A funny state of the economy

Whoever's administration it was that supposedly caused the recent problems, this stuff goes back to at least 1913. Fractional reserve banking is a bad idea for everybody except bankers. Same goes for private central banks. The war of independence was primarily fought to free America from the tyrannical tendrils of the Bank of England, ask Thomas Jefferson!

We all have some very interesting times up ahead of us.
 
Theres nothing anyone can do...the Illuminati's have all the control.



Its just not fair! :p
 
The US is becoming a socialist regime just like all the other countries that provide heathcare for those who can't afford it - just look at the socialist dictatorships throughout Britain, Australia and the EU.

I don't think most of Africa and the Middle Easy have universal health care, though. At SOMEONE isn't a commie!
 
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Hey zambizzi...just curious if your an economist or something similar. I'm currently studying economics so i'm learning about all that stuff. I was under the assumption that its the neoclassical and monetarist stuff that has been getting taught since the 70s, until about 2 years ago where there seems to be a bit of a revival of Keynesian economics with the whole global financial crisis. I do agree with you that there is alot of merit in learning the basics of Hayek and the Austrian school of thought though.

Keynes became popular because his theories empower statists, by attempting to rationalize a centrally-planned and managed economy. This is popular with state schools, naturally, and has become the dogma of choice amongst socialist professors. Keynes admitted, himself, in his German-language translated book, that his theories were really only suitable in an absolute dictatorship, such as Nazi Germany. It should be entirely clear that Keynesian theories are nonsense and have been completely discredited...particularly in the past two years.

The Austrian school explains how markets really work and how individuals act within markets. It's simple common sense, broken down into simple language. I would recommend you read "Man, Economy, and State" by Murray Rothbard. It's a life-changing experience. ;)

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Zambizzi is a long time critic of the Fed and a seriously smart guy. He can Maynard with the best of them...

Pol, not sure if the administrations had much to do with the slump other than the economic consequences of a war without an end in sight. Its a gradual unravelling of long term fiscal policies, and tectonic shifts in the global economy..
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Ha...thanks! You're correct here, Abe. While the FED is chartered and is often influenced by Congress, it has complete autonomy to manipulate the currency, and thus the entire global economy. The outcome is the current economic chaos. Blaming political action is mostly a distraction. Nothing politicians do, on the scale that they do today, would be possible without a fiat currency.

Whoever's administration it was that supposedly caused the recent problems, this stuff goes back to at least 1913. Fractional reserve banking is a bad idea for everybody except bankers. Same goes for private central banks. The war of independence was primarily fought to free America from the tyrannical tendrils of the Bank of England, ask Thomas Jefferson!

We all have some very interesting times up ahead of us.

Bingo! The FED is successful in what it was created to do - shift all of the risk taken by the banking cartel, to the public. It was created to force taxpayers to guarantee member bank solvency. The rhetoric was otherwise (stabilize the currency, provide an elastic money supply, etc.), but it succeeded in none of those things. The FED has resided over a massive string of recessions and depressions since 1913, all created by its own policy. The USD has been devalued by roughly 95%, since then.

Here's a fantastic 40 min. video that explains the FED very well. This is where you have to look to understand the state of things.

http://video.google.com/videoplay?docid=-466210540567002553#
 
..... Blaming political action is mostly a distraction. Nothing politicians do, on the scale that they do today, would be possible without a fiat currency....

+1.




( I knew all along that you were a really an economist hiding being your Pearl Masters..)


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Commie? socialism is not the same as communism.. close but not the same..basic economics actually.
 
once legal highs become more prevalent in the mainstream (they already are on my little island south of the UK) then the UK government will be forced to start taxing legal (or illegal) drugs.
 
Hi Zambizzi - Great work. Ron Paul 2012, end the fed, legalize pot (with a goal to legalize every drug eventually) and let's can the income tax. It sounds crazy, but it's going to happen one way or another eventually. :)

That would make America the best country in the world righttt? Amirite or amirite?
 
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Hmmm I would and have voted for Ron Paul and I find myself more in line with the Tea party then any other party.... I am definetly not a liberal.
 
Nhozo, the Tea Party is there to provide simple answers to complex problems. It's mostly emotional and lacks policy substance. Silver bullets don't work. The proto-Tea Party was in power for 8 years and made a mess. Invading Iraq was a massive own goal.

The US today faces what economists call "wicked problems" ... there is NOTHING any government can do at present to make things right. The nation is going through a decline period and it's inevitable because of forces that have built for 30-40 years, and some forces that have been niggling for over 200. You can't turn around an ocean liner just like that, which is what the Tea Party promises.

Other forces are out of the US's control given the huge debt they've accrued with China. What's in your favour is that China has a strong interest in not letting the US go down the gurgler fast.

Ultimately, the US needs to boost productivity and to do something about all the people who it's traditionally allowed to fall through the net ... when you have too many "losers" you get destructive agents who actively drain and sabotage society and the economy rather than add to it ... one million people wasted in prison, ghettos that breed organised crime. Not pushing a welfare state ... more early intervention. Huge job ahead ...
 
Polly, I don't know what your reading but I have not seen any 1 word answers to anything other than health care (single payer system). The war of I raq was Bush backed by 99% of politicians democrats and republicans so do not try to say just the Tea Party who by the way was not even around at the time is responsible for it.

Our gov't is still borrowing $5billion a day right now...???


Millions of people wasted in prison?, 30% are not even citizens yet we are paying for their room and board (which 90% of the time is better than being free in their own country) Shore up the border.. that would create jobs would'nt it?

Everyone is starting to expect handouts and when they don't get it they resort to crime, and end up getting a handout 1 way or the other.
 
Poly ... good marks. Yes, the "Tea Party" (without straying to far away from an ecomonic thread), is just really ... a reaction, a distraction, of about 18%. Made up of "all types".​
The people who "run this country" ... who "call the shots"... who "have the wealth ... and the power" are the top 5%. They control 95% of the wealth.​
In my lifetime, I've lived thru 3 major recessions. And with each recession, the collective wealth of a part of a generation is destroyed. Most people don't get to inherit millions/billions from dad. Instead, they're lucky to get their parents house. But with every recession ... people loose their jobs ... so they can't pay their mortgages ... so they loose their homes .... and the family "wealth", gone. Everything mom/dad worked for, for 25 years, gone.
Combine that, with "medical bills". In a "non-recession" environment, something like 80% of forclosure is triggered buy the need to pay "medical bills". And hey, everyone dies, and when all someone has is a home, and it costs around $100,000 a year to die ... sorry kids ... and grandkids ... no handed down wealth for you. Forget about grandma/granddad's "master plan .... the golden age of retirement ... people born in 1920, with 1950's thinking, making "financial" commitments in 1980, are being blindsided right and left, in 2010. And say "bye-bye" to handing down "anything" to anyone. Not exactly the "American" dream they were "sold".​
I like Donald Trump, a lot. He's a straight shooter. Says what he thinks. Got enough "cash" in his pocket, that no one can "buy" him. He commented, the other day, about how the "Chinese" are laughing at us right now. "They" can't understand why "we" let "them" get away with as much as we do. That's bad. ..... and the other thing Mr. Trump said, was "America" needs to stop relying on OPEC oil.​
Now, a lot of this applies to the rest of the world, also. Except, globally, 95% of the wealth is controlled by less that 1%.... and that 1%, they ain't gonna give "any" of it up.​
In 2010, the Chinese produced and sold 13 million cars. They sure didn't sell any here. Japan produced 8 million cars, with only 1/3 of their market to the US. The US produced 6 million cars, and 2/3 of our auto sales went oversea's. Clearly, China and India are the fastest growing "consumer" markets. The "players" in the game clearly know where the field is. The "spectators" .... a lot of them don't even know they're in the wrong "parking lot" ... they're too busy having their tailgate party.​
 
The war of Iraq was Bush backed by 99% of politicians democrats and republicans so do not try to say just the Tea Party who by the way was not even around at the time is responsible for it.

I said the "proto Tea Party" old boy. And we all know it was the hawks in the inner sanctum who pushed for the invasion. Neither Colin Powell and his allies or the Dems would have pushed for the invasion but it's common to get bilateral agreement once a the push for war is on so there's no accusations of lack of patriotism or playing politics. It was a destructive decision for both the US and Iraqi citizens, one that many knew to be based on spurious reasoning.


Millions of people wasted in prison?, 30% are not even citizens yet we are paying for their room and board (which 90% of the time is better than being free in their own country) Shore up the border.. that would create jobs would'nt it?

Don't ask me why but the US has long had very high imprisonment rates. A few years ago a woman who hosted a party for her teen son was gaoled for 2 years because alcohol was available at the party (even though she made them hand in their keys). She was just a regular mum who caved into her son's pressure. I'm a big fan of slugging people in the hip pocket rather than using gaol for people who are not dangerous.

As an HR practitioner I find the over-quick approach to imprisonment there is a terrible waste of human resources - almost like declaring war on sections of your own population.


Everyone is starting to expect handouts and when they don't get it they resort to crime, and end up getting a handout 1 way or the other.

It's a fine line between fostering a welfare mentality and hanging people out to dry. Thing is, if people can't afford food and shelter they will turn to illegal means to survive. It's a whole infrastructure issue, requiring a range of measures too complex for drummers to fully understand.
 
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