On Fri, Apr 22, 2011 at 1:55 PM, Gruss Gott <[email protected]> wrote: > > (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.
But gold isn't worth much, it doesn't have a high value. It's just a placeholder for money. Supply and demand. If people stopped storing it in vaults there would be very little demand. I'm remembering something about tulips... > (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. That's a done deal, house are already back to the pre-boom prices > (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 ostriches are waiting for the next election. Hope and Change. > The sad truth is, our problem is easily fixable. I've been saying that all along. > 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. You must've not understood the thread. Even if we stole money from every corporation so they all just squeaked buy that would just pay this years debt. The $1.6 t is for every year now. Remember the huge debt Bush left us was paid back. The new debt, Obama's debt, is perpetual. > 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). Or we could convince the ostriches that it's safe to look around. > 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. Tax and spend is not the answer. We added a trillion a year to the budget. That's what needs to be cut. Go back to 2007 spending and to something to encourage business so we can collect tax reven ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| 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:336664 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
