Tuesday, January 27, 2009

MIDDLE CLASS FACING EXTINCTION!

MIDDLE CLASS FACING EXTINCTION!
What is real money? What does money really represent? I’ll tell you what no one else will, money is only a substitute for physical trade. And physical trade is an exchange of goods or services resulting from physical labor and sweat to survive. So, when you just print worthless money out of thin air you break the chain to physical survival. The effects and dire consequences just take a while to catch up.

Physical survival? Yep! That is the dire consequence in question when there is a lack of food. Sure, it is a must to have manufacturing to produce modern weapons for national security. However, food is the first priority for survival and without it nothing else matters. I believe mass starvation is going to be the main consequence resulting from printing all of this worthless money.

Right now if anything, the government should be promoting and encouraging small farming and home gardening, nothing else is going to prevent mass starving in the near future. I know no one is actually listening and view me as being off my rocker, but time will be the final judge on the matter, not you, or me.

I keep hearing how the printing presses are humming and printing out tons and tons of crisp new dollars. So, I decided to weigh in and analyze the ramification of printing so much money. Okay, lets say the government has all of this money, what is the purpose and how will this affect the economy. I am a creative thinker and here is my take on how this is going to play out.

The economy consist of only two players, a seller (merchant) and a Buyer (consumer) no matter how modern and advanced it may be. To an economy the government is a parasite, but a necessary parasite. Every society must have a government for protection. When government gets involved in the inner working of a free market place economy it destroys the natural selection balance between the merchant and the consumer. And once that balanced is destroyed the economy is never going to work right.

There are simply too many variables; my guess is as good as any economist. The economy is only one leg of the survival stool. You can’t ignore the nuclear family, the culture, the capacity to barter and ever truly understand economics, I don't care who you are, it is impossible. Wise leaders of old knew this and would never have created this welfare state beast. Mass amounts of paper money or currency are mostly a modern tool or leg added to the survival stool.

The American Indian and many other societies survived for thousands of years without money. We have become fixated with tunnel vision only on money to survive, which is impossible in the long run. We seem to becoming almost totally a materialist people. Get a grip America. Sure, money is a good thing and a great advantage in a modern society, but, if you want your society to be around for centuries you better have some emergency fallback bartering capacity left in place.

Otherwise when the rebirth cycle comes around it is back to the Stone Age. There is no life or nothing in existence that doesn’t have a rebirth cycle at some point. It should be this way, how else can all of the moral and other decay be purged. The negative anti-survival threats will become too powerful for a civilize society to exist. Look at our culture now; it is already almost totally upside down.

The thing about government is it has the big guns, and the hardest thing in the world is to retain the power in the hands of the people.

The constitution was supposed prevent an all powerful government, but I'm afraid the liberal has created far too many dependent to put a damper on reckless spending or any sanity. Here is my prediction on how this money is going to be spent. Everyone receiving a government check or food stamps is going to get a raise. There will be mass new construction and all kinds of new social spending programs.

There will be all kind of new hidden taxes and fees, plus green regulations. With all of this going on the merchants will be force to raise their price even higher to cover the added cost. The merchants will get away with raising their prices because the government subsidizes enough people with checks and food stamps to keep them in business. But its not the merchants fault, they have to pay all kinds of high taxes, licenses, and fees.

So, what is the problem, what is wrong with this picture? I’ll tell you, it’s like scratching your head when your toe is itching. Nothing is done to try to rein in the “Galloping cost of living and the dwindling buying power of the dollar” which is really what’s destroying the economy. The middle class is going to be destroyed almost to the point of extinction. The only thing that can rein in the cost of living is a draconian reduction in taxes and government spending. God save America.

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8 comments:

  1. You said it all in one sentence "it’s like scratching your head when your toe is itching." I agree fully , we can just keep our fingers crossed that actions taken apply.
    Take care.

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  2. My grandmother used to say 'Stretch your legs according to the length of your blanket'. The biggest problem in today's economy is that all of us live on credit.

    Banks, Financial/lending institutions, credit cards and even the government through constant propaganda make us believe that we cannot buy a house or a car or send kids to college without taking a loan from them.

    I know a lot of my friends who can easily afford a car without having to go for a loan but they are so brainwashed by the wrong advices spread around that they feel compelled to go for a loan and end up paying outrageous loans.

    Once we start borrowing then there is no end to it. We start leaving beyond our income. Add to this banks who for some reason believes they have a never exhausting bucket of funds to loan out...utter chaos.

    All of us will have to get the discipline in life and start bringing order home before we can expect the banks or anyone else to shape up.

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  3. you are very much right about the new proposed spending making things worse. it is incredible to me that putting in more regulations on manufacturers (as was done yesterday) and spending more money is supposed to stimulate the economy. those two behaviors are exactly the OPPOSITE of what you want to happen during down times. Why make production more difficult, hence more expensive for consumers?

    These is a near obsession now with creating 'jobs'. those jobs mean nothing if they do not spring froma vibrant free market. if they are created off the backs of other producers, it means nothing to stimulate growth. An example is how after disasters, people talk about how the rebuilding 'creates' jobs. they don't get it - nothing has been created, lots has been lost. its like that now - 'green' jobs created, at whose expense? Why don't they just let the market dictate how 'green' it wants to be? Its amazing how the opposite of what needs to occur to fix this is occurring.

    Thanks for letting me vent here and keep up the good thinking-

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  4. These kinds of problems are global; it's not just the U.S that has developed such an out of balance way of life.

    I agree it's sheer madness to become a slave to credit. 'Advertising/Propaganda' certainly has created an out of control materialistic nightmare...this is what we call 'modern society'.

    It really is time to reassess our real priorities both as individuals and members of the human race.

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  5. This chaos is global.It has been greed of bankers, plus the "I want it all and I want it now" society, money being thrown to people who could never pay it back. Simple common sense would surely make people realise that money has to be paid back.....therefore rein in the spending. But oh no......the carousel went round and now, there is nothing left. High Streets are emptying of shops, jobs are being lost. Governments are taking over the banks. Long Live Communism, at least that is how it feels in UK.

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    ReplyDelete
  7. even we don't know about future and how economy will go and "end" or may be, we face dark way with small light, I think, there is still when we optimist. Shall we optimist in this situation? Worse economy condition, citizen unemployee?

    Let's face it together and believe, there is a miracle when you believe...

    Good day....

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  8. Sir I couldn't agree with you more this is a great article and should go further than right,

    ReplyDelete