Wednesday, September 12, 2012
Here is an intriguing quote from Ludwig von Mises and his essay titled, " The Causes of the Economic Crisis, and Other Essays Before and After the Great Depression":
"It is true that the masses do not think of themselves as creditors and thus sympathize with the noncreditor policies. However, this ignorance does not alter the fact that the immense majority of the nation are to be classified as creditors and that these people, in approving of an "easy-money" policy, unwittingly hurt their own material interests. It merely explodes the Marxian fable that a social class never errs in recognizing its particular class interests and always acts in accordance with these interests."~Ludwig von Mises
In other words, if you have a savings account with the bank, you are a creditor with the bank. By voting for these non nonsensical polices, you are in essence usurping your position as a creditor. This activity reduces your ability to accumulate capital and wealth.
Since the current unemployment rate is at 8.1%, the Federal Reserve is contemplating another round of Quantitative Easing--this is covered in the article titled, "QE3 Will not Create Jobs". This action will not create more jobs, but it will continue to depreciate the ability to use the US Dollar as a unit of exchange. In other words, inflation will happen. This is done under the goodwill simply to gainfully employ 4-8% of the population.
Printing more money, lowering interest rates and the Fed purchasing more Govt Securities causes inflation. As inflation rises the prices of goods will increase. Couple this with the notion that the Federal Reserve is price fixing with interest rates in keeping them at historical lows, this creates a problem for savers and/or creditors. We are voting to destroy our wealth simply to ensure others are employed.
Latest AIG Stock Sale Means Government Has Been Repaid for Bailout | LifeHealthPro
Another related story: "AIG on the Verge of Federal Regulation"
Thursday, September 6, 2012
Peter Schiff interviews several attendees at the Democratic National Convention. Some are in favor of banning Corporate Profits. The responses are hilarious. NOTE: This is not an endorsement of ANY political party, nor does it represent ALL Democrats. I just found the video quite funny.
"Fed's Bernanke Makes the Case for QE3", Mr. Bernanke is considering another round of QE. Of course, Gold, Silver and Commodity traders will rush to purchase these items, to hedge the currency.
Tuesday, September 4, 2012
Travelers Institute has produced this documentary named, "Overdraft". It is addressing the uncomfortable issue of the National Debt. This issue needs to be addressed. Addressing it is not about who is at fault, but more about dealing with the harsh realities of why this debt has been created. I think we as citizens need to look in the mirror to see the real culprit. Shame on us for passing this egregious amount of debt onto the next generation.