to work into circulation, who needs socialist charity? BAM, another parasite wiped out.
And once free people have their own liberty money, one can challenge the fraud of the public debt (22+ trillion dollars were never lent to CONgress), voiding it. Which then makes all "dollar bills" into worthless toilet paper, and billionaires become zero-aires overnight. Fun, fun, fun, fun.
wow. Speaking of "funny munny" I feel like I'm at the funny farm after reading this post.
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Old 10-02-2019, 03:25 PM
 
1,203 posts, read 666,545 times
Reputation: 1596
Quote:
Originally Posted by whogo View Post
Yes. But if there is no return over a period of time then that means that the losses and gains even out. A zero sum game for that time period. Some people gain some people lose but it evens out.

It’s like a game of poker where five players come in with say a $100 bucks each. At the end someone may have 300 and someone else zero but the total will still be 500.
Yes. Poker is a zero sum game. Any dollar I gain in a poker game must come from someone else's losses. Zero sum game.

Explain to me why in order for me to make a dollar in the stock market, someone must lose a dollar.


https://money.stackexchange.com/ques...-zero-sum-game
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Old 10-02-2019, 05:21 PM
 
Location: Houston
26,979 posts, read 15,879,874 times
Reputation: 11259
Quote:
Originally Posted by bad debt View Post
Yes. Poker is a zero sum game. Any dollar I gain in a poker game must come from someone else's losses. Zero sum game.

Explain to me why in order for me to make a dollar in the stock market, someone must lose a dollar.


https://money.stackexchange.com/ques...-zero-sum-game
That is not what I was saying. When the market goes up or down it’s not a zero sum game. Only if the market has exactly zero real returns would it be a zero sum game for that period of time.
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