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lowrentyieldmakessense(honest!)

Why Cant People Get It

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It seems the majority really do believe that the Governments can save us from economic meltdown by spending money they dont have.

Governments do not create wealth they destroy it.

What we need are lower taxes, lower government spending and less onerous regulations. Then we create an environment that encourages productivity, wealth creation and savings as opposed to one that encourages laziness, state control, inefficiency, cronyism, debt and consumption.

People seem to believe that the Government can create jobs and yet for every job the Government creates at least one unseen job is lost.

this guy explains it

That which is seen, and that which is unseen

In the department of economy, an act, a habit, an institution, a law, gives birth not only to an effect, but to a series of effects. Of these effects, the first only is immediate; it manifests itself simultaneously with its cause - it is seen. The others unfold in succession - they are not seen: it is well for us, if they are foreseen. Between a good and a bad economist this constitutes the whole difference - the one takes account of the visible effect; the other takes account both of the effects which are seen, and also of those which it is necessary to foresee. Now this difference is enormous, for it almost always happens that when the immediate consequence is favourable, the ultimate consequences are fatal, and the converse. Hence it follows that the bad economist pursues a small present good, which will be followed by a great evil to come, while the true economist pursues a great good to come, - at the risk of a small present evil.

In fact, it is the same in the science of health, arts, and in that of morals. It often happens, that the sweeter the first fruit of a habit is, the more bitter are the consequences. Take, for example, debauchery, idleness, prodigality. When, therefore, a man absorbed in the effect which is seen has not yet learned to discern those which are not seen, he gives way to fatal habits, not only by inclination, but by calculation.

This explains the fatally grievous condition of mankind. Ignorance surrounds its cradle: then its actions are determined by their first consequences, the only ones which, in its first stage, it can see. It is only in the long run that it learns to take account of the others. It has to learn this lesson from two very different masters - experience and foresight. Experience teaches effectually, but brutally. It makes us acquainted with all the effects of an action, by causing us to feel them; and we cannot fail to finish by knowing that fire burns, if we have burned ourselves. For this rough teacher, I should like, if possible, to substitute a more gentle one. I mean Foresight. For this purpose I shall examine the consequences of certain economical phenomena, by placing in opposition to each other those which are seen, and those which are not seen.

I. THE BROKEN WINDOW

Have you ever witnessed the anger of the good shopkeeper, James B., when his careless son happened to break a square of glass? If you have been present at such a scene, you will most assuredly bear witness to the fact, that every one of the spectators, were there even thirty of them, by common consent apparently, offered the unfortunate owner this invariable consolation - "It is an ill wind that blows nobody good. Everybody must live, and what would become of the glaziers if panes of glass were never broken?"

Now, this form of condolence contains an entire theory, which it will be well to show up in this simple case, seeing that it is precisely the same as that which, unhappily, regulates the greater part of our economical institutions.

Suppose it cost six francs to repair the damage, and you say that the accident brings six francs to the glazier's trade - that it encourages that trade to the amount of six francs - I grant it; I have not a word to say against it; you reason justly. The glazier comes, performs his task, receives his six francs, rubs his hands, and, in his heart, blesses the careless child. All this is that which is seen.

But if, on the other hand, you come to the conclusion, as is too often the case, that it is a good thing to break windows, that it causes money to circulate, and that the encouragement of industry in general will be the result of it, you will oblige me to call out, "Stop there! your theory is confined to that which is seen; it takes no account of that which is not seen."

It is not seen that as our shopkeeper has spent six francs upon one thing, he cannot spend them upon another. It is not seen that if he had not had a window to replace, he would, perhaps, have replaced his old shoes, or added another book to his library. In short, he would have employed his six francs in some way, which this accident has prevented.

Let us take a view of industry in general, as affected by this circumstance. The window being broken, the glazier's trade is encouraged to the amount of six francs; this is that which is seen. If the window had not been broken, the shoemaker's trade (or some other) would have been encouraged to the amount of six francs; this is that which is not seen.

And if that which is not seen is taken into consideration, because it is a negative fact, as well as that which is seen, because it is a positive fact, it will be understood that neither industry in general, nor the sum total of national labour, is affected, whether windows are broken or not.

Now let us consider James B. himself. In the former supposition, that of the window being broken, he spends six francs, and has neither more nor less than he had before, the enjoyment of a window.

In the second, where we suppose the window not to have been broken, he would have spent six francs on shoes, and would have had at the same time the enjoyment of a pair of shoes and of a window.

Now, as James B. forms a part of society, we must come to the conclusion, that, taking it altogether, and making an estimate of its enjoyments and its labours, it has lost the value of the broken window.

When we arrive at this unexpected conclusion: "Society loses the value of things which are uselessly destroyed;" and we must assent to a maxim which will make the hair of protectionists stand on end - To break, to spoil, to waste, is not to encourage national labour; or, more briefly, "destruction is not profit."

What will you say, Monsieur Industriel -- what will you say, disciples of good M. F. Chamans, who has calculated with so much precision how much trade would gain by the burning of Paris, from the number of houses it would be necessary to rebuild?

I am sorry to disturb these ingenious calculations, as far as their spirit has been introduced into our legislation; but I beg him to begin them again, by taking into the account that which is not seen, and placing it alongside of that which is seen. The reader must take care to remember that there are not two persons only, but three concerned in the little scene which I have submitted to his attention. One of them, James B., represents the consumer, reduced, by an act of destruction, to one enjoyment instead of two. Another under the title of the glazier, shows us the producer, whose trade is encouraged by the accident. The third is the shoemaker (or some other tradesman), whose labour suffers proportionably by the same cause. It is this third person who is always kept in the shade, and who, personating that which is not seen, is a necessary element of the problem. It is he who shows us how absurd it is to think we see a profit in an act of destruction. It is he who will soon teach us that it is not less absurd to see a profit in a restriction, which is, after all, nothing else than a partial destruction. Therefore, if you will only go to the root of all the arguments which are adduced in its favour, all you will find will be the paraphrase of this vulgar saying - What would become of the glaziers, if nobody ever broke windows?

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If governments pay down debt during economic booms, then there is a good argument to be made that they can then afford to spend during a recession.

However, what Brown did in the 'boom' years was use the huge tax revenues to create a massive client state with the intention of securing power for Labour for decades.

Now the boom has bust we have a state that is so large, just maintaining it will suck so much credit out of the system that the 'recovery' will take 10-15 years instead of 2-3.

And even that assumes big cuts in public sector spending.

Basically you can only be counter cyclical in a bust if you have been counter cyclical in the preceeding boom.

Or even more basically - we are absolutely stuffed for a generation.

Thanks Gordon

:angry:

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If governments pay down debt during economic booms, then there is a good argument to be made that they can then afford to spend during a recession.

However, what Brown did in the 'boom' years was use the huge tax revenues to create a massive client state with the intention of securing power for Labour for decades.

Now the boom has bust we have a state that is so large, just maintaining it will suck so much credit out of the system that the 'recovery' will take 10-15 years instead of 2-3.

And even that assumes big cuts in public sector spending.

Basically you can only be counter cyclical in a bust if you have been counter cyclical in the preceeding boom.

Or even more basically - we are absolutely stuffed for a generation.

Thanks Gordon

:angry:

this will never happen while humans are in charge

plus they still take the same amount of wealth out of the economy

and the government cant manage - in fact no individual or group of individuals can manage the economy

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another who gets it

http://www.traderview.com/economiccommenta...cCommentary.asp

What do you think will happen if Treasury Bonds and Notes, as well as the Dollar, decline 20% in the next 6 months? What do you think foreign holders will do when confronted with these potential losses? The answer is self evident. I said it in the last newsletter: the US economy will be buried by the beltway, legislatively, over the next 6 to 8 weeks, thus guaranteeing a HYPERINFLATIONARY depression as incomes collapse, borrowing skyrockets, and the printing press is the only avenue of escape.

The debts and future liabilities are unpayable and it will end as has every other fiat currency and credit system since history began, through the soft defaults of the printing press. The idea that you can store wealth in worthless coupons called G7 money is false. You can store wealth in money as long as it exhibits these following functions.

Real money has five functions, as:

1. A Medium of exchange

2. A Store of value

3. A Measure of value

4. A Standard of value

5. No one else’s liability

Imitation money has three definitions:

1. A Medium of exchange

2. Someone else’s liability

3. Supply which can be printed on paper at virtually no cost or created with a keystroke

To Top

The Chinese and many others ATTEMPT to store wealth in IMITATION money. You and they can’t. The Zimbabwe-ization of the G7 is unfolding right in front of us….

Wealth Creation

The deindustrialization of the US economy commenced just after the Korean War. At that time, America was the greatest industrial power in the world and over 30% of GDP was from manufacturing. Today, that percentage has declined to less than 10% and the wealth creation from those activities now comes from MISSTATED inflation masquerading as growth. The following was sent to me in an email. I do not know who wrote it, but it is true:

WHY AMERICA'S ECONOMY FELL OFF THE CLIFF

John Smith started the day early having set his alarm clock (MADE IN JAPAN) for 6 a.m.

While his coffeepot (MADE IN CHINA) was perking, he shaved with his electric razor (MADE IN HONG KONG).

He put on a dress shirt (MADE IN SRI LANKA), designer jeans (MADE IN SINGAPORE) and tennis shoes (MADE IN KOREA).

After cooking his breakfast in his new electric skillet (MADE IN INDIA) he sat down with his calculator (MADE IN MEXICO) to see how much he could spend today. After setting his watch (MADE IN TAIWAN) to the radio (MADE IN INDIA) he got in his car (MADE IN GERMANY) filled it with gas (FROM SAUDI ARABIA) and continued his search for a good paying AMERICAN JOB.

At the end of yet another discouraging and fruitless day checking his computer (MADE IN MALAYSIA), John decided to relax for a while. He put on his sandals (MADE IN BRAZIL), poured himself a glass of wine (MADE IN FRANCE) and turned on his TV (MADE IN INDONESIA), and then wondered why he can't find a good paying job in AMERICA.

And now he's hoping he can get help from a president (MADE IN KENYA), Mr. Obama (Originally Born African Managing Americans).

Thank you, Mr. or Ms. Anonymous. Wealth is created when you produce more than you consume and accumulate capital and savings to invest in future production, and it has DIED in the G7. Real wealth creation from small business and entrepreneurs is moving toward extinction in the US, replaced by the printing press and BORROWING. It could not be recovered even if we wanted it to be, as American labor, corporate tax and regulatory policies are locally and globally uncompetitive. On top of which, the current Administration and Congress do not understand that the private economy must GROW to create rising incomes. Growth in government is not growth as politicians believe. If the government spends +12 % of GDP on new programs and the GDP contracts at -6%, then if the spending does not occur, the actual rate of economic decline is negative – 18 % (the Commerce Department measures government spending growth and calls it GDP growth even if the money is borrowed, an illusion of growth). An ever expanding leviathan government creates not one dime of new wealth or income taxes…only private sector jobs and businesses do…

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Guest An Bearin Bui
What we need are lower taxes, lower government spending and less onerous regulations. Then we create an environment that encourages productivity, wealth creation and savings as opposed to one that encourages laziness, state control, inefficiency, cronyism, debt and consumption.

If the country (and most other countries in the developed world - US, Ireland, half of the EU) weren't already bankrupt, then, yes, all of this would be a great idea. Unfortunately, the entire UK economy is now on life support via QE which is causing immense deficits to build up and zombie businesses to linger on poisoning the economy. The govt is doing all it can to stop asset prices returning to normal and are happy to drive us all into bankruptcy in the process.

In that context there is not a hope in hell of your vision being achieved, sad as that may be.

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this will never happen while humans are in charge

plus they still take the same amount of wealth out of the economy

and the government cant manage - in fact no individual or group of individuals can manage the economy

I am guessing you don't remember the 70's and 80's

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If the country (and most other countries in the developed world - US, Ireland, half of the EU) weren't already bankrupt, then, yes, all of this would be a great idea. Unfortunately, the entire UK economy is now on life support via QE which is causing immense deficits to build up and zombie businesses to linger on poisoning the economy. The govt is doing all it can to stop asset prices returning to normal and are happy to drive us all into bankruptcy in the process.

In that context there is not a hope in hell of your vision being achieved, sad as that may be.

State collapse then

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I think the government may know a bit more about it than you

course they do, thats why 20% of the government has been caught with its fingers in the till.

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you are being sarcastic arent you

Back in the 1970's governments lost the ability to manage economies. Instead there was worker control.

Shipping companies who needed to unload their ships quickly and keep them moving to justify the huge cost of owning a ship with a limited efficient life were oblliged to pay dockers full time even if there were no ships while the dockers had second jobs. And then when the ships came in the dockers were uncooperative and would strike at any excuse.

Goverments attempted to reason with the workers but it did not work. what worked was moving the docks to some other place where machines unloaded ships as far as possible and workers were employed on totally different contracts by different companies and ultimately as many jobs as possible were outsourced to cheap labour areas of the world. Hence we have this thing called globalisation taken further than ever before.

Now it seems even the government cannot be relied upon to work.

What we are dealing with today is a multigenerational breakdown in ethics and morality.

We live in the me me me generation that seems to regard service as a dirty word.

Edited by aliveandkicking

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It seems the majority really do believe that the Governments can save us from economic meltdown by spending money they dont have.

Governments do not create wealth they destroy it.

What we need are lower taxes, lower government spending and less onerous regulations. Then we create an environment that encourages productivity, wealth creation and savings as opposed to one that encourages laziness, state control, inefficiency, cronyism, debt and consumption.

People seem to believe that the Government can create jobs and yet for every job the Government creates at least one unseen job is lost.

this guy explains it

That which is seen, and that which is unseen

Couldn't be bothered to read the long quote, but your pre-amble contains a lot of the things right minded people hope will happen post brown... less expenditure, less government etc.

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Back in the 1970's governments lost the ability to manage economies. Instead there was worker control.

Shipping companies who needed to unload their ships quickly and keep them moving to justify the huge cost of owning a ship with a limited efficient life were oblliged to pay dockers full time even if there were no ships while the dockers had second jobs. And then when the ships came in the dockers were uncooperative and would strike at any excuse.

Goverments attempted to reason with the workers but it did not work. what worked was moving the docks to some other place where machines unloaded ships as far as possible and workers were employed on totally different contracts by different companies and ultimately as many jobs as possible were outsourced to cheap labour areas of the world. Hence we have this thing called globalisation taken further than ever before.

Now it seems even the government cannot be relied upon to work.

What we are dealing with today is a multigenerational breakdown in ethics and morality.

We live in the me me me generation that seems to regard service as a dirty word.

Government is immoral and doesn't work.

The problem is that the government is far too large and has borrowed far too much.

It needs to go.

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Guest spp

Right ... I've been lurking around here since Feb 08 but today I'm pi$ $ed off! I discovered this website

when I sat down thinking to myself... I work full time 5/6 days a week why the hell can't I afford my own

accomodation (owned or rented at the age of 27) without being imprisoned in a shoe box/enslaved by debt???

I knew sweet FA about economics prior to this site ...so thank you Houseprice crashers/ you tube

(Schiff/Rogers/Celente etc).

Easy credit and a lack of regulation has destroyed the whole system/economy!

The banksters for the easy credit and Governments for the lack of regulation.

Some borrowers were to blame, but the majority were led to believe that this is the way things are.

Student loans = Higher tuition fees and debt for when you leave uni

Crazy mortgage lending = Crazy house prices

Easy credit = Phony economy

In the end this = unemployment, huge Pension deficit, a self-destructing welfare system ...the list goes on!!

Many people I've grown up with and younger are in a very similar position to myself.

This easy credit is destroying a whole generation and probably many more if it's left to keep on going.

The government are now propping up this phony economy with our tax payers money ...Let the incompetent fail and

the competent takeover!

Economics not compulsory at school - criminal!

Crash Gordy - Don't get me started

Easy credit - criminal!

Banksters, Central banksters, money printers ......

NO MORE BOOM AND BUST!! Yeah right ...The U.K/U.S/West is now in deep trouble.

How we are not a self sufficient country with the technology we have today is insane.

Do I get it? :angry:

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Back in the 1970's governments lost the ability to manage economies. Instead there was worker control.

Shipping companies who needed to unload their ships quickly and keep them moving to justify the huge cost of owning a ship with a limited efficient life were oblliged to pay dockers full time even if there were no ships while the dockers had second jobs. And then when the ships came in the dockers were uncooperative and would strike at any excuse.

Goverments attempted to reason with the workers but it did not work. what worked was moving the docks to some other place where machines unloaded ships as far as possible and workers were employed on totally different contracts by different companies and ultimately as many jobs as possible were outsourced to cheap labour areas of the world. Hence we have this thing called globalisation taken further than ever before.

Now it seems even the government cannot be relied upon to work.

What we are dealing with today is a multigenerational breakdown in ethics and morality.

We live in the me me me generation that seems to regard service as a dirty word.

Governments have never had the ability to manage economies

sorry i meant Governments have never successfully had the ability to manage economies and they never will

some history of governments and banks managing the economy

re the federal reserve

Elihu Root, Republican senator from New York, thought he smelled a rat. Anticipating the credit inflations of the future and recalling the disturbances of the past, Mr. Root attacked the bill in this fashion: "Little by little, business is enlarged with easy money. With the exhaustless reservoir of the Government of the United States furnishing easy money, the sales increase, the businesses enlarge, more new enterprises are started, the spirit of optimism pervades the community.

"Bankers are not free from it," Mr. Root went on. "They are human. The members of the Federal Reserve board will not be free of it. They are human....Everyone is making money. Everyone is growing rich. It goes up and up, the margin between costs and sales continually growing smaller as a result of the operation of inevitable laws, until finally someone whose judgment was bad, someone whose capacity for business was small, breaks; and as he falls he hits the next brick in the row, and then another, and then another, and down comes the whole structure.

"That, sir," Mr. Root concluded, "is no dream. That is the history of every movement of inflation since the world's business began, and it is the history of many a period in our own country. That is what happened to greater or less degree before the panic of 1837, of 1857, of 1873, of 1893 and of 1907. The precise formula which the students of economic movements have evolved to describe the reason for the crash following the universal process is that when credit exceeds the legitimate demands of the country the currency becomes suspected and gold leaves the country."

EDIT TO ADD CAN NO ONE LEARN FROM HISTORY

and 1837

link

THOUGHTS ON THE CAUSES OF THE PRESENT DISCONTENTS

December 10, 1837.

Text abridged.

The title of this article is borrowed from Burke; and would that we could borrow, also, the power of cogent reasoning and affluence of eloquent expression which distinguished the writings of that strong and original thinker, for the theme we have to treat of is worthy of such qualities. That theme is the present financial difficulties, which press with intolerable weight upon the community, and force a murmur even from the sturdiest of those who have stood unmoved amidst all former revulsions. The pressure now, unlike that of 1834, is not purposely caused by the strategy of a gigantick monied institution, warring with the government of the country, and attempting to set itself up as a second estate, greater than the people. It is not caused by a withdrawal of mutual confidence between man and man, during the temporary influence of a panick, created and fomented by the demagogues of a desperate party, for a political end. It is not caused by any failure in the sources of real national wealth; by a sudden falling off in the great staple commodities of the land; nor by any extraordinary or unlooked for vicissitudes in the affairs of the countries with which we carry on reciprocal commerce. What then is the cause of the suffering so keenly felt, and so loudly complained of at the present time? To this we answer, throwing all minor and inadequate circumstances out of view, that the pernicious bank system of our country is the cause! That is the fountain from which the stream of mischief issues, swelled, it is true, by unimportant tributaries, but there taking its rise, and thence deriving the chief volume of its waters. That is the source of the modern Phlegethon, whose burning tide sets those who drink it mad, and wastes the land through which it flows, making it a second Tartarus.

Any person who has soberly observed the course of events for the last three years, must have foreseen the very state of things which now exists. Any person who, from the present unhealthy and dangerous elevation to which the business affairs of the community have been pushed, will turn back his eyes in calm retrospection, must perceive that we impute the evil to its true origin. He will see that the banks, ever since the temporary revulsion of 1834, have been striving, with all their might, each emulating the other, to force their issues into circulation, and flood the land with their wretched substitute for money. He will see that they have used every art of cajolery and allurement to entice men to accept their proffered aid; that, in this way, they gradually excited a thirst for speculation, which they sedulously stimulated, until it increased to a delirious fever, and men, in the epidemick frenzy of the hour, wildly rushed upon all sorts of desperate adventures. They dug canals, where no commerce asked for the means of transportation; they opened roads, where no travelers desired to penetrate; and they built cities where there were none to inhabit, which now stand in their newness, like Palmyra in its ruins, untenanted and solitary, amidst a surrounding desert.

. . .

What has been, what ever must be, the consequence of such a sudden and prodigious inflation of the currency? Business stimulated to the most unhealthy activity; a vast amount of over production in the mechanick arts; a vast amount of speculation in property of every kind and name, at fictitious values; and finally, a vast and terrifick crash, when the treacherous and unsubstantial basis crumbles beneath the stupendous fabrick of credit, and the structure falls to the ground, burying in its ruins thousands who exulted in the fancied security of their elevation. Men, now-a-days, go to bed deeming themselves rich, and wake in the morning to find themselves stripped of even the little they really had. They count, deluded creatures! on the continued liberality of the banks, whose persuasive entreaties seduced them into the slippery paths of speculation. But they have now to learn that the banks cannot help them if they would, and would not if they could. They were free enough to lend their aid when assistance was not needed; but now, when it is indispensable to carry out the projects which would not have been undertaken but for the temptations they held forth, no further resources can be supplied. The banks must take care of themselves. “Charity begins at home.†The course of trade is turning against the country. We have purchased more commodities abroad than our products will pay for, and the balance will soon be called for in specie. The banks, which lately vied with one another in effusing their notes, are now as eager competitors in withdrawing them from circulation, and preparing for the anticipated shock. They have no time to listen to the prayers of the deluded men whom their deceitful lures seduced so far upon the treacherous sea of credit. They cast them adrift without remorse and leave them to encounter, unaided and unprepared, the fury of the gathering tempest. Or should, perchance, some tender hearted moneychanger relent, and consent to tow a few victims into harbour, is it unreasonable that he should charge wrecker’s fees for the serviceâ€â€half the cargo and twenty per cent commissions on the remainder? The cashiers of some of our banks can tell you that these are but the usual rates.

It suited the purposes of party, a short time since, to lay all the difficulties of the money market to the account of certain orders of the Treasury Department, removing a portion of the government funds from one place of deposit to another. And it equally answered the purpose of another class of politicians to ascribe the evils to the necessary operation of the distribution law. But the election is now past, unduly to influence the result of which both these theories were maintained, and, by common consent, it is now tacitly admitted that neither fully accounts for the effect. Beyond all question, both had some share, and particularly the latter, in swelling the amount of embarrassment; but the great, abiding, all-sufficient causes lay deeper than these: the madness of speculation was the immediate one, the inflation of the currency the remote. A pernicious bank system had stimulated the nation into the wildest overtrading, and we now experience the necessary consequences of reaction. The vehement complaints against the banks, because they do not afford relief, which daily fill the columns of certain newspapers, are utterly absurd. The banks cannot help the community; they have enough to do to take care of themselves. They are fearfully potent in producing the mischief, but utterly impotent to remove it. They have a power of evil, but not of good. They administer the bane, but have no antidote. The same causes which occasion pecuniary distress among the merchants, equally affect the money changers, and in the same way. The banks are overtraders as well as the others, and both have to learn that there is but one relief for an overtrading nation, and it must wait for that to be applied by the slow hand of time. They who borrow from the future, and squander in extravagance what is thus acquired, must drudge slowly on in poverty until they acquit themselves of the debt. It is with a people, as with an individual: when the income of a year is lavished in a month, the costly robes and sumptuous table must be succeeded by such food and apparel as served the prodigal son in his reverse of fortune. An invariable law of mechanicks establishes that what is gained in speed is lost in power; and this is not less true in political economy. We have prematurely exhausted our vigour in too rapid a race, and must now pause to recruit our wasted strength.

It is curious, as well as melancholy, to look round, and note the evidences which everywhere meet the eye of that fever of speculation which, for two years past, has been the moral epidemick of the land. The fields, in many places, lie untilled, because the agricultural population has been drawn off to construct railroads and canals, or lay out sites for cities, and prepare the ground for superb edifices capable of accommodating millions yet unborn! Hence we find there are short crops of the main staples of home consumption. Hence we see flour at fifteen dollars a barrel, and hay at forty dollars a ton; and hence foreign agriculturists, the wheat growers of England, and of the very northernmost parts of Europe, are sending their grain to this countryâ€â€the cultivators on the stormy coast of the Black Sea and the icy shores of the Dnieper send hither their produce, and undersell our farmers on the pleasant banks of the Hudson and the Potomack, at their very doors. During the long wars of Napoleon in Europe, we exported our breadstuffs, and supplied the opposing armies with food. Now we have a standing army at home to support, not of soldiers, but of canal diggers, city builders, and stock gamblers; while the plough stands idle in the unturned furrow, and crows fatten undisturbed in the deserted cornfields. The speculator flaunts by in his carriage, and casts a scrutinizing eye over the neglected farm, not to ascertain the capacities of its soil, but its eligibility as the site for some new scheme of a city, and the probable price it would yield, not by the acre, but by the foot. The children at the wayside scarcely look up at the shining equipage as it dashes along, for shining equipages have become too common to attract the attention even of rusticks. A coach with footboard and hammercloth is no longer a novelty, when half a nation turn builders of carriages for the other half to ride in. But there is an old saying which foretells the destiny of a beggar on horseback, and we fear that there are many in this community now on the eve of experiencing its truth

Edited by lowrentyieldmakessense(honest!)

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course they do, thats why 20% of the government has been caught with its fingers in the till.

I work for a hedge fund and thought our expenses were bad. These civil servants took pi$$ taking to a whole new level. The audacity to say "Ive done nothing wrong/outside of the rules" just really goes to show how far out of touch all sides of the house are.

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Right ... I've been lurking around here since Feb 08 but today I'm pi$ $ed off! I discovered this website

when I sat down thinking to myself... I work full time 5/6 days a week why the hell can't I afford my own

accomodation (owned or rented at the age of 27) without being imprisoned in a shoe box/enslaved by debt???

I knew sweet FA about economics prior to this site ...so thank you Houseprice crashers/ you tube

(Schiff/Rogers/Celente etc).

Easy credit and a lack of regulation has destroyed the whole system/economy!

The banksters for the easy credit and Governments for the lack of regulation.

Some borrowers were to blame, but the majority were led to believe that this is the way things are.

Student loans = Higher tuition fees and debt for when you leave uni

Crazy mortgage lending = Crazy house prices

Easy credit = Phony economy

In the end this = unemployment, huge Pension deficit, a self-destructing welfare system ...the list goes on!!

Many people I've grown up with and younger are in a very similar position to myself.

This easy credit is destroying a whole generation and probably many more if it's left to keep on going.

The government are now propping up this phony economy with our tax payers money ...Let the incompetent fail and

the competent takeover!

Economics not compulsory at school - criminal!

Crash Gordy - Don't get me started

Easy credit - criminal!

Banksters, Central banksters, money printers ......

NO MORE BOOM AND BUST!! Yeah right ...The U.K/U.S/West is now in deep trouble.

How we are not a self sufficient country with the technology we have today is insane.

Do I get it? :angry:

Yep you get it

the more that do the better

but education system - economics - they would probably only teach the harvard/princetown clap trap that results in Ben Bernanke - self education is the answer

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I work for a hedge fund and thought our expenses were bad. These civil servants took pi$$ taking to a whole new level. The audacity to say "Ive done nothing wrong/outside of the rules" just really goes to show how far out of touch all sides of the house are.

have a look at this thread summarising how the mps have used their expense claims to profit from property

link

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