The curse of cheap money

[bookworm_020]

Well at least your not in Zimbabwe!
The inflation is around 11,000% and one dollar U.S. will make you a millionare over there!

[P_Funk]

Last I checked the Loonie was a buck 5 american.

Originally Posted by SUBMAN1

And to top it off, the companies / factories, all of it is still owned by America, so the money is still flowing in on whole.

Owned by who? Rich people that get tax breaks from Bush? You're the American capitalist. How does the wealth trickle down to the little people when all the trickling is happening overseas?

[Skybird]

Random find:

Saying that the majority of the country's economic gains in recent years have gone to the top 1 percent of the income ladder understates the trend," said Heather Boushey, a senior economist at the Washington-based Centre for Economic and Policy Research.

Indeed, the top 1 percent of U.S. citizens earn as much as the bottom 33 percent together (about 100 million people), according to Ted Howard, executive director of the Democracy Collaborative at the University of Maryland.

While the U.S. economy grew 160 percent between 1973 and 2005, those in the top 0.01 income bracket saw their income levels rise by 250 percent. During this same period, the average real income for the bottom 90 percent actually dropped 11 percent.

http://ipsnews.net/news.asp?idnews=39594

The weak dollar has caused sales of US companies to foreign investors and companies this year to reach a record mark both in number of companies sold, and price total. Amongst the top investors are Saudi Arabia and china. With America buying goods in China with a value five times as high as the total of Chinese buyings in America (2006: $288 mio compared to $55 mio), and a dollar that is destined to become even weaker, this trend is unlikely to change so soon. The opposite is the case, it seems: foreigners have started to buy bridges, key road installation and similiar traffic hotspots as well. All this will not help to restrengthen the dollar, and it seems we have entered a vicious circle here. Which of course starts to become a problem for european economy as well, which already starts to feel the damage from a too strong Euro: projected growth rates had to be reduced due to the low dollar and the expensive export perspectives (especially of interest for germany, of course, which regarding size of national economy also has been driven from third to fourth place in the world by China some weeks ago). To keep internal consummation and financial markets liquid, even more money will be pumped into the market by the Fed, and interest rates will remain low and see further cuts. Which keeps inflation spinning, of course.

The american deficit and debts are bringing all of us into trouble. Instead of investing into silly wars that cannot be won and thus will be run for years and years coming (seeing the American armories and military contractors being the big winner of this), America should bring it's trade and finances back into order. The mortgage crisis is just the beginning of the future troubles that raise at the horizon, and they are raising fast. and if cou read carefully, you can see more and more brokers giving hefty warnings of a future crash that likely will outclass the "black Friday" and "black Monday" in size and quality, with quite some very famous names now joining these voices. It's a giant bubble we are sitting on. Question is not if it will burst or not, but when. the result from this as well as the upspeeding inflation could bring global economy into a devastating recession - independantly from each other.

[bradclark1]

One in four companies sold in America today are bought by foreigners.

[Jimbuna]

You can up that to just over 2 in 4 in the UK

[SUBMAN1]

Originally Posted by P_Funk

Last I checked the Loonie was a buck 5 american.

Perfect! It now has become expensive to export from Canada. This hurts you more than helps you if you know anything about economics. All a sudden, your jobs are about to get exported! Maybe even to America.

Owned by who? Rich people that get tax breaks from Bush? You're the American capitalist. How does the wealth trickle down to the little people when all the trickling is happening overseas?

This shifts our jobs to more lucrative positions than manufacturing. Yes, loosing manufacturering does hurt the working class with only manufacturing skill, but for those of us with a broader set of abilities, it has actually helped.

By the way, that is a myth about rich people. If you analyze it, rich people pay more taxes than anyone else.

-S

[bradclark1]

Originally Posted by SUBMAN1

By the way, that is a myth about rich people. If you analyze it, rich people pay more taxes than anyone else.

By percentage income/tax they pay less.

[Skybird]

Jim Rogers saying that the US is in a recession, that Bernanke is a mad man, that Wallstreet will suffer a bloodbath, and that it makes no sense anymore to invest into a deeply sick currency like the Dollar.

http://www.telegraph.co.uk/money/mai.../bcnrog124.xml

http://www.reuters.com/article/idUSL1470530620070314

http://www.reuters.com/article/busin...e=businessNews


German language:
http://www.welt.de/finanzen/article1..._US-Crash.html


He doesn't sou8nd like a rocketscientist to me, but like a man with a good ammount of healthy reason. It obviously has served him well in his life.

[Skybird]

The European Bank's reaction to the Fed's move: opposite direction:

http://www.spiegel.de/international/...514847,00.html

[P_Funk]

Originally Posted by SUBMAN1

Perfect! It now has become expensive to export from Canada. This hurts you more than helps you if you know anything about economics. All a sudden, your jobs are about to get exported! Maybe even to America.

Just an economic reality we gotta face. We can't base our country's prosperity on the concept of a powerful American dollar and expect to leech off that economy forever. Times change and if Canada doesn't want to get screwed over by being faithful traditional subserviance to the Yankee buck then we'll figure it out.

This shifts our jobs to more lucrative positions than manufacturing. Yes, loosing manufacturering does hurt the working class with only manufacturing skill, but for those of us with a broader set of abilities, it has actually helped.

HA! I like the way you described how it hurt the working class as if it were just... minor. If its harder for people with few skills to get ahead cause of this isn't this possibly limiting their opportunities to advance? Its not very fair for a working class kid who's family can't afford post-secondary is it. Not to mention the fact that every economy needs low skill workers. You can't go on and on about China and not trading with meanwhile downplaying the damage to your own manufacturing ability at home.

Everyone is always so ready to shrug it off when the working class take a hit cause of something that has absolutely nothing to do with them.

By the way, that is a myth about rich people. If you analyze it, rich people pay more taxes than anyone else.

-S

Where did I talk about taxes? You're not telling me that capitalism believes taxation is the only way for those without control of the means of production to earn a share of the pie are you? Because I thought that capitalists thought that the wealth which the few control would trickle down to the multitude through the active involvement in the economy of the machinery of said wealth's production. If all this wealth is being made over there and nobody over here is even involved in most of the process where does the trickling happen? Notice the explosion of possibilities in China and the dimishing of them here. This is where the socialists start to feel very confident that the capitalists are full of it. Talking about how this helps the middle class by shifting the economy etc... sheesh. Thats like saying "well your house burned down Jim. I suppose that frees you up to find a new one". Nevermind that alot of people don't have the means to find a new one. This is where the blame for being such a lame competitor in the market starts up.

I'm not saying socialism is the answer, but this is where all us crazy lefties get the motivation to think differently.

[The WosMan]

You know, this forum is filled with people who are experts, bull-s&$ters, armchair generals, and folks who are legends in their own mind....but it makes me laugh and I enjoy it.

Unlike some people here, I actually work in the finance and banking industry. My professional opinion is that nobody really knows what the hell is going on and everyone is guessing. I have even heard conspiracy folks mentioning that the US government is intentionally devaluing it's currency in order to prepare for the "Amero". I will say this, both Greenspan and Bernake are not the experts and geniuses that people think they are. This mortgage and housing problem was exacerbated in part because the federal, state, and local governments put pressure on banks to make loans to folks they should not make but you have Hillary and the rest of these morons complaining about predatory lending and how they are going to bail people out. Bail outs would be the biggest mistake. People need to learn from their mistake and get burned to teach them a lesson.

[Iceman]

one dollar U.S. will make you a millionare over there in Zimbabwe!...Im saving my money and moving there then lol...jk...be nice when we reach the point of enlightment and realize money is silly and no one can posses all the land....maybe the poor 90% will take the rich 10%s back and figure out how to live on the planet in peace and harmony...

I still am reminded of George Carlins analogy of the planet just shaking us all off like a dog shakes off water...that is a funny picture in the mind lol.

Such bright suunny news here always lol

[Iceman]

Originally Posted by The WosMan

You know, this forum is filled with people who are experts, bull-s&$ters, armchair generals, and folks who are legends in their own mind....but it makes me laugh and I enjoy it.

Unlike some people here, I actually work in the finance and banking industry. My professional opinion is that nobody really knows what the hell is going on and everyone is guessing. I have even heard conspiracy folks mentioning that the US government is intentionally devaluing it's currency in order to prepare for the "Amero". I will say this, both Greenspan and Bernake are not the experts and geniuses that people think they are. This mortgage and housing problem was exacerbated in part because the federal, state, and local governments put pressure on banks to make loans to folks they should not make but you have Hillary and the rest of these morons complaining about predatory lending and how they are going to bail people out. Bail outs would be the biggest mistake. People need to learn from their mistake and get burned to teach them a lesson.

Great post...I watched the Rev Jesse Jackson get asked about this problem this morning and he had the balls to say that Blacks were purposly targeted for loans they couldnt afford and claming discrimination..to me all that says is you are admitting blacks are just more ignorant than whites...and I do not believe that ...people need to learn and pay for they're own mistakes and shortsightness...period...let the banks sit on ther property and to me it will just force them to lower the price on homes and the market will readjust naturally.

[Jimbuna]

Originally Posted by Iceman

Great post...I watched the Rev Jesse Jackson get asked about this problem this morning and he had the balls to say that Blacks were purposly targeted for loans they couldnt afford and claming discrimination..to me all that says is you are admitting blacks are just more ignorant than whites...and I do not believe that ...people need to learn and pay for they're own mistakes and shortsightness...period...let the banks sit on ther property and to me it will just force them to lower the price on homes and the market will readjust naturally.

Two great and enlightening posts guys

[The WosMan]

Originally Posted by Iceman

Great post...I watched the Rev Jesse Jackson get asked about this problem this morning and he had the balls to say that Blacks were purposly targeted for loans they couldnt afford and claming discrimination..to me all that says is you are admitting blacks are just more ignorant than whites...and I do not believe that ...people need to learn and pay for they're own mistakes and shortsightness...period...let the banks sit on ther property and to me it will just force them to lower the price on homes and the market will readjust naturally.

Right, well that is how the poverty-pimps and race-baiters like Sharpton and Jackson make all their money. What they do to earn a dollar is no different than the mafia extorting businesses for cash.