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Offline Gary G

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Simple economics
« on: October 08, 2008, 01:26:20 AM »
When politicians promise to help you:

We all need to remember that the Federal Government does not, own its own, have any money. For politicians to help one group, it must take it away from another group. They have already taken all the taxes from us for this year and spent it. So how will they get more from us to pay for redistribution (promises). Simple, they print it, which dilutes the value of the dollar so that we have less purchasing power (inflation). It has the same effect as taking money directly out of our pocket. Money is only paper. It is it's purchasing power that is of value. Not only does printing take purchasing power away from us, it takes the purchasing power away from businesses. This hurts production, which hurts the economy, which results in loss of jobs, which results in more people defaulting on their mortgages, etc, etc.



The bailout package, which might help to stabilize some in the short term, has the same damaging effect in the long run.
Is a thrifty government too much to hope for?
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The sole purpose of government is to protect your liberty. The Constitution is not to restrict the people, but to restrict government.  Ron Paul

The two enemies of the people are criminals and government, so let us tie the second down with the chains of the constitution so the second will not become the legalized version of the first. - Thomas Jefferson

“Everyone wants to live at the expense of the State. They forget that the State lives at the expense of everyone.” — Frederic Bastiat

Offline blacknwhite

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Re: Simple economics
« Reply #1 on: November 12, 2008, 03:33:47 AM »
Sometimes increasing the money supply is needed and infact does not cause inflation. Our previous Fed chairman Greenspan did a fine job controlling the injection of money into the economy and we can only hope the current chairman will lead with equal wisdom.
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Offline phalanx

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Re: Simple economics
« Reply #2 on: November 12, 2008, 06:21:40 AM »
Americans in the reality world are not spending anything with a nut case in the white house talking about his god status ,his defense force ,and dismantling the Constitution.
Obamas ,Communist dream is a system that is a failure and as old as the USSR in 1946. It only ends in blood shed.
Russia is about to kick his god ass  ,and Obama hides and shivers when they call ,Putin said (Get rid of him or i will ).
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In this time i Command ,That you take the Secular to Jerusalem .
There you rid the Holy City of the Scourge of Islam , Make the streets run red with the Blood of those who wish to wash Israel and Christianity from the face of the Earth.
Constantine III

Offline Gary G

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Re: Simple economics
« Reply #3 on: November 13, 2008, 06:03:40 AM »
Quote from: blacknwhite on November 12, 2008, 03:33:47 AM
Sometimes increasing the money supply is needed and infact does not cause inflation. Our previous Fed chairman Greenspan did a fine job controlling the injection of money into the economy and we can only hope the current chairman will lead with equal wisdom.
Actually, Greenspan's easy money and below market interest rates fueled the housing bubble that has now burst. We are now in a process of deleveraging (getting the excess malinvestment out of the market that was created by the easy money). When this is completed, you will find many more dollars in the system for fewer goods will lead to hyperinflation and another bubble. It will take a while because of all the government interference with the normal market process. Japan did the same thing we are doing after 1990 when the Nekkei bubble burst and they are still 80% below where they were.

The Fed causes the booms and busts.
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The sole purpose of government is to protect your liberty. The Constitution is not to restrict the people, but to restrict government.  Ron Paul

The two enemies of the people are criminals and government, so let us tie the second down with the chains of the constitution so the second will not become the legalized version of the first. - Thomas Jefferson

“Everyone wants to live at the expense of the State. They forget that the State lives at the expense of everyone.” — Frederic Bastiat

Offline phalanx

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Re: Simple economics
« Reply #4 on: November 13, 2008, 06:19:38 AM »
Your fine as long as you realize that Economics is the new weapon for bringing down your opponent ,in order to weaken his resolve.
It is the new equivalent, to the old use of siege warfare , and to defeat a siege you leave yourself an out.
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In this time i Command ,That you take the Secular to Jerusalem .
There you rid the Holy City of the Scourge of Islam , Make the streets run red with the Blood of those who wish to wash Israel and Christianity from the face of the Earth.
Constantine III
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