peter-paul
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- Joined
- Aug 31, 2014
- Messages
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I have been thinking about this topic a lot. If one looks across almost all sectors of society, one notices that the price in dollars for nearly everything is not what it used to be.
The stock market reaches all time highs while regular and low income people struggle to pay for everyday things. How can this be?
To me, it is easy to see. Our printing presses run non-stop, both physically and by adding a "zero" from the Federal Reserve.
The Federal Reserve (which is neither Federal, nor a Reserve), has the power to insert Reserve Notes (what used to quaintly be called 'Silver Certificates") into our economy ad-infinitum.
To me this means that the whole economy is built on quicksand. Why? Because if we look at what constitutes "money"; it has always been agreed by people that reliable currency is constituted from multiple factors: Scarcity, Divisibility, Non-Counterfeitability, Portability, Transferability, and Fungibility.
Under normal circumstances, would any of you trade one of your Smith and Wessons for air? I wouldn't. Why is that? Air is virtually worthless (unless an artificial market is created) because it is virtually limitless. The same goes for any currency that can be created out of thin air. All the Fed can do now is print money out of thin air in order to stimulate spending. They can't lower rates any more (unless we talk about negative interest rates).
What does this all mean?
-They are robbing anyone who has saved a great deal of "money" and relies on it as a store of wealth. Debasing your purchasing power to inflate the liquidity of the markets and pay for the government's liabilities
-I still work, and am a long way from retirement. For me personally, my wife thought I was nuts when I drastically (by 80%) reduced the amount I put into my retirement portfolio each month and started buying guns, gold, and other durable goods as a store of wealth. I'm not going to be sitting there "holding the bag" when confidence in the dollar collapses and the world no longer uses it as the worlds reserve currency. A lot of Americans will be hurt when that "bill comes due". I'm on wife number two now anyway, and we do not share bank accounts. She is welcome to have any opinion she likes, but has zero discretionary power over my finances. She thinks I'm a wizard because she sees me sell a gun for twice what I paid for a few years ago. I explained to her there was high demand for guns but low demand for dollars relative to the past.
-There is a temptation to store ones wealth in the purchase of real estate. This will only retain its value if 1) the government does not violate the peoples rights by seizing real estate or limiting ones ability to own it 2) one can pay ever increasing tax assessments due to the inflationary pressures of the printing press
-People who live paycheck to paycheck will continue to see their meager wages fail to meet their basic necessities. As this expands, expect more crime by those who need to steal in order to make ends meet, as well as by those who are perpetually disillusioned by the hopelessness of their station in life. Also expect plenty of government "saviors" who tout their hand-out programs that need to be paid for by printing more money. Also expect confiscatory retro-active taxes where an AOC-type raids your retirement savings and gives you an "I.O.U." It will be "only fair", anyway.
- There will be balkanization. Some areas of the country with good fiscal sense will wish to retain their wealth and sense of principles that got them there. Think Rural vs. Urban and suburban divide. You could see something like the 9 northern counties of Colorado start to use alternate currency and enforce their own laws over those of the central government. North Dakota giving the finger to the central government and instructing its state enforcement agencies to ignore federal mandates as they relate to financial matters.
- If communities of people do not band together using common sense, nobody is going to come along and actually save us. There will be some winners and many, many losers.
- The whole thing may act as a great "reset", and force what is left of the nation to get back to principles that made it prosperous in the first place. This won't happen without untold pain and misery suffered by people who had zero part in creating the smoke and mirrors game
-Buy your Smith and Wessons now, because we are in a constant state where the junkie (spender of money), is trying to chase the dragon (get value for money), but the high (relative purchase power of the dollar) is not as good as the last previous transaction
Final thought: The constitution gives the central government the power to "Coin Money". Maybe our founders knew some things that we have forgotten?
My Two Cents (and 2 cents can't buy what it used to)!
Sent from my SAMSUNG-SM-G891A using Tapatalk
The stock market reaches all time highs while regular and low income people struggle to pay for everyday things. How can this be?
To me, it is easy to see. Our printing presses run non-stop, both physically and by adding a "zero" from the Federal Reserve.
The Federal Reserve (which is neither Federal, nor a Reserve), has the power to insert Reserve Notes (what used to quaintly be called 'Silver Certificates") into our economy ad-infinitum.
To me this means that the whole economy is built on quicksand. Why? Because if we look at what constitutes "money"; it has always been agreed by people that reliable currency is constituted from multiple factors: Scarcity, Divisibility, Non-Counterfeitability, Portability, Transferability, and Fungibility.
Under normal circumstances, would any of you trade one of your Smith and Wessons for air? I wouldn't. Why is that? Air is virtually worthless (unless an artificial market is created) because it is virtually limitless. The same goes for any currency that can be created out of thin air. All the Fed can do now is print money out of thin air in order to stimulate spending. They can't lower rates any more (unless we talk about negative interest rates).
What does this all mean?
-They are robbing anyone who has saved a great deal of "money" and relies on it as a store of wealth. Debasing your purchasing power to inflate the liquidity of the markets and pay for the government's liabilities
-I still work, and am a long way from retirement. For me personally, my wife thought I was nuts when I drastically (by 80%) reduced the amount I put into my retirement portfolio each month and started buying guns, gold, and other durable goods as a store of wealth. I'm not going to be sitting there "holding the bag" when confidence in the dollar collapses and the world no longer uses it as the worlds reserve currency. A lot of Americans will be hurt when that "bill comes due". I'm on wife number two now anyway, and we do not share bank accounts. She is welcome to have any opinion she likes, but has zero discretionary power over my finances. She thinks I'm a wizard because she sees me sell a gun for twice what I paid for a few years ago. I explained to her there was high demand for guns but low demand for dollars relative to the past.
-There is a temptation to store ones wealth in the purchase of real estate. This will only retain its value if 1) the government does not violate the peoples rights by seizing real estate or limiting ones ability to own it 2) one can pay ever increasing tax assessments due to the inflationary pressures of the printing press
-People who live paycheck to paycheck will continue to see their meager wages fail to meet their basic necessities. As this expands, expect more crime by those who need to steal in order to make ends meet, as well as by those who are perpetually disillusioned by the hopelessness of their station in life. Also expect plenty of government "saviors" who tout their hand-out programs that need to be paid for by printing more money. Also expect confiscatory retro-active taxes where an AOC-type raids your retirement savings and gives you an "I.O.U." It will be "only fair", anyway.
- There will be balkanization. Some areas of the country with good fiscal sense will wish to retain their wealth and sense of principles that got them there. Think Rural vs. Urban and suburban divide. You could see something like the 9 northern counties of Colorado start to use alternate currency and enforce their own laws over those of the central government. North Dakota giving the finger to the central government and instructing its state enforcement agencies to ignore federal mandates as they relate to financial matters.
- If communities of people do not band together using common sense, nobody is going to come along and actually save us. There will be some winners and many, many losers.
- The whole thing may act as a great "reset", and force what is left of the nation to get back to principles that made it prosperous in the first place. This won't happen without untold pain and misery suffered by people who had zero part in creating the smoke and mirrors game
-Buy your Smith and Wessons now, because we are in a constant state where the junkie (spender of money), is trying to chase the dragon (get value for money), but the high (relative purchase power of the dollar) is not as good as the last previous transaction
Final thought: The constitution gives the central government the power to "Coin Money". Maybe our founders knew some things that we have forgotten?
My Two Cents (and 2 cents can't buy what it used to)!
Sent from my SAMSUNG-SM-G891A using Tapatalk
Only time will tell and I haven't got that much time left on earth to wait around to find out. 
Some of us, for different reasons, have not had it so good... but no matter. The point is that if you should still be able to see what the OP is saying... namely that the government printing money non-stop and having State and Federal debt & obligations spiraling out of control isn't a really good thing for anybody long-term. 
