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Post by lc on Aug 28, 2006 7:55:26 GMT -6
(Post deleted by original author)
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Post by unlawflcombatnt on Aug 30, 2006 20:42:03 GMT -6
LC, Great post. I agree with your sentiment and belief that there is world currency devaluation. The fact that so much money is created by increased borrowing, which is far more prominent among Corporations and the affluent, allows for the transfer of wealth away from those who are not receiving any of these new dollars, but are victimized by the devaluation of currently held dollars. And the transfer of that wealth to those who receive more of these dollars (enough to exceed the real value of those dollars lost through inflation.) I think this is Ron Paul's general take on this as well. Those who borrow the most money and put it into something of real value, and those who receive interest off the borrowed money, are the winners. Those who don't receive the borrowed money, or those who do but don't put it into something that appreciates more in value than the dollar, become the losers. Big losers are those simply borrowing money to make ends meet . Those who borrow money and put it into rapidly appreciating assets or commodities (like precious metals), come out as winners. But neither path is a winning one for Americans, or the world as a whole. Workers and consumers end up with less real wealth to spend, and will not ultimately be able to keep up the consumption spending necessary to drive economies, increase real profits, and provide returns to the majority of investors. Inflation simply transfers even more wealth away from those whose incomes are not keeping up with inflation, and into the pockets of those at the top, whose incomes have risen faster than inflation. It is of no benefit to our economy, or to any others, to transfer wealth away from those most likely to spend it, into the hands of those who are least likely to spend it. Who's fault is this? There are too many to list. The Supply-Siders and all the other story-tellers who claim "deficits don't matter" and "we'll grow our way out of the deficit." Also responsible is Alan Greedspan who talked up the economy when we were heading into a recession, and who dropped and kept interest rates so low that it created the biggest housing bubble ever, which financed the biggest borrowing bubble ever. And of course a major player is the 'master-of-disaster' himself, George W. Bush. A man whose solution to every problem is to cut taxes on the affluent. Bush's contributions are many, including cutting taxes, borrowing freely, and increasing our national debt more than anyone else in history, for the sole purpose of giving tax cuts and Corporate welfare to his rich friends. Also complicit are the Right-Wing economists who've concocted self-serving theories and deceived the public to serve the interests of their rich clients. I'm sure there are more who are at fault. But these are the principal actors. And "bad" actors at that. Below is a 1-month chart of the dollar from Kitco, showing it's decline in relation to the Euro.
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Post by lc on Nov 10, 2006 20:21:23 GMT -6
(Partial Restoration of Deleted Post)
"....The problem is that the capital was far greater than the sound investment opportunities.... "
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Post by unlawflcombatnt on Nov 10, 2006 21:37:57 GMT -6
LC,
Thanks for the post.
That says it all. There is excess investment capital compared to investment opportunities. In this case, much of that excess came from borrowed capital, instead of earned capital. Which is the worst of all possible worlds. In this case, the excess capital goes beyond that obtained by lowering wages-- wages that finance the spending and create the demand needed to create investment opportunities. Instead, this capital was created out of thin air through loans and other finance-industry perversions.
This is "capital" that can't possibly be paid back, because the consumer buying power and spending necessary to create returns is even less than it was when the money was initially borrowed.
I still think that the personal wealth of the Corporate CEOs and management involved should be confiscated to pay for these bankruptcies. And if they did anything fraudulent, they should be sent to prison and do hard labor-- "hard labor" like they've never done in their own lives, "hard labor" like that done by those who they've exploited and profiteered off of.
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Post by lc on Nov 11, 2006 10:17:35 GMT -6
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