RE: Global finance markets declining (August 2015)
I'm not affected by the stock market because I'm in an investment group that makes money. They started out with £100 and turned it into £1000 in one year and now they've got £21,000 in their account. It provides much higher interest than a savings account. If enough people put their money into the investment society, everyone in it will be well off. The group pays more money in trading fees than they do in losses because the person who runs it is a professional. It's best to join if you have lots of money but anyone can join it.
China is becoming a superpower because they keep buying loads of US currency and selling it for a cheap price, undercutting it, so that the richest country in the world loses money, and there's nothing they can do about it. Also China has much lower debts.
Because the government keeps printing more money devaluing the currency so people's spending power is less, the minimum wage is much less than what it was in the 1960s, so people can't spend as much, so the economy does worse. The reason why the government keeps printing more money which is thievery, is to pay off debts and inconspicuously increase taxes without people noticing as the percentage you pay stays the same.
Question: Why do we have inflation?
OK, so the cost of living keeps going up, and then your employer will give you a pay rise every so often to keep up with the cost of living. Why do they do that? Why not just leave all the prices as they are, then leave wages as they are?
Answer
Because the banks are releasing more money into circulation than they should. And then there is very well concealed reason behind it and that is to increase taxes without people complaining. Money that are issued as a loan by banks for example actually have no real value when issued. Only way the money can get a real value is if they are covered by actual work. So people have to work to pay them back and create the value of money that they borrowed. But when banks inject money into market that are not covered, suddenly people have higher buying power with no work behind them. And if the people have higher buying power with no effort at all, suppliers must counter this by increasing their prices so they make the same amount of money than before. Else they would not be profitable And thus inflation is born.
And then there is the tax issue with inflation. If you get raise of 20% by inflation the problem that arises with this raise is the fact that you actually have same amount of money as before the inflation, but the tax base increases. So let's say your standard payout is 100$ for ease of our math. If you the say the tax was 20% then you would pay 20$ tax. Now imagine you get raise because we have inflation. The raise is 30%. So you now make 130$. But the income tax you pay now is 26$. Some people may now say that the tax is the same as before. That is true, but all prices rise because of inflation and in the end you have marginaly less buying power than before. It is so small difference that you won't even notice. But add 30 years to that and the difference will show. But then it will be too late.
https://answers.yahoo.com/question/index?qid=20110423044406AAOeI3g
So if people's spending power is less and more of their money is going to the government, that's less money for corporations. The private sector creates wealth and the public sector destroys wealth, and they're destroying more wealth every day. The only reason why the rich is getting "richer" is because they're stealing market share from the middle class.
When the industrial revolution happened, billions of poor people were lifted out of poverty thanks to trains and cars to get to work, advances in agriculture and computer technology. People got rich due to innovation and people collectively increasing their intelligence. Now what we're seeing is a new type of capitalism where money is shifted from the poor and middle class to the rich.
In the 90s Kodak was the biggest technology company with hundreds of employees, but now Instagram gets acquired for 1 billion despite having 13 employees.
In the 90s people brought music and record labels would pay bands to go on tour as sales were so high, but now we have Spotify which pays people hardly anything giving all music for $10 a month.
America used to have hundreds of media companies on tv, radio and magazines, but now it's just six.
I'm questioning whether this news matters as the successful traders will still be successful traders and the rich will still be rich. Same shit different day.
What we're seeing is the end stages of capitalism, where it's like crabs in a bucket, they pull the other one down when one tries to escape, that type of cannibalism. The rich know all this, that this growth cannot realistically go on forever but they're trying to prolong it for as long as they can by cutting wages, jobs, work conditions while snapping up smaller companies buying them out and expanding into new markets with aggressive marketing campaigns.
