tag:blogger.com,1999:blog-27697009.post4957766261892375874..comments2024-02-29T03:21:35.007-08:00Comments on The Great Depression of 2006 : The Call to Tax the Rich- Inflation At Its Best.Jim in San Marcoshttp://www.blogger.com/profile/09435296419912935381noreply@blogger.comBlogger38125tag:blogger.com,1999:blog-27697009.post-55416758129288882132012-04-15T19:35:37.300-07:002012-04-15T19:35:37.300-07:00Excellent response, Aim. I have a feeling these po...Excellent response, Aim. I have a feeling these posters may work for the government, and are trolling the blogs looking for domestic "terrorists". They approach off topic, and use leading questions to trap the unaware.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-624651587577673322012-04-14T23:12:44.468-07:002012-04-14T23:12:44.468-07:00Anon 10:43
If it was that easy these destructive ...Anon 10:43<br /><br />If it was that easy these destructive people would've been assassinated a long time ago. Doesn't work because they'd just be replaced by the next lackey.<br /><br />It isn't killing that we need. It is the giving of life. We need to breath life into the concepts of liberty, freedom and all of the other key tenets in our Constitution and Bill of Rights to the younger generations so that they can evolve us out of these unworkable systems (police states, oligarchies, crony-capitalism, etc.)AIMnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-83327014375704041292012-04-14T23:06:32.440-07:002012-04-14T23:06:32.440-07:00New Oregonian:
From your comments it appears that ...New Oregonian:<br />From your comments it appears that you don't have children or family that might care for you in your older age if you become feeble or decrepit in your old age. That is the same for my wife and I.<br /><br />Your barter idea is very smart. I would think if you had a guest house and a garden and chicken coop you would be able to find someone and trade that in exchange for them taking care of you. Good way to get full time, live-in help without having to take any money out of your wallet or reserves. If your garden/coop was big enough they could also take and sell some of the produce at farmer's markets so you'd also be giving them a little business where they could make some cash. Creates a very stable environment for some young couple that will ensure they stick around as your caretakers/caregivers.<br /><br />I think that is a good plan that I will incorporate for our older age as well.AIMnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-46847271584657246132012-04-14T22:43:46.240-07:002012-04-14T22:43:46.240-07:00Anon 6:35
Then who do we kill?Anon 6:35<br /><br />Then who do we kill?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-6585479606349533412012-04-14T18:35:10.699-07:002012-04-14T18:35:10.699-07:00There is no need to kill Bernanke. He is just a p...There is no need to kill Bernanke. He is just a petty agent of the banking cartel.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-76785193502072266012012-04-14T17:57:17.697-07:002012-04-14T17:57:17.697-07:00Jim - health definitely dictates retirement lifest...Jim - health definitely dictates retirement lifestyle. It's one of the reasons I want something to barter; I doubt I can afford hired help, but I can trade garden space for a share of the crop, or a guest room for borrowed youthful vigor.<br /><br />Lots of young folk want to garden/farm, but can't afford even a little land. Older folks have the finances but not the young back. I'd rather have something to trade for what I need than not. I just don't envision saving enough to survive retirement on cash alone.<br /><br />AIM - Oregon has a wacky property tax system; old houses can have much lower taxes than newer (still over $200/mo., or 10% of SS), yet have bigger lots and many have irrigation wells. Plunking mobile homes down is a good plan, but zoning discourages it in most places. There are places with no zoning, but they tend to be far from services.<br /><br />Sounds like you've got a good grasp on what you're looking for as you travel. I wish you the best of luck finding just the right spot and an enjoyable trek as you find it.<br /><br />Anon 8:55 Dig into how CPI is calculated, especially the substitution assumptions. If the price of steak quadruples, inflation doesn't go up because they just switch the CPI basket to hamburger. CPI just measures how much more it costs to maintain a constantly-declining standard of living.New Oregoniannoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-81477530715661481902012-04-14T14:17:09.429-07:002012-04-14T14:17:09.429-07:00I wonder why there have never been any assassinati...I wonder why there have never been any assassination attempts on the Chairman of the Federal Reserve (especially Greenspan and Bernanke)? <br /><br />We've witnessed assassinations and attempted assassinations on presidents but let's face it the Chairman of the Fed has more power than a figure-head president does and effects our lives so much more because he influences our economy, which touches almost every aspect of our lives and future lives.<br /><br />I wonder if Bernanke has body guards or Secret Service protecting him whenever he is out. He told Ron Paul in a Congressional meeting that he does his own grocery shopping and is aware of consumer prices. Yeah, as if I believe that. (If I ever saw him in my grocery store it would take all the restraint that I have to keep from hitting him in the head with a watermelon.)<br /><br />If he has Secret Service protecting him, that would be interesting... since the Fed Reserve is not part of the US government and he isn't a government official.<br /><br />This guy has taken the baton from Greenspan and destroyed our currency and is ruining our economy and our nation. He is destroying savers and retirees and widows lives.<br /><br />The American people just don't understand how the central bank/The Fed has damaged our country. Our big overpowering federal government is a big enemy of the people, but the Federal Reserve is PUBLIC ENEMY #1.<br /><br />The Fed has managed to trick the American public and stay in control for 100 years. They are so deeply imbedded now because everyone born today was born into this system and doesn't even think that there could be a government structure without a central bank system.<br /><br />The American people suffer for not knowing their history.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-11465869455832718392012-04-13T20:51:55.591-07:002012-04-13T20:51:55.591-07:00Two other key points that you didn't mention J...Two other key points that you didn't mention Jim. The Fed was printing money in the 20's and there was a lot of capital fleeing from Europe to the USA. The USA was swimming in currency which spawned more speculation, risky investments and the idea that "you just can't lose". This helped set things up for the depression as well.AIMnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-59449566163130211082012-04-13T19:25:32.747-07:002012-04-13T19:25:32.747-07:00Hi All,
Thank you for those coming to my aid.
I&...Hi All,<br /><br />Thank you for those coming to my aid.<br /><br />I'd like to point out to Anon 5:21 that this blog realizes that it is impossible to change what the reader believes. And I have never tried. His comments are welcome anytime and I hope he doesn't think I have singled him/her out.<br /><br />If you have ever read the book "Future Shock," you walk away marveling over what you read. You didn't learn anything new, the author organized and put the many pieces of everyones puzzle and gave it more substance. All this blog is trying to do is something similar, connect the dots and there is more than one way that can be done.<br /><br />So about the title, "The Great Depression of 2006, let's reflect back in history. The Great Depression everyone today knows started in 1929. In reality, it started with the hurricane in 1926 in Florida. In October of 1929 when the stock market crashed, there was no depression, things were just fine. The market had lost a lot of money and some rich people were a lot poorer. It wasn't until 1933 that the masses of people knew that they were in a depression. So if we subtract 1933 from 1926 we get 7 years. Add that on to 2006 and you get 2013. I think we are right on course for the Great Great Depression.<br /><br />The thing that impressed me studying the Great Depression, was how invisible it was until everyone was willing to accept it.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-41810734720199050862012-04-12T23:10:31.308-07:002012-04-12T23:10:31.308-07:005:21,
As my first post to this thread, may I sugge...5:21,<br />As my first post to this thread, may I suggest you read this blog's past topics. You are off on many points. Like many Americans, you need to re-educate yourself with something other than mainstream news articles.<br /><br />Also, these guys really don't need textbook definitions on inflation and deflation. They are well beyond that. :)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-25914502890137482762012-04-12T22:15:10.088-07:002012-04-12T22:15:10.088-07:00Anon 5:21
You're missing some key points. WE ...Anon 5:21<br /><br />You're missing some key points. WE ARE IN A DEPRESSION. The government and media statistics you are looking at are false and manipulated.<br /><br />The economy has been being heavily manipulated since 2008 and all of the printing, credit, etc. has been propping up the economy. It is all artificial stimulus. Plus it is an election year now and so even more of the negatives are being covered up or lied about.<br /><br />Inflation isn't 2.9%!!! It's way above that. The CPI is a joke (it doesn't even have fuel or food in it).<br /><br />Look at U6 or unemployment numbers and you probably should add a few more percentage points to it to make up for the government's obfuscations. Unemployment is probably more accurately between 20-25% right now. It reached 25% in the early 30's. It is a bigger country population wise, so there are many more people out of work, forced to work part time, working crap jobs they don't want, or plain just given up and stopped looking for work. The government doesn't count any of those people.<br /><br />The only reason there aren't soup kitchens right now is because we have FOOD STAMPS which didn't exist in the 30's. There are almost 50 million Americans on food stamps right now. Where would they be if the government was handing this food stamp money/credit out? That's right... soup kitchens, church basements, and at the table with family or friends that are willing to help.<br /><br />This country is bankrupt. It only pulls in 1/2 of what it spends each year and now has budget deficits over one trillion dollars! Our national debt has surpassed our GDP.<br /><br />Housing is continuing to drop in price because of poor fundamentals and because there are 5 to 8 million more foreclosures coming down the pike (and the banks and government are doing everything they can to hold them back).<br /><br />The banks are using evasive and irregular accounting techniques in order to hide their actual financial status.<br /><br />I could go on and on and on. <br /><br />You think that we are recovering? Recovering to what? 40 years of credit fueled artificial growth and debt way beyond anyone's ability to pay back?<br /><br />Jim is right. The depression started in 2006. It's got a long way to go too. And we will continue to go down despite the FRB papering over it all with worthless money.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-77484936008947943682012-04-12T21:04:03.399-07:002012-04-12T21:04:03.399-07:00One other thing - printing too much money causes i...One other thing - printing too much money causes inflation... but the huge credit contraction in 08 had the effect of destroying money. It's not just the FRB that "prints money" - private credit and fractional reserve banking also has the effect of creating money.<br /><br />When money is destroyed, you have less money chasing more goods, so the prices drop.<br /><br />When prices drop, savings gain in value, but people stop spending, hoping to get a better deal in the future.<br /><br />The decline in demand causes further downward pressure on prices. <br /><br />Revenues at businesses drop, and people get laid off. More people get on unemployment insurance, and on food stamps. Government spending rises, increasing the debt, by the way.<br /><br />Business contracts, so the equity market sees declines. People get scared and pull out of the stock market.<br /><br />At some point, people are so unemployed that they'll take any job, at any low wage. At some point, prices for things drop so far that the remaining rich people can buy up what's for sale, keeping the prices from dropping further.<br /><br />The poor get poorer, and the rich, while they don't get richer immediately, put themselves in a position where they can extract rents from the growing population of poor people.<br /><br />For the rich, it's all upside, and for the poor, the future looks like misery.<br /><br />Then, you have weird shit happen, like random riots. Third party politics gains real legs. People go nuts and blow things up. Philosophers come up with justifications for murder, arson, and chaos.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-67042529269927215102012-04-12T20:55:14.042-07:002012-04-12T20:55:14.042-07:00What 10% inflation rate are you talking about? T...What 10% inflation rate are you talking about? The CPI went up 2.9%. Unfortunately, 80% of that was due to rising fuel costs.<br /><br />http://www.bls.gov/news.release/cpi.nr0.htm<br /><br />That means that other causes were 20%. That could be the magic money there, or it could be growth in loans, with credit easing up from the major contraction in credit during the crash. It could be productivity growth.<br /><br />It probably isn't rising wages or flat unemployment.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-54268609627388606352012-04-12T20:38:12.797-07:002012-04-12T20:38:12.797-07:00Anon 5:21 here.
so jim, i guess you don't hav...Anon 5:21 here.<br /><br />so jim, i guess you don't have an argument when it comes to our money being backed by our military might and not gold???<br /><br />or does it not fit your depression of 2006 thesis and therefore not worth a response, either way, it's been six years since your depression call and eventually as the economy picks up, as it is doing currently, and it's a decade later, maybe you'll take off the depression of 2006 glasses and see the true color of the world. <br /><br />good luck and be well.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-41285511174759113732012-04-12T08:17:54.954-07:002012-04-12T08:17:54.954-07:00Hi AIM
You're good. It's the people that...Hi AIM<br /><br />You're good. It's the people that want to save the world and have all the answers that get to me.<br /><br />I'd say more, but I've got to get to work.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-13874026446324369832012-04-12T00:11:25.088-07:002012-04-12T00:11:25.088-07:00Jim,
Don't be insulted or concerned. If you th...Jim,<br />Don't be insulted or concerned. If you think about it, my last few posts weren't really off topic. <br /><br />All of this talk and planning has been inspired by your latest blog posting and is due to the inevitable and impending disaster of hyper-inflation.AIM again...noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-26481245492940512122012-04-12T00:06:37.354-07:002012-04-12T00:06:37.354-07:00New Oregonian:
I've researched and thought it...New Oregonian:<br /><br />I've researched and thought it out. To me, a C-class is too small for FT living; a 5th wheel is a pain in the neck to hook and unhook everytime you want to drive your vehicle somewhere, and a real pain to back up, especially for the wife (plus you have to have a powerful diesel pickup).<br /><br />I like the idea of an A-Class towing a small fuel efficient car. That seems to be the least amount of hassle and work. You unhook your car, pull your coach into the space or location where you are gonna stay, you've now got your home set up and you can come and go in your car.AIM again...noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-34089612619354478142012-04-11T23:59:09.160-07:002012-04-11T23:59:09.160-07:00I actually should correct this or add...
Better t...I actually should correct this or add...<br /><br />Better than being alone on a farmette like I just described, I think it would be better to have a little group or community doing this so that we can help and protect each other. Strength in groups is important especially if there is ever civil unrest or lawlessness due to a negligent or under-funded local government.<br /><br />Or buy a big enough piece of land where you could lay down some repo mobile homes or prefab houses so that you could create a little community (and also have some rental income).AIM again...noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-76155304698848367832012-04-11T23:53:56.874-07:002012-04-11T23:53:56.874-07:00New Oregonian: thanks for the tip on workamping bu...New Oregonian: thanks for the tip on workamping but if we go mobile my wife and I will both be busy running our respective businesses. (Going mobile will actually allow us to expand our businesses and revenue.)<br /><br />The businesses will be paying for our food, fuel, coach maintenance and repair, parking, etc. and will all be a write off.<br /><br />Yeah, being born and raised in suburbia, farming would be way out of my depth. <br /><br />A free and clear house with a decent back yard is all that is needed. The yard needs to be big enough for some small vegetable plots, a few fruit trees and a small chicken coop, maybe a fish pond for tilapia. That alone could almost make someone self sufficient (solar panels and a well would really do it). This sort of an arrangement I think I could learn to do and handle—especially if it was a needed survival action. <br /><br />Just need to be in the right area or neighborhood that would allow it. An area with low property taxes too. <br /><br />Then again, if you could also sell some eggs, chickens and produce on a regular basis, maybe you could qualify as a farm business, put the whole thing on an IRS Schedule F and be able to write the house and all expenses off because you are a commerical business. Would need to be in a residential/commercial or all whatever zone is required for a farmette.<br /><br />Just thinking out loud. This idea or some variation or semblance of it could turn out to be a good solution for what to do after the full time mobile phase is over.AIMnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-56240146914580095202012-04-11T20:57:33.111-07:002012-04-11T20:57:33.111-07:00Hi New Oregonian and Anon 9:47
Union Bank of Cali...Hi New Oregonian and Anon 9:47<br /><br />Union Bank of California has an IRA plan that can be turned into a self directed one and that is what I have. As long as it is in their bank CD's, it is FDIC insured, which I like. The thing to remember with Ira's and 401K's the funds are at risk. The main reason these tax dodges exist, is because our government needed a source of cheap money to borrow and they needed a lot of it.<br /><br />The RV route is too idealistic. There is a lot everyone wants to do in retirement, having strokes, heart attacks and arthritis aren't among the desired vacation destinations.<br /><br />I had to chuckle about farming. I had about a 10th of an acre I use to farm, and it is hard work. An old guy like me would probably have a fart-attack just trying to pull a weed out of the garden. Embarrassing to say the least if the kids are helping you.<br /><br />Chickens aren't bad to raise, you can feed them the garbage and they'll eat it. The only drawback I can see is that Walmart won't allow RV parking for those with chickens.<br /><br />I'm joking around here, but health issues will really determine a lot of what you do after retirement. And these events are not planned. Some of us will luck out and be able to enjoy retirement, here's hoping we make it.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-67548268748375792642012-04-11T19:57:32.634-07:002012-04-11T19:57:32.634-07:00Jim, I 2nd the self-directed IRA as worthy of some...Jim, I 2nd the self-directed IRA as worthy of some research. When I can liberate assets from the 401k, I'm absolutely putting some into self-directed IRA.<br /><br />AIM, if you go the RV route, google workamping. Free camp spot & some gas money for part-time work.<br /><br />Farming - full scale farming is a complex science, but so was long division when I was 7; I'll learn. People have been raising vegetables and chickens on small lots for a long time. I started gardening by throwing seeds at a corner of my suburban lot, topping with compost, and seeing what took; a lot of food resulted. I hope not to HAVE to live off my farm expertise alone but glad to have the option if it's ever my *only* option.<br /><br />Debt - look into laws on debt collection against retirees. A lot of IRA/401k/Social Security are protected against collections/seizure.<br /><br />RV - I have a Class C. The drivetrain depreciates. If I were doing it today, I'd get a 5th wheel setup. I'm looking to buy a "condo" RV park space; it can offer cheap living.New Oregoniannoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-32849843375750647012012-04-10T21:47:22.114-07:002012-04-10T21:47:22.114-07:00Jim,
You don't have to be trapped by your IRA....Jim,<br />You don't have to be trapped by your IRA. You can switch to a SDI (self-directed IRA) and use that investment capital to buy a rental property, or loan the money out (1st trust deed), or other types of investing other than stocks and bonds. Re: stocks, strong blue chip companies that sell necessary products and pay dividends could be a way to go. You can get a 3% dividend payment and those dividends are continuing to go up annually with most of these companies.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-34137367827662611072012-04-10T21:19:49.720-07:002012-04-10T21:19:49.720-07:00Hi Sackerson
I'm in kind of the same boat. I ...Hi Sackerson<br /><br />I'm in kind of the same boat. I have money invested in IRA's and 401k's. You can't really pick an investment, only a conduit of what you want. Right now I am in short term bonds and in my thinking, if interest rates go up, I can get out without too much of a loss if rates go higher. With investment funds, you are kind of trapped in what you can do. I am hoping to survive any bond collapse by being in short term. The thing I am looking for is a collapse of the stock market. At that point, I would switch from bonds to stocks. Bear in mind that you could still sustain a 50 percent loss in stocks in the long run. The big thing here is to take delivery of the certificates. It might seem old fashion, but brokerage houses use your stock to short the market, and they could go belly up.<br /><br />I personally think that when Facebook does their IPO, we will re-live the South Sea Company bubble of 1720. Everyone is going to try to get rich at the same time. It will climb to the stars and then the market will plunge into the abyss.<br /><br />Of course I could be wrong. But greed is something that you can't really measure.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-29839770884437820702012-04-10T20:33:18.806-07:002012-04-10T20:33:18.806-07:00New Oregonian:
Thanx for the input. Good luck with...New Oregonian:<br />Thanx for the input. Good luck with your farm. I'm the furthest thing from being a farmer (born in suburbia and now 60 years old). I need to have a farmer/manager on the land to run things.<br /><br />I think the best plan for me will be to... get rest of debt paid off... sell all of our stuff (turn the trash into cash)... buy a motorhome cheap and for cash via auction... spend a few years being mobile (despite the cost of fuel) to maximize our income and save save save... and, as we are traveling, keep on the lookout for a little community to join (like a little farm commune or some such) so we know where to go when the hyper-inflation begins. Either sell the motorhome or keep it as a bugout vehicle in case of emergency.AIMnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-50930712172427796092012-04-10T20:17:05.282-07:002012-04-10T20:17:05.282-07:00yeah i agree. watch what congress, the fed and the...yeah i agree. watch what congress, the fed and the white house do as regards legislation and fiscal and monetary planning and then act in the best way possible to either avoid it or benefit from it.Anonymousnoreply@blogger.com