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Synesthetic
Ratings go in journal.



Registered: 12/11/08
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Been reading about the economy 3
#14023898 - 02/25/11 03:14 AM (12 years, 11 months ago) |
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And it's scaring me shitless. I've known the whole fucking thing's going to come crashing down since before the crisis, just because the way our monetary system works is doomed to fail eventually, but now that it's actually happening, I'm fucking terrified.
I mean, the system's fucked up, and it needs some serious work, shit that hasn't been done before, but it's not going to change unless it fails on all levels...and when that happens, it's going to make the Great Depression look like a fucking party.
What I don't get is...why do corporations and governments keep borrowing more money in the hopes that they'll make enough to pay it back as well as pay off their old debts? In high school when the people came to talk about what NOT to do with your money (trying to curb the horrible shit that people do when they finally get in control of their own lives), they told us to NEVER, EVER borrow money to pay off your debts. 1/10 people, which is a fucking generous estimate, never get enough money to pay those loans back, and end up in worse shape because of it.
And yet the whole fucking system relies on banks, corporations, and governments borrowing more and more money. The economy would grind to a halt and deflation would fuck everyone in the nation over if we actually managed to produce enough to pay off our debts, public and private. But if things keep going the way they are, INflation will skyrocket and THAT will fuck everyone over.
It's fucking scary shit. I just read that the other major players in the world economy (China, Russia, Japan, etc.) are trying to figure out ways to keep us (the US), from bringing them down with us.
Christ, a major bank in Mexico said it will no longer accept dollars in its accounts! There are places in Europe, like Amsterdam, a city who's relied on American tourism and accepted dollars in many of its shops, that won't let you buy anything with a dollar. You have to exchange it first, and the businesses that used to exchange money for profit are starting to shut their doors to us.
To sum up, a shit hurricane is coming our way, and we're gonna be swimming in shit if we don't find a sensible way out that'll actually work in the long run.
End rant. I just needed to vent. Sorry.
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truffleupagus


Registered: 02/19/06
Posts: 3,103
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Re: Been reading about the economy [Re: Synesthetic]
#14023967 - 02/25/11 04:18 AM (12 years, 11 months ago) |
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Yeah, America's not the great country they'd have us think it is.
Maybe we'll find a way out of this shit storm. Hope so.
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Synesthetic
Ratings go in journal.



Registered: 12/11/08
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Re: Been reading about the economy [Re: truffleupagus]
#14023989 - 02/25/11 04:30 AM (12 years, 11 months ago) |
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We've been duped for the better part of a century in to being the consumers of the world, and now we're surprised that now we don't produce shit anymore and because of that, we can't find work to afford the things they want us to spend money on.
That's another baffling thing about the economy. By definition, an economy is supposed to be a way for us to effectively and efficiently use the resources at hand (in other words economize our way of living)...but...the current system will collapse if we don't spend every dollar we have and therefore use up all the resources we possibly can.
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Asante
Mage


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Posts: 86,799
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Re: Been reading about the economy [Re: Synesthetic]
#14024027 - 02/25/11 05:05 AM (12 years, 11 months ago) |
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Quote:
And it's scaring me shitless. I've known the whole fucking thing's going to come crashing down since before the crisis, just because the way our monetary system works is doomed to fail eventually, but now that it's actually happening, I'm fucking terrified.
Damn scary isnt it? Perhaps you are seeing threads that have been here at the shroomery for years now that tell you to:
1..put food and drink in your house right now, enough to last you at least one but preferably several months. If you have a car, keep at least one jerrycan of gasoline that you periodically renew. If you got guns, make sure you have ammo. 2..economize your budget, get out of debt as fast as you can as a high priority and start saving if you in any way can. 3..if you have savings get them out of the dollar and into gold and silver and if you are investing, consider at least partially rolling back into physical precious metals as an inflation hedge immediately.
Perhaps you are seeing those threads with new eyes now. Don't be scared, be prepared. You are not fleeing the city because the nukes are flying, you are putting on your safety belt before the long ride home. As the Arabs say:
"Trust in Allah, but tie your camel."
Just because you have faith in a good outcome doesnt mean that you should abandon common sense precautions for in case things do get rough.
Quote:
What I don't get is...why do corporations and governments keep borrowing more money in the hopes that they'll make enough to pay it back as well as pay off their old debts?
We are already so far down that road that there will be no mending this without considerable AAARGH. And nobody, *nobody* wants to take responsibility and take the blame for that AARGH. Like we say in Holland:
Quote:
Gentle healers make stinking wounds
The US must abolish the Federal Reserve, and the EU must abolish the European Central Bank IMMEDIATELY and take control over their own money supply and do a long overdue honest audit of the situation and what to do. This should be a start of a worldwide wave of countries taking back their money supply into their own hands rather than leave it in the hands of the international banking cartel. It is a private business, it is profit oriented and it controls almost all the money in the world - one cartel. The ever escalating debt crisis should be stopped NOW, and this should start with ending the practice of generating money as debt. (see the Money as Debt video in my signature)
We should be willing to call for the waiter and face up to the fact that we have no money, instead of keeping ordering more food - and then we must hang our heads in shame, go into the kitchen and wash dishes together, all night long, to pay up for what we did.
Quote:
I just read that the other major players in the world economy (China, Russia, Japan, etc.) are trying to figure out ways to keep us (the US), from bringing them down with us.
What are YOU doing to avoid being ruined yourself by this?
Realize what you are saying. The big guys, obama and bernanke etc, they are NOT fixing this, they keep on sailing the sinking ship. Its time for YOU to take responsibility over YOUR LIFE and start taking measures to help yourself and inform/help the people around you.
Got no money but you smoke a lot of weed? Cut back heavily on that weed and start stocking your pantry. Pay off debts. Are you always getting yourself in trouble with a credit card? Stop using a credit card and get a debit card. Economize your spending. Stop eating out and start cooking nutritious foods. Make health choices now to avoid future medical bills. Get insurance if you need it. Prioritize.
Right now things are fairly quiet, you can get prepared without drama.
When people like Zorbman and I start churning out threads to the effect of "the time is NOW" make sure you're among those who ARE prepared, not among the many who don't know the first thing about preparedness.
It can all happen so quickly...
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starfire_xes
I Am 'They'



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Re: Been reading about the economy [Re: Synesthetic]
#14024046 - 02/25/11 05:21 AM (12 years, 11 months ago) |
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Yea, the economy is fucked. The main reason is: Too many governments spending money they don't have. People want to scream 'capitalism' but it isn't. It is out of control governments, period.
Think of the huge, bloated mess that is the US government--they spend money out the kazu, but they produce NOTHING of value. Every penny of tax they take robs the economy of money that would otherwise be used to grow the economy.
Then, we have this MORON Bernanke running the FED--the illegal, unconstitutional abomination of private bankers that is set up to loot the citizens. And Bernanke is nothing but a lap dog for big money and big government.
As far as Obama, he has got to be the stupidest, most incompetent, ignorant asshole that has ever held the office of POTUS. How the fuck he could blind everyone so effectively to what he really is, that is totally incomprehensible to me. Oh, yes, Bush was bad too, and so were most of the other's.
But Obama takes the Grand Booby Prize. Which leads me to conclude that unless the people of the US do something to prevent MORONS dancing on strings controlled by globalists to run the country, it's gonna suck and suck big time.
The policy right now is: inflate the bubble by printing money. that's the US monetary policy. FAIL.
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badchad
Mad Scientist

Registered: 03/02/05
Posts: 13,372
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Re: Been reading about the economy [Re: Synesthetic]
#14024113 - 02/25/11 06:17 AM (12 years, 11 months ago) |
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SEE:this thread
Talk to people in their 50-60's etc. Many will tell you that throughout history people have always thrown around "collapse of civilzation" theories.
In the 1950's people thought nuclear attack was inevitable. Kids were taught to "duck and cover" under their desk.
The bottom line is that we haven't turned into madmax yet. You can be prepared, but try not to lose sleep over it.
-------------------- ...the whole experience is (and is as) a profound piece of knowledge. It is an indellible experience; it is forever known. I have known myself in a way I doubt I would have ever occurred except as it did. Smith, P. Bull. Menninger Clinic (1959) 23:20-27; p. 27. ...most subjects find the experience valuable, some find it frightening, and many say that is it uniquely lovely. Osmond, H. Annals, NY Acad Science (1957) 66:418-434; p.436
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starfire_xes
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Re: Been reading about the economy [Re: badchad]
#14024121 - 02/25/11 06:23 AM (12 years, 11 months ago) |
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Actually, I am in my 50's and I remember some of the big scares. I remember a bunch of idiots talking about the 'coming ice age' in 72, and how the Ikeya Seki comet was gonna crash into the earth, and a lot of other hysterics.
Now, though, there is a real danger. It's called a huge out of control government run by idiots. that's a bigger danger than a meteor hit.
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Prisoner#1
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Re: Been reading about the economy [Re: starfire_xes]
#14024130 - 02/25/11 06:28 AM (12 years, 11 months ago) |
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Quote:
starfire_xes said:
Then, we have this MORON Bernanke running the FED--the illegal, unconstitutional abomination of private bankers that is set up to loot the citizens.
proof?
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Synesthetic
Ratings go in journal.



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Re: Been reading about the economy [Re: Prisoner#1]
#14024139 - 02/25/11 06:35 AM (12 years, 11 months ago) |
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The Fed is a collection of private banks, run by a board of governors who are partly selected by the member banks and partly selected by presidential appointment.
It's a private institution masked as a government institution, even though it doesn't answer to anyone. The President can't tell the Fed to stop raising interest. No one can.
It's Congress's job to coin money, stated in Article II of the constitution, I think. Abdicating that power to another group that doesn't answer to the government seems pretty fucking illegal to me.
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Prisoner#1
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Re: Been reading about the economy [Re: Synesthetic]
#14024178 - 02/25/11 06:59 AM (12 years, 11 months ago) |
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Quote:
Synesthetic said:
It's Congress's job to coin money, stated in Article II of the constitution, I think.
maybe you should read the constitution
http://www.usconstitution.net/const.html#A1Sec8
http://en.wikipedia.org/wiki/Federal_Reserve_Act
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memes
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Re: Been reading about the economy [Re: Synesthetic]
#14024192 - 02/25/11 07:07 AM (12 years, 11 months ago) |
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Quote:
Synesthetic said: The President can't tell the Fed to stop raising interest. No one can.
Damnit Fed! Stop raising interest! Can't you see the poeple are already interested enough?!?!?!?!? Make it stop!
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Re: Been reading about the economy [Re: starfire_xes]
#14024193 - 02/25/11 07:08 AM (12 years, 11 months ago) |
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Quote:
starfire_xes said: As far as Obama, he has got to be the stupidest, most incompetent, ignorant asshole that has ever held the office of POTUS.
:whisper: :nudge: :pssssst: stupidest isn't a word.
kiiiinda negates your point.
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Asante
Mage


Registered: 02/06/02
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Re: Been reading about the economy [Re: badchad]
#14024227 - 02/25/11 07:29 AM (12 years, 11 months ago) |
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Quote:
You can be prepared, but try not to lose sleep over it.
Agreed in full.
Let me relate some local news. Here in Holland we have a day where we honor the people who died in World War 2 (May 4) then the day after we celebrate our liberation from the Nazis on May 5 (thanks USA, Canada, UK etc  )
Well on 4 May at 20:00PM we have 2 minutes of silence to reflect on the fallen. Theres a huge gathering on The Dam in Amsterdam, and you can hear a pin drop - very moving, broatcasted live on national TV.
Then last year, a Jewish orthodox guy in the crowd was being loud and disruptive with his cel phone, so people politely urged him to STFU. He didnt like that and started shouting in anger. This is what happened next:
Here's the same, from a vantage point:
Thousands of people suddenly start moving, radiating away from the incident, the queen and royal family hurried to safety.. 63 people were wounded.
So agreed Badchad, fear and panic is the worst possible advisor. Be prepared, I'd say yes, but don't lose sleep over it.
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FlusH
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Re: Been reading about the economy [Re: Asante]
#14024369 - 02/25/11 08:30 AM (12 years, 11 months ago) |
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Its hard to tell what happened in those videos, Did that orthodox jew get shot or something?
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Beanhead
IS IRONIC PARADOX


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Re: Been reading about the economy [Re: FlusH]
#14024386 - 02/25/11 08:38 AM (12 years, 11 months ago) |
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Some druggie "tried to kill" the queen and crashed his car
Edited by Beanhead (02/25/11 08:38 AM)
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Asante
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Re: Been reading about the economy [Re: FlusH]
#14024391 - 02/25/11 08:39 AM (12 years, 11 months ago) |
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Nobody got shot. Someone shouted, people startled, a matal fence got knocked over, creating a loud noise and did the rest. 63 wounded over a shout.
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Edited by Asante (02/25/11 08:39 AM)
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Beanhead
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Re: Been reading about the economy [Re: Asante]
#14024394 - 02/25/11 08:40 AM (12 years, 11 months ago) |
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?
Oh i'm wrong, I really thought it was that guy... hmm then it was either on queens day or carnaval
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Asante
Mage


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Re: Been reading about the economy [Re: Beanhead]
#14024412 - 02/25/11 08:45 AM (12 years, 11 months ago) |
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Thats another incident, on queens day, and that DID kill people:
4 dead, 13 wounded. Bastard drove straight through the crowd.
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DieCommie

Registered: 12/11/03
Posts: 29,258
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Re: Been reading about the economy [Re: Synesthetic]
#14024423 - 02/25/11 08:49 AM (12 years, 11 months ago) |
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You should be careful about seeking out information on the internet that scares you shitless. Its very easy to get into a trap of being scared, seeking out scary information and repeating. The internet is filled with fear mongering.
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Le_Canard
The Duk Abides


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Re: Been reading about the economy [Re: Synesthetic]
#14024431 - 02/25/11 08:50 AM (12 years, 11 months ago) |
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Things will get better, or they'll get worse. Either way, we'll limp along. People have been predicting this sort of thing since time immemorial and we're still here. I doubt things will totally collapse.
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Asante
Mage


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Re: Been reading about the economy [Re: DieCommie]
#14024433 - 02/25/11 08:51 AM (12 years, 11 months ago) |
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The same goes for disturbing videos - once you decide you saw enough, you discover you saw too many.
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memes
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Re: Been reading about the economy [Re: Asante]
#14024444 - 02/25/11 08:53 AM (12 years, 11 months ago) |
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you just made me flash back to 7th grade adn the Faces of Death movie series
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Asante
Mage


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Re: Been reading about the economy [Re: memes]
#14024474 - 02/25/11 09:02 AM (12 years, 11 months ago) |
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True story
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Beanhead
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Re: Been reading about the economy [Re: Asante]
#14024572 - 02/25/11 09:37 AM (12 years, 11 months ago) |
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Quote:
Wiccan_Seeker said: Thats another incident, on queens day, and that DID kill people:
4 dead, 13 wounded. Bastard drove straight through the crowd.
Yeah I was quite pissed off . Another bad reputation for drugs.
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Synesthetic
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Re: Been reading about the economy [Re: Beanhead]
#14026118 - 02/25/11 03:45 PM (12 years, 11 months ago) |
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People always doubt that something horrific could happen, but all the signs are saying that this "recovery" is really just Act II of the depression. Act III is on the horizon, and even if it's not a full-blown collapse, it's going to be pretty fucking bad.
I mean, China's already selling off its dollars and once no one wants to buy our debt anymore, the only thing the government can do is borrow more money from the Fed, and then the shit's going to hit the fan.
Pris, I've read the constitution plenty of times. What I don't understand is how it's legal to create a semi-public branch of government and give it powers that belonged to Congress without an amendment to the constitution.
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Re: Been reading about the economy [Re: Synesthetic]
#14026218 - 02/25/11 04:07 PM (12 years, 11 months ago) |
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Quote:
Synesthetic said: People always doubt that something horrific could happen, but all the signs are saying that this "recovery" is really just Act II of the depression. Act III is on the horizon, and even if it's not a full-blown collapse, it's going to be pretty fucking bad.
I mean, China's already selling off its dollars and once no one wants to buy our debt anymore, the only thing the government can do is borrow more money from the Fed, and then the shit's going to hit the fan.
This thread is for you!:
What happened to the death of America? Paulbots, Come in. by: meams http://www.shroomery.org/forums/showflat.php/Number/13973500/fpart/1
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Synesthetic
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Re: Been reading about the economy [Re: memes]
#14026238 - 02/25/11 04:11 PM (12 years, 11 months ago) |
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Quote:
meams said:
Quote:
Synesthetic said: People always doubt that something horrific could happen, but all the signs are saying that this "recovery" is really just Act II of the depression. Act III is on the horizon, and even if it's not a full-blown collapse, it's going to be pretty fucking bad.
I mean, China's already selling off its dollars and once no one wants to buy our debt anymore, the only thing the government can do is borrow more money from the Fed, and then the shit's going to hit the fan.
This thread is for you!:
What happened to the death of America? Paulbots, Come in. by: meams http://www.shroomery.org/forums/showflat.php/Number/13973500/fpart/1
We've done nothing to change what started the recession in the first place, and everything we've done has made the problem even worse.
By the way, global demand isn't responsible for the commodities prices soaring. Every commodity is currently traded with US dollars, but since our money supply is inflating faster than before, the prices are going up.
Also, some commodities (like food) have been deeply affected by the earthquakes all over and other natural disasters.
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Re: Been reading about the economy [Re: Synesthetic]
#14026340 - 02/25/11 04:29 PM (12 years, 11 months ago) |
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Quote:
Synesthetic said: but since our money supply is inflating faster than before, the prices are going up.
I posted this graph in another thread, but heres a nice place for it. See how all that money being printed is sitting on banks balance sheets? Well, that money is noninflationary until it begins circulation. ANd since its just sitting there, in a bank, its not being circulated, and therefore an increased money supply is NOT out chasing a stagnant supply of goods, and as a result, our inflation rate is not horrible.
Guess who is competing with us to buy things now? China and India. Notably, OIL. Guess what happens when lots of new customers want an amount of a good that hasn't kept pace with the new demand? Demand > Supply ----> Price Increases.

This is the graph that scares you: the monetary base. But look, the big jump in teh base is matched by that big jump in the graph above. Whatever does it mean?!?!?!?!
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Asante
Mage


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Re: Been reading about the economy [Re: memes]
#14026370 - 02/25/11 04:37 PM (12 years, 11 months ago) |
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Quote:
I posted this graph in another thread, but heres a nice place for it. See how all that money being printed is sitting on banks balance sheets? Well, that money is noninflationary until it begins circulation. ANd since its just sitting there, in a bank, its not being circulated, and therefore an increased money supply is NOT out chasing a stagnant supply of goods, and as a result, our inflation rate is not horrible.
What's gonna happen with that money?
I don't think creating a trillion, not circulating it and then making it disappear without it having touched anything at all is the lulz they have in mind.
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memes
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Re: Been reading about the economy [Re: Asante]
#14026379 - 02/25/11 04:38 PM (12 years, 11 months ago) |
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Either it'll get lent out, SLOWLY, as banks begin accepting loan applications again (think they can lend out 1.2T to quality projects in a short amount of time, i doubt it).
OR, they lend it out faster than the FEd would like, and they adjust monetary policy accordingly to suck that excess liquiditiy back up (worst case scenario: up up up up up go the reserve requirements)
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Asante
Mage


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Re: Been reading about the economy [Re: memes]
#14026394 - 02/25/11 04:40 PM (12 years, 11 months ago) |
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Ahh OK, so it's gonna get circulated. Thank you, I wanted to know that *hugs his pet silver Maple*
So the trillion will only generate inflation if it enters circulation BUT they are going to circulate $ 1,000,000,000,000 reeeeally carefully to not upset the balance.
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Edited by Asante (02/25/11 04:42 PM)
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Synesthetic
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Re: Been reading about the economy [Re: memes]
#14026401 - 02/25/11 04:41 PM (12 years, 11 months ago) |
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That's the point, Meams. In order to get out of the crisis, money needs to start shifting pretty fast, which WILL hyperinflate the market with all that extra money the banks have to use as reserves.
And maybe they should raise the reserve requirement so inflation doesn't get out of hand once that money starts shifting.
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Re: Been reading about the economy [Re: Asante]
#14026404 - 02/25/11 04:41 PM (12 years, 11 months ago) |
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It might get circulated. It'll be circulated to the extent that the Fed thinks is reasonable for our growth prospects, our inflationary trends, and other regional and national economic indicators.
Duhhhhh.
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Synesthetic
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Re: Been reading about the economy [Re: memes]
#14026411 - 02/25/11 04:43 PM (12 years, 11 months ago) |
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Well it doesn't do anyone any good if it just sits in their accounts without creating loans on top of it.
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Re: Been reading about the economy [Re: Synesthetic]
#14026422 - 02/25/11 04:44 PM (12 years, 11 months ago) |
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Quote:
Synesthetic said: That's the point, Meams. In order to get out of the crisis, money needs to start shifting pretty fast, which WILL hyperinflate the market with all that extra money the banks have to use as reserves.
Why does everyone here always assume all that money is going to be dumped into the market quickly?
You realize banks make loans when they deem a loan application to be (a)a sunk cost project that can be paid back, or (b)a good enough running investment that they can make money on the loan [ie starting a business].
So, lets make it simple and say banks make home improvement loans and business startup (or business improvement) loans. DO you think there are magically going to be 1,000,000,000,000 worth of projects in both categories all of a sudden? If so, do you think they'll all be able to be paid back and/or made money off of?
OF COURSE NOT. And as a result, the banks will not be making all those loans, and as a result, the money won't be DUMPED on the economy.
Now, lets assume that those loans CAN be paid back. Guess waht, that means the economy must be doing pretty good if all these loans make sense for the banks. And guess what, if the economy is doing good, the Fed doesn't reallly have the need for all that excess liquidty, and will SOAK IT UP ACCORDINGly.
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Senor_Doobie
Snake Pit Champion



Registered: 08/11/99
Posts: 22,678
Loc: Trump Train
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Re: Been reading about the economy [Re: Asante]
#14026427 - 02/25/11 04:46 PM (12 years, 11 months ago) |
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Basically those two graphs together show how meams's hero took a bunch of taxpayer's money and gave it directly to the banks so that they could keep it in their FED accounts and make interest on it turning bank reserves into giant savings accounts.
-------------------- "America: Fuck yeah!" -- Alexthegreat “Nothing can now be believed which is seen in a newspaper. Truth itself becomes suspicious by being put into that polluted vehicle. The real extent of this state of misinformation is known only to those who are in situations to confront facts within their knowledge with the lies of the day.” -- Thomas Jefferson The greatest sin of mankind is ignorance. The press takes [Trump] literally, but not seriously; his supporters take him seriously, but not literally. --Salena Zeto (9/23/16)
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memes
Blessed



Registered: 01/11/05
Posts: 27,785
Loc: In a Tree
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Re: Been reading about the economy [Re: Synesthetic]
#14026428 - 02/25/11 04:46 PM (12 years, 11 months ago) |
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Quote:
Synesthetic said: Well it doesn't do anyone any good if it just sits in their accounts without creating loans on top of it.
It clearly did more than that, since we didnt collapse into a puddle of economic destitution, amiright?
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Asante
Mage


Registered: 02/06/02
Posts: 86,799
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Re: Been reading about the economy [Re: memes]
#14026429 - 02/25/11 04:46 PM (12 years, 11 months ago) |
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Quote:
It'll be circulated to the extent that the Fed thinks is reasonable for our growth prospects, our inflationary trends, and other regional and national economic indicators.
Well many of us are extremely skeptical the Fed will do a good job at that. A trillion dollars is still $40K per adult American. I dont think they can do it in a way that will not cut into every American's net worth with a blunt axe.
-------------------- Omnicyclion.org higher knowledge starts here
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memes
Blessed



Registered: 01/11/05
Posts: 27,785
Loc: In a Tree
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Re: Been reading about the economy [Re: Senor_Doobie]
#14026437 - 02/25/11 04:47 PM (12 years, 11 months ago) |
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Quote:
Senor_Doobie said: Basically those two graphs together show how meams's hero took a bunch of taxpayer's money and gave it directly to the banks so that they could keep it in their FED accounts and make interest on it turning bank reserves into giant savings accounts.
Yes, you have to be in his club to get the $$$$ from it though. I'm a member.
But seriously guys. I've been arguing these points with you since 2008. Dont you think youda learned somethings by now? I know I have: like stop going to Money Matters. Which I did. But now its in the pub?! help!
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memes
Blessed



Registered: 01/11/05
Posts: 27,785
Loc: In a Tree
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Re: Been reading about the economy [Re: memes]
#14026520 - 02/25/11 05:04 PM (12 years, 11 months ago) |
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K. this has been fun, things to do now. bai.
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Synesthetic
Ratings go in journal.



Registered: 12/11/08
Posts: 2,715
Loc: Tooele, UT
Last seen: 12 years, 8 months
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Re: Been reading about the economy [Re: memes]
#14026527 - 02/25/11 05:06 PM (12 years, 11 months ago) |
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Meams, it doesn't matter if the money is slowly or quickly poured in to the economy.
But I'm done arguing with you. Have fun when shit falls apart and you're caught with your pants down.
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Silversoul
Rhizome


Registered: 01/01/05
Posts: 23,576
Loc: The Barricades
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Re: Been reading about the economy [Re: Synesthetic]
#14026959 - 02/25/11 06:38 PM (12 years, 11 months ago) |
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Quote:
Synesthetic said: What I don't get is...why do corporations and governments keep borrowing more money in the hopes that they'll make enough to pay it back as well as pay off their old debts? In high school when the people came to talk about what NOT to do with your money (trying to curb the horrible shit that people do when they finally get in control of their own lives), they told us to NEVER, EVER borrow money to pay off your debts. 1/10 people, which is a fucking generous estimate, never get enough money to pay those loans back, and end up in worse shape because of it.
The problem is you're thinking of the government budget in terms of your personal expenses. A better comparison would be a business's expenses. Businesses take out loans all the time for when they need to expand. They can afford to take on theses loans because they'll invest that money in their business to ensure that they grow enough to pay off the loan. So too with government. A government can borrow money in a way that stimulates economic growth, which increases the tax base, which increases revenue, and therefore allows them to pay off the debt. It's worked before, and it can work again. If we simply allow the economy to collapse further and have deflation set in, that just makes the debt that much harder to pay off. It would probably be better if we could just create the money rather than borrowing it, but that's another conversation.
Quote:
And yet the whole fucking system relies on banks, corporations, and governments borrowing more and more money. The economy would grind to a halt and deflation would fuck everyone in the nation over if we actually managed to produce enough to pay off our debts, public and private. But if things keep going the way they are, INflation will skyrocket and THAT will fuck everyone over.
Inflation will only skyrocket if money gets spent on the wrong things, or if we keep doing deficit spending after the economy recovers, like Bush did over the past decade.
/awaits angry irrational libertarian response from Paultards
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Janamil


Registered: 08/01/09
Posts: 1,699
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Re: Been reading about the economy [Re: Silversoul]
#14027009 - 02/25/11 06:48 PM (12 years, 11 months ago) |
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There needs to be a guide of wtf should I buy with my free money so I have a home later?
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bryguy27007
Cosmonaut



Registered: 01/26/08
Posts: 10,525
Loc:
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Re: Been reading about the economy [Re: badchad]
#14027054 - 02/25/11 07:00 PM (12 years, 11 months ago) |
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Quote:
badchad said: You can be prepared, but try not to lose sleep over it.
That is really good advice. Wiccan turned me onto silver which turned me onto some stacking forums. I was reading those way too much where it's just a bunch of people talking about how soon the end of the world as we know it is coming, what are you going to do when SHTF, etc. It really got to me. I put my money into silver, gold, and a gun. I am still putting my money into silver and gold but I'm trying not to worry about it as much. I think the U.S. dollar will crash sometime in our lifetime, but I might as well enjoy life instead of worrying about it too much.
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civil twilight

Registered: 02/04/08
Posts: 512
Loc: Wisconsin
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Re: Been reading about the economy [Re: bryguy27007]
#14027181 - 02/25/11 07:28 PM (12 years, 11 months ago) |
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yup yup
-------------------- "You dropped your pocket..."
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