The DOW is crashing

[lozina]

Many people do not understand how inflation really affects everything in your life. When the Fed was given the power it was given in 1913, inflation began to systematically deteriorate our wealth and prosperity.

I read an article recently which does a good job at explaining how inflation is tricking us into thinking our economy is booming, when we see headlines of the DOW reaching certain record highs. It is written for anyone to understand without knowing economic jargon, and provides some great charts to illustrate this effect. Please check it out.

http://goldsilver.com/the_dow_is_crashing.php




Luckily there is a politician today, Ron Paul, who understands this and went out on a limb to publicly speak against the Federal Reserve, and he is running for President.

 

[techs]

Originally posted by: lozina
Many people do not understand how inflation really affects everything in your life. When the Fed was given the power it was given in 1913, inflation began to systematically deteriorate our wealth and prosperity.

I read an article recently which does a good job at explaining how inflation is tricking us into thinking our economy is booming, when we see headlines of the DOW reaching certain record highs. It is written for anyone to understand without knowing economic jargon, and provides some great charts to illustrate this effect. Please check it out.

http://goldsilver.com/the_dow_is_crashing.php

Interesting read. I have contended virtually the same thing.




Luckily there is a politician today, Ron Paul, who understands this and went out on a limb to publicly speak against the Federal Reserve, and he is running for President.

 

[GroundedSailor]

Originally posted by: lozina
Many people do not understand how inflation really affects everything in your life. When the Fed was given the power it was given in 1913, inflation began to systematically deteriorate our wealth and prosperity.

I read an article recently which does a good job at explaining how inflation is tricking us into thinking our economy is booming, when we see headlines of the DOW reaching certain record highs. It is written for anyone to understand without knowing economic jargon, and provides some great charts to illustrate this effect. Please check it out.

http://goldsilver.com/the_dow_is_crashing.php

Interesting article, but one should bear in mind that site is selling Gold & Silver and would therefore highlight the pluses of those commodities.

Having said that, what the article says makes sense.





Luckily there is a politician today, Ron Paul, who understands this and went out on a limb to publicly speak against the Federal Reserve, and he is running for President.

 

[JD50]

Originally posted by: lozina
Many people do not understand how inflation really affects everything in your life. When the Fed was given the power it was given in 1913, inflation began to systematically deteriorate our wealth and prosperity.

I read an article recently which does a good job at explaining how inflation is tricking us into thinking our economy is booming, when we see headlines of the DOW reaching certain record highs. It is written for anyone to understand without knowing economic jargon, and provides some great charts to illustrate this effect. Please check it out.

http://goldsilver.com/the_dow_is_crashing.php




Luckily there is a politician today, Ron Paul, who understands this and went out on a limb to publicly speak against the Federal Reserve, and he is running for President.

I heard Ron Paul on the radio yesterday, even though I don't agree with everything that he says he is by far the most genuine candidate running for President, on either side. He is the only person that could get me to vote Republican in the next election.

 

[Moonbeam]

Oh man, federal reserve, nut case, federal reserve, nut case, federal reserve, nut case, federal reserve..........

Everywhere I listen to participative radio there is always somebody who calls in with one of Vic, simple solutions, regarding the federal reserve, and in every case they hang up on them. One gets the very strong impression that the federal reserve has attracted many many loons to attack it, an army of nuts that are out there on a crusade. Either that or there is a conspiracy that is being powerfully suppressed by the evil media.

 

[lozina]

Originally posted by: Moonbeam
Oh man, federal reserve, nut case, federal reserve, nut case, federal reserve, nut case, federal reserve..........

Everywhere I listen to participative radio there is always somebody who calls in with one of Vic, simple solutions, regarding the federal reserve, and in every case they hang up on them. One gets the very strong impression that the federal reserve has attracted many many loons to attack it, an army of nuts that are out there on a crusade. Either that or there is a conspiracy that is being powerfully suppressed by the evil media.

This chart is for you Moonbeam:

http://oregonstate.edu/cla/polisci/faculty/sahr/pl1665.htm

Please note how prior to 1913 we've had very little overall inflation then suddenly, all hell broke loose.

The Federal Reserve was established in 1913.

 

[techs]

Originally posted by: lozina

Originally posted by: Moonbeam
Oh man, federal reserve, nut case, federal reserve, nut case, federal reserve, nut case, federal reserve..........

Everywhere I listen to participative radio there is always somebody who calls in with one of Vic, simple solutions, regarding the federal reserve, and in every case they hang up on them. One gets the very strong impression that the federal reserve has attracted many many loons to attack it, an army of nuts that are out there on a crusade. Either that or there is a conspiracy that is being powerfully suppressed by the evil media.

This chart is for you Moonbeam:

http://oregonstate.edu/cla/polisci/faculty/sahr/pl1665.htm

Please note how prior to 1913 we've had very little overall inflation then suddenly, all hell broke loose.

The Federal Reserve was established in 1913.

Actually inflation is a good thing, in moderation. It allows a vehichle for growth and a way for changes in prices to be adjusted somewhat hidden from the actual consumer. While hiding the real changes may sound devious, it actually prevents marked differences in price, up or down, of goods that may vary on a weekly or daily or monthly basis.
An example would be if the price of milk changed 30 times a month, than people might see a day when it drops and stores would be sold out for weeks.
I am not explaining it well, but everything I have read indicates that there are good reasons for moderate inflation that benefits us all.

 

[halik]

I'm glad that people with 0 grasp of economics are contending to run the monetary policy of the country. Get some education and then we'll talk.

Also I suggest you look up why we stoped using the Bretton Woods gold standard... going back to the gold standard is one of the most idiotic "platforms" I've ever heard.

 

[lozina]

Originally posted by: halik
I'm glad that people with 0 grasp of economics are contending to run the monetary policy of the country. Get some education and then we'll talk.

Oh boy. Here comes the economic elitist who offer 0 points of contention.

But really- what, exactly, do you argue with in the article posted?

 

[blackangst1]

LOL you couldnt have picked a more biased source for your article. These guys have been spreading FUD since 1994 when I first started investing.

 

[lozina]

Originally posted by: techs


Actually inflation is a good thing, in moderation. It allows a vehichle for growth and a way for changes in prices to be adjusted somewhat hidden from the actual consumer. While hiding the real changes may sound devious, it actually prevents marked differences in price, up or down, of goods that may vary on a weekly or daily or monthly basis.
An example would be if the price of milk changed 30 times a month, than people might see a day when it drops and stores would be sold out for weeks.
I am not explaining it well, but everything I have read indicates that there are good reasons for moderate inflation that benefits us all.

Hmm, moderation is a very relative term. What we are dealing with in our country since the Federal Reserve's inception is far from moderate.

For example, if you had 100,000 dollars in 1940 you would essentially be considered a "millionaire" by today's terms, because you'd have equal purchasing power as a person with $1 million of 2005's dollars.

 

[lozina]

Originally posted by: blackangst1
LOL you couldnt have picked a more biased source for your article. These guys have been spreading FUD since 1994 when I first started investing.

Yes right and when I went to the Honda website one day they said the Accord is 187 inches long. But I wouldn't trust such a biased source since it's from Honda!

Again, just another criticism totally lacking any argument. Just empty statements. Might as well not post.

 

[alchemize]

Somebody answer this question (preferably one of the tinfoilers). Are there any first world countries that don't have a central banking system such as the fed?

 

[dmcowen674]

Originally posted by: lozina
Please note how prior to 1913 we've had very little overall inflation then suddenly, all hell broke loose.

The Federal Reserve was established in 1913.

Interesting.

I thought the Reserve was established after the 1929 crash.

It didn't do anything to prevent the crash, it was probably a contributor to the crash.

 

[lozina]

Anyone earning minimum wage?

http://oregonstate.edu/cla/polisci/faculty/sahr/sumgovt.pdf

See page 4 of this PDF. Despite the minimum wage increasing in US Dollar amounts, your purchasing power has been deteriorating since the 1960s

 

[JD50]

Inflation isn't all bad. Its good for just about anyone that is borrowing money.

 

[lozina]

Originally posted by: alchemize
Somebody answer this question (preferably one of the tinfoilers). Are there any first world countries that don't have a central banking system such as the fed?

Yes unfortunately if there are any countries with a central bank system that does not use the fractional reserve system then they are insignificant.

But you're saying is like the typical 'well since the Democrats did it so could the Republicans' when discussing some scandal. Just because it has been adopted all over the modern world doesn't make it right

 

[alchemize]

Originally posted by: lozina

Originally posted by: alchemize
Somebody answer this question (preferably one of the tinfoilers). Are there any first world countries that don't have a central banking system such as the fed?

Yes unfortunately if there are any countries with a central bank system that does not use the fractional reserve system then they are insignificant.

But you're saying is like the typical 'well since the Democrats did it so could the Republicans' when discussing some scandal. Just because it has been adopted all over the modern world doesn't make it right

I see. So the entire world's banking system is corrupt and about to collapse. Guess we don't need to worry about global warming then? What do you propose as a "solution" that wouldn't also collapse the world economy and kill millions (billions)?

 

[lozina]

Originally posted by: JD50
Inflation isn't all bad. Its good for just about anyone that is borrowing money.

Yeah, in some isolated incidents sure. But keep in mind that borrower has to be making income somewhere to pay off that loan and that income is being affected by inflation. Plus don't forget the interest rates on the loan.

 

[blackangst1]

Originally posted by: lozina

Originally posted by: blackangst1
LOL you couldnt have picked a more biased source for your article. These guys have been spreading FUD since 1994 when I first started investing.

Yes right and when I went to the Honda website one day they said the Accord is 187 inches long. But I wouldn't trust such a biased source since it's from Honda!

Again, just another criticism totally lacking any argument. Just empty statements. Might as well not post.

huh? Im just saying I see the SAME ads for gold investing in the WSJ now that I saw 15 years ago. Just facier fonts. Seriously.

 

[alchemize]

By the way, DOW up 100+ today

 

[lozina]

Originally posted by: blackangst1

Originally posted by: lozina

Originally posted by: blackangst1
LOL you couldnt have picked a more biased source for your article. These guys have been spreading FUD since 1994 when I first started investing.

Yes right and when I went to the Honda website one day they said the Accord is 187 inches long. But I wouldn't trust such a biased source since it's from Honda!

Again, just another criticism totally lacking any argument. Just empty statements. Might as well not post.

huh? Im just saying I see the SAME ads for gold investing in the WSJ now that I saw 15 years ago. Just facier fonts. Seriously.

Oh... Well, last time I checked gold has not changed in 15 years. It's still a yellow maleable metal

 

[blackangst1]

Originally posted by: lozina

Originally posted by: blackangst1

Originally posted by: lozina

Originally posted by: blackangst1
LOL you couldnt have picked a more biased source for your article. These guys have been spreading FUD since 1994 when I first started investing.

Yes right and when I went to the Honda website one day they said the Accord is 187 inches long. But I wouldn't trust such a biased source since it's from Honda!

Again, just another criticism totally lacking any argument. Just empty statements. Might as well not post.

huh? Im just saying I see the SAME ads for gold investing in the WSJ now that I saw 15 years ago. Just facier fonts. Seriously.

Oh... Well, last time I checked gold has not changed in 15 years. It's still a yellow maleable metal

Well, yeah lol

 

[Fineghal]

I would just like to point out that if we had zero inflation, the unemployment rate would probably be in excess of 10%.
It's called a phillips curve. Tis an economic expression of the phrase "No free lunch."

And as to deteriorating wages... Yeah right. You want to know WHY the purchasing power of the minimum wage has decreased? Ta da! Inflation! So you're correct. If you want to kvetch about it, take that up with congress. That ball is in THEIR court.

Further, your 1913 theory is absolutely made of tin foil. The reason the U.S. doesn't have a recorded inflation rate pre 1913? Because no one has calculated it!

Inflation is a measure of how much it costs you to get a certain number of goods at a certain price. This is your base year. The Fed's current base year is 1988 or so. What you then do to determine inflation rate is compare this previously determined basket to to another year.

Example: In the base year, 1988, I bought 20 tires at $3500, 100 apples at $22 etc. I then compare how much it would cost me to get the same number of items in a different year. In 1950 it might cost $2300 and $21.

Do you understand how this makes any type of calculated inflation from beyond a certain time period pointless? Do you really want to compare the price of apples and tires in 1913 when the car had only been invented 10 years earlier?

Further the standard CPI (Consumer Price Index), which I generally outlined above tends to OVER-state inflation. For two reasons. The first is that quality of goods tends to go up. The second is that it doesn't take into account substitute goods. If the price of apples goes up, you buy oranges no?

And as a final point: Inflation is not BAD. It only becomes an issue when it gets too high.
Oh and if you REALLY want to complain about something, complain next time you get a raise that only matches inflation. Why? Because while your raise matched inflation, it didn't account for growth in the GDP. So while your pay (adjusted) remains the same, the actual percentage of the pie (GDP) you get actually shrank.

 

[lozina]

Originally posted by: alchemize

Originally posted by: lozina

Originally posted by: alchemize
Somebody answer this question (preferably one of the tinfoilers). Are there any first world countries that don't have a central banking system such as the fed?

Yes unfortunately if there are any countries with a central bank system that does not use the fractional reserve system then they are insignificant.

But you're saying is like the typical 'well since the Democrats did it so could the Republicans' when discussing some scandal. Just because it has been adopted all over the modern world doesn't make it right

I see. So the entire world's banking system is corrupt and about to collapse. Guess we don't need to worry about global warming then? What do you propose as a "solution" that wouldn't also collapse the world economy and kill millions (billions)?

Well I didn't say collapse, but this system really is an experiment in human history. We can only guess what's going to happen. One solution which Ron Paul is supporting is to go back to the gold standard where we peg the value of our dollars to gold. I'm not so convinced though that this is the best solution. I like the idea of just abolishing the Fed and their fractional reserve system and establishing a system similar to the greenbacks Lincoln issued during the Civil War. Let Congress have their Constitutional power to coin money again, not some secretive 3rd party corporation.