Americas outraged--Boston Tea party coming!

Discussion in 'Economy' started by oreo, Oct 7, 2008.

  1. oreo
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    oreo Gold Member Supporting Member

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    I am small business & deal with many others that are in their own business. I can't tell you how many small business people, that "normally don't pay attention to politics" are now finally taking notice of what our government has just done. THEY ARE OUTRAGED over this 700 BILLION DOLLAR BAIL-OUT.

    Here we small business people out here in middle America struggleing to pay our employess, keep our business in a little black ink- & pay our taxes.

    We see our government sponsoring irresponsible homebuyers--due to government policy--over Freddie Mac & Fannie Mae--government backed securites. A democrat party that put pressure on banks thru Fannie & Freddie to loan out to minorities & lower incomes in the belief that "everyone deserves homeownership, regardless of their ability to pay." It's the "buy the minority & lower income vote", sponsored by the U.S. taxpayer.

    At any rate, I can't tell you how many I have talked too, that are saying they do not want to pay any federal income taxes in the future. They are willing to pay state taxes, but not anything to the federal government.

    To add insult to injury we see a bail-out bill loaded with pork. Americans are sick & tired, & I really don't think many are going to stand for this anymore.

    Our government just turned their backs on the responsible people that actually pay federal income tax in this country. And neither candidate--Barack Obama or John McCain gives a hoot about it. Both candidates are rewarding irresponsible people who bought homes they could not afford, while sticking it to the rest of us.

    Everyone should realise from now on, that this disaster is exactly what happens when big government gets involved in the private sector.

    If our government would have stayed out of the banking or mortgage loan business we would have never been in this mess. Now, not only our markets are crashing, they are crashing all over the world. We may be in for a very long depression because of federal government--self interested--intervention in the private sector.
     
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    Last edited: Oct 7, 2008
  2. jillian
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    jillian Princess Supporting Member

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    *yawn*
     
  3. editec
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    editec Mr. Forgot-it-All

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    How?

    How does the government which controls the amount of currency stay out of the market?

    No matter what it does, it is a fundamental part of the market.

    I understand your complaints, of course, but I have yet to see any of you free marketeers explain to me how a government can NOT be a MAJOR part of the market.

    Outline your plan for how the government does what you expect of it, please.
     
  4. Skull Pilot
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    Skull Pilot Platinum Member

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    when government issues money, it makes itself part of the economy. you can't get away from it. the best possible scenario would be to go back to the gold standard but we all know that won't happen.
     
  5. editec
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    editec Mr. Forgot-it-All

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    But the GOLD STANDARD virtually insures us DEFLATION.

    Why?

    Because the amount of gold is relatively static compared to the amount of good and services the growing world's population produces.

    Now if the population of the world stayed static (or decreased) I think the gold standard could work, but otherwise?

    Well let's just say that we'd have to completely change the way we conduct all business.

    For example...who is going to buy a car today, when they KNOW that the cost of that car will be lower tomorrow?

    Multiply that effect on the cost of EVERYTHING and you understand the effects of DEflation on an economy.

    I still thin the ONLY way this economy can work is to have a body which injects money into the system that accomodates the actual growth in good and services.

    Naturally the potential for whomseever holds that power to inject money into the sytem will be enormous, and they can screw it up (as we have seen the Banks doing by injecting too much or too little money into the system) but sans such a system I do not think we can have a modern industrialized economy.

    You see my point here?

    INfaltion is not the only boogieman that can destroy an economy.

    DEflation is just as deadly, maybe more so.
     
    Last edited: Oct 8, 2008
  6. Skull Pilot
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    Skull Pilot Platinum Member

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    deflation on a massive scale now would be disastrous, I agree. look at what a little deflation in the real estate market did. Truthfully, we are too long in the age of money as fiat to return to the gold standard. Just some wishful thinking.
     
  7. sheltomlee
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    sheltomlee Rookie

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    Get rid of the price system entirely. It would have collapsed a long time ago if not for blood transfusions in the form of different wars.
     
  8. editec
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    editec Mr. Forgot-it-All

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    The gold standard did much to repress human development until the 19th century.

    I heard recently that 80% of the world's current reserves have been found since the California gold strike.

    So if gold was the medium of exchange, that means that most of the time most people simply did not (coiuld not possibly!) live in a cash economy.

    And, given how uneven the distribution of gold still is, were we to return to that system, most of us would once again not live in a cash economy.

    ARe you familiar with counting sticks, Skull?

    If you are that gives you SOME idea of who unworkable a gold standard really is.

    Ultimately having a fucnctinal currency really depends on having a fuctional government which can impose a currency as "legal tender" on the people.

    Now that system can be fairly desdigned and well run, or it can be unfairly designed and terribly run, but that system appears to me to be the only way we can live in a modern capitalist system.
     
  9. dilloduck
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    dilloduck Diamond Member

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    We may be closer to a single world unit of currency than we think.

    http://www.atimes.com/atimes/Global_Economy/JF06Dj04.html
     
    Last edited: Oct 8, 2008
  10. AVG-JOE
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    AVG-JOE American Mutt Staff Member Gold Supporting Member

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    Nobody bitched about gas going from $5.00 to $3.90.

    Why is a drop in prices such a bad thing? Stable prices are what we need.

    Raise your hand if you don't believe house prices rose at a ridiculous rate for the last 15 years? Big, quick rise = big, quick decline... If steady growth is too slow for you, you have to put up with busts after you ride the booms.

    This rise in real property values was promoted by the government because it circulated a lot of money. Lots of circulating money is very good for rich folks and bankers... Who is it now that owns both parties, again?

    -Joe
     
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