NeedToUseYou
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Joined: 12/24/2005
From: None of your business
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quote:
ORIGINAL: Griswold
quote:
ORIGINAL: Real0ne
quote:
ORIGINAL: Griswold
We will always have a recession.
Every 8 - 10 years...just like clockwork.
Not true.
there was no such thing as recesssion in the first 100 years of this country to the contrary this contry got filthy rich during this period, INCLUDING the lowest class!!! we have had recession only since the creation of the federal reserve. you sir do not understand money and need to watch this video:
http://video.google.com/videoplay?docid=7757684583209015812&q
not only will we have a recession this country has just about run its course both in gov and currency and is doomed to crash. Bottom line they are running out of rabbits to pull out of their hat.
Hahahahahahahahahahahahahahahaha.
Yeah, I get my facts from online videos too. (riiiight).
Son, there have been recessions since man first breathed air. They are caused by any number of things, including crop failure, drought, poor central planning, unbalanced supplies as against demand, greed and just plain stupidity.
The Federal Reserve, and later other international monetary funds, not only minimized (most) recessions, they were in fact put in place almost entirely because of the governments previous inability to ameliorate these very same recessions.
And like individual citizens failure to manage their funds correctly, and therefore be root causes of financial failures in the past, governments too made mistakes in the supply of funds, whether it was through too much supply of money or the contraction of same.
Recessions have been going on since the Earth first turned.
(In the meantime, I'll take your advice and do what I can to try and better educate myself through YouTube so I can be a much better and informed citizen).
The problem isn't that there were no recessions/depressions. The problem with the FED is that they skim off the top and "artificially induce" inflation by printing more and more money beyond growth rate of production. They aren't doing this to keep the dollar to goods value constant, which would be a sane fair policy. They are doing it to dilute the value in the economy already. So, every year your dollar is worth less than last year, while the supposed job of the FED is to keep constant steady growth. So, they are not performing their duty. They are dumping more and more currency into the system, to the ditrement of the US population.
Why? Well, the government takes this money and spends it, and calls the new money debt, which we for some reason then say we owe to the Fed as interest.
It's a broke system, that does one thing as a constant over time, and that is devalue held currency for the benefit of the FED.
If you can't understand that most basic and fundamental truth of the FED you may want to read some different books.
Here's a simple example.
There are 10 fish available everyday, there are ten dollars in circulation.
Day1: 1 fish sells for 1 dollar.
Day2: FED prints another dollar, and loans it to the government. The government uses the fish to feed the soldiers in Iraq Obviously they via the government get to spend the newly created dollar first at previously non-inflationary prices. Now the ten guys with the 10 dollars come to buy their fish. Oh crap their are only 9 fish now and 10 dollars. The store realizes their are now more dollars in circulation and the product available has not increased, so they raise the price to 1.11, Ah a new balance is born. Except the 10 dollars earned by the men was based on the old worth of labor, so in theory for everything to even out their pay should now be 1.11, bu it'll take a year or two for the employer to give that to them, and if the employer wants to reduce the real "wages" of the employees without a direct pay cut he just has to hold the pay steady or instead of giving them a raise to 1.11 give them a raise to 1.05(This is the situation experienced in this country for decades), Most people don't understand inflation at all, and are just happy with a raise, even when it is a pay cut.
Day 3 New Technologies allow for another fish to be added to the Market(cheers from all). Fed adds another dollar to the system. Cancelling any price change(should have just added at this point, not the previous day, as to hold the value relatively stable). That is not what the fed does, it adds more currency to the system constantly, and always above the rate of growth. So, essentially it steals value from the whole of the coutnry. It's the worst of taxes it's an invisible tax on everything, and it happens every year, year in and year out. It's a one way inflationary road, and the holder of the currency loses, every single time.
A natural fair system, would not allow for massive devaluation. There would always be flucuations and growth pretty much dictates a increase in the money supply. But when the money supply out grows "real" growth to the tune of devaluing a currency from a dollar in 1913 to .04 to today. That is a detrimental out of countrol FED.
Boom and Bust will happen under any system, from time to time, like you said it is caused by "real" issues. The Fed however, induces the current boom bust cycles which are wholly "artificial".
It really isn't complicated, just take out your monopoly money, and give everyone in the house the money for doing chores. Set the rules that renegotiations of wages can only occur monthly, and you as the central bank control the production of "new" money, and you can make as much of it as you want and make purchases with it.
So, billy will come buy a juice, by working for it, and you will just take some money out of the "bank" and buy you a juice. In the end the the juice is going to run out before the money because you really like juice, and thus inflation sets in to quell demand for the juice, but in reality it was the introduction of the new money.
Simple examples but it works nearly the same way in the Macro scale, as well as the Micro.
One line= Fed increases chance of negative wealth accumulation of the masses, and that has all kinds of negative repurcussions over the long term.
Like the current, gap between poor and rich. The rich for example keep a large share of their income working(invested), so they overcome this inflationary loss, via investments, so they are able to accumulate. The poor having little of their net worth invested and pay raises lagging behind FED induced inflation, have much less opportunity to protect the value of their money, thus it's much harder to become wealthy than it is to maintain welathy than in a natural system.
Disagree or agree that is how it works, I started looking into this in 1999, because I was worried about potential problems Y2K might cause to banking. Fortunately it didn't, and in almost a decade I've not seen any good effect of the FED, unless you get your information from the TV, or FED via government talking heads.
The fed is the biggest threat to the US populace that has ever existed. And that is not an overstatement. It may sound like it, but it is the honest truth.
< Message edited by NeedToUseYou -- 4/29/2007 11:39:14 AM >
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RE: Will we have a Reccession? - 
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