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Germany is more expensive than the United States. Wages, taxes, basic standard of living. Right? Then please tell me why WILLI HAHN can manufacture screwdrivers and pliers far superior in quality t...
Forum Discussion
The economic scenario was based on this...
ONE: The onset of a speculator infestation with energy
TWO The spiking of OIL PRICES with energy, transportation, and manufacturing costs leading the contributing negatives.
My MEE and MBA are from Stanford, U, one gained in 1972 (EE) the 2nd in 1973
STAGFLATION is the enemy. I witnessed first hand an economy in decline because out of control "Whip Inflation Now" could not gain an anchor point in which to stabilize inflation. The cost of borrowing went nuts with double digit inflation.
BUT WAIT!
Ronald Reagan ordered the US Treasury to overhaul the consumer index of determining inflation. Suddenly the index fell seven points. He then pressured OPEC to produce more oil "Or suffer the consequences".
Both measures provided anchor points. Really tangible anchors. STAGFLATION ended
Japan underwent the same painful process in the 1990's and it has taken decades to fully emerge.
I can guarantee WALL STREET IN 1928 was a hotbed of optimism. For entirely different reasons the foundation of the economy was knocked askew and the DEPRESSION was as hard to defeat as the later STAGFLATION.
Economics is a fascinating area that is little understood by people who do not know how to unravel the mysteries. A core index shaker like energy prices or the
Fed suddenly becoming unwilling to support inflation by underwriting it with low interest rates (one cannot utilize long or even mid-term lending rates when debits are satisfied with less valued currency). So interest rates rise, consumer confidence shrinks, prices inflate, consumers retreat, and the malady rears it's ugly head.
The comment displaying current "economic events" was legion in 1929. A virtual war took place regarding buying on margin. The conservative faction was ridiculed. Sound principles of when to buy and when to sell were ignored.
Some of you are in for a shock unless energy prices retreat. This event is in it's infancy. I am following San Francisco's housing price index with special interest.
I purchased that set for what I thought to be a good price. The next time try looking for glass lids for T-Fal, they are sold minus lids. Bit IMHO the appliances are of excellent quality.
CHINA. They have us right where we want them...
China is desperately devaluing the Yuan Renminby. Again this is a long story of how they can almost afford do this, but in fact a Chinese economic collapse may well trigger a war of the worst kind. China is not unity. The people from Guangdon hate the Manchurians, who hate the mid (Mandarin) provinces. When hundreds of millions are thrown out of work they are going to take it out on Beijing with violence. Say goodbye prayers to members of the Politburo and Central Committee. Their corpses will be carried out of their offices.
Let me speculate you. Collection of an (honest) 8% of your annual income. Now go out into the world and try to maintain your current level of purchase, investment or or savings power.
Banks used to perform the same function as speculators when it comes to stabilization of farm and key material index prices. But minus the Las Vegas grade potential rewards. Speculation demands punitive inflation for it to thrive. For 99% of consumers, speculators provide zero advantage.
A simple daily percentage based circuit breaker overlooking speculation would eliminate the Las Vegas grade mentality of energy speculation. But today's mentality would forbid it.
I made a majority of my investment in Mexico's BOLSA. When I learned in the 1980's that USA bus manufacturers were dumping, I purchased DINA B stock at 7/8 peso. I later sold when the stock peaked at 28. Far ahead of Mexico's then inflation index.
By simply waiting a couple of years, either energy prices must stop inflating due to insane crude oil speculation or or you are going to become eyewitnesses to an extremely unpleasant economic reaction. Remember THIS. When China's bond investments mature and the dollar then is worth 25% of initial value guess who loses?
ONE: The onset of a speculator infestation with energy
TWO The spiking of OIL PRICES with energy, transportation, and manufacturing costs leading the contributing negatives.
My MEE and MBA are from Stanford, U, one gained in 1972 (EE) the 2nd in 1973
STAGFLATION is the enemy. I witnessed first hand an economy in decline because out of control "Whip Inflation Now" could not gain an anchor point in which to stabilize inflation. The cost of borrowing went nuts with double digit inflation.
BUT WAIT!
Ronald Reagan ordered the US Treasury to overhaul the consumer index of determining inflation. Suddenly the index fell seven points. He then pressured OPEC to produce more oil "Or suffer the consequences".
Both measures provided anchor points. Really tangible anchors. STAGFLATION ended
Japan underwent the same painful process in the 1990's and it has taken decades to fully emerge.
I can guarantee WALL STREET IN 1928 was a hotbed of optimism. For entirely different reasons the foundation of the economy was knocked askew and the DEPRESSION was as hard to defeat as the later STAGFLATION.
Economics is a fascinating area that is little understood by people who do not know how to unravel the mysteries. A core index shaker like energy prices or the
Fed suddenly becoming unwilling to support inflation by underwriting it with low interest rates (one cannot utilize long or even mid-term lending rates when debits are satisfied with less valued currency). So interest rates rise, consumer confidence shrinks, prices inflate, consumers retreat, and the malady rears it's ugly head.
The comment displaying current "economic events" was legion in 1929. A virtual war took place regarding buying on margin. The conservative faction was ridiculed. Sound principles of when to buy and when to sell were ignored.
Some of you are in for a shock unless energy prices retreat. This event is in it's infancy. I am following San Francisco's housing price index with special interest.
I purchased that set for what I thought to be a good price. The next time try looking for glass lids for T-Fal, they are sold minus lids. Bit IMHO the appliances are of excellent quality.
CHINA. They have us right where we want them...
China is desperately devaluing the Yuan Renminby. Again this is a long story of how they can almost afford do this, but in fact a Chinese economic collapse may well trigger a war of the worst kind. China is not unity. The people from Guangdon hate the Manchurians, who hate the mid (Mandarin) provinces. When hundreds of millions are thrown out of work they are going to take it out on Beijing with violence. Say goodbye prayers to members of the Politburo and Central Committee. Their corpses will be carried out of their offices.
Let me speculate you. Collection of an (honest) 8% of your annual income. Now go out into the world and try to maintain your current level of purchase, investment or or savings power.
Banks used to perform the same function as speculators when it comes to stabilization of farm and key material index prices. But minus the Las Vegas grade potential rewards. Speculation demands punitive inflation for it to thrive. For 99% of consumers, speculators provide zero advantage.
A simple daily percentage based circuit breaker overlooking speculation would eliminate the Las Vegas grade mentality of energy speculation. But today's mentality would forbid it.
I made a majority of my investment in Mexico's BOLSA. When I learned in the 1980's that USA bus manufacturers were dumping, I purchased DINA B stock at 7/8 peso. I later sold when the stock peaked at 28. Far ahead of Mexico's then inflation index.
By simply waiting a couple of years, either energy prices must stop inflating due to insane crude oil speculation or or you are going to become eyewitnesses to an extremely unpleasant economic reaction. Remember THIS. When China's bond investments mature and the dollar then is worth 25% of initial value guess who loses?
