These Times and Your Thoughts about Money

[JAG1]

Just want to surmise/ postulate a few things.

 

With population explosion there is only so much money to go around.

 

The continued borrowing/ printing money drives up prices, so the ones that want to pay cash for everything find it more difficult, yet to borrow money for a home does drive the economy and helps younger folks get started. So what can I say about that?

 

If everyone had 1.5 million saved by the time they are 50/ 60, like Suzie Orman so strongly advises, prices would go thru the roof.

 

Be thankful for the little people. The ones just barely making it... they help hold prices down.

 

I am not thankful for excessive money hoarders... they reduce the money supply... especially drug dealers and the few that took billions out of our economy and financial future. Millions lost loads of equity in their homes over this home loan debuckle.

 

Gov't wants control and money/ self perpetuates itself by taking in money for services, taxes, perpetuated/ secured by more rules and laws So likely to not stop eroding our freedom.

 

Printed money first goes thru banks and government, guess who's go the most control of our freedom. Yet when money is spent by Gov't. and loaned by banks it helps all of us when it reaches the private sector.

 

With the price of consumer goods reaching ever higher levels, by comparison, even the higher wage earners are being pushed toward poverty and may not fully realize it. It's like walking down a beautiful path thru a beautiful forest yet 300 yards away the forest has all been harvested.

 

Anything you'd like to add? Thanks for reading.

 

 

[Mopar1973Man]

First check this out...

http://www.businessinsider.com/shawn-hogan-sentenced-in-ebay-affiliate-marketing-scam-2014-5

 

Then some people do things they shouldn't and get in trouble. Read and see what I mean.

[JAG1]

Wow! it's astonishing how such smart people can at the same time be such huge thieves and continue doing it for years without a conscience. Sounds like his sentence is very small for the upwards of 35 million he stole.

[rancherman]

I believe the only thing that is driving our economy right now, is inflation itself... The Fed refuses to raise interest, in order to keep spending continuing.... plus it helps keep their run away debt from growing any faster! The longer this bubble continues, the bigger the splat in the end.. In my business, ag, I see land values way over what the land can pay on itself. Rental rates aren't too far behind. (which goes hand in hand with what investors are willing to pay on land) They only desire a 'ROI' of 3-4%... which is far better than any bank these days!... So, when a young starting farmer or rancher has to finance a big chunk, he pays about 6-7%. Right there is the problem! He is paying MORE for interest, than what his competition is getting for their return on investment.. The young guy is doomed from the start. He'll be lucky to pay the interest, let alone the principle. What land is 'valued' (what 2 fools are willing to bid) and what it's 'worth' are 2 separate things!! I've seen 300% increase in what land is selling for in the past 5 years. My ag banker says we need 8-10% prime again, to bring balance back to the smaller operator.. Otherwise, we will all be eating corporate food in the next generation. He feels it's much smarter to pay more in interest than on a insanely high principle. ........... so, If by chance a person has a huge debt, which they are servicing ok with these cheap interest rate, suddenly gets a little 'notice' saying their rate is doubling, it's going to be a disaster.. I'm afraid it's going to get ugly, no matter what happens! We've been too obsessed with 'short term' money, and the long term problems have been ignored. We can't keep sweeping the problem under the rug forever! I also asked another banker I know, about the debt we owe the Chinese. Yes, we owe them a lot. Not as much as the Fed itself, SS, Medicare, all have underwritten massive debt. EU banks also have a hand in our spending. All of our debt held by foreign interests, 10% belongs to China.

[JAG1]

Very informative post Robert.

Edited May 15, 2014 by JAG1

[Diesel]

Just want to surmise/ postulate a few things.

With population explosion there is only so much money to go around.

The continued borrowing/ printing money drives up prices, so the ones that want to pay cash for everything find it more difficult, yet to borrow money for a home does drive the economy and helps younger folks get started. So what can I say about that?

If everyone had 1.5 million saved by the time they are 50/ 60, like Suzie Orman so strongly advises, prices would go thru the roof.

Be thankful for the little people. The ones just barely making it... they help hold prices down.

I am not thankful for excessive money hoarders... they reduce the money supply... especially drug dealers and the few that took billions out of our economy and financial future. Millions lost loads of equity in their homes over this home loan debuckle.

Gov't wants control and money/ self perpetuates itself by taking in money for services, taxes, perpetuated/ secured by more rules and laws So likely to not stop eroding our freedom.

Printed money first goes thru banks and government, guess who's go the most control of our freedom. Yet when money is spent by Gov't. and loaned by banks it helps all of us when it reaches the private sector.

With the price of consumer goods reaching ever higher levels, by comparison, even the higher wage earners are being pushed toward poverty and may not fully realize it. It's like walking down a beautiful path thru a beautiful forest yet 300 yards away the forest has all been harvested.

Anything you'd like to add? Thanks for reading.

I believe the only thing that is driving our economy right now, is inflation itself... The Fed refuses to raise interest, in order to keep spending continuing.... plus it helps keep their run away debt from growing any faster! The longer this bubble continues, the bigger the splat in the end..In my business, ag, I see land values way over what the land can pay on itself. Rental rates aren't too far behind. (which goes hand in hand with what investors are willing to pay on land) They only desire a 'ROI' of 3-4%... which is far better than any bank these days!... So, when a young starting farmer or rancher has to finance a big chunk, he pays about 6-7%. Right there is the problem! He is paying MORE for interest, than what his competition is getting for their return on investment.. The young guy is doomed from the start. He'll be lucky to pay the interest, let alone the principle. What land is 'valued' (what 2 fools are willing to bid) and what it's 'worth' are 2 separate things!!I've seen 300% increase in what land is selling for in the past 5 years. My ag banker says we need 8-10% prime again, to bring balance back to the smaller operator.. Otherwise, we will all be eating corporate food in the next generation. He feels it's much smarter to pay more in interest than on a insanely high principle............ so, If by chance a person has a huge debt, which they are servicing ok with these cheap interest rate, suddenly gets a little 'notice' saying their rate is doubling, it's going to be a disaster.. I'm afraid it's going to get ugly, no matter what happens! We've been too obsessed with 'short term' money, and the long term problems have been ignored. We can't keep sweeping the problem under the rug forever!I also asked another banker I know, about the debt we owe the Chinese. Yes, we owe them a lot. Not as much as the Fed itself, SS, Medicare, all have underwritten massive debt. EU banks also have a hand in our spending. All of our debt held by foreign interests, 10% belongs to China.

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

[JAG1]

Thomas Jefferson...... the mark of a true American leader. He believed in a strong free America thru happy, financially strong Americans. Not this higher taxation/ excessive spending and the flow of billions of American dollars escaping to other counties. 

 

I want to believe that Thomas Jefferson, if he were alive today, would be driving a Cummins.

Edited May 17, 2014 by JAG1

[Mopar1973Man]

More...

 

Well as for myself I live in rural Idaho and see people living check to check and barely scrapping by. But its such a shocker to go to like Ontario, OR or Boise, ID and see people driving high dollar vehicles, speeding, and shopping till they drop. Totally unreal! Then after getting a load of that for the day I'm more than happy to stroll back up to the mountain cruising at 55-60 MPH. See the run down town of New Meadows, ID I'm happy to see home is just around the corner. I've got no problem living on a tight budget.

 

Thinking about budgets... I know this is thread hijacking...    But even the budget of the site is running down hill.

[JAG1]

Mike I fully understand yer thoughts about seeing the crowds of fancy shoppers..... Usually affords the same feelings of wanting to get where it's normal again.

I'm working in a working mans neighborhood ready to find a house there. Everyone is such genuine good people with unbelievable generosity.

Check on it's way.

[rancherman]

Another banker I know,  (being a farmer,  it helps to know  MANY) ha ha

 

I pondered to him  out loud  a  while back,    about   the  wealth of  this  Country.   He  said  there are  rich people,  and  then  there are  insanely wealthy people..     Those  usually  fall into the   'family money'  type  scenario...  whereas    they couldn't  spend it  fast enough,  even with  pitiful  interest rates.    He  said  it's  hard to even imagine  some of the  Net-Worth's   of  these  folk. 

 

These days,  an entity would almost have to be illegal  to gain  the  wealth  these  guys  hold...  because  Uncle Sam  will  tax-to-death  any  feeble attempts  of  gaining  wealth.

 

My ol Dad,  would say:  only spend money on  things  that  will MAKE  money.      Every thing else,    either  grow it yourself, or build it.

I can  bet  Mr.  Warren Buffet  still driving his old   1969  International Travelall !  ( well probably not.... they didn't come with a Cummins!)

I remember  reading about his wife   spending  10k   on a  kitchen  re-do,  and  Warren  freaking out over the  project!

.......I  get the  Omaha news,  and  am privy to gossip  coming from  the  'big dog'

BTW,   their house is  the same one  they bought right after they got married...  not   exactly  a  pristine part of  Omaha either!

 

 

Mike,  you  mentioned  the  people  shopping until they drop..    and driving away  in   chrome plated  vehicles,

I'll never forget  the  gal  in front of me in the grocery store  a few years back,  she had  3 FULL  shopping carts  of  food...   She  whipped out her   'stamps    and     paid for the whole shebang   (thanks  to you and me)..... and  had the whole  thing  wheeled out to her  Winnebago.  (with  a  suv  flat towed too)

 

I about  passed out the other day,  I saw the  Gov't  now says   a  family of  4,    requires  100k  per year....    Sure,  why not?    THEY said so,  so  it  must be true!