Sam <[email protected]> wrote: > On another note I think gold will collapse like it did in the 80's. > Just another bubble. >
3 easy reasons to dispute that: (1.) Quantitative Easing. The rise in all commodity prices is due to the Fed printing money; as the value of the dollar is diluted investors are looking for a stable form of value. Thus food, gold, silver, and other commodities are all rising and will continue to. (2.) No US economic growth for over a decade. When you adjust for leverage there's been zero economic growth. That means all asset price rises in the last 10 years have been due to borrowed money (all of which is being devalued by #1). Eventually those losses must be realized and those prices must fall back to a decade ago, yet consumer (and business) debt will be priced in today's dollars. Investors need to 'book' their wealth in today money before the prices retract. (3.) The US is full of Ostriches. Nobody understands (or at least is acting) on what I just said. They don't understand that China backstopped us in 2007 but that was our 1 freebie. If 2007 happens again, there's no backstop. Plus everything that caused 2007 is now worse and all economies across the globe are more fragile. Yet despite all of this, people think we can just spend more or tax less and that'll fix everything. The sad truth is, our problem is easily fixable. As you proved in another thread, if we simply close the tax loopholes for corporations, raise rates for the wealthy, and cut *some* spending we could give the middle class a tax CUT and easily fix the problem. There are only 5 buckets to get money from: (1.) Medicare (2.) Medicaid (3.) Social Security (4.) Defense (5.) Taxes (revenue) Any solution has to dip into those buckets (or take in the case of taxes). However if you look at polling (and the numbers are simply directionally correct): 1.) Roughly 70% of people oppose cutting Medicare. (including the tea party!!) 2.) 50% oppose Medicaid 3.) 80% oppose cuts to social security 4.) 50% oppose cuts to defense 5.) Surprisingly 50% support tax hikes, but of those that need to get them (corps and rich) the numbers plummet. And that's why the S&P downgraded our credit. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:336661 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
