There are no shortages of opinions why oil has dropped. I for one believe it is being manipulated to put pressure on Russia and the Middle East so they are slowly starved for resources they would use against the U.S. interests.
Oil Drops over 30% since summer, now what?
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MinnesotaEric
Super Member
Japan's total debt is over 600% of the GNP, the USA, totaling private, corporate, financial, and Treasury debt us at 3.90 times our GNP. Which part don't I understand and why?
We already know that when velocity of commerce and growth falls off, our government, like Japan's for the last 20 years, qualitatively eases in order to backstop their banking system to the detriment of savers and the young.
Yet you claim that I don't understand the issues. Which part don't I understand, and why?
FWIW, we live in a world where all trading nations use both a fractional reserve currency system, as well as a fractional gold system, where paper is treated as though it is real, tangible gold. In such a world, all currencies are relative when all major central banks race to the bottom by quantitatively easing. If this was not true, then a new E class wouldn't cost 60K, it'd cost much, much more. As a result of the way the world actually works, rather than your cherishingly held views that have not played out in real life (and nor will they because of the control central banks have over the free market system).
What you've failing to reconcile is what you think should happen in a free market system, and what is really happening. You think that by printing money, the purchasing power of money is diluted. Except the printed money never went out on main street faster than main street could absorb it and so inflation did not come from devaluing currency. What drove inflation is commodities, and now with commodity prices falling we should see flat to low inflation. Why? We have precedent with Japan's modern economy flying off of a demographic cliff with high private, corporate, and financial debt. When Japan flew off the cliff in the late eighties, Japan's sovereign debt (its government debt) was relatively low in comparison to its GNP. Japan, rather than allowing its citizens and banks take their lumps when real estate declined to more than 50% of its purchased price, began easing in what we now can see over the last two decades is an endless series of programs.
At any-rate, rather than asserting I'm wrong, get some facts together and share them if you choose to pushback again. Remember to increase buying power, all one's investment must do is earn a higher return than inflation relative to an object or service.
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MinnesotaEric
Super Member
No. This people crossing the border take jobs that no naturalized American wants. We've gone Roman. Ever noticed that the bulk of physical labor in this country is now performed by first and second generation immigrants? Those people are additive. So too are the people who are sent over to be educated by us. They too are additive and we need them in order to reduce the negative effects an aging population has on the economy.
If you think we'll get flooded by immigrants, look to Spain. At the height of the housing boom, 6% of our population worked in building. Spain, had an even bigger bubble and some 13% of its population was involved with building. But when the recession came, and building stopped, unemployment flew sky high and many immigrants, unable to find work in Spain, left and went back home. That's an example of a free market force that still functions. If we hit an over-capacity of immigrants, those who cannot find work will deport themselves.
MinnesotaEric
Super Member
That is something to be said: as a rule democrats possess more wealth than republicans, but counter-intuitively, republicans receive more social services.
It has to do with population centers.
Where populations reach the point of cities, there is a strong tendency in America to become Democrat because of the melting pot effect of having piles of different cultures and peoples mix on a daily basis.
In rural areas, where the individual tends to rely on him or herself moreso from a lack of other people around to help, they overwhelmingly tend to be Republican.
Consider Northern Minnesota:
Minnesota leans Democratic but as soon as you get out of the Twin Cities, and with exception of the Iron Range, most counties are overwhelingly Republican.
Why?
Nobody is helping the farmers, now all heads of multi-million dollar operations with slim margins and where all of their money is tied up in the value of the land and their equipment.
Nobody is helping the lumberers, whose operations big and small, mean that all of their money is tied up in their equipment and people.
And then there are the vast majority of jobs that tend to be seasonal. During the spring, summer, and fall, jobs and tradesmen are busy working and servicing the needs of wealthy city people who build and own the vast majority of lake homes. But during the winter, those same workers have no work and are laid off to collect unemployment through the winter.
The tax base of the rural counties is completely dependent upon the seasonal property owners. Those property taxes support the schools, hospitals, city, township and county services.
The take away is this: where year round work is impossible, and where out-of-doors work is the norm, those people tend to be Republicans.
Where indoors work is the norm and where teamwork is necessary, they tend to be wealthier (from their year-round employment) and Democrats (from the tolerance of multi-culturalism necessary to co-exist and work together).
MinnesotaEric
Super Member
Within the last hour, Apple has suspended online operations in Russia because of instability in the ruble, Russia's currency.
Yesterday, Russia upped its prime rate to 17% in an attempt to keep money from leaving Russia.
OP
NoTrespassing
Veteran Member
My point is that if we cut back on handouts maybe some of the people that don't want to pick vegetables etc. will be forced to get off their butts and do something for a living. There is a large percentage of the population that get government assistance that are able bodied. I've talked to rural carriers that will tell you what percentage of their route customers get handouts and it's well over 50%. Some of those are working for cash and not reporting it, others are on disability and shouldn't be. IMHO we have plenty of people here to do the menial jobs that immigrants are coming across the border for, they just need to be encouraged to do them.
300UGUY
Super Member
I agree that we need the immigrants, I see the area around me ageing rapidly. But I do think we need to control the borders, also we need to make sure these folks pay taxes here. Therefore, I think there ought to be severe fines for anybody employing illegals. We don't need a shadow economy here, like they have in 3rd world countries.
MinnesotaEric
Super Member
Let me get this straight: poor people are holding America back?
And the way to fix this problem is to make it suck more for poor people?
And in this way, create a greater division between the haves and have-nots?
That's what we should do?
A little pushback: how about incentivizing getting off the public dole instead?
MinnesotaEric
Super Member
The higher the taxes, the more incentive to not pay them. for this reason, i'll move out management that seeks to repatriate income earned on foreign shore because I'm against paying the 39% tax to bring that money home, after paying the corporate tax where ever the money was earned in the first place.
Get it? Our tax laws incentivize our inter nation companies to gradually move away from the USA. That's our fault.
300UGUY
Super Member
I get that, and agree with you. What I have seen is construction companies employ illegals to undercut local trades guys, drywall guys, masons, framing contractors. These guys are paid cash, and undercut legitimate companies, and aren't paying taxes into the system.
