Posted on 05/07/2016 11:18:22 AM PDT by Lorianne
As Draghi said in a speech to Asian government officials and business leaders on Monday, there’s still a great deal more that can be done to punish Europe’s hordes of savers, the central banker’s scapegoat du jour for all that ails Europe’s debt-laden economy.
The low or negative interest rates plaguing Europe are a symptom of a much bigger problem, he said: the compression of investment returns due to a massive global savings glut. To our great amazement, it’s this purported glut — and not his monetary policies — that lies behind the historic decline in interest rates.
Inevitably, whenever Draghi talks about “savings,” he has a particular kind of savings in mind: German savings. If Germans spent money on imported products rather than saving their money, they wouldn’t have an account surplus — which has been “above 5% of GDP for almost a decade,” he complained — and would thus save the world.
(Excerpt) Read more at wolfstreet.com ...
His real name, misspelled in translation, is Dragon-i.
Just seize their money and nationalize all assets of any variety.
Certainly obama would love to do the same here in America. Lenin is his hero, after all.
That lesson wore off on me...bigtime.I drive a car that is much cheaper than what I can afford.Ditto my house,my clothes,my food,my "toys".
And as a result I have a pretty respectable "nest egg",a good portion of which I hope to pass on to younger family members.Of course that nest egg will surely be the target of Rat politicians before too long...so I'll have to devise a strategy to prevent them succeeding.
I recommend buying rental properties and hiring a management company, unless you have the energy to do it yourself (which is more profitable).
the Dragon guy has a point.
interest rates are near zero.
there is nothing to invest in.
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
“This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
From the last two paragraphs of Gold and Economic Freedom by Alan Greenspan. 1966.
see: http://www.constitution.org/mon/greenspan_gold.htm
Rentals ...
I have been thinking about this. Problems I see developing are:
Tenants’ rights
Rent control
Difficulty evicting squatters after non payment
...so I’ll have to devise a strategy to prevent them succeeding.
**********************************************************
When you come up with that strategy, share it with the rest of us.
I might be luckier than most in that I have a second citizenship...citizenship of a civilized,prosperous nation.That might give me flexibility that other Americans don't have if the poop hits the fan,as they say.
And to any IRS agent reading this...no,I haven't violated any laws,including tax laws,yet.And I don't anticipate doing so in the foreseeable future.But just like gun ownership I have it "just in case".
Do leftists want me to pay property taxes in 2022?
Why, Yes!
Well, then I need to have the money set aside and available.
I don’t have a legal option to prepay property taxes.
[Some people would gladly prepay federal income tax for a 10% discount.]
My house is stuffed with products already.
How much stuff does one need?
I live in Florida, when the air conditioner goes bust it will get replaced.
Patience.
And to get to the core of the matter. It is not my fault landlords are demanding and getting outrageous rents. It is the fault of people who let in too many renters from outside the USA.
It is also not my fault that overgenerous pension promises were made to public employees. All that needs be done is to say the state and local governments made unequal and totally unconstitutional retirement income promises that were greater than Social Security payouts and then make the adjustments required by Amendment XIV.
Translation: Blow German savers' retirement funds on the freewheeling Mediterraneans' what-me-worry? life style.
If you have to go to a nursing home, that nest egg will be eaten up quickly. I'm hoping you have taken the time to do financial planning and set up trusts for your descendants well ahead of time.
If the day comes when I can't care for myself I'll take the necessary steps to ensure that my estate isn't depleted.
Those “savings” represent a person’s store of unspent labor. That person earned more than he spent.
That single person is the only person who gets to decide how to spend the fruits of his own labor
I agree. Spend money on the best property lawyer possible to craft your leases. Best to own the type of property in which you have minimal emotional attachment, like a concrete apartment block run by a heartless agent, or a very high-end place advertised only in high-end venues like ivy league alumni magazines, Town & Country, financial press, etc.
Best to own the type of property in which you have minimal emotional attachment,
= = =
I have come to this conclusion also.
Make the property “dead to me”.
My personality is to invest myself in my projects. Car repair, house remodeling, landscaping, ... I put my heart in it.
I could not bear to see my loved house violated by renters.
Exactly. Just provide a relatively stark turn-key space with easily repaintable white walls. It is what it is: an investment.
That is very sensible. I remember reading that the vast majority of Americans (and Brits and Canadians) have barely enough savings to last a month without work.
That is scary.
Poland is heading the same way (if not already there).
the Germans and Japanese are savers. Saving, saving.
That’s “bad” for a consumer society, as it cuts down on GDP. So Draghi wants to change that.
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