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money locked up in banking never hits consumers
- Thread starter cdcaveman
- Start date
"The modern-day central banker trades with counterparties that are giant commercial banks with derivative books of disturbing scale and complexity. It seems impossible that these commercial exposures could be constructed and maintained without the knowledge and complicity of the official sector. For example, Deutsche Bank, already a defendant in a thousand lawsuits, claims derivative exposure that is 20 times the gross domestic product of Germany and five times that of the entire Eurozone. It is not a great leap to suggest that central bank traders and their megabank opposites -- spawn of the same gene pool, schooled in the same institutions, career paths intertwined, frequenters of the same conferences, and just a speed-dial away -- are ideologically indistinguishable and intellectually and morally corrupt in equal proportion."
I think the way the rich profit is fairly simple. They get to borrow huge amounts of money for basically free. Then inflation wipes away all their debt they just took to lever up. Us commoners can benefit too. Student loan debt and mortgages, for example, get wiped away too. The government benefits by having its debt wiped away and gets the chance to start all over.
The losers are those commoners who are responsible. Those putting their money in savings accounts, not taking out any debt, and those living on a fixed income. I would pretty safely say that most groceries are up about 50% over the last 4 years. That means granny's grocery cart just got cut in half.
The losers are those commoners who are responsible. Those putting their money in savings accounts, not taking out any debt, and those living on a fixed income. I would pretty safely say that most groceries are up about 50% over the last 4 years. That means granny's grocery cart just got cut in half.
definitely... the guy who has a viable business to support a a 800 thousand dollar house with a 3 percent loan is making money by borrowing.. he borrows basically for a negative real interest rate, makes money on the loan, and any additional appreciation in the real estate market over inflation.
The wage earner that rents , makes an increasing wage at a lower rate then inflation.. Causing him to make less money in a relative sense , he is always buying inflated , as he is the last trickle on the trickle down inflation. He pays rent at an apartment, never has any private property.. ends up broke
The wage earner that rents , makes an increasing wage at a lower rate then inflation.. Causing him to make less money in a relative sense , he is always buying inflated , as he is the last trickle on the trickle down inflation. He pays rent at an apartment, never has any private property.. ends up broke
not neccessarily, you take two guys and give them both 20% down on an 800k house. One buys a house, the other invests the 160k in the market. After 30 years, who comes out ahead? It is pretty close, dependng on housing values and repairs and maintenence and depressions.definitely... the guy who has a viable business to support a a 800 thousand dollar house with a 3 percent loan is making money by borrowing.. he borrows basically for a negative real interest rate, makes money on the loan, and any additional appreciation in the real estate market over inflation.
The wage earner that rents , makes an increasing wage at a lower rate then inflation.. Causing him to make less money in a relative sense , he is always buying inflated , as he is the last trickle on the trickle down inflation. He pays rent at an apartment, never has any private property.. ends up broke
I've often thought the fed should include the price of one share of spy in their inflation evaluationI wasn't talking about the stock market..... but that is just buying inflation following assets.. borrowing and buying inflationary influenced assets is more abstractly what i'm talking about
it aint that funny, somewhere there in Proverbs is something which says, "Cursed is the merchant who shaves his weights" (I paraphrase) but back in those days, merchants whould shave a little off their balancing weights to give them a slight edge. It's just become commonplace for even intelligent thinking people to dismiss the unemployment numbers as innaccurate. When all weights and measurements become suspect it becomes a big mess. Pretty soon we will all have to go to the government office and report, and they will tell us if we are rich or poor based on their shaved weights on the scale.They will just keep adjusting the way cpi is calculated to sweep it all under the rug...