It's not rocket science!

POSTED BY: SignyM
UPDATED: Sunday, October 18, 2009 17:26
VIEWED: 6406
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Hello Signy,

I'm a bit confused with your conclusions.

The first lowering of interest rates occurred Two Days after Clinton left office. You have three options:

1) There was a staggering rise in inflation immediately after Clinton left the White House (within 48 hours!), resulting in an economy that needed to be boosted with cheap credit. (Because paychecks simply weren't keeping up with inflation.)

2) Inflation had been running rampant throughout the Clinton years, and/or wages had been growing increasingly insufficient. This resulted in an economy that needed to be boosted with cheap credit. (Because paychecks simply weren't keeping up with inflation.)

3) Interest rates were lowered by the new administration for reasons unrelated to inflation or paychecks.

Can you think of a fourth option? Because what you have stated thus far makes no sense to me.

--Anthony


"Liberty must not be purchased at the cost of Humanity." --Captain Robert Henner

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Tony- The economy didn't need much "priming" under Clinton. I don't understand your question.

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Banks invent money. The whole system is a scam. Our economy is probably less stable than the one in Everquest, and probably has less credibility.

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Hello,

I am sorry if I was unclear.

The first reduction of interest rates happened 2 days after Clinton left office.

You have issued the premise that Clinton's economy was a good one and that wages were good.

You have suggested that interest rates were lowered in order to stimulate an economy which was lagging because wages were not keeping pace with inflation.

These statements are in contradiction with facts. How do you reconcile them?

--Anthony

"Liberty must not be purchased at the cost of Humanity." --Captain Robert Henner

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Quote:

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Originally posted by dreamtrove:
Banks invent money. The whole system is a scam. Our economy is probably less stable than the one in Everquest, and probably has less credibility.

---

Hello,

This I can agree with wholeheartedly.

--Anthony


"Liberty must not be purchased at the cost of Humanity." --Captain Robert Henner

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There's a REASON Usury is looked down upon, universally hated, and often illegal.

And you're staring right down the barrel of it, thanks to Congressional Negligence, Corruption and with malice aforethought.

Worse, we can't even go back to a gold or silver standard cause there ain't even ENOUGH of it to cover that shitstorm of inflated fiat paper.

But one positive move would be rebacking it at a percentage, and then by cutting down the flood, increasing that percentage as things get better.

Even as a temporary* PR move, it'd still bump confidence in the currency.

-Frem

*Temporary, heheh, you can push it as that, but I am playing that one for boomerang effect cause I know damn well such an act would be as "temporary" as any tax ever is...

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Hello,

After every financial crisis, there seems to be a rush by government to restore order by convincing people that they can trust the banks. In this most recent crisis, banks who made idiotic decisions and insurance companies who made boneheaded policies were all rescued. The government lowered interest rates and issued money in droves to financial institutions with a commandment that they should start lending again. Lend more! Lend more! Extend consumer credit! For a while it was practically all I heard from day to day.

I find this all to be foolhardy.

People shouldn't trust any bank that would fail under the current crisis. Nor should they believe in any insurance company unable to meet its commitments. Nor should they trust a Federal Banking System that is asserting a remedy to a problem by invoking the identical conditions that created it to begin with. I am daily aghast and afraid. I hope that interest rates are raised rapidly and soon. I would like to see our nation evolve into one where the majority of people do not finance small purchases casually, and where large purchases are financed only with great trepidation.

The lure of Easy Money and Guaranteed Profit, even though patently and obviously false, is too great a lure. In a world where the Government does not shovel Easy Money at the Banks, (and the Banks can hence not shovel it at you) people might actually save money and die with substantial assets that aren't derived from a Life Insurance Policy.

--Anthony


"Liberty must not be purchased at the cost of Humanity." --Captain Robert Henner

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Quote:

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What I find interesting is that we repeated the Roaring Twenties almost step by step, without learning a thing. Back then, the bubble was stocks and real estate. This time around, it was real estate and stocks. But underlying that speculative bubble, farmers were going out of business and wages were falling. Funny how that rings a bell...

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That's entirely by design. If you're one of the very, VERY rich, a depression is a great way to get richer. Sure, you'll take quite a hit in the short term, along with everyone else, but if you lose 50% of $85 billion, you're not going to be missing any meals. What you DO have, still, is the ability to buy up assets and grow exponentially, while the smaller fish are foundering in the shallows, just trying to stay alive for another day. Their loss is your gain.

Sure, people lose homes, businesses, jobs, livelihoods, and even their health and their lives - but what the fuck should you care, if you're one of the ultra-rich? You're making money in this economy, remember!

If you think this is odd, look up the playthings of the ultra-wealthy during the Great Depression. Deusenbergs were big, as were Bugattis. When a Model T cost $500, there were cars that cost over $20,000 - and they had a waiting list of ready buyers.

The rich will gladly grind you under as fertilizer for their dreams. Don't ever for a second think they won't.

Mike

The percentage you're paying is too high-priced
While you're living beyond all your means;
And the man in the suit has just bought a new car
From the profit he's made on your dreams

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