U.S.: In state of denial over taxes?

[sumdumguy]

For sure, we'll never know how mismanaged they
were, but the savers and the elderly paid for it. I
shpuld say they are paying for it everyday.

The question remains. What is the true rate of
inflation?

[TOM4CWB]

sumdumbguy,

Isn't the true rate of inflation... determined by the increase in money supply?

If we allow interest to be charged... there must be the amount of currency created... to cover the value of interest being charged.

Yet when loans are lent out... the currency required to pay the interest on the loan... is yet to be created.

If the loan is spent on a productive asset... that then has some value to add to the economy... this investment creates real prosperity.

However... if the same loan is spent on a consumer product that is not adding to the productivity of the economy... and interest is being charged on top of this loan value... this must further create inflation.

As currency is now created out of 'thin air'... no matter if it is gold backed or not... if there is an increase in gold, currency... or both... if there is more money around... assets will be worth less.

AS interest is paid on a loan, the currency needed to pay the interest must be created to keep balance in the system or there will be deflation.

So zero interest is the key to reducing interest... but that then means that saving currency should cost.... instead of pay the depositer... reverse to what has happened for a very long time!

bUT WHY SHOULD IT COST MONEY TO HOLD CURRENCY... THAT COST NOTHING IN THE FIRST PLACE BACAUSE IT WAS CREATED OUT OF THIN AIR?

My mind is in circles!

What is real?

If we grow 'new' grain... and someone needs to buy that grain... where does the currency come from? Steel/copper the came.

[TOM4CWB]

I forgot to mention... that the bank did not lend out my money/currency when I put it in the bank.... because I can go get my currency back without taking it back from the theoretical person who it was lent to.

[sumdumguy]

The banks lending your money etcetera just
confuses the issue. Goto CPI Calculator
Minneapolis Federal Reserve Bank chart.

If not for this expansionary monetary policy can
you imagine where the inflation rate would be?
shades of 1932. This is very scarey to me
because it is not sustainable without,as you say
producing wealth. Just increasing the money
supply will force more and more dollars to chase
fewer and fewer goods- hyperinflation. But no,
lets have hyperinflation and tell the people we
have low inflation- we can coast along, people
will have diminished buying power and they'll
stamd there on the sidelines scratching there
heads like Tom and Sumdumguy are doing.
We're being fed a line of hooey by our
governments but I believe that there are more
and more Toms and they are getting scared and
the economy is stagnating so we have what is
called stagflation. This is my take on the current
economy.

I don't like to be fed a line of crap by the
governments because then I tend to want to
doubt all statistics.

Then is just becomes a blurr and no one can sort
the chaff from the grain.

So even though I don't follow my theory, I believe
that the long term borrower on real goods will be
the winner. He will pay back these loans with
cheap dollars as illustrated in the CPI charts.

The trick is to buy productive assets, ones that
consistently produce the necessities of life.

Agrivillers give me your ideas, I want to know
what Cotton, Tom and Mallee and all positive
thinkers say, am I out to lunch?
Agrivillers give me your ideas.

[fjlip]

http://www.usdebtclock.org/

Can any one see a "positive" on this clock?

Can you say "US is toast"?

[TOM4CWB]

I like this one!

http://nationaldebtclocks.com/canada.htm

You can see how we compare to each other!

United States - Canada - United Kingdom - France - Germany - Netherlands - Ireland - Greece - Italy - Spain - Portugal - Japan - Australia- New Zealand - Sweden

Are all on this site!

[sumdumguy]

This is a great site Tom. TY An even more
relevent statistic is debt per citizen
/ GDP per citizen. This would give us a more
accurate picture of our ability to service our debt.

Some day gotta calculate this relationship, but
you guys are so on the ball, you probably have.

[cottonpicken]

http://www.shadowstats.com/

This is who most follow for reliable intel.

I was telling people on this site 7 years ago to buy
hard assets.

I've never in that time had to change my line of
reasoning.

[sumdumguy]

The hardest is diamonds?