the_austrian Posted February 7, 2007 Share Posted February 7, 2007 Bernanke warns on inequality http://www.federalreserve.gov/boarddocs/sp...206/default.htm (http://*******.com/2gbnkw) Inequality is actually caused in part by the actions of the Fed. How can this be so when the Fed acts in a benign manner and makes interest rates cheap for those hard-working industrialists and first-time-buyers who just want a piece of the American dream? Well the problem is that by making interest rates cheap it does not leave all the rest of us unaffected. Does anyone remember something about robbing Peter to pay Paul? By making interest rates cheap it weakens the value of money relative to other assets. Because more and more money needs to get into the system to make it possible for people to pay off their debt there is continued pressure for low rates. Inequality will be at its most pronounced when the system reaches saturation. For more see http://www.economicsreform.blogspot.com/ Quote Link to comment Share on other sites More sharing options...
Jason Posted February 7, 2007 Share Posted February 7, 2007 I stopped reading after the first sentence: "A bedrock American principle is the idea that all individuals should have the opportunity to succeed on the basis of their own effort, skill, and ingenuity." Western central banks have created the greatest amount of inequality in my life time. I have, and continue, to work far far harder than many of my elders, yet it will take me decades of work to get to the stage they were at when they were my age. Quote Link to comment Share on other sites More sharing options...
Minos Posted February 7, 2007 Share Posted February 7, 2007 I stopped reading after the first sentence:"A bedrock American principle is the idea that all individuals should have the opportunity to succeed on the basis of their own effort, skill, and ingenuity." Western central banks have created the greatest amount of inequality in my life time. I have, and continue, to work far far harder than many of my elders, yet it will take me decades of work to get to the stage they were at when they were my age. Bernanke is a liar. You think you've got it hard. What chances do you think those following you into the world will have ? Quote Link to comment Share on other sites More sharing options...
Pete Posted February 7, 2007 Share Posted February 7, 2007 I stopped reading after the first sentence:"A bedrock American principle is the idea that all individuals should have the opportunity to succeed on the basis of their own effort, skill, and ingenuity." Western central banks have created the greatest amount of inequality in my life time. I have, and continue, to work far far harder than many of my elders, yet it will take me decades of work to get to the stage they were at when they were my age. Couldn't agree more. I have had my own business for 10 years, taken a shed load of risk & employed others. I am now no better off than if I had bought a bigger house and sat there unemployed for 10 years. This economy is a farce - capitalism has been replaced by something else Quote Link to comment Share on other sites More sharing options...
IMHAL Posted February 7, 2007 Share Posted February 7, 2007 Couldn't agree more. I have had my own business for 10 years, taken a shed load of risk & employed others. I am now no better off than if I had bought a bigger house and sat there unemployed for 10 years.This economy is a farce - capitalism has been replaced by something else No such thing as Capitalism when someone controls the printing press - all you are working for is beads! - money back by nothing but thin air is open to being manipulated to suit whoever is in power. If you think about it, people work hard to store fat for hard times - when the value of that for which you work is degenerating faster than you can work then its pretty much pointless - major currencies are being devalued and that defeats the object of hard work. There seems to be no sense in trying to hord hard cash - better to buy something, anything! I hate saying these things - because I don't buy these 'anythings' myself - I assume that the world is a fair and civilised place - I could be wrong and will probably suffer for it. I think we are all on the road to sefdom - engineered by the FED. HAL Quote Link to comment Share on other sites More sharing options...
Pluto Posted February 7, 2007 Share Posted February 7, 2007 No such thing as Capitalism when someone controls the printing press - all you are working for is beads! - money back by nothing but thin air is open to being manipulated to suit whoever is in power.If you think about it, people work hard to store fat for hard times - when the value of that for which you work is degenerating faster than you can work then its pretty much pointless - major currencies are being devalued and that defeats the object of hard work. There seems to be no sense in trying to hord hard cash - better to buy something, anything! I hate saying these things - because I don't buy these 'anythings' myself - I assume that the world is a fair and civilised place - I could be wrong and will probably suffer for it. I think we are all on the road to sefdom - engineered by the FED. HAL In the UK there is no point in working, and even less point getting a degree. A degree will just put you further behind as you have less years to work and in debt before you even start. All this can be traced back to 9/11 - the governments response was to flood the world with worthless money. Those who took the money bought all the assets and the rest are stuffed. Look at the current situation: ++ Oil UP ++ Stocks UP ++ Gold UP ++ Property UP Everything is near record highs. And the liars in charge tell us inflation is under control. Interest rates should be in double digits now. Quote Link to comment Share on other sites More sharing options...
dnd Posted February 7, 2007 Share Posted February 7, 2007 (edited) http://www.marketoracle.co.uk/Article320.html (posted on HPC frontpage) “Cheapening” the dollar by doubling the money supply paves the way for hyperinflation and (the Fed believes) a more competitive American workforce going nose-to-nose with competitors in China and India. It's a plan that globalization's foremost champion, Tom Friedman, would probably greatly admire. By pulverizing the dollar, the Fed can crush the middle class and lay the foundation for a “class-based”, police state; Bush's nascent Valhalla. The first step to “reordering” society is destroying the currency. THIS is what's in store for us here in the UK - the same is happening here... Buy assets quick!!! Edited February 7, 2007 by dnd Quote Link to comment Share on other sites More sharing options...
mew too Posted February 7, 2007 Share Posted February 7, 2007 No such thing as Capitalism when someone controls the printing press - all you are working for is beads! - money back by nothing but thin air is open to being manipulated to suit whoever is in power.If you think about it, people work hard to store fat for hard times - when the value of that for which you work is degenerating faster than you can work then its pretty much pointless - major currencies are being devalued and that defeats the object of hard work. There seems to be no sense in trying to hord hard cash - better to buy something, anything! I hate saying these things - because I don't buy these 'anythings' myself - I assume that the world is a fair and civilised place - I could be wrong and will probably suffer for it. I think we are all on the road to sefdom - engineered by the FED. HAL I love this post, as this is exactly the reason why I believe it's now time to go cash - I remember when the stock market was crashing in 2002/3 and everyone and their granny was saying "cash is king bank your money - sell your shares and your granny!" when in actual fact the exact opposite was true - NOW is the time to start saving those pennies by the time the sheeple realise it will be too late again! The markets will rebalance it is of their nature. Quote Link to comment Share on other sites More sharing options...
the_austrian Posted February 7, 2007 Author Share Posted February 7, 2007 i think we all agree but here is where the trouble comes. What is to be done about it? We all agree that the status quo is untenable but the problem is that people are wedded to the idea that the central bank is needed to keep the economy active. I can't see why this is necessary but I would concede that to get from where we are (with great discrepancies in wealth) to a place where things were more equitable a dynamic economy would be desirable. The question is what is the best way to make this happen? The current method with low interest rates is absolutely the worst thing to be doing now in my opinion. The problem is that without an alternative people are wedded to the idea that for a buoyant economy there needs to be a mechanism to introduce currency. What should that mechanism be? An open question. Quote Link to comment Share on other sites More sharing options...
othello Posted February 7, 2007 Share Posted February 7, 2007 Couldn't agree more. I have had my own business for 10 years, taken a shed load of risk & employed others. I am now no better off than if I had bought a bigger house and sat there unemployed for 10 years.This economy is a farce - capitalism has been replaced by something else What could we call it? BTW, you are only poor if you seek to purchase an inflated asset. If you saty out of that particular market (by renting) you'll find yourself rich compared to the property slaves. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 7, 2007 Share Posted February 7, 2007 Incredible article. Suggest that this is no normal divergence, it is the top 1/1000th that are really making out like bandits - well we sort of know that already - stock options, write your own wage types and to hell with the shareholders/workforce. When this folds every market is going to get slam-dunked, housing will take the stock market with it, stocks wil be about the only semi-liquid asset left to liquidate to pay the bills - the top 10% proportionatly will have a lot vested in the market. The FED really have totally lost control of their senses and the economy, this is a set-up of a generation (or more), never realised how deeply it had infected even the high wage earners. The Surprising Borrowing Habits of the Rich http://finance.yahoo.com/loans/article/102...its_of_the_rich Quote Link to comment Share on other sites More sharing options...
IMHAL Posted February 7, 2007 Share Posted February 7, 2007 i think we all agree but here is where the trouble comes. What is to be done about it? We all agree that the status quo is untenable but the problem is that people are wedded to the idea that the central bank is needed to keep the economy active. I can't see why this is necessary but I would concede that to get from where we are (with great discrepancies in wealth) to a place where things were more equitable a dynamic economy would be desirable. The question is what is the best way to make this happen? The current method with low interest rates is absolutely the worst thing to be doing now in my opinion.The problem is that without an alternative people are wedded to the idea that for a buoyant economy there needs to be a mechanism to introduce currency. What should that mechanism be? An open question. As an 'Austrian' the answer is "I would'nt start here if I need to get there" - seriously thro...lowering interest rates in true Austrian mode is only asking for the money to be put into unproductive things i.e. houses, gold, etc - they should have been raising interst rates and letting people's imagination and ingenuity take centre stage - then we could have competed with johny foreigner by inventing our way our of the mess. The FED however is determined that we will end up digging dirt and ploughing fields to compete 'nose to nose. What a bunch of morons. HAL Quote Link to comment Share on other sites More sharing options...
Charlie Don't Surf Posted February 7, 2007 Share Posted February 7, 2007 In the UK there is no point in working, and even less point getting a degree. A degree will just put you further behind as you have less years to work and in debt before you even start. All this can be traced back to 9/11 - the governments response was to flood the world with worthless money. Those who took the money bought all the assets and the rest are stuffed.Look at the current situation: ++ Oil UP ++ Stocks UP ++ Gold UP ++ Property UP Everything is near record highs. And the liars in charge tell us inflation is under control. Interest rates should be in double digits now. Pluto, you are rapidly becoming one of my favourite posters! You manage to put what I think but cannot articulate (or actually realise) into coherent posts. Don't worry the last person I stalked got an injunction and I haven't bothered their pets since! Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 7, 2007 Share Posted February 7, 2007 All this can be traced back to 9/11 - the governments response was to flood the world with worthless money. Same happened after 7/7 - BOE flooded the country with money and voila - re-ignition of the debt bubble, particularly in London. They are acting like some freekin wet nurse. What is there to show for it? About another £200bn of debt and and even more lopsided, disfunctional economy. Quote Link to comment Share on other sites More sharing options...
Let the Truth Begin Posted February 7, 2007 Share Posted February 7, 2007 : What could we call it? BTW, you are only poor if you seek to purchase an inflated asset. If you saty out of that particular market (by renting) you'll find yourself rich compared to the property slaves. Hello All If you think that an ordinary man/women could reach the 'rags to riches' dreams dangled in front of us on hard work alone then think again. You like most others are being led up the garden path. Its just a tool for those in control to drive up productivity and the crazy think is we seem to love it. We are the real Lemings! From cradel to grave the systems works its magic of turning us into willing slaves. They operate so openly yet we don't see it for the simple reason that they speak a different language. We communicate in words theirs is a language of Symbols. The truth will set you free, but you must work to seek the truth. Let me give you a helpful pointer. www.rense.com Quote Link to comment Share on other sites More sharing options...
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