The Economy
I went to a financial seminar on Saturday presented by the folks who brought us "Rich Dad, Poor Dad".
They don't promise quick easy money, but instead,
education,
or, in my case,
reeducation about $$$$.
We have some big storm clouds on the horizon...
Is your Arc ready?
Mine is not.
General Motors and Ford focused on big gas guzzlers and have now been caught with their pants down. Or, to continue the Biblical lingo, their lamps are empty and they are out of oil. (oohhh)
China is now in competion for the oil we once snapped up at low prices.
They are jumping on our technology of polution mobiles, instead of setting the new standards of automotive or mass transit science.
Economics state that if oil goes up, everything else will follow.
***********
Curency standards vs Monies.
Gold is money. It's price is fixed. It may fluxuate, but one can touch it, more can be found, but not made.
Years ago we, the U.S., and the rest of the world followed in their own ways, we moved to the Currency standard.
Currency is, by its very nature, designed to devalue over time.
Allow me to repeat that...
Our Currency is DESIGNED to DEVALUE over TIME.
It's affected by inflation.
4% this year, 3% next year.
They add up.
I'm sure you have heard of the story that my mother's generation told of going to the movies for $.15 .
And that got you popcorn and a drink, the movie AND a cartoon short.
Zelda and I went Sunday to see Madagascar (even at only $2.00 a head, I'd pass on it, though it's cheaper to see it now than to rent it later). It cost us $2.00 each a the matinee. But the two sodas and a large popcorn ate up my $10.00 bill.
Why would the government do this?
It's good if you want to run a deficit.
I borrow $100.00 today and pay it off .01 cent a year.
Over time, the effects of inflation mean, I owe less on it than when I borrowed it. Makes borrowing easier.
At the same time, for those of you who are saving for your retirement in a savings acount drawing a couple percent, it means your $$$$ are losing value, year after year after year.
Mom was aware of this as a child.
The farmer is taxed on his income.
He needs X number of dollars to make it by to get the things he and his family need to live comfortably.
The government now takes Y number of dollars out. Now it starts out as a very small amount. Say $.05 per dollar.
So, to make this up, he adds it to the price of his goods.
The company that ships his product is also being charged that same $.05. So what do they do?
They add it to the price of services.
And so does the guy who is the middle man for the farmer and the grocer.
The grocer has many employees who are all being charged $.05 each. When he wants to give them a raise, he has to find that money to pay to the government.
Finally, you and I stop by his store to buy a loaf of bread.
Guess who's paying all those $.05?
And in the end, the intent of the law, to raise 5% from everyone to fund the government, actually raises more because of %5 on 5% on 5% adds up.
In business, that's called "double dipping" and it's illegal.
They don't promise quick easy money, but instead,
education,
or, in my case,
reeducation about $$$$.
We have some big storm clouds on the horizon...
Is your Arc ready?
Mine is not.
General Motors and Ford focused on big gas guzzlers and have now been caught with their pants down. Or, to continue the Biblical lingo, their lamps are empty and they are out of oil. (oohhh)
China is now in competion for the oil we once snapped up at low prices.
They are jumping on our technology of polution mobiles, instead of setting the new standards of automotive or mass transit science.
Economics state that if oil goes up, everything else will follow.
***********
Curency standards vs Monies.
Gold is money. It's price is fixed. It may fluxuate, but one can touch it, more can be found, but not made.
Years ago we, the U.S., and the rest of the world followed in their own ways, we moved to the Currency standard.
Currency is, by its very nature, designed to devalue over time.
Allow me to repeat that...
Our Currency is DESIGNED to DEVALUE over TIME.
It's affected by inflation.
4% this year, 3% next year.
They add up.
I'm sure you have heard of the story that my mother's generation told of going to the movies for $.15 .
And that got you popcorn and a drink, the movie AND a cartoon short.
Zelda and I went Sunday to see Madagascar (even at only $2.00 a head, I'd pass on it, though it's cheaper to see it now than to rent it later). It cost us $2.00 each a the matinee. But the two sodas and a large popcorn ate up my $10.00 bill.
Why would the government do this?
It's good if you want to run a deficit.
I borrow $100.00 today and pay it off .01 cent a year.
Over time, the effects of inflation mean, I owe less on it than when I borrowed it. Makes borrowing easier.
At the same time, for those of you who are saving for your retirement in a savings acount drawing a couple percent, it means your $$$$ are losing value, year after year after year.
Mom was aware of this as a child.
The farmer is taxed on his income.
He needs X number of dollars to make it by to get the things he and his family need to live comfortably.
The government now takes Y number of dollars out. Now it starts out as a very small amount. Say $.05 per dollar.
So, to make this up, he adds it to the price of his goods.
The company that ships his product is also being charged that same $.05. So what do they do?
They add it to the price of services.
And so does the guy who is the middle man for the farmer and the grocer.
The grocer has many employees who are all being charged $.05 each. When he wants to give them a raise, he has to find that money to pay to the government.
Finally, you and I stop by his store to buy a loaf of bread.
Guess who's paying all those $.05?
And in the end, the intent of the law, to raise 5% from everyone to fund the government, actually raises more because of %5 on 5% on 5% adds up.
In business, that's called "double dipping" and it's illegal.
posted by karlthebunny at 6:15 AM
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