FJB and Let's go Brandon

[Superpro]

Originally Posted by Rory McNeil

Have to wonder what your background in accounting and economics thinks about when our illustrious Prime Minister of Canada campaigned on how the budget "will balance itself"? How well do you think THAT has been working for him, and us?

I'm apolitical and accordingly don't care about the current party in power, so I am certainly not defending him. All I'm saying is the economy wouldn't be any better off with either the Turban guy NDP or Poilivevre (harry bunny) Conservative. All I'm trying to get across is that everybody is in the same boat. Your comments are political and you are very correct, have nothing to do with my background.

I don't understand why expressing one's opinion causes such distress and anger by people. I suggest you go and have some of that weed that True Dough so legally provided you. I'm sure Nova Scotia is progressive enough that they have a Cannabis store right around your corner. But before you do that, please maintain your BALANCE when you stand. Wonder no more!

P.S. Did you have children? If so, are they one of the "young or stupid" you refer to earlier? No matter, I'm sure you did a fine job because sometimes Old and Stupid begets Young or Stupid.

[Alan Roehrich]

The economy is the same under liberals that it is under conservatives............


Wow.....

[MR DERBY CITY]

Alan, it just makes me wonder . Do any of the millions that voted for this IDIOT have a 401 k. ?????

[L.Fite]

Originally Posted by MR DERBY CITY

Alan, it just makes me wonder . Do any of the millions that voted for this IDIOT have a 401 k. ?????

Short answer... NO

[Chevy55]

Originally Posted by L.Fite

Short answer... NO

The smart ones locked it up when interest rates were raised, it's obvious now that free money created a Bubble!

[Mike Jones]

So... raising interest rates discourages businesses from borrowing money, leading to a slow down. That was the intention to slow inflation, we were told. Cashing out of the market to secure gains sounds smart, especially if things are going slow. Can you explain the free money bubble and the benefit for our economy?

[Alan Roehrich]

Originally Posted by Mike Jones

So... raising interest rates discourages businesses from borrowing money, leading to a slow down. That was the intention to slow inflation, we were told. Cashing out of the market to secure gains sounds smart, especially if things are going slow. Can you explain the free money bubble and the benefit for our economy?

Raising the interest rate discourages nearly everyone from borrowing money. It has called a decline in the housing market, especially new home building, for seven straight months. Only place where the market is extremely hot, or where people already have the money borrowed, are still seeing home building.


It's not businesses borrowing money that causes inflation.


Inflation is a direct result of "free money" in various forms of government spending. Such as multiple "stimulus" checks, increased and extended unemployment benefits, etc.


Now, the attending labor shortages from the plandemic, in several areas of the market, add to it. When there are shortages, the market drives up the price, even if the shortage is temporary, or even caused by the inability to transport goods to end consumers.


Energy production is also a great influence. In the current case, slashing domestic energy production immediately cost more than 150,000 jobs directly. It added those people to the unemployment rolls. But it also drove the price up instantly. Driving up the cost of oil doesn't just hit you at the pump. Every product you buy is transported, entirely by some fossil fuel. And some 90% either contains plastic or is at least packaged in plastic. Further, businesses see immediate utility increases, especially if they use CNG or oil, but also any other form of energy.


So, actually, nothing about the interest rate has any direct effect on inflation. That's exactly why the ridiculous interest rate increases have not even slowed inflation. The ONLY reduction in inflation has come from the temporary reduction in fuel costs, which will be very temporary as the recent OPEC production cuts hit, and winter sets in and energy consumption rises.


Corporations are seeing the inflation effects, and they're tightening up. And that's killing the stock market. And your 401k.


The fed raising interest rates is only killing the economy, driving it from a somewhat mild reception toward a real depression.


The only solution available is to cut government spending. The market will contract, and times will get harder before they get better. Recover from the economy being drunk/high on government spending is no different from an alcoholic or drug addict recovering from the addiction and going through withdrawal first. But the longer the inflation continues, especially with wage stagnation, the deeper the recession or depression, and the worse the withdrawal before real recover begins. AND the further behind the middle and lower classes get.


The last real report on inflation now shows that the average two income family, even with the minuscule wage growth seen, is now $11,000 a year behind 2019, and falling further behind. We're in true runaway stagflation. And, despite bogus claims to the contrary, those people in the "hospitality" industry who are seeing substantial wage increases, are STILL falling behind, because their wages didn't come close to catching up. All that did was slash the number and frequency of people eating out, and staying in hotels.


Other than tightening our belts, there's little the middle class can do. However, the wealthy are raking it in. And the government itself, which they're taxing you to support, is growing by leaps and bounds. Of course, that one segment of the government, the military personnel who defend you, well, those people are being told to apply for food stamps.




Oh, cashing out of the market when prices fall is not necessarily smart. Right now, you've only lost money on paper. Only if there is NEVER a recovery do you actually lose money when you hold on. The truth is, as long as you have your income, financial instruments in the market are now ON SALE. Over any 10 year period in history, the market makes money. You'll make money, too, if you remain calm and don't sell at a loss. If it makes you feel better, move any new purchases to low risk slow growth instruments for now.


Consider those who panicked and sold in 2008. They turned paper losses into real losses. Compare them to those who held their investments, and bought while it was on sale, and what profits they realized in ten years when in 2018 the economy was killing it. What the ten year market will look like will of course depend upon the next three elections. If the mid terms turn out to be a true referendum on the economy, the bleeding may slow as early as late 2023.

[Alan Roehrich]

Originally Posted by MR DERBY CITY

Alan, it just makes me wonder . Do any of the millions that voted for this IDIOT have a 401 k. ?????

MJ,
In 4-5 decades of being at least a casual observer or student of human nature, I've been somewhat amazed/amused at the number of people who will consistently vote in direct opposition to their best interests or fervent beliefs.


As Charles Barkely says, "Poor people been voting democrat for fifty years, and they're still poor". Sir Charles is being kind, it's more like a hundred plus.


I know people who are on social security, and who are devout Christians who are absolute die hard democrat voters, despite the fact that democrats not only changed the laws to allow the government to "borrow" (we all know how good the government is at paying back what it "borrows") from social security, but also to tax it. And then there's abortion. How can a pensioner who is a truly Christ like person, and attends church every time the doors open, consistently vote for people who literally rob the social security fund, and who promote abortion up until delivery?


You know those same people will talk about how "nice" and "civil" old Beijing Joe is. They are apparently willfully oblivious to his fifty years of racism and corruption in "public service".



I say it amazes/amuses me, but, in all honesty, I've become about as jaded about that as I have NHRA class racing.