Obama admits to mistake

TheBrutalTruth said:

You have your head on straight.

Though I have to disagree with your take on the Greenbacks. Not because they weren't a good idea, but because the government mismanaged them. By the end of the civil war they were only worth 33¢ against Gold Dollars (1/60th oz of gold, vs 1/20th oz of gold for the dollar.)

It is not possible to increase the actual size of the economy by printing more money.

Here's a way to look at it that should make some sense.

Let's say you have a company called XYZ Company. Now this company has issued 100 Million shares at $1 a share, and the market price for those shares has remained at that $1. The value of XYZ Company is going to be $100,000,000.

Now, if you announce a stock split of 2 shares for every 1 share, you are going to have 200 Million shares, but each share is only going to be worth 50¢/share leaving your market valuation at $100,000,000.

Of course, now you have 200,000,000 shares.

It's much the same way with dollars. In 1913 Dollars we have an economy that's worth $600,000,000,000 However, since 1913 we have seen the equivalent of stock splits that total 22:1. Now, since the value of the economy in 1913 dollars is only $600,000,000,000 and each share is worth $1, when the shares are increased by 22 fold you end up with 13.2 Trillion Shares (Fiat Dollars) which still only have a relative value of $600 Billion.

There was no value created by this measure.

Now, if there are people that get paid $5,000/year in these fiat dollars and their pay doesn't go up with the split then you see their actual pay go down.

For instance, if Joe the Plumber was making $5,000/year and saw that only go up 800% he'd only be making $40,000. Since he was shorted 1,400% however, his new pay is only worth $2,857 leading him to actually be worst off by the equivalent of $2,143, despite seeing is income jump $35,000/year.

That's why inflation is bad.

Of course, luckily for most citizens their pay has done a reasonable job of pacing inflation, but it still has fallen behind leading every American to be ultimately poorer.

(2200% is the total inflation from 1913 - 2007)

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Blow4Life said:

Nice! This is hypothetical but what would happen if the U.S. wrote its own bill. Created inflation but at a controled rate. As long as there was never a decrease in the amount of moneies available. Use Reagonomics, tax cuts for the big co's, but this time make sure the co's pass this savings along to the workers.

Basicly, what I'm saying is who cares if a gallon of milk costs $10 if minimum wage is $20 an hour. All America has to do is raise tarriffs that protect our interest. That way the other countries can't compete with our companies with paying the difference. If china produced that same gallon of milk and sold it for $4, that would hurt our plan but if Obama puts a $16 dollar tax on that gallon of milk, we win. Obama would also have to make it where U.S. co's couldn't go outside the country to produce that same gallon of milk.

I believe that our economy is the strongest in the world! Anyone imagine if this happened? The only reason why other countries can produce any good that Americans use cheaper is because they pay their workers shit! GM can't compete with Toyota if toyota can make a car for 1/2 the work cost I'm exaggerating with the 1/2 thing but it is enough to pass on that savings to the customer and also the quality of the vehicle. Making it a better buy for the public while GM battles with the unions over pay raises. Those are the American jobs that built our country!

This is just my theory. I can obviously see problems in it already like, International Banking, etc. but its a beginning. If not our own currency at least lets raise tarriffs so we can PREVENT this from happening again. As for getting us out of this. U.S. should get rid of those tax reporting laws for spending over $???? That way the people with real money and want to spend it can stimulate the economy. Remember Miami in the early 80's

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TheBrutalTruth said:

Inflation is never good ,because it does not actually add anything to the economy.

Same way that despite minimum wage hikes after minimum wage hikes people on minimum wage are still poor.

Or in simple terms: THERE IS NO SUCH THING AS A FREE LUNCH.

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medicineman said:

Inflation bad, tarrifs good.

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CrackerJax said:

Well, that is just you..one need only look at the data to see who makes the better car.... it certainly isn't coming out of Detroit that's for sure. Not for a very long time.


out.

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CrackerJax said:

Well Ford is not a car is it? If Detroit made the best cars, their sales would not be in the tank.... and if you look at international sales....(a true barometer), it's not even close. Hence the reason why a bailout is nuts for these guys... let them go under. It's their only hope.


out.

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TheBrutalTruth said:

Has nothing to do with the quality of their cars has to do with their price competitiveness.

I've seen Ford Ranger's hit 300K+ when just maintained as normal.

It has nothing to do with the quality of their products, but with the cost of those products due to weak, spineless management that is unwilling to lay the smackdown on overbearing, over demanding unions, and explain, "Listen, Bitches, I know you all want to be able to buy panties so you can let your wives wear the pants, but until we are gaining market share instead of losing it you're going to have to do with out."

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****** said:

make a car for 5k sell it for 20k build 1 for 20k sell it for 60k . execs make 100s of times what production makes but it's the workers fault they are broke , all makes sence to me

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ANC said:

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