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The Boomer Question
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redbeard Offline
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Post: #101
RE: The Boomer Question
(07-04-2019 06:04 PM)Tail Gunner Wrote:  The Bretton Woods system was created towards the end of World War II and involved fixed exchange rates with the U.S. dollar as the world's reserve currency, backed by the stability of gold at $35/ounce. For example, Petrodollars are simply U.S. dollars used to buy oil, which is mandatory.

On August 15, 1971, President Nixon announced the end of the Bretton Woods international monetary system and the convertabality of the U.S. dollar into gold. From the point onward, the U.S. dollar was no longer a traditional currency backed by gold and it no longer held its value. Stagflation set in (a stagnant economy with inflation) and prices increased dramatically. Nothing was ever the same again. Living now required two-income households, latchkey kids, and thirty-year mortgages.

Women now needed to work to pay the family bills. It was a new world, which still exists to this day. Disconnecting the U.S. dollar from gold allowed the U.S. to finance its world empire, countless military bases (literally no one knows just how many U.S. military bases exist around the world), and the massive U.S. social welfare system. As the world's reserve currency, which is unpegged to gold or anything else, there are literally more U.S. dollars outside of the borders of the U.S. than inside the U.S. Mindlessly printing money unbacked by anything of value raises prices for everyone. When the rest of the world eventually turns its back on the mindless printing of the U.S. dollar, the Great Reset will occur. This will end in tears, folks.

Buy Bitcoin.

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07-04-2019 07:26 PM
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PharaohRa Offline
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Post: #102
RE: The Boomer Question
(07-04-2019 07:06 PM)Lost in Transfiguration Wrote:  ^^^ Are we gonna repatriate Africans too? Or do they get to stay?

Anyone who is here illegally has to go (or go through the same steps that all potential immigrants has to go through to become citizens). Other countries are even less merciful (and more racist) than the US.
07-04-2019 08:07 PM
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It_is_my_time Offline
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Post: #103
RE: The Boomer Question
20% is HUGE.

07-05-2019 04:42 PM
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TigerMandingo Online
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Post: #104
RE: The Boomer Question
(06-30-2019 10:00 PM)Tail Gunner Wrote:  You will be . . . sorry. How many people, or businesses, have you ever seen successfully run deficits like that and survive financially? The answer is none.

How many countries have ever financially survived such sustained deficits without tremendous social and economic upheaval? The answer is none.

Not a single one. In all of human history.

I'm confused, though. Even if what you're saying is true, don't we have like "the greatest economy ever ever in the history of time" according to the God Emperor?

Wouldn't that shield us from all the negative effects of a huge deficit?
07-11-2019 10:09 AM
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It_is_my_time Offline
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Post: #105
RE: The Boomer Question
(07-11-2019 10:09 AM)TigerMandingo Wrote:  
(06-30-2019 10:00 PM)Tail Gunner Wrote:  You will be . . . sorry. How many people, or businesses, have you ever seen successfully run deficits like that and survive financially? The answer is none.

How many countries have ever financially survived such sustained deficits without tremendous social and economic upheaval? The answer is none.

Not a single one. In all of human history.

I'm confused, though. Even if what you're saying is true, don't we have like "the greatest economy ever ever in the history of time" according to the God Emperor?

Wouldn't that shield us from all the negative effects of a huge deficit?

Trump is full of it. Our economy is a dumpster fire and once the giant bubble pops and all the elites move on to the next host, we will be left holding the bag.

Trump has a big test ahead of him economically. This should pass the Senate and appear before the President some time soon. It just passed the House yesterday 365 - 65. Does Trump actually stand by his promise or does he toss the American workers under the "Trump Train" and then backup over them for good measure? We will find out...

07-11-2019 10:58 AM
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Tail Gunner Offline
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Post: #106
RE: The Boomer Question
(07-11-2019 10:09 AM)TigerMandingo Wrote:  
(06-30-2019 10:00 PM)Tail Gunner Wrote:  You will be . . . sorry. How many people, or businesses, have you ever seen successfully run deficits like that and survive financially? The answer is none.

How many countries have ever financially survived such sustained deficits without tremendous social and economic upheaval? The answer is none.

Not a single one. In all of human history.

I'm confused, though. Even if what you're saying is true, don't we have like "the greatest economy ever ever in the history of time" according to the God Emperor?

Wouldn't that shield us from all the negative effects of a huge deficit?

You are confusing short-term economic results with long-term economic health. Many things often look rosy in the short-term (e.g., even the worst marriage). The economy often appears just dandy before the end of an economic bubble, unless you are actively looking for warning signs. It is the long-term economy that really matters.

The irony is that the Democrats, through their Fed policies, caused the very same income inequality that they now complain about. If the Fed had not juiced the economy with artificially low interest rates over the past decade (and inflated asset prices), we would have a real capitalist economy where Main Street benefited to the same degree as Wall Street. Everyone's economic condition would have improved, instead of just the wealthy. Once again, recall the identity of the number one contributor to Senator Obama's presidential candidacy -- Goldman Sachs. This is not rocket science, folks.

President Trump is continuing these horrid policies because he wants to avoid a recession before the next election. As a practical matter, I cannot really blame him. He is not doing anything different than a Democrat would do -- and his re-election just might save the nation (if, in his second term, he can replace some liberal activists on the Supreme Court). But his continuation of liberal Keynesian economic policies will ultimately add to the long-term economic damage.

I actually read a good article on this topic this morning (about Trump economic advisors suddenly changing their classical economic philosophies to carry out the President's bidding):

https://www.mauldineconomics.com/the-10t...-gold-bugs

President Trump is sly like a fox. It would not surprise me to see his economic philosophy regarding the Fed suddenly change after his re-election.
(This post was last modified: 07-11-2019 01:21 PM by Tail Gunner.)
07-11-2019 12:38 PM
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MrLemon Offline
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Post: #107
RE: The Boomer Question
As a boomer, I'd be the first to admit that the boomers have fucked over the US economy, but how did it happen? I think a lot of people on this thread have nibbled at the edges of the truth.

Let's get to the core of the problem: wages in the US are half what they were in my era. HALF. If you adjust for real prices of housing, food, gas, insurance, etc. You gotta realize how big that number is. 80% of the American population is on half wages.

What if we went back in time to the 1980s when I was just starting my career, and cut all wages for all American workers in HALF? What would have happened? What would have happened is that the entire middle class would have fucking collapsed and there would have been a civil war.

So let's get to the underlying cause folks . It's not complex. The corporations, China/India, and elite have been stealing TRILLIONS of fucking dollars and turned the middle class of America into their own personal slaves.

That is the battle of your generation. All else is a distraction.

In my opinion.
07-11-2019 02:05 PM
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Manbeline Offline
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Post: #108
RE: The Boomer Question
The Fed needs to go. It's just common sense. I had the same idea back in college. Why would you let a central bank control your entire economy on nothing but empty money and promises? It has every foundation of going bad, and it seems I was right. People say America will collapse if it does, yet I have no fear that I will survive in that kind of economy.
(This post was last modified: 07-11-2019 02:15 PM by Manbeline.)
07-11-2019 02:15 PM
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mkultra22 Offline
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Post: #109
RE: The Boomer Question
Sometimes I find myself around Boomers, they can be really likable at times. For example, they are great to talk to about classic rock, harley davidson's, Caribbean cruises and patriotism. I enjoy having these conversations with them as they show me YouTube videos of how great the 60's rock and Motown acts were. The problem starts when I discussing the economy, the foreign wars, police brutality, among others.

The depression in wages, as many have mentioned previously is linked in many ways to the Fed and ongoing currency manipulation. In another way it is linked to women in the workforce. But in a third way, outsourcing/ offshoring too. In some degree they are responsible for the glut of the younger generation going to college and getting liberal arts degrees, thereby mandating the job market require more and more educational qualifications. These were also the people that voted for NAFTA and now complain about it.
07-11-2019 02:31 PM
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Post: #110
RE: The Boomer Question
The Creature from Jekyll Island : A Second Look at the Federal Reserve

And

The Secrets of the Federal Reserve

These books explore how Federal Reserve insidiously came to be.

It came about as a result of Panic of 1907, a sort of bank crisis. However, what is not commonly known was the fact that whole crisis was deliberately and fraudulently set up in order to pave way for FR.

Maybe I or someone else should set up thread on this vast conspiracy the likes of which would thwart any drama or thriller in books or media, fiction or not.

Secondly, Federal Reserve was largely responsible for causing and prolonging The Great Deppression, a stance confirmed by none other than former chairman of Federal Reserve himself, Ben Bernanke, whose specality was the study of Great Depression.

I did extensive researches on FR.

Lets just affirm the saying:

Its just as well that people do not understand economics, because if they did, tomorrow there would be a revolution.
(This post was last modified: 07-11-2019 02:42 PM by ScannerLIV.)
07-11-2019 02:36 PM
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RE: The Boomer Question
(07-11-2019 02:31 PM)mkultra22 Wrote:  The depression in wages, as many have mentioned previously is linked in many ways to the Fed and ongoing currency manipulation. In another way it is linked to women in the workforce. But in a third way, outsourcing/ offshoring too. In some degree they are responsible for the glut of the younger generation going to college and getting liberal arts degrees, thereby mandating the job market require more and more educational qualifications. These were also the people that voted for NAFTA and now complain about it.

All of these are correct. But don't bypass the largest reason.

I spent a lot of time in corporate America during the 80s-2000. People don't realize how much corporate leaders changed their strategy. HUGE CHANGES.

Prior to the 80s, most CEOs were former WW2 officers. They had seen their men and their brothers slaughtered in the war to stop the Nazis. They had grown up seeing their families dig through garbage cans for food during the Great Depression. They understood that Nazism was caused by the destruction of the German middle-class. They said "we're not going to let that happen to the USA".

So these CEOs considered their DUTY to protect their employees. The entire post-WW2 economy was focused on making college, healthcare, and housing AFFORDABLE FOR ALL, protecting mothers and children, etc. And yes, huge growth too, but building the middle class was considered a top priority. The Germans and Japanese were the same -- out of the fires of their destruction, they learned that it wan necessary to protect the middle class at all costs.

CEOs would voluntarily give up pay raises and would voluntariliy reduce corporate profits in order to protect their employees. This was not even controversial.

Classic patriarchy at it's best.

Then in the 1980s it all reversed with the Reagan years and the selfishness of the hippy generation. I liked Reagans philosophy but the unanticipated consequence is, now, we have a corporate world that is 100% predatory, it's sole purpose is to steal from widows and orphans. Literally.

Middle class assets were the biggest, fattest target on the planet, trillions upon trillions of dollars, and irresistible to the thieves and shysters. As a result, most of the big bucks in 1980-2019 were made by dismantling the wealth of the middle class that had been accumulated from 1945-1980. It was an intentional, relentless, and ruthless draining process. It was taught in MBA classes at Harvard Business School.

The Theft of the millenium. .

If the corporate leaders of the 1960s saw the cost of college and the student debt being dumped on kids these days, and the relentless screwing of young employees, they would consider it treason against society -- literally, a complete betrayal of everything they risked life and limb to save.

All of you are still being tricked by the people who stole your money. Everything you read in the press is a distraction or a false flag. You are modern-day serfs who are completely manipulated by your masters, the corporations.
(This post was last modified: 07-11-2019 04:15 PM by MrLemon.)
07-11-2019 04:03 PM
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Tail Gunner Offline
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Post: #112
RE: The Boomer Question
(07-11-2019 04:03 PM)MrLemon Wrote:  Then in the 1980s it all reversed with the Reagan years and the selfishness of the hippy generation. I liked Reagans philosophy but the unanticipated consequence is, now, we have a corporate world that is 100% predatory, it's sole purpose is to steal from widows and orphans.

You properly cited one the chief reasons for economic changes, but then you blamed President Reagan in a classic non sequitur.

Those WWII officers who later became CEO's, who would have been in their 30's and 40's at the end of the war in 1945, all retired by 1980 -- when Reagan took office. The Baby Boomers, who were coddled and spoiled by their wartime parents, then took their place as CEOs. So, the change in business philosophy that you rightly identified had nothing to do with Ronald Reagan, but with the spoiled Baby Boomers who became CEOs during his Presidency.

And no one stole from widows and orphans. They legally gamed the system in a way that their far-more-moral parents would never have considered doing. You can thank the United States Supreme Court for taking the Bible (and its established morality) out of public schools during the Baby Boomer period.
(This post was last modified: 07-11-2019 04:32 PM by Tail Gunner.)
07-11-2019 04:26 PM
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Post: #113
RE: The Boomer Question
(07-11-2019 04:26 PM)Tail Gunner Wrote:  
(07-11-2019 04:03 PM)MrLemon Wrote:  Then in the 1980s it all reversed with the Reagan years and the selfishness of the hippy generation. I liked Reagans philosophy but the unanticipated consequence is, now, we have a corporate world that is 100% predatory, it's sole purpose is to steal from widows and orphans.

You properly cited one the chief reasons for economic changes, but then you blamed President Reagan in a classic non sequitur.

Those WWII officers who later became CEO's, who would have been in their 30's and 40's at the end of the war in 1945, all retired by 1980 -- when Reagan took office. The Baby Boomers, who were coddled and spoiled by their wartime parents, then took their place as CEOs. So, the change in business philosophy that you rightly identified had nothing to do with Ronald Reagan, but with the spoiled Baby Boomers who became CEOs during his Presidency.

And no one stole from widows and orphans. They legally gamed the system in a way that their far-more-moral parents would never have considered doing. You can thank the United States Supreme Court for taking the Bible (and its established morality) out of public schools during the Baby Boomer period.

Ok you make good arguments. I can agree with that.

Note that I wasn't blaming Reagan directly; but for whatever reason, the changes you and I are talking about -- when the spoiled baby boomers (my generation, in some cases people I literally went to college with) took over the nation in the 1980s, this was the same time that Reagan was loosening regulations. So it's common to call that Reaganism. But again, I'll go with your views. I don't lay this at Reagan's feet directly. Just as much or more of the abuse happened during Bush/Clinton/Obama.

It was primarily caused by the change in personalities from the WW2 generation the Boomer generation. And it wasn't just corporate leaders either. Just look at how hard boomers have fought to make real estate more, more, more expsensive. So they could sell this overpriced real-estate to their grandkids and lock grandkids into a huge mortage payment -- 80% of which goes to grandma to finance more cruises and EatPrayLove trips.

Making the kids into their personal debt slaves to fund a lavish retirement.
(This post was last modified: 07-11-2019 05:00 PM by MrLemon.)
07-11-2019 04:59 PM
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Tail Gunner Offline
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Post: #114
RE: The Boomer Question
(07-11-2019 04:59 PM)MrLemon Wrote:  
(07-11-2019 04:26 PM)Tail Gunner Wrote:  
(07-11-2019 04:03 PM)MrLemon Wrote:  Then in the 1980s it all reversed with the Reagan years and the selfishness of the hippy generation. I liked Reagans philosophy but the unanticipated consequence is, now, we have a corporate world that is 100% predatory, it's sole purpose is to steal from widows and orphans.

You properly cited one the chief reasons for economic changes, but then you blamed President Reagan in a classic non sequitur.

Those WWII officers who later became CEO's, who would have been in their 30's and 40's at the end of the war in 1945, all retired by 1980 -- when Reagan took office. The Baby Boomers, who were coddled and spoiled by their wartime parents, then took their place as CEOs. So, the change in business philosophy that you rightly identified had nothing to do with Ronald Reagan, but with the spoiled Baby Boomers who became CEOs during his Presidency.

And no one stole from widows and orphans. They legally gamed the system in a way that their far-more-moral parents would never have considered doing. You can thank the United States Supreme Court for taking the Bible (and its established morality) out of public schools during the Baby Boomer period.

Ok you make good arguments. I can agree with that.

Note that I wasn't blaming Reagan directly; but for whatever reason, the changes you and I are talking about -- when the spoiled baby boomers (my generation, in some cases people I literally went to college with) took over the nation in the 1980s, this was the same time that Reagan was loosening regulations. So it's common to call that Reaganism.

Loosening regulations is simply enabling free-market capitalism. The whole reason that real estate prices are so expensive in liberal pest-holes, such as San Francisco, is that regulations make it so expensive to get anything built.

What I was talking about when I mentioned that CEO Boomers "legally gamed the system in a way that their far-more-moral parents would never have considered doing" were things such as selecting hand-picked board members who enable CEOs to raid their corporations for huge salaries and bonuses.

Quote:In the 1950s, a typical CEO made 20 times the salary of his or her average worker. Last year, CEO pay at an S&P 500 Index firm soared to an average of 361 times more than the average rank-and-file worker, or pay of $13,940,000 a year, according to an AFL-CIO’s Executive Paywatch news release today.

https://www.forbes.com/sites/dianahembre...4b640f776d

It is absolutely obscene to earn 361 times more than the average employee. I say that as a free-market capitalist. It robs stockholders of profit and it also eliminates any empathy that the CEO would otherwise have for the average worker.
(This post was last modified: 07-11-2019 07:07 PM by Tail Gunner.)
07-11-2019 07:04 PM
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RE: The Boomer Question
I am glad a lot of people are realizing how much trouble the USA is in. The next step is realizing both parties, paid for by the top capitalists are selling us out. It is why capitalism alone will not fix this, nor will just voting for the GOP. The issues are much bigger.

Here is a Republican yesterday bragging about passing the anti-middle class IT and Medical field bill 365 - 65 in the House. It will next go to the Senate. The GOP and Democrats are working hand in hand to bring in more cheap labor for billionaire tech and medical corporations. This will destroy the US middle class as IT and Medical salaries will continue to go down.

07-12-2019 05:51 AM
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RE: The Boomer Question
Globalization was inevitable and inherently designed to atomized everything and everyone as even parts making up cogs are to the machine. We were screwed long before it came about.
07-12-2019 06:51 AM
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RE: The Boomer Question
(07-11-2019 12:38 PM)Tail Gunner Wrote:  President Trump is sly like a fox. It would not surprise me to see his economic philosophy regarding the Fed suddenly change after his re-election.

Oh he's sly alrite. Sly enough to dupe the MAGA crowd into thinking that he's working in their interests. There was a great interview with Michael Hudson on ZeroHedge the other day concerning Trump's economic policies. Here's the link:

https://www.zerohedge.com/news/2019-07-1...ial-empire

I found this part especially interesting:

Quote:Bonnie Faulkner: Why is President Trump insisting that the Federal Reserve lower interest rates? I thought they were already extremely low. And if they did go lower, what effect would this have?

Michael Hudson: Interest rates are historically low, and they have been kept low in order to try to keep providing cheap money for speculators to buy stocks and bonds to make arbitrage gains. Speculators can borrow at a low rate of interest to buy a stock yielding dividends (and also making capital gains) at a higher rate of return, or by buying a bond such as corporate junk bonds that pay higher interest rates, and keep the difference. In short, low interest rates are a form of financial engineering.

Trump wants interest rates to be low in order to inflate the housing market and the stock market even more, as if that is an index of the real economy, not just the financial sector that is wrapped around the economy of production and consumption. Beyond this domestic concern, Trump imagines that if you keep interest rates lower than those of Europe, the dollar’s exchange rate will decline. He thinks that this will make U.S. exports more competitive with foreign products.

Trump is criticizing the Federal Reserve for not keeping interest rates even lower than those of Europe. He he thinks that if interest rates are low, there will be an outflow of capital from this country to buy foreign stocks and bonds that pay a higher interest rate. This financial outflow will lower the dollar’s exchange rate. He believes that this will increase the chance of rebuilding America’s manufacturing exports.

This is the great neoliberal miscalculation. It also is the basis for IMF models.

Trump’s guiding idea is that lowering the dollar’s value will lower the cost of labor to employers. That’s what happens when a currency is devalued. Depreciation doesn’t lower costs that have a common worldwide price. There’s a common price for oil in the world, a common price of raw materials, and pretty much a common price for capital and credit. So the main thing that’s devalued when you push a currency down is the price of labor and its working conditions.

Workers are squeezed when a currency’s exchange rate falls, because they have to pay more for goods they import. If the dollar goes down against the Chinese yen or European currency, Chinese imports are going to cost more in dollars. So will European imports. That is the logic behind “beggar my neighbor” devaluations.

How much more foreign imports will cost depends on how far the dollar goes down. But even if it plunges by 50 percent, even if the dollar were to become a junk currency like the Argentinian or other Latin American currencies, that cannot really increase American manufacturing exports, because not much American labor works in factories anymore. Workers drive cabs and work in the service industry or for medical insurance companies. Even if you give American workers in manufacturing companies all their clothing and food for nothing, they still can’t compete with foreign countries, because their housing costs are so high, their medical insurance is so high and their taxes are so high that they’re priced out of world markets. So it won’t help much if the dollar goes down by 1 percent, 10 percent or even 20 percent. If you don’t have factories going and if you don’t have a transportation system, a power supply, and if our public utilities and infrastructure are being run down, there’s nothing that currency manipulation can do to enable America to quickly rebuild its manufacturing export industries.

American parent companies have already moved their factories abroad. They have given up on America. As long as Trump or his successors refrain from changing that system – as long as he gives tax advantages for companies to move abroad – there’s nothing he can do that will restore industry here. But he’s picked up International Monetary Fund’s junk economics, the neoliberal patter talk that it’s given to Latin America pretending that if a country just lowers its exchange rate more, it will be able to lower its wages and living standards, paying labor less in hard-currency terms until at some point, when its poverty and austerity get deep enough, it will become more competitive.

That hasn’t worked for fifty years in Latin America. It hasn’t worked for other countries either, and it never worked in the United States. The 19th-century American School of Political Economy developed the Economy of High Wages doctrine. (I review this in my book on America’s Protectionist Takeoff: 1815-1914.) They recognized that if you pay labor more, it’s more productive, it can afford a better education and it works better. That’s why high-wage labor can undersell low-wage “pauper” labor. Trump is therefore a century behind the times in picking up the IMF austerity idea that you can just devalue the currency and reduce labor’s wages and living standards in international terms to make the economy more profitable and somehow “work your way out of debt.”

What currency depreciation does do when the dollar is devalued is to enable Wall Street firms to borrow 1% and to buy European currencies and bonds yielding 3 percent or 4 percent or 5 percent, or stocks yielding even more. The guiding idea is to do what Japan did in 1990: have very low interest rates to increase what’s called the carry trade. The carry trade is borrowing at a low interest rate and buying bonds yielding a higher rate, making an arbitrage gain on the interest-rate differential. So Trump is creating an arbitrage opportunity for Wall Street investors. He pretends that this is pro-labor and can rebuild manufacturing. But it only helps hollow out the U.S. economy, sending money to other countries to build themup instead of investing in ourselves. So the effect of what Trump’s doing is the opposite of what he says he’s doing.
07-14-2019 09:59 PM
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RE: The Boomer Question
(07-14-2019 09:59 PM)TigerMandingo Wrote:  
(07-11-2019 12:38 PM)Tail Gunner Wrote:  President Trump is sly like a fox. It would not surprise me to see his economic philosophy regarding the Fed suddenly change after his re-election.

Oh he's sly alrite. Sly enough to dupe the MAGA crowd into thinking that he's working in their interests. There was a great interview with Michael Hudson on ZeroHedge the other day concerning Trump's economic policies. Here's the link:

https://www.zerohedge.com/news/2019-07-1...ial-empire

I found this part especially interesting:

Quote:Bonnie Faulkner: Why is President Trump insisting that the Federal Reserve lower interest rates? I thought they were already extremely low. And if they did go lower, what effect would this have?

Michael Hudson: Interest rates are historically low, and they have been kept low in order to try to keep providing cheap money for speculators to buy stocks and bonds to make arbitrage gains. Speculators can borrow at a low rate of interest to buy a stock yielding dividends (and also making capital gains) at a higher rate of return, or by buying a bond such as corporate junk bonds that pay higher interest rates, and keep the difference. In short, low interest rates are a form of financial engineering.

Trump wants interest rates to be low in order to inflate the housing market and the stock market even more, as if that is an index of the real economy, not just the financial sector that is wrapped around the economy of production and consumption. Beyond this domestic concern, Trump imagines that if you keep interest rates lower than those of Europe, the dollar’s exchange rate will decline. He thinks that this will make U.S. exports more competitive with foreign products.

Trump is criticizing the Federal Reserve for not keeping interest rates even lower than those of Europe. He he thinks that if interest rates are low, there will be an outflow of capital from this country to buy foreign stocks and bonds that pay a higher interest rate. This financial outflow will lower the dollar’s exchange rate. He believes that this will increase the chance of rebuilding America’s manufacturing exports.

This is the great neoliberal miscalculation. It also is the basis for IMF models.

Trump’s guiding idea is that lowering the dollar’s value will lower the cost of labor to employers. That’s what happens when a currency is devalued. Depreciation doesn’t lower costs that have a common worldwide price. There’s a common price for oil in the world, a common price of raw materials, and pretty much a common price for capital and credit. So the main thing that’s devalued when you push a currency down is the price of labor and its working conditions.

Workers are squeezed when a currency’s exchange rate falls, because they have to pay more for goods they import. If the dollar goes down against the Chinese yen or European currency, Chinese imports are going to cost more in dollars. So will European imports. That is the logic behind “beggar my neighbor” devaluations.

How much more foreign imports will cost depends on how far the dollar goes down. But even if it plunges by 50 percent, even if the dollar were to become a junk currency like the Argentinian or other Latin American currencies, that cannot really increase American manufacturing exports, because not much American labor works in factories anymore. Workers drive cabs and work in the service industry or for medical insurance companies. Even if you give American workers in manufacturing companies all their clothing and food for nothing, they still can’t compete with foreign countries, because their housing costs are so high, their medical insurance is so high and their taxes are so high that they’re priced out of world markets. So it won’t help much if the dollar goes down by 1 percent, 10 percent or even 20 percent. If you don’t have factories going and if you don’t have a transportation system, a power supply, and if our public utilities and infrastructure are being run down, there’s nothing that currency manipulation can do to enable America to quickly rebuild its manufacturing export industries.

American parent companies have already moved their factories abroad. They have given up on America. As long as Trump or his successors refrain from changing that system – as long as he gives tax advantages for companies to move abroad – there’s nothing he can do that will restore industry here. But he’s picked up International Monetary Fund’s junk economics, the neoliberal patter talk that it’s given to Latin America pretending that if a country just lowers its exchange rate more, it will be able to lower its wages and living standards, paying labor less in hard-currency terms until at some point, when its poverty and austerity get deep enough, it will become more competitive.

That hasn’t worked for fifty years in Latin America. It hasn’t worked for other countries either, and it never worked in the United States. The 19th-century American School of Political Economy developed the Economy of High Wages doctrine. (I review this in my book on America’s Protectionist Takeoff: 1815-1914.) They recognized that if you pay labor more, it’s more productive, it can afford a better education and it works better. That’s why high-wage labor can undersell low-wage “pauper” labor. Trump is therefore a century behind the times in picking up the IMF austerity idea that you can just devalue the currency and reduce labor’s wages and living standards in international terms to make the economy more profitable and somehow “work your way out of debt.”

What currency depreciation does do when the dollar is devalued is to enable Wall Street firms to borrow 1% and to buy European currencies and bonds yielding 3 percent or 4 percent or 5 percent, or stocks yielding even more. The guiding idea is to do what Japan did in 1990: have very low interest rates to increase what’s called the carry trade. The carry trade is borrowing at a low interest rate and buying bonds yielding a higher rate, making an arbitrage gain on the interest-rate differential. So Trump is creating an arbitrage opportunity for Wall Street investors. He pretends that this is pro-labor and can rebuild manufacturing. But it only helps hollow out the U.S. economy, sending money to other countries to build themup instead of investing in ourselves. So the effect of what Trump’s doing is the opposite of what he says he’s doing.

Uh . . . yes. Why are you responding to my post simply to repeat what I already said in that previous post?

Quote:President Trump is continuing these horrid policies because he wants to avoid a recession before the next election. As a practical matter, I cannot really blame him. He is not doing anything different than a Democrat would do -- and his re-election just might save the nation (if, in his second term, he can replace some liberal activists on the Supreme Court). But his continuation of liberal Keynesian economic policies will ultimately add to the long-term economic damage.

Again, he is not doing anything different than what President Obama did for eight years and his policies are not doing an additional damage to the economy than Hillary Clinton would have done. At least with Trump there is some hope that he may reverse course regarding interest rates after he wins re-election. So, there really is no downside and a great deal of potential upside (if he changes course, which is something that a liberal president would never do).
(This post was last modified: 07-14-2019 11:09 PM by Tail Gunner.)
07-14-2019 11:08 PM
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Leonard D Neubache Offline
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Post: #119
RE: The Boomer Question
How long does it take to feel hollow saying "Trump is a maverick reformer" then going on to say "Trump's only doing what any other president would do in his place".

"Trump is a maverick reformer" but "option X is too extreme".
"Trump is a maverick reformer" but "it's not his fault that he has to work within the system".
"Trump is a maverick reformer" but "he's getting bad advice from his people".

The public will judge a man by what he lifts, but those close to him will judge him by what he carries.
07-15-2019 02:20 AM
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RE: The Boomer Question
^What happened is Trump supporters concocted a myth that he is “fighting the establishment” and that the whole government apparatus is against him. And that he cannot do anything because his life is in danger if he does lol.

So when Trump cucks they tell themselves that he at least tried.
07-15-2019 05:54 AM
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Leonard D Neubache Offline
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Post: #121
RE: The Boomer Question
I'm convinced that things have devolved to politics becoming just another form of entertainment. Something half way between sports and drama, much like wrestling.

All these people shout at Trump to look behind him while the bad guy is coming up with a folding chair and he turns at the last moment to catch it in the head.

"OH NO", shouts the commentator, "I CAN'T BELIEVE IT!!!".

And all the little kids shout "THAT'S NOT FAIR, HE'D WIN IF THE OTHER GUY PLAYED BY THE RULES!!!"

And afterwards there the camera-in-the-locker-room interview where Trump's head is bandaged up and he looks into the Twitter camera and says "THIS TIME YOU'VE GONE TOO FAR, I'M NOT GONNA HOLD BACK ANYMORE!!!"

And all the little kids shout "OMG, DID YOU HEAR THAT?!? IT'S ON!!! NEXT WEEK IS GONNA BE OFF THE CHAIN!!! TRUMP IS ON THE WARPATH!!!"

And in the meanwhile another million illegal immigrants quietly file across the border, because Trump, Commander in chief of the largest armed forces in the world by far cannot secure the southern border of the country he was elected to lead, because a piddly 9th circuit judge came up behind him and hit him in the head with a folding chair.

But just you wait...

Next week?

He'll be on the warpath...

The public will judge a man by what he lifts, but those close to him will judge him by what he carries.
(This post was last modified: 07-15-2019 06:24 AM by Leonard D Neubache.)
07-15-2019 06:22 AM
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Post: #122
RE: The Boomer Question
After all that the right invested into getting him elected, it’s incredibly hard to acknowledge that he’s a bullshitter - but that’s really all he is. Nick Fuentes tweeted out that after watching the Trump interview with Tucker he was disappointed how dumb Trump sounds. I don’t think he understands the issues very well, either due to his age or just because he doesn’t give a shit.

My personal uncorroborated theory is that Trump ran for President to secure a political future for his kids, particularly Ivanka. He even brought her dumbass along to an important G20 summit recently.
07-15-2019 06:40 AM
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RE: The Boomer Question
If you look at Trump intelligently and honestly, by July 2019 it is hard to believe he is anything other than a stooge being used by the global elites to pacify the dying western people into staying asleep.

Go back to 9/11. Bush was able to parlay 9/11 into a 2 front war to make the global elites more powerful and more wealthy. And the disaster that was Iraq was not fully known until after the 2004 election. By 2008 it didn't matter who the Democrats ran, they would be the "evil war monger Republicans". The country was furious about the lies involving Iraq. IMO the elites wanted Hillary, but Obama was more popular than expected and they went with the guy who would easily win the white house and continue their bidding.

Obama was too far too fast and there was an unexpected reaction to him from the western people. Anger continued to grow towards Obama and the awful Democrat party. If the Democrats won in 2016 they would have to crack down on all our freedoms. If they didn't win, they needed someone to pacify the anger. Trump is perfect. He says all the right things and follows up on none of it.

Trump has about 15 months to prove this to be incorrect and I am not holding my breath.
07-15-2019 07:42 AM
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Tail Gunner Offline
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RE: The Boomer Question
(07-15-2019 02:20 AM)Leonard D Neubache Wrote:  How long does it take to feel hollow saying "Trump is a maverick reformer" then going on to say "Trump's only doing what any other president would do in his place".

"Trump is a maverick reformer" but "option X is too extreme".
"Trump is a maverick reformer" but "it's not his fault that he has to work within the system".
"Trump is a maverick reformer" but "he's getting bad advice from his people".

I am not sure what is so difficult to understand. No statesman is a god who can snap his fingers and change reality. Nor can they call upon the army to do their biding, at least not in a constitutional republic. It is all about the art of persuasion and small incremental movements over time. Anyone who does not understand this fact, simply does not understand politics -- and is a prisoner to the cult of instant gratification.

The single best thing that a U.S. President can do is appoint constitutionalists to the U.S. Supreme Court, which Trump has done. These justices carry out the President's legacy for many decades. In fact, true change will take many decades.

It is a little-known fact that by the time that the symptoms of a disease occur, the patient has been in a burgeoning disease state for at least 15 years. At any point during that time span, the patient can elect to reverse the disease by simply eating healthy, exercising, etc. But it will then take time to recover full health. If you have been growing ill for 15 years, it may take you five years of effort to fully recover your health.

In the U.S., women have had the vote for over 100 years and socialism has been slowly gaining traction since that time. The disease state of socialism is now almost full-blown, i.e., from which there can be no return. Either a socialist becomes President, in which the patient dies (the U.S. Constitution will be gone forever), or Trump continues to appoint constitutionalists to the U.S. Supreme Court -- and there is a long, slow slog back towards a constitutional Republic. Unless there is serious violence, those are the only two realistic scenarios.

Anyone who knows anything about politics in the U.S. knows that if Trump was a mole for the establishment he would have kept all his promises, except for appointing constitutionalists to the U.S. Supreme Court. That is where the true long-term constitutional damage occurs.

BTW: I did not vote for Trump (or anyone else). I did not trust his thin conservative credentials. I have watched him closely as a life-long political observer, student of history, and past conservative political activist. He has proven me wrong and I wish him the best, but my exit plan is still in place.

I would prefer not to see innocent people get hurt, but in a democracy people ultimately get the government that they deserve. Anyone who lives in a Western nation without an exit strategy is truly an imbecile. Mine is already in place. How much notice of impending disaster does a person need?
(This post was last modified: 07-15-2019 10:27 AM by Tail Gunner.)
07-15-2019 10:11 AM
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pitbullowner Offline
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Post: #125
RE: The Boomer Question
Strong men create good times; good times create weak men; weak men create hard times

It's all cyclical in a society that doesn't learn from its mistakes
(This post was last modified: 07-15-2019 10:19 AM by pitbullowner.)
07-15-2019 10:18 AM
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