Posted on 08/12/2011 9:33:33 PM PDT by sickoflibs
If you realize both parties in Washington think that our money is theirs and you trust them to do the wrong thing, this list is for you.
If you think there is a Santa Claus that has some magic easy cure for the economy; someone who is going to get elected in Washington and fix everything just by cutting your taxes, investing (more government spending) a few trillion more we don't have and will never have, and who will just command some countries to lower their prices and others to raise their prices all to suit your best interests, then this list is not for you.
You can read past posts by clicking on : schifflist , I try to tag all relevant threads with the keyword : schifflist.
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The Austrian Economics Schools Commandments plus :From : link
1) You cannot spend your way out of a recession
2) You cannot regulate the economy into oblivion and expect it to function
3) You cannot tax people and businesses to the point of near slavery and expect them to keep producing
4) You cannot create an abundance of money out of thin air without making all that paper worthless
5) The government cannot make up for rising unemployment by just hiring all the out of work people to be bureaucrats or send them unemployment checks forever
6) You cannot live beyond your means indefinitely
7) The economy must actually produce something others are willing to buy
8) Every government bureaucrat should keep the following motto in mind when attempting to influence the economy: First, do no harm!
9) Central bank-supported fractional reserve banking is an economically distorting, ethically questionable activity. In particular, no government should ever do anything to save any bank from the full consequences of a bank run, no matter what the short-term consequences.
10) Gold is Gods money.
Add mine:
1) Businesses don't hire workers just because of demand for products or services, they hire because it makes them money. Sorry to have to state the obvious.
2) Government spending without taxing is still redistribution
3) Taking one man's money and giving it to another is not a job.
4) Paul Krugman and Bernake have been wrong about everything, as well as the other best and brightest Keynesian's who have been fixing our economy for over a decade.
5) Republicans in the minority (esp out of the White House) act like Republicans, in the majority they act like Democrats .
Equity bubble rules:
1)If something goes up too fast, it is going down faster,
2) By the time it looks like everybody is getting rich, its too late, stay out!
3) To get rich you have to get in early start of recovery and get out at the first really 'bad' news, and ignore the experts that claim that they will stop the next crash(our buddy Bernake.).
4) Don't invest money you will probably need, or worse money you don't really have.
Recent reports are that banks, businesses and private individuals are sitting on mountains of cash that is not being spent. What’s with this?
ping
ping
It’s called SAVINGS....
The low interest rates are bad in other ways too. Who wants to take risk and make a loan for almost nothing? It might be better to just sit on cash and collect from the IOR program and wait until rates rise enough to make loaning money more worth while.
Are you kidding with this question??? Where have you been?
Too much government and no confidence in our leaders.
Oh, and corporate profits are at record levels, but that's being done by eliminating jobs.
No one is going to move not knowing what might lurk around the next corner.
As soon as business senses that the Gov't is on their side...that not only will they will Gov't not throw up some heinous new rule but will move to LOOSEN regs on their behalf money and jobs will flow.
It's really that simple.
Consumer spending accounts for 2/3 of GDP- By keeping the rates low this will hopefully continue. Retail sales were up last month that accounted for the 400+ Dow Jones climb on Thursday.
Consumer spending accounts for 2/3 of GDP- By keeping the rates low this will hopefully continue. Retail sales were up last month that accounted for the 400+ Dow Jones climb on Thursday.
I’m talking capital formation, not consumption.
&/or are there other skewing factors?
Funny. Your equity bubble rules apply to all bubbles... including gold.
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Currently, corporations are sitting atop mountains of capital. An LA Times article recently reported that they are investing and spending it in countries where consumers have the cash to buy. By lowering interest rates US consumers are able to make the household purchases, buy homes etc. This is a point that Schiff doesn’t appear to take into account.
He portrays these people as anti patriotic and greedy if they don't volunteer to give their money to him to be thrown down the nearest sewer.
By asking this question, it sounds as if you might agree. This is basic American capitalism and you should know this already. Do we smell a troll?
They know that the deflationary forces aren’t done yet.
In a deflation, cash is King. The movement of money flow, called velocity, slows, and people sit on cash because there doesn’t appear to be a better place to keep it. Low interest rates also encourage this. And low yields on UST.
Just like in 2008, staying is cash is wise IF another market crash is on the horizon. Without the next QR3 being certain, people are staying OUT of the market and IN cash, to be safe.
Once the next QE is in swing, the inflationary forces will be let lose once again, grinding up the little people with less and less room to be able to support themselves.
Until the next deflationary scare.
Unless the US dollar collapses, then all bets are off.
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