Forum Replies Created
-
AuthorPosts
-
sobmaz
Participant[quote=Eugene][quote=sobmaz]
The newly created capital is used to buy necessities, necessities that are increasingly made in Asia.Mr. Ching Chong, is lifted out of poverty producing what we now fail to produce for ourselves. Mr. Chong, takes his new economic freedom and buys MILK. Hey buys oil.
So, your average guy isn’t getting more, however more people now have the means to buy world commodities.
The situation is, we can now create infinite amounts of capital out of thin air, lifting billions out of poverty but mother nature just won’t cooperate with that infinite word.
Prior to 1972, capital formation had limits.[/quote]
That newly created capital is not used to buy anything. It is not in the hands of people who do any real buying. It never leaves the vaults of financial institutions.[/quote]
You have got to be kidding, right?
Let me spell it out for you.
The FED prints money and buys u.s. treasuries, keeping borrowing costs low for the Federal Government. The Federal Government, able to borrow at near zero rates, borrows for wars, stimulus and the reproductive cycle of the Duck Billed Platapussy.
When the Federal Government can borrow into existence trillions of dollars at near zero rates, that money makes it to Iraq for bribes, for Iraqi schools and roads. The Federal Government is able to extend unemployment benefits. The Federal Government is able to bail out Freddie Mac and Fanniea and on and on and on.
All this money begins circulating in the world economy and ends up in the hands of more and more people who then consume more and more commodities.
Where you get the idea newly created money doesn’t see the light of day, well, I think you have been listening to Ben Bernanke a bit too much.
A lot of smart economist disagree with you and Ben, and the ultimate truth detector does as well, which is Gold.
Participant[quote=Eugene][quote=jstoesz]you can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…[/quote]
My point is that the monetary base is not chasing anything at the present time. The monetary base is an abstract number. You don’t have any milk-drinkers whose disposable income has gone up 3x as a result of changes in that abstract number.
If you were to talk about M2 per capita instead of the monetary base, I might agree with you (conditionally) … but M2 per capita has not tripled, it has only gone up 4% in two years.
Hence, the claim that the Fed has destroyed anyone’s purchasing power, or even caused inflation in the price of milk, remains unproven.[/quote]
The newly created capital is used to buy necessities, necessities that are increasingly made in Asia.
Mr. Ching Chong, is lifted out of poverty producing what we now fail to produce for ourselves. Mr. Chong, takes his new economic freedom and buys MILK. Hey buys oil.
So, your average guy isn’t getting more, however more people now have the means to buy world commodities.
The situation is, we can now create infinite amounts of capital out of thin air, lifting billions out of poverty but mother nature just won’t cooperate with that infinite word.
Prior to 1972, capital formation had limits.
Participant[quote=Eugene][quote=jstoesz]you can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…[/quote]
My point is that the monetary base is not chasing anything at the present time. The monetary base is an abstract number. You don’t have any milk-drinkers whose disposable income has gone up 3x as a result of changes in that abstract number.
If you were to talk about M2 per capita instead of the monetary base, I might agree with you (conditionally) … but M2 per capita has not tripled, it has only gone up 4% in two years.
Hence, the claim that the Fed has destroyed anyone’s purchasing power, or even caused inflation in the price of milk, remains unproven.[/quote]
The newly created capital is used to buy necessities, necessities that are increasingly made in Asia.
Mr. Ching Chong, is lifted out of poverty producing what we now fail to produce for ourselves. Mr. Chong, takes his new economic freedom and buys MILK. Hey buys oil.
So, your average guy isn’t getting more, however more people now have the means to buy world commodities.
The situation is, we can now create infinite amounts of capital out of thin air, lifting billions out of poverty but mother nature just won’t cooperate with that infinite word.
Prior to 1972, capital formation had limits.
Participant[quote=Eugene][quote=jstoesz]you can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…[/quote]
My point is that the monetary base is not chasing anything at the present time. The monetary base is an abstract number. You don’t have any milk-drinkers whose disposable income has gone up 3x as a result of changes in that abstract number.
If you were to talk about M2 per capita instead of the monetary base, I might agree with you (conditionally) … but M2 per capita has not tripled, it has only gone up 4% in two years.
Hence, the claim that the Fed has destroyed anyone’s purchasing power, or even caused inflation in the price of milk, remains unproven.[/quote]
The newly created capital is used to buy necessities, necessities that are increasingly made in Asia.
Mr. Ching Chong, is lifted out of poverty producing what we now fail to produce for ourselves. Mr. Chong, takes his new economic freedom and buys MILK. Hey buys oil.
So, your average guy isn’t getting more, however more people now have the means to buy world commodities.
The situation is, we can now create infinite amounts of capital out of thin air, lifting billions out of poverty but mother nature just won’t cooperate with that infinite word.
Prior to 1972, capital formation had limits.
Participant[quote=Eugene][quote=jstoesz]you can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…[/quote]
My point is that the monetary base is not chasing anything at the present time. The monetary base is an abstract number. You don’t have any milk-drinkers whose disposable income has gone up 3x as a result of changes in that abstract number.
If you were to talk about M2 per capita instead of the monetary base, I might agree with you (conditionally) … but M2 per capita has not tripled, it has only gone up 4% in two years.
Hence, the claim that the Fed has destroyed anyone’s purchasing power, or even caused inflation in the price of milk, remains unproven.[/quote]
The newly created capital is used to buy necessities, necessities that are increasingly made in Asia.
Mr. Ching Chong, is lifted out of poverty producing what we now fail to produce for ourselves. Mr. Chong, takes his new economic freedom and buys MILK. Hey buys oil.
So, your average guy isn’t getting more, however more people now have the means to buy world commodities.
The situation is, we can now create infinite amounts of capital out of thin air, lifting billions out of poverty but mother nature just won’t cooperate with that infinite word.
Prior to 1972, capital formation had limits.
Participant[quote=Eugene][quote=jstoesz]you can not answer that question for yourself? I am curious what you are looking for here.
If you have 3 times the monetary base chasing the same number of goods. You have a currency worth a third as much.
Obviously, it gets way more complicated than that on the ground especially when you consider all the deflationary pressures, but that is the basic logical barebones…
It seems to me that increasing the monetary base by 3X, can be hidden for only a short time…[/quote]
My point is that the monetary base is not chasing anything at the present time. The monetary base is an abstract number. You don’t have any milk-drinkers whose disposable income has gone up 3x as a result of changes in that abstract number.
If you were to talk about M2 per capita instead of the monetary base, I might agree with you (conditionally) … but M2 per capita has not tripled, it has only gone up 4% in two years.
Hence, the claim that the Fed has destroyed anyone’s purchasing power, or even caused inflation in the price of milk, remains unproven.[/quote]
The newly created capital is used to buy necessities, necessities that are increasingly made in Asia.
Mr. Ching Chong, is lifted out of poverty producing what we now fail to produce for ourselves. Mr. Chong, takes his new economic freedom and buys MILK. Hey buys oil.
So, your average guy isn’t getting more, however more people now have the means to buy world commodities.
The situation is, we can now create infinite amounts of capital out of thin air, lifting billions out of poverty but mother nature just won’t cooperate with that infinite word.
Prior to 1972, capital formation had limits.
Participant[quote=CA renter][quote=AN]Interesting comment sobmaz. I personally would think I’m doing better than 10 years ago if my asset is 7x and $600k larger than it was 10 years ago. I wonder who else feel they’re not doing better than 10 years ago while sitting on an asset that’s 7x larger.
[/quote]
Yes!!! We have significantly more money (over 10X) today than 10 years ago, but also feel less comfortable about our finances.
Back then, we were looking at fairly regular raises, and no layoffs or wage/benefit cuts on the horizon. Back then, we didn’t have to fear the Federal Reserve’s determination to destroy our currency and wipe out all of our wealth. Back then, our friends and neighbors were fully employed, and most were looking forward to making more in the coming years…today, many of those people are unemployed, or under-employed, with some making less than they were 10 years ago, with much less job security to boot. Back then, healthcare costs were high, but nowhere near as high as they are today, which can destroy anyone who is unemployed or without insurance. God forbid you lose your job in your 50s (unlikely to find a new, comparable job at that age, and in this economy), and you have to make it another 5-10 years before you qualify for Medicare. That’s absolutely frightening, because it can wipe you out, even if you have a few hundred thousand in cash…and then what?
I don’t know a single person, personally, who feels better about the economy today than 10 years ago. Not one.[/quote]
My thoughts exactly, well put.
Another issue……. while the overall tax burden for the working class increases and plummets for those making over a million, the working class is increasingly told by Washington, you are on your own!
Threats to cut s.s. while we have the money to fund needless wars. Threats to cut medicare while we have the money to socialise losses for the wealthy while making sure profits are private.
You are darn right being 48 I feel less secure about my future than I did 10 years ago even though I have more in assets.
And,I am forced to increasingly take on more and more risk to earn a return on my assets which is in reality only covering the erosion of purchasing power. Forced to take excessive risk to stay even!
Participant[quote=CA renter][quote=AN]Interesting comment sobmaz. I personally would think I’m doing better than 10 years ago if my asset is 7x and $600k larger than it was 10 years ago. I wonder who else feel they’re not doing better than 10 years ago while sitting on an asset that’s 7x larger.
[/quote]
Yes!!! We have significantly more money (over 10X) today than 10 years ago, but also feel less comfortable about our finances.
Back then, we were looking at fairly regular raises, and no layoffs or wage/benefit cuts on the horizon. Back then, we didn’t have to fear the Federal Reserve’s determination to destroy our currency and wipe out all of our wealth. Back then, our friends and neighbors were fully employed, and most were looking forward to making more in the coming years…today, many of those people are unemployed, or under-employed, with some making less than they were 10 years ago, with much less job security to boot. Back then, healthcare costs were high, but nowhere near as high as they are today, which can destroy anyone who is unemployed or without insurance. God forbid you lose your job in your 50s (unlikely to find a new, comparable job at that age, and in this economy), and you have to make it another 5-10 years before you qualify for Medicare. That’s absolutely frightening, because it can wipe you out, even if you have a few hundred thousand in cash…and then what?
I don’t know a single person, personally, who feels better about the economy today than 10 years ago. Not one.[/quote]
My thoughts exactly, well put.
Another issue……. while the overall tax burden for the working class increases and plummets for those making over a million, the working class is increasingly told by Washington, you are on your own!
Threats to cut s.s. while we have the money to fund needless wars. Threats to cut medicare while we have the money to socialise losses for the wealthy while making sure profits are private.
You are darn right being 48 I feel less secure about my future than I did 10 years ago even though I have more in assets.
And,I am forced to increasingly take on more and more risk to earn a return on my assets which is in reality only covering the erosion of purchasing power. Forced to take excessive risk to stay even!
Participant[quote=CA renter][quote=AN]Interesting comment sobmaz. I personally would think I’m doing better than 10 years ago if my asset is 7x and $600k larger than it was 10 years ago. I wonder who else feel they’re not doing better than 10 years ago while sitting on an asset that’s 7x larger.
[/quote]
Yes!!! We have significantly more money (over 10X) today than 10 years ago, but also feel less comfortable about our finances.
Back then, we were looking at fairly regular raises, and no layoffs or wage/benefit cuts on the horizon. Back then, we didn’t have to fear the Federal Reserve’s determination to destroy our currency and wipe out all of our wealth. Back then, our friends and neighbors were fully employed, and most were looking forward to making more in the coming years…today, many of those people are unemployed, or under-employed, with some making less than they were 10 years ago, with much less job security to boot. Back then, healthcare costs were high, but nowhere near as high as they are today, which can destroy anyone who is unemployed or without insurance. God forbid you lose your job in your 50s (unlikely to find a new, comparable job at that age, and in this economy), and you have to make it another 5-10 years before you qualify for Medicare. That’s absolutely frightening, because it can wipe you out, even if you have a few hundred thousand in cash…and then what?
I don’t know a single person, personally, who feels better about the economy today than 10 years ago. Not one.[/quote]
My thoughts exactly, well put.
Another issue……. while the overall tax burden for the working class increases and plummets for those making over a million, the working class is increasingly told by Washington, you are on your own!
Threats to cut s.s. while we have the money to fund needless wars. Threats to cut medicare while we have the money to socialise losses for the wealthy while making sure profits are private.
You are darn right being 48 I feel less secure about my future than I did 10 years ago even though I have more in assets.
And,I am forced to increasingly take on more and more risk to earn a return on my assets which is in reality only covering the erosion of purchasing power. Forced to take excessive risk to stay even!
Participant[quote=CA renter][quote=AN]Interesting comment sobmaz. I personally would think I’m doing better than 10 years ago if my asset is 7x and $600k larger than it was 10 years ago. I wonder who else feel they’re not doing better than 10 years ago while sitting on an asset that’s 7x larger.
[/quote]
Yes!!! We have significantly more money (over 10X) today than 10 years ago, but also feel less comfortable about our finances.
Back then, we were looking at fairly regular raises, and no layoffs or wage/benefit cuts on the horizon. Back then, we didn’t have to fear the Federal Reserve’s determination to destroy our currency and wipe out all of our wealth. Back then, our friends and neighbors were fully employed, and most were looking forward to making more in the coming years…today, many of those people are unemployed, or under-employed, with some making less than they were 10 years ago, with much less job security to boot. Back then, healthcare costs were high, but nowhere near as high as they are today, which can destroy anyone who is unemployed or without insurance. God forbid you lose your job in your 50s (unlikely to find a new, comparable job at that age, and in this economy), and you have to make it another 5-10 years before you qualify for Medicare. That’s absolutely frightening, because it can wipe you out, even if you have a few hundred thousand in cash…and then what?
I don’t know a single person, personally, who feels better about the economy today than 10 years ago. Not one.[/quote]
My thoughts exactly, well put.
Another issue……. while the overall tax burden for the working class increases and plummets for those making over a million, the working class is increasingly told by Washington, you are on your own!
Threats to cut s.s. while we have the money to fund needless wars. Threats to cut medicare while we have the money to socialise losses for the wealthy while making sure profits are private.
You are darn right being 48 I feel less secure about my future than I did 10 years ago even though I have more in assets.
And,I am forced to increasingly take on more and more risk to earn a return on my assets which is in reality only covering the erosion of purchasing power. Forced to take excessive risk to stay even!
Participant[quote=CA renter][quote=AN]Interesting comment sobmaz. I personally would think I’m doing better than 10 years ago if my asset is 7x and $600k larger than it was 10 years ago. I wonder who else feel they’re not doing better than 10 years ago while sitting on an asset that’s 7x larger.
[/quote]
Yes!!! We have significantly more money (over 10X) today than 10 years ago, but also feel less comfortable about our finances.
Back then, we were looking at fairly regular raises, and no layoffs or wage/benefit cuts on the horizon. Back then, we didn’t have to fear the Federal Reserve’s determination to destroy our currency and wipe out all of our wealth. Back then, our friends and neighbors were fully employed, and most were looking forward to making more in the coming years…today, many of those people are unemployed, or under-employed, with some making less than they were 10 years ago, with much less job security to boot. Back then, healthcare costs were high, but nowhere near as high as they are today, which can destroy anyone who is unemployed or without insurance. God forbid you lose your job in your 50s (unlikely to find a new, comparable job at that age, and in this economy), and you have to make it another 5-10 years before you qualify for Medicare. That’s absolutely frightening, because it can wipe you out, even if you have a few hundred thousand in cash…and then what?
I don’t know a single person, personally, who feels better about the economy today than 10 years ago. Not one.[/quote]
My thoughts exactly, well put.
Another issue……. while the overall tax burden for the working class increases and plummets for those making over a million, the working class is increasingly told by Washington, you are on your own!
Threats to cut s.s. while we have the money to fund needless wars. Threats to cut medicare while we have the money to socialise losses for the wealthy while making sure profits are private.
You are darn right being 48 I feel less secure about my future than I did 10 years ago even though I have more in assets.
And,I am forced to increasingly take on more and more risk to earn a return on my assets which is in reality only covering the erosion of purchasing power. Forced to take excessive risk to stay even!
ParticipantThe “median” home price today is really really skewed by all the low end sales due to foreclosures and short sales. The median of today is a far cry from the median of yesterday.
As far as payments that are lower due to the Federal Reserve literally printing money to force 30 year rates down, a temporary anomaly and how many people are getting that full advantage?
Between the “median” and the interest rate issue, you are way out in left field already.
Oh, and my car. My car that is a better deal than 10 years ago? The car that requires gasoline that is 100% higher? The car that requires oil changes that are 130% higher? The car that has repair bills that are 100% higher? The car that my insurance company is taking me to the bank on? God forbid I need to take it into a body shop.
I could go on and on, tires are double, traffic fines triple, parking double. How many hotels now charge for parking? Went to Torrey Pines today, 10.00 to park the car.
Same with houses. The cost to maintain, roofing and general upkeep have skyrocketed at least 50% since 2000. Forget about property tax (the house I bought in n park in 1999 had a 3200 a year tax bill, someone buying it today would have a 8000 a year tax bill), heating, cooling and water.
Obviously you are doing better than 10 years ago but I certainly am not. 10 years ago I had assets of 100K and felt comfortable buying the house of my choice in the hood I wanted.
Today, I have assets of 700K and would not feel financially comfortable buying in the hood I wish.
Maybe that is because I am 10 years older and worry about old age or maybe 700K aint really much any more when all it is is enough to buy a house outright that still gives you a 800 a month property tax bill.
ParticipantThe “median” home price today is really really skewed by all the low end sales due to foreclosures and short sales. The median of today is a far cry from the median of yesterday.
As far as payments that are lower due to the Federal Reserve literally printing money to force 30 year rates down, a temporary anomaly and how many people are getting that full advantage?
Between the “median” and the interest rate issue, you are way out in left field already.
Oh, and my car. My car that is a better deal than 10 years ago? The car that requires gasoline that is 100% higher? The car that requires oil changes that are 130% higher? The car that has repair bills that are 100% higher? The car that my insurance company is taking me to the bank on? God forbid I need to take it into a body shop.
I could go on and on, tires are double, traffic fines triple, parking double. How many hotels now charge for parking? Went to Torrey Pines today, 10.00 to park the car.
Same with houses. The cost to maintain, roofing and general upkeep have skyrocketed at least 50% since 2000. Forget about property tax (the house I bought in n park in 1999 had a 3200 a year tax bill, someone buying it today would have a 8000 a year tax bill), heating, cooling and water.
Obviously you are doing better than 10 years ago but I certainly am not. 10 years ago I had assets of 100K and felt comfortable buying the house of my choice in the hood I wanted.
Today, I have assets of 700K and would not feel financially comfortable buying in the hood I wish.
Maybe that is because I am 10 years older and worry about old age or maybe 700K aint really much any more when all it is is enough to buy a house outright that still gives you a 800 a month property tax bill.
ParticipantThe “median” home price today is really really skewed by all the low end sales due to foreclosures and short sales. The median of today is a far cry from the median of yesterday.
As far as payments that are lower due to the Federal Reserve literally printing money to force 30 year rates down, a temporary anomaly and how many people are getting that full advantage?
Between the “median” and the interest rate issue, you are way out in left field already.
Oh, and my car. My car that is a better deal than 10 years ago? The car that requires gasoline that is 100% higher? The car that requires oil changes that are 130% higher? The car that has repair bills that are 100% higher? The car that my insurance company is taking me to the bank on? God forbid I need to take it into a body shop.
I could go on and on, tires are double, traffic fines triple, parking double. How many hotels now charge for parking? Went to Torrey Pines today, 10.00 to park the car.
Same with houses. The cost to maintain, roofing and general upkeep have skyrocketed at least 50% since 2000. Forget about property tax (the house I bought in n park in 1999 had a 3200 a year tax bill, someone buying it today would have a 8000 a year tax bill), heating, cooling and water.
Obviously you are doing better than 10 years ago but I certainly am not. 10 years ago I had assets of 100K and felt comfortable buying the house of my choice in the hood I wanted.
Today, I have assets of 700K and would not feel financially comfortable buying in the hood I wish.
Maybe that is because I am 10 years older and worry about old age or maybe 700K aint really much any more when all it is is enough to buy a house outright that still gives you a 800 a month property tax bill.
-
AuthorPosts