SIMPLE ECONOMICS LESSON

[GALAZIO]

Que?

http://www.youtube.com/watch?v=lNS8IY_Td14

[softcrab]

in our leaders.

I see no recovery until there is reform in business taxes, excessive regulations, and litigation reforms.

It is nearly impossible to make a profit in todays business climate.

[GALAZIO]

Is it really a "profit" if you bought goods in October of 2008 for $100, maked them up to $200 for your profit... and sold those good in Jan of 2009? Three months... and your dollar is at 55% the value.

So, if you bought it at $100 and 55% of $200 is $110... and you have to pay taxes on the $100 it took to buy the goods... and on the $200 you sold it for, not to mention rent, payroll, G&A, etc, etc... I wonder how long it is before business owners look at their balance sheets and say "screw this". The banker are not lending for a reason... they know the dollar is done.

So, how long before we are being sold another bag of crap... something like a new/different currency???


(and BTW, new and different does not mean better)

[Bligh]

There is no such thing as free trade with out fair trade! Keep sending our money overseas with our money earning jobs. Whos going to have money to purchase? Maybe we have many problems and only greedy people with their hands out running things?

[Glenn W]

I've been saying it since Bush announced his "stimulous" credit last year as Milton Friedman turned in his grave--- Now there is a riot going on, rest his soal. This 2008/2009 will go down as one of the dumbest periods of U.S. monetary policy in history, no doubt.

[Dave Sikorski]

I've been saying it since Bush announced his "stimulous" credit last year as Milton Friedman turned in his grave--- Now there is a riot going on, rest his soal. This 2008/2009 will go down as one of the dumbest periods of U.S. monetary policy in history, no doubt.

How can you make so much sense at one min, and no sense the next?

I'm with you here Mr. Moonbat!!

-D

[Glenn W]

How can you make so much sense at one min, and no sense the next?

I'm with you here Mr. Moonbat!!

-D

Intellect my friend--- intellect

[GALAZIO]

Intellect my friend--- intellect

Que???


I agree Glenn... Tea Party Time???

[Glenn W]

Que???


I agree Glenn... Tea Party Time???

That's one possibility. Lord knows the Economic Ostrich policy of our Federal Government is not working--- Dems and Reps both have their heads so far in the sand most cannot see past their next relection campain.
I don't pretend to have all the answers and solutions, but something has to done about the level of Federal Spending going on since GW took office. It remains to be seen whether their will be a material shift in spending from guns to butter with Obama, but the fact remains--- our national debt is soaring, the money supply is in the stratosphere, the the international confidence in the U.S. dollar is at an all time low, so what do we do---- dump another trillion dollars into the money supply that is a pure fiat---- like the international community can't figure that out.
As far as I can tell, there is no real plan in the stimulous plan other than dumping fiat moneyu into the money supply. FDR's programs had it share of critics, but at least his fiscal policy provided tangible benefits and national wealth---- this nonsence is nothing short of what Mexico did back in the 1980's.

[iguana1]

I wish this were simple, but it isn't. The spike in the money supply is the TARP going into effect whcih isn't quite the same as just printing a whole bunch of hard currency. There is a legitimate concern though that over the longer term this increase in the money supply will start having an effect causing inflation. This needs to be balanced against the short term risk of deflation. From what I have read we are safe from inflation for 1-2 years anyway and deflation is the big risk.

What stinks about this situation is that the responsible people who saved are faced with no good investment strategy at this point. TIPS are trading a negative yield and all other ifnaltion hedges I know of have third-party credit risk. Due to the fed bailout short term yields stink (since the feds will loan money for free who needs to borrow on the open market?). So there you have it, you can either double down and gamble with your remaining nest egg in the markets or sit on the sidelines and gamble with the govt's monetary policy.