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Greenspan's speech
- Thread starter illiquid
- Start date
I have econ degree so I know just a little bit about what I am talking about..but you don't read this stuff in textbook..the sociopolitical background is missed out..forget about the abosolute/comparative advantage thing you read in 101 or international trade, the real world is much more complicated than that...
economics tell us what SHOULD be? not what WOULD be
it's not even economics..just common sense..
if you are a typical asian and you save 30% of your income (compared to 2% in america) and you you exchange you labor for USD1000 in 1971, and you put it in a deposit box and decides to spend it 20 years later..when that time comes, you realize that your USD1000 have only $300 of purchasing power because of Inflation.
there are 1 billion asians that are exploited that way..Is that the biggest scam in history or what??
economics tell us what SHOULD be? not what WOULD be
it's not even economics..just common sense..
if you are a typical asian and you save 30% of your income (compared to 2% in america) and you you exchange you labor for USD1000 in 1971, and you put it in a deposit box and decides to spend it 20 years later..when that time comes, you realize that your USD1000 have only $300 of purchasing power because of Inflation.
there are 1 billion asians that are exploited that way..Is that the biggest scam in history or what??
Inflation is insidous in the sense that it's a hidden tax, a illusion to the mass, a way to for the government to exploit its citizens, as practice by the US for global economic imperialism, it's used to exploit labor around the wolrd simply because the us dollar is used as the reserve currency for the world. it's as "good" as gold..and the US has use exploit this fact to its advantage, as britian did in 19th century when the pound was dominant..
inflation distorts price and reduce allocative efficiency and economic progress because consumers and producers get the wrong price signals. In cases of hyperinflation, people return to barter and its distratrous effects on division of labor and economy.
If you don't understand the insidious nature of inflation, you must be one of those people who enjoy paying taxes...
inflation distorts price and reduce allocative efficiency and economic progress because consumers and producers get the wrong price signals. In cases of hyperinflation, people return to barter and its distratrous effects on division of labor and economy.
If you don't understand the insidious nature of inflation, you must be one of those people who enjoy paying taxes...
Quote from vegasoul:
I have econ degree so I know just a little bit about what I am talking about..but you don't read this stuff in textbook..the sociopolitical background is missed out..forget about the abosolute/comparative advantage thing you read in 101 or international trade, the real world is much more complicated than that...
economics tell us what SHOULD be? not what WOULD be
it's not even economics..just common sense..
if you are a typical asian and you save 30% of your income (compared to 2% in america) and you you exchange you labor for USD1000 in 1971, and you put it in a deposit box and decides to spend it 20 years later..when that time comes, you realize that your USD1000 have only $300 of purchasing power because of Inflation.
there are 1 billion asians that are exploited that way..Is that the biggest scam in history or what??
An Asian worker transfers his labor into American dollars and then keeps those dollars in a cd in Asia? Why not put those dollars into US treasuries or something where it can relatively keep pace with the inflation rate the US experiences. Oh i get it, lets blame the US for inflationary policies because people didn't allocate their resources to protect against inflation.
If you have an economics degree than I would have thought you would appreciate taxes from an economic sense. America is full of "bad" taxes, but taxes at their core are a very crutial part of our economy and wealth distribution. Are our taxes a bit too much in some ways? I'd answer yes, but (some) major taxes are economically efficient, such as income and property.
So to answer you; no, I don't mind paying most taxes.
So to answer you; no, I don't mind paying most taxes.
vegasoul- It has been almost twenty years since my econ degree, I have forgotten a few things. One thing I remeber is marginal this equals marginal that. I have also heard of exchange rates.
First do asian workers get paid in dollars. No or not usually. So their savings or investment patterns are internal and not effected by our inflation. The question is really much deeper than that. The question is assuming the U.S. does inflate. Who will be left holding the bag. The u.s. or china and Japan. Something tells me it won't be china or Japan.
I do ask you to explain your thesis deeper. All I know is Japan has little natural resources and was a wreck after world war II. They started exporting stuff to us and made themselves a wealthy nation, not based on selling natural resources to us. We got electronics and cars and they got rich. They did not get exploited. Now china is doing the same thing. I doubt it is a mistake. But it may be good for us too because they hopefully are less likely to nuke the U.S.
First do asian workers get paid in dollars. No or not usually. So their savings or investment patterns are internal and not effected by our inflation. The question is really much deeper than that. The question is assuming the U.S. does inflate. Who will be left holding the bag. The u.s. or china and Japan. Something tells me it won't be china or Japan.
I do ask you to explain your thesis deeper. All I know is Japan has little natural resources and was a wreck after world war II. They started exporting stuff to us and made themselves a wealthy nation, not based on selling natural resources to us. We got electronics and cars and they got rich. They did not get exploited. Now china is doing the same thing. I doubt it is a mistake. But it may be good for us too because they hopefully are less likely to nuke the U.S.
I am not the only one that's unhappy about the current monetary system.
Warren buffet FX all his USD into foreign currencies(didn't say which) awhile ago. Actually, he wrote a very insigtful article(forgot where) on the how the US is going to inflate to solve its economic problems which prompt to do research on the issue and I was appall by what is actually going on.
this not only affects asians, but 99% of the american who have very little net worth. everybody is been rip off by greenspan and wall street. Who benefits?? the top 5% of the population that understand how money works, you can do some research yourself. Here is a good start.
http://www.fame.org/
I am not against the US, I am against to the people who have manuplulating the capitalism and democracy to their advantage,
I am after the scums in coporate america, banks, and a government that is not accountable to the american public.
may be some people should spend less time watching cartoons like kindergarden kids and start to notice what sort of world they live in...
Warren buffet FX all his USD into foreign currencies(didn't say which) awhile ago. Actually, he wrote a very insigtful article(forgot where) on the how the US is going to inflate to solve its economic problems which prompt to do research on the issue and I was appall by what is actually going on.
this not only affects asians, but 99% of the american who have very little net worth. everybody is been rip off by greenspan and wall street. Who benefits?? the top 5% of the population that understand how money works, you can do some research yourself. Here is a good start.
http://www.fame.org/
I am not against the US, I am against to the people who have manuplulating the capitalism and democracy to their advantage,
I am after the scums in coporate america, banks, and a government that is not accountable to the american public.
may be some people should spend less time watching cartoons like kindergarden kids and start to notice what sort of world they live in...
Quote from jem:
vegasoul- It has been almost twenty years since my econ degree, I have forgotten a few things. One thing I remeber is marginal this equals marginal that. I have also heard of exchange rates.
First do asian workers get paid in dollars. No or not usually. So their savings or investment patterns are internal and not effected by our inflation. The question is really much deeper than that. The question is assuming the U.S. does inflate. Who will be left holding the bag. The u.s. or china and Japan. Something tells me it won't be china or Japan.
I do ask you to explain your thesis deeper. All I know is Japan has little natural resources and was a wreck after world war II. They started exporting stuff to us and made themselves a wealthy nation, not based on selling natural resources to us. We got electronics and cars and they got rich. They did not get exploited. Now china is doing the same thing. I doubt it is a mistake. But it may be good for us too because they hopefully are less likely to nuke the U.S.
it's simple. all those exports are being paid by dollars, not in local currencies because the greenback is the reserve currecncy of the world. These dollar represent CLAIMS to american assets and american labor. If the dollar decline, these claims become decimated and buy less assets and labor. So the asians are working their ass off for a piece of wallpaper...they export, we consume, and because asians are so frugal, they don't consume american imports, which is why we have a CAD. they In turn get a piece of paper...
the issue is that they are happy to let this go on because asian countries have very large income disparity and Inflation (through pegging to the dollar) allows wealth distribution in the system.
the world is basically functuing as a welfare state..
Quote from vegasoul:
what he means is that americans can continue to rip off hard-working japanese, chinese,taiwanese,koreans while he will keep everything under control by printing paper money to pay for US consumerism. Let those stupid asians work their ass off to get a piece of PAPER. the asian goverments are happy to let this exploitation go on, so why not exploit them?
the punchline is inflation, the US dollar has lost 70% of its value since 1971, which also means all that 70% of the foreign reserve in asian countries has become toilet paper.
It's just another form of slavery, economic imperialim. a money/wealth illusion..why the asians put up with it is totally beyond me..
If my view a seems controverial, IT"S NOT, it's economic reality..
Try to prove me wrong, I am quite certain it's a futile excercise.
You do not know WTF u talking about.
I cant comment on the exact scheme of chinese, taiwanese and korean workers but the fact that you mention that US rips off hard working japanese shows that in all blunt honesty you are quite clueless.
Japan practices predator economics and simply rips off its own people to be able to gain strong dominating presence gloablly. Any electronic component is sold at a high mark up to its foreign prices in Japan. All of the japanese people are brainwashed to constantly upgrade their home electornics. Thats why you can get a whole working entertainment system from the garbage in Japan. However, it is shameful for the Japanese to have outdated equipment, hence they will constantly spend their earned yens on overpriced electronics from their own home companies (especially Sony). Meanwhile, Sony can sell a Minidisc player at a discount price in the USA for over 2 years (which is great BTW).
So do not even try to say that US rips off japanese hardworking people. It is a much more complex issue that is way out of US's reach. Nobody is forcing Sony to come sell their products here. In fact, 2 decades ago US was trying to fight it.
Being that asians overall have a tendecy to have a brainwashed community "teamwork" mentality, I would not be surprised if China, Korea and Taiwan had a similiar type of scam going. I'm sure Samsung is using the same tactic that the Japanese companies used to break into the global markets.
Stupid asians work their ass off and get ripped off? That would mean that they are worse off now than they were before. Does not seem like that at all.
Why don't you stop trying to preach you conspiracy theory and look at whats really goin on.
as japanese are rip off by their own government, american are rip off by the FED and the banking/financial sector. It's sad that you don't even realize that when you makes those comments.
Besides those xenophobic comments, Do u have ANYthing to contribute on the current state of YOUR country monetary system ??
why don't you confront me on monetary issue instead giving me your opinions on "shame", "teamwork"confusiusm ..I will gladly debate you on the effects of inflation, monetary policy , that is , if you know anything about it which assume you don't...
As I have said, it's not americans that I have problems with.My quelms are with the way monetary policy is conducted in this country since 1971 when the world went off the gold standard and the dollar became as "good "as gold.
Besides those xenophobic comments, Do u have ANYthing to contribute on the current state of YOUR country monetary system ??
why don't you confront me on monetary issue instead giving me your opinions on "shame", "teamwork"confusiusm ..I will gladly debate you on the effects of inflation, monetary policy , that is , if you know anything about it which assume you don't...
As I have said, it's not americans that I have problems with.My quelms are with the way monetary policy is conducted in this country since 1971 when the world went off the gold standard and the dollar became as "good "as gold.