good point - clearly (slapping my forehead with palm of my hand) a "welda moment."steveny said:
(what's a welda, you ask? WELLLLL-DUH!!!)
When does north america ....
- Thread starter nuccaJB
- Start date
(what's a welda, you ask? WELLLLL-DUH!!!)
From a White House press briefing (May 7, 2001):
question: Does the President believe that, given the amount of
energy Americans consume per capita, how much it exceeds
any other citizen in any other country in the world, does the
President believe we need to correct our lifestyles to address
the energy problem?
Ari Fleischer: That's a big no. The President believes that
it's an American way of life, and that it should be the goal
of policy makers to protect the American way of life.
The American way of life is a blessed one. And we have
a bounty of resources in this country. [...]
full text at http://www.whitehouse.gov/news/briefings/20010507.html
question: Does the President believe that, given the amount of
energy Americans consume per capita, how much it exceeds
any other citizen in any other country in the world, does the
President believe we need to correct our lifestyles to address
the energy problem?
Ari Fleischer: That's a big no. The President believes that
it's an American way of life, and that it should be the goal
of policy makers to protect the American way of life.
The American way of life is a blessed one. And we have
a bounty of resources in this country. [...]
full text at http://www.whitehouse.gov/news/briefings/20010507.html
Once again, before commenting on gas and oil prices, please become educated about the world oil economy.
The article regarding the euro and Iraq was absolutely correct. As things stand now, we can print dollars and export them to pay for oil imports. This means that our oil is functionally free because dollars are printed from thin air by the Fed.
We have what is called "dollar hegemony." Currencies are major economic issues and wars have been fought over them. Counterfeiting and flooding an enemy with bogus currency is an act of war, for example. Had OPEC decided to go to the euro, it would have created a huge demand decline for the dollar. Less demand for dollars means lower value of dollars. That's called "inflation."
We're basically financing our spendthriftiness with inflation. We dilute the value of the dollar in real terms in order to wipe out debts denominated in earlier, more valuable dollars. The entire world is participating in this, and this is primarily why we have CAFTA and NAFTA. The biggest effects of those trade agreements were to permit out-and-out money laundering. Now, trucks of dollars go to mexican banks which issue deposit slips to their american branches, permitted now by NAFTA. Presto, it's whitewashed. The Fed is more than happy to sell dollars to support this, and the drug cartels don't mind a little inflation. Nothing any agency can do, either, because the trade agreements are supreme and the Fed essentially operates above the law.
If you look at the history of inflation in the united states, i.e., the historical price of gold, you can see two distinct periods. The first was the enactment of the Federal Reserve Act, which gave the authority to print currency away from the US Treasury to the Federal Reserve, which is a private bank functioning under Congressional "oversight." That means no audits in the history of the entity, and that Greenspan might get yelled at by Joe Biden once a year or something.
The second epoch is in the early 1970s. That is when Nixon decoupled foreign dollars accounts from a gold standard. Prior to that, all foreign dollars holders could cash their money in for gold, a real asset. Inflation since 1973 has been insane. But, we really had no choice because we suddenly, due to Peak Oil, had to begin importing oil. And, to pay for this, we did not have enough gold. If we began giving our dollars to Canada, Mexico, and Venezuela, who are our by FAR largest import suppliers, we'd have run the hell out of gold long ago. So, we just made the currency a pure supply and demand issue.
People need dollars to buy things. That creates demand. People want to buy US Treasuries, US Stocks, anything in the US, they have to purchase dollars to do so. And, most importantly, ANYONE who wants to transact in oil must use the dollar because the major comex's are dollar-denominated. Every single nation on earth must buy and hold dollars to transact their oil in. Russia, Norway, China, all of 'em.
OPEC made a sort of power play to try to threaten this arrangement by using the euro. In essence, the EU offered them a better deal to do so. Free oil is a nice thing to be able to have. You let the "purchasing power" of your currency buy your oil for you and the mutual needs of the suppliers and consumers. So, we stepped in and forcefully put an end to this sort of thing. And, Euro adoption was not confined to Iraq. Countries from Indonesia to Venezuela made similar euro conversion announcements. Thus far, none have made good on their threats.
Just so you know, if euro adoption happened, the value of the dollar would go down by 50% overnight. We would have a vast depression. Your paycheck would be worth half of what it was and/or all things would cost twice as much. You'd have to work twice as long for everything. And, that's all "money's" really about, how long do YOU have to work to get some *thing*, be it a barrel of oil or a car.
The problem with inflation is that the dollars held by all the other oil ppl out there are losing value as well. They're paying a penalty because their dollars are diluting just like everyone's.
But, remember, currency isn't worth. It's a supply and demand thing. Economic growth does not create inflation...excess currency supply does. Too many dollars, overprinting...that's what the Confederacy did in the Civil War and why nobody would take their notes. There were simply far too many for the demand. This really isn't hard stuff; we all learnt it in high school only to unlearn it listening to "economists" on CNBC talk nonsense about the Fed "fighting" inflation when they are the sole creators of it, and growth causing price rises which are what inflation is. Forget that nonsense. You got it right in high school. Oversupply or lack of demand for a currency makes it of less real value, just like with oil during the 90s supply gluts.. Lack of supply + lots of demand = high prices. Lack of demand + lots of supply = low prices. Currency is no different from gas.
The article regarding the euro and Iraq was absolutely correct. As things stand now, we can print dollars and export them to pay for oil imports. This means that our oil is functionally free because dollars are printed from thin air by the Fed.
We have what is called "dollar hegemony." Currencies are major economic issues and wars have been fought over them. Counterfeiting and flooding an enemy with bogus currency is an act of war, for example. Had OPEC decided to go to the euro, it would have created a huge demand decline for the dollar. Less demand for dollars means lower value of dollars. That's called "inflation."
We're basically financing our spendthriftiness with inflation. We dilute the value of the dollar in real terms in order to wipe out debts denominated in earlier, more valuable dollars. The entire world is participating in this, and this is primarily why we have CAFTA and NAFTA. The biggest effects of those trade agreements were to permit out-and-out money laundering. Now, trucks of dollars go to mexican banks which issue deposit slips to their american branches, permitted now by NAFTA. Presto, it's whitewashed. The Fed is more than happy to sell dollars to support this, and the drug cartels don't mind a little inflation. Nothing any agency can do, either, because the trade agreements are supreme and the Fed essentially operates above the law.
If you look at the history of inflation in the united states, i.e., the historical price of gold, you can see two distinct periods. The first was the enactment of the Federal Reserve Act, which gave the authority to print currency away from the US Treasury to the Federal Reserve, which is a private bank functioning under Congressional "oversight." That means no audits in the history of the entity, and that Greenspan might get yelled at by Joe Biden once a year or something.
The second epoch is in the early 1970s. That is when Nixon decoupled foreign dollars accounts from a gold standard. Prior to that, all foreign dollars holders could cash their money in for gold, a real asset. Inflation since 1973 has been insane. But, we really had no choice because we suddenly, due to Peak Oil, had to begin importing oil. And, to pay for this, we did not have enough gold. If we began giving our dollars to Canada, Mexico, and Venezuela, who are our by FAR largest import suppliers, we'd have run the hell out of gold long ago. So, we just made the currency a pure supply and demand issue.
People need dollars to buy things. That creates demand. People want to buy US Treasuries, US Stocks, anything in the US, they have to purchase dollars to do so. And, most importantly, ANYONE who wants to transact in oil must use the dollar because the major comex's are dollar-denominated. Every single nation on earth must buy and hold dollars to transact their oil in. Russia, Norway, China, all of 'em.
OPEC made a sort of power play to try to threaten this arrangement by using the euro. In essence, the EU offered them a better deal to do so. Free oil is a nice thing to be able to have. You let the "purchasing power" of your currency buy your oil for you and the mutual needs of the suppliers and consumers. So, we stepped in and forcefully put an end to this sort of thing. And, Euro adoption was not confined to Iraq. Countries from Indonesia to Venezuela made similar euro conversion announcements. Thus far, none have made good on their threats.
Just so you know, if euro adoption happened, the value of the dollar would go down by 50% overnight. We would have a vast depression. Your paycheck would be worth half of what it was and/or all things would cost twice as much. You'd have to work twice as long for everything. And, that's all "money's" really about, how long do YOU have to work to get some *thing*, be it a barrel of oil or a car.
The problem with inflation is that the dollars held by all the other oil ppl out there are losing value as well. They're paying a penalty because their dollars are diluting just like everyone's.
But, remember, currency isn't worth. It's a supply and demand thing. Economic growth does not create inflation...excess currency supply does. Too many dollars, overprinting...that's what the Confederacy did in the Civil War and why nobody would take their notes. There were simply far too many for the demand. This really isn't hard stuff; we all learnt it in high school only to unlearn it listening to "economists" on CNBC talk nonsense about the Fed "fighting" inflation when they are the sole creators of it, and growth causing price rises which are what inflation is. Forget that nonsense. You got it right in high school. Oversupply or lack of demand for a currency makes it of less real value, just like with oil during the 90s supply gluts.. Lack of supply + lots of demand = high prices. Lack of demand + lots of supply = low prices. Currency is no different from gas.
redshift said:Strange that you would include "haha" and "lol" when talking about killing chinese people with nuclear weapons
I'm not trying to be mean, it just strikes me as distastefully morbid.
i apologize if i offend anyone, but i find that sometimes humor is an easier way to speak about such subjects, aside from that i believe that 'haha' and 'lol' accompany almost all my posts... its kind of like a macro.
The economy is a little scary right now. I think that a lot of things could go bad for the US in the next ten years if not careful. It may be a temporary period, but it would suck. I tend to roll with the punches pretty well, but it would still suck. I just think a lot of people in the US need to get rid of the blinders that they have been wearing for so long.
No offense taken... it just threw me off as I was reading through the thread (because of it's serious tone). Now that you mention it, I don't remember reading any of your posts that weren't prefaced with 'haha' or 'lol'. :biggrin:khappucino said:
:biggrin: Thats why we love khappi! He is always simling! Seems to be all to rare in this serious world we live in! Thanks Khappi. :biggrin:redshift said:
So what do you suggest to fix or lessen the problem? Mabye everyone with Escalades on 20's should sell their vehicles and buy gas efficient vehicles. It is sad but We've been heading to self destruction for many many years now.
And if you're one of the many sensitive ones here, i was not trying to offend you or stir the pot...Just asking what your suggestions were to help alleviate the situation.
And if you're one of the many sensitive ones here, i was not trying to offend you or stir the pot...Just asking what your suggestions were to help alleviate the situation.
No offense taken. This is a public forum and everyone can say what they feel. I usually don't get uppset if someone on prime thinks differently then I do.
I think that americans need to focus a little less on having bigger wasteful items. Instead of finding a way to make americans to buy more expensive wasteful crap, why not focus on producing more efficient vehicles, appliances, and even diets. If half of the marketing money went into R&D for the most fuel efficient car it would probably be reasonable to have a car that is not some little POS econobox and still gets great mileage. I really do not get excited about a toyota echo or prius. Can't they produce a four seater sporty coupe that gets 40+ MPG. Why not find ways to produce new composite materials that are cost effective and can reduce the weight of the car by 10-20%. Some new improvements are led tail lights, they use less electricity and need smaller wires. Small start but in the long run little changes like this can add up. Home appliances have become much more efficient over the past twenty years and they make a huge difference in the overall use of power. I just think americans have become glutonous(sp?) and most don't care.
I think that americans need to focus a little less on having bigger wasteful items. Instead of finding a way to make americans to buy more expensive wasteful crap, why not focus on producing more efficient vehicles, appliances, and even diets. If half of the marketing money went into R&D for the most fuel efficient car it would probably be reasonable to have a car that is not some little POS econobox and still gets great mileage. I really do not get excited about a toyota echo or prius. Can't they produce a four seater sporty coupe that gets 40+ MPG. Why not find ways to produce new composite materials that are cost effective and can reduce the weight of the car by 10-20%. Some new improvements are led tail lights, they use less electricity and need smaller wires. Small start but in the long run little changes like this can add up. Home appliances have become much more efficient over the past twenty years and they make a huge difference in the overall use of power. I just think americans have become glutonous(sp?) and most don't care.
I do not know if the future of the dollar is doomed...
But what about converting some of your savings in other currencies? Since I also do not feel 100% sure about the future of my currency I try to not keep all my savings in Swiss Francs but I own Dollars and Euros (in form of funds)... if Dollars will go down the other two will go up to compensate. The same for the other currencies.
But what about converting some of your savings in other currencies? Since I also do not feel 100% sure about the future of my currency I try to not keep all my savings in Swiss Francs but I own Dollars and Euros (in form of funds)... if Dollars will go down the other two will go up to compensate. The same for the other currencies.
- Joined
- 4 May 2003
- Messages
- 341
so since we're talking about the future of the american economy and a possible recession/depression how about we throw realestate into the mix since that has clearly been supporting our economy as of late?
We've all heard how people are using their homes equity as ATMs recently due to the huge appreciation. People say they're using HELOCs to pay off revolving debt and other loans, but if that's the case then y is the default rate at its highest ever? I strongly believe that the recently oil price increases is the catalyst that is going to cause the RE market to peak and start its downward trend. What's going to happen once home equity dries up and people can't create money out of nothing anymore to fund their extravagance? It's possible that we'd see a worse recession than that of the 80s or 90s if this whole debt lifestyle implodes. What is our economy become stagnant for 10-15 years similar to what japan is just getting out of now? Where do you guys plan to put their money if this happens?
I think that old saying that buying a house is always a good idea might actually be wrong now and might actually be working against our economy's health. Most of my friends are in their mid 20s and it scares me that they all think that buying a house is such an amazing idea now. They don't even look at the fact that you'd save a bunch by renting the same place (NY and Boston markets). They're betting on appreciation on an asset that has already gone up huge amounts. It definitely reminds me of the glory days of the .com boom.
We've all heard how people are using their homes equity as ATMs recently due to the huge appreciation. People say they're using HELOCs to pay off revolving debt and other loans, but if that's the case then y is the default rate at its highest ever? I strongly believe that the recently oil price increases is the catalyst that is going to cause the RE market to peak and start its downward trend. What's going to happen once home equity dries up and people can't create money out of nothing anymore to fund their extravagance? It's possible that we'd see a worse recession than that of the 80s or 90s if this whole debt lifestyle implodes. What is our economy become stagnant for 10-15 years similar to what japan is just getting out of now? Where do you guys plan to put their money if this happens?
I think that old saying that buying a house is always a good idea might actually be wrong now and might actually be working against our economy's health. Most of my friends are in their mid 20s and it scares me that they all think that buying a house is such an amazing idea now. They don't even look at the fact that you'd save a bunch by renting the same place (NY and Boston markets). They're betting on appreciation on an asset that has already gone up huge amounts. It definitely reminds me of the glory days of the .com boom.
- Joined
- 4 May 2003
- Messages
- 341
steveny said:
Exactly, but the scary thing is I think the majorities' bad decisions and mishandling of finances is going to effect even those that are very careful with their money and investments. If housing goes down everyone that owns loses some net worth (shouldn't be a big problem over the long run as long as you haven't over exerted yourself financially). If the country does go into a recession anyone's job can be effected. If we experience inflation or stagflation everyone’s money loses value. If a recession hits, the stock market will probably have negative returns hurting those of us who invest there. How do you avoid being effected by all this?
- Joined
- 1 September 2001
- Messages
- 4,123
Disclaimer: The following is posted for entertainment purposes only.
The Great Pretzel Conspiracy...
http://houston.indymedia.org/news/2004/12/35839_comment.php
The Great Pretzel Conspiracy...
http://houston.indymedia.org/news/2004/12/35839_comment.php
I agree that the housing market is pretty shaky right now, especially in California. I live in a relatively secluded area where costs have gone up 50-100% in the past 4 years, but the jobs can't support that price- it's gotta come down soon. There's a problem when people are trying to sell 50 year old homes for more than new larger ones...dawggpie said:
(This is why I don't have an NSX yet- I promised myself a garage to store it in first, so my money is working elsewhere at the moment.)
