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Inflation, Cost of Living, Oil & Everything that effects us.
Old 04-22-2008, 03:57 PM   #1
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Inflation, Cost of Living, Oil & Everything that effects us.

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It is interesting when I watch the talking heads, government representatives (in particular) and such like promote X and downgrade Y. Whether these be trends, stocks, the economy, ideas or generalities. Talk about something for long enough and it will happen. A La the house price decline. They talked and talked and finally it happened. Then recession, more talk and more talk and finally our illustrious government admits there may be a slight recession underway. No one remembers, or chastises them appropriately for saying no...., everything fine, the economy is good, blah blah blah. They lie through their back teeth and we all just sit around like sheep and follow their blunders or mis analysis, complaining continuously about them, but doing not much about it. I must confess, I am guilty as charged. But, I am not an idiot, I just don't think any of us have any real control over it or the energy. If the government wants to spend copious quantities of cash on things we do not want them too, it is just tough, they do it anyway.

Well here is a completely uneducated look at things. IMHO all this turmoil in the economy, can be attributed to 2 things, 1) the decline of the Dollar, 2) the reductions in interest rates and 3) government overspending.

All Americans regardless of what they may think are at least 50% poorer that they were in 2001. The Dollar is 50% devalued. Oh the Government is for a Strong Dollar by the way. Tongue in cheek, that's a tall one if ever I heard it. Oh in addition the low dollar is good for exports. So what have we seen.

Oil has more than doubled and this directly affects inflation, transportation etc. - So you are an oil producer getting paid in dollars, the dollar dies, you manipulate prices by reducing output, shut down refineries for maintenance or whatever until the price goes to where you want it to be. Things do not typically go back to where they were exactly so job done. Do the math, oil is up in proportion to the dollar's demise. A 50% loss in currency translates to a 100% in a corresponding commodity.

Interest rates get put down to TEMPORARILY pander to Wall street. Now this is a fundamental mistake. Inflation is going up in part as a result of the price of oil, food is noticeably more expensive, buying basics from other countries cost more because of the pathetic US currency that no one wants, normal financiers would INCREASE interest rates to counteract inflation, but noooooooo, we reduce them.

One can go on.

Oh yes, the government are gleeful we are winning the war on terror. that is wonderful. But at a cost, the economy, which by the way affects EVERY AMERICAN.

Bin Laden may be loosing the war on terror, that is a good thing. But he is certainly winning the financial decline of the American Empire. Perhaps this was their original target and simply misled us with the bombs and be-headings?

And now don't jump on me for not being supportive or patriotic, I am, as much as the next guy. But enough is enough.

Check out this scenario.

I have a sick child (The USA People who are struggling to make ends meet and get adequate health care), so does my neighbor. But my neighbor would rather spend money on a new TV, and supporting causes that a not directly related to their family's best interest. I, feeling sorry for their child, forfeit my own sick child's heath needs and instead pays for my neighbor's child to get the best care by giving him lots of my family's US dollars!

YEAH like that would happen. But that is what the USA does every day. The government gives trillions to foreign country's while neglecting it's own children, family and household needs

When will it stop?

Off Soap Box.

SWR
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Old 04-22-2008, 04:24 PM   #2
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While I certainly can't say I subscribe to mouch of what you said - pretty doomy gloomy - one statement you made was thought provoking.

Quote:
Originally Posted by ShockWaveRider
.... Bin Laden may be loosing the war on terror, that is a good thing. But he is certainly winning the financial decline of the American Empire. Perhaps this was their original target and simply misled us with the bombs and be-headings? ....
It's interesting how much of the fall of the former Soviet Union's economy has been attributed to:
A. Expenditures on military buildup & bogging down in military conflicts (Afghanistan)
B. The inherent inefficiecies of a socialistic, government controlled economy.

Didn't they have a wave of pensioners to support also?
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Old 04-22-2008, 04:31 PM   #3
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Boot this to the political crap board, eh?
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Old 04-22-2008, 05:51 PM   #4
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Boot this to the political crap board, eh?
Told you we just sit back and tollerate it. Just push it to one side and ignore it all.



SWR
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Old 04-22-2008, 07:51 PM   #5
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FWIW, I don't fundamentally disagree with your assessment.

What I want to see is where you've proposed a solution to the mess. I think the greatest problem facing America at this point is an utter lack of competent leadership. Remember, 'the government' is not an abstract 3rd party, but comprised of our own citizenry. It would imply that 51% of America are incompetent at choosing competent leaders.
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Old 04-22-2008, 08:26 PM   #6
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It would imply that 51% of America are incompetent at choosing competent leaders.
I think that is true. It is true because the majority of Americans are extremely prejudiced when it comes to politics. They are blinded by the democrat/republican ideology and refuse to look at issues fairly. Political party bias is stronger in this country than bias on Religion, Race, and Sexuality. How did that come to be?
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Old 04-23-2008, 06:51 AM   #7
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FWIW, I don't fundamentally disagree with your assessment.

What I want to see is where you've proposed a solution to the mess. I think the greatest problem facing America at this point is an utter lack of competent leadership. Remember, 'the government' is not an abstract 3rd party, but comprised of our own citizenry. It would imply that 51% of America are incompetent at choosing competent leaders.

You are perfectly correct in your assessment. I am not sure there is a fix all for this. The current choice in leadership for the new era is attrocious! I really do not know who to vote for. Probably as usual the less of the 2 evils. Sad but it is true.

OK what to do. Again an uneducated assessment.

1) Stop or at least reduce significantly the bleeding of cash anywhere but at home. (This is not too trendy with the pro war concervatives)

2) Raise interest rates by at least 3% to help investment from other countries flow into the currency. (Stop Pandering to Wall Street) Monitor it and adjust accordingly.

3) Somehow get rid of Bush. (Probably the only one that will actually happen)

4) Stop pandering to Wall Street (I say it again), failing financial instutions and people who have got in over their heads. Let the economy work itself out. This is drastic but we would have not got in the mess in the first place if we had not made money so easy to get.

Remember the days of 17% interest rates. (at least in Canada and Europe). We are sure to get there sooner or later. Sooner will stop the bleeding, admittedly at the expense of some others. Funny how their currencies have not tanked.

The other thing I am pro, is true Nationalized health care (Not the "plans" that presential wanna be's float to get peoples attention). While it is not perfect. I have been part of the European and Canadian systems and used them. This I do have some educated experience on. While neither are perfect they do provide catastrophic coverage (at a cost, the "T" word). Today I CANNOT get insurance at all (Unless I work) because the insurance company Natzis say..... Hmmm, "No Insurance For You" you have Pacemaker! Or for some other poor folk.... "No Insurance For You" you have Diabetes, Autism, Cancer the list goes on. Only healthy people get insurance. Is that fair?

But that is another discussion.

SWR
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Old 04-23-2008, 05:14 PM   #8
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Originally Posted by ShokWaveRider View Post
Bin Laden may be loosing the war on terror, that is a good thing. But he is certainly winning the financial decline of the American Empire. Perhaps this was their original target and simply misled us with the bombs and be-headings?
Osama's strategy from the start was to bankrupt America. He has openly said so. It's working perfectly as we pour trillions down the black hole of Iraq. He doesn't need to attack us here when it is much easier to bleed us there. All empires eventually come to and end when they go bankrupt. This one will be no different.
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Old 04-24-2008, 02:23 PM   #9
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Osama's strategy from the start was to bankrupt America. He has openly said so. It's working perfectly as we pour trillions down the black hole of Iraq. He doesn't need to attack us here when it is much easier to bleed us there. All empires eventually come to and end when they go bankrupt. This one will be no different.
Seems pretty accurate to me.
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Old 04-24-2008, 02:26 PM   #10
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IMHO all this turmoil in the economy, can be attributed to 2 things, 1) the decline of the Dollar, 2) the reductions in interest rates and 3) government overspending.
Not to be picky, but isn't that 3?

and, shouldn't this be in The Soap Box area?
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