My answer: Medicaid/medicare & military.
What are the largest drains on the economy/financial system?
- Thread starter FireWalker
- Start date
Interest payments. All money is created out of debt.
Actually, you are both right.
FED being the ultimate evil owns the Currency that is still world reserve currency thanks to petrol based economy that FOR NOW accepts Federal Reserve notes.
But
Right after FED the military and pharma/medical complex is the next parasite of people.
Of course the political complex the Banker's busy bodies make all of this possible
Do you people realize that the only people who actually produce and make system function are ordinary middle class workers in all the fields from farming to technology,
EVERYONE ELSE IS A PARASITE
FED being the ultimate evil owns the Currency that is still world reserve currency thanks to petrol based economy that FOR NOW accepts Federal Reserve notes.
But
Right after FED the military and pharma/medical complex is the next parasite of people.
Of course the political complex the Banker's busy bodies make all of this possible
Do you people realize that the only people who actually produce and make system function are ordinary middle class workers in all the fields from farming to technology,
EVERYONE ELSE IS A PARASITE
Very true. Predatory class on top and parasitic class below feasting on the middle class.
Taxes. Or did you want a list of all the things they get wasted on?
Yes, bonds (debt) are sold to the Fed and they are supposed to provide cash. The usury is quite high.
All transactions are promises to deliver value. Promise Language fixes that. The Fed broke its promise to provide something of value and reneged.
Include lawyers in your target list (nearly all politicians and legislators are lawyers).
When was the last time a lawyer did time for a white collar crime?
The main problem in the U.S. financial system and in most of the Developed West is a decline in investment in real assets.
Real assets are the basis of any economy; real assets being possessory rights to future income streams. An economy grows in a real sense only when the aggregate amount of real assets or the return on the real asset base is increasing. Such increase in the value of real assets is only accomplished by investing in the creation or maintenance of these assets. It is the value of the real asset base, as collateral, that determines the availability and growth or contraction of credit and money in any economy. The only basis that exists in a fiat currency economy is the value of the aggregate collateral assets that underpine the credit that is the fiat currency. Such an economy becomes more wealthy when the value of real assets is growing faster than the debt pledged against those assets. When you stop investing in real assets and yet contniue to borrow against the value of those assets then the growth of the debt and the cost of debt service will surpass the growth in the value of the asset base which will eventually constrain access to future debt and cause a crises.
The economic problem today is that our failure to invest is stangling to growth of our real asset base and so is making everyone poorer. Consumption and most Governemnt Spending is not an economic driver that can be manipulate without paying attention to investmen in the real asset base that must provide the basis for that spending.
The failure of investment is what is destroying the middle class...the middle class was created as a by product of investment in real assets. Without investment in the creation or maintenence of real assets there will be no middle class...just those who cling to a decreasing real asset base and those who have no assets.
Real assets are the basis of any economy; real assets being possessory rights to future income streams. An economy grows in a real sense only when the aggregate amount of real assets or the return on the real asset base is increasing. Such increase in the value of real assets is only accomplished by investing in the creation or maintenance of these assets. It is the value of the real asset base, as collateral, that determines the availability and growth or contraction of credit and money in any economy. The only basis that exists in a fiat currency economy is the value of the aggregate collateral assets that underpine the credit that is the fiat currency. Such an economy becomes more wealthy when the value of real assets is growing faster than the debt pledged against those assets. When you stop investing in real assets and yet contniue to borrow against the value of those assets then the growth of the debt and the cost of debt service will surpass the growth in the value of the asset base which will eventually constrain access to future debt and cause a crises.
The economic problem today is that our failure to invest is stangling to growth of our real asset base and so is making everyone poorer. Consumption and most Governemnt Spending is not an economic driver that can be manipulate without paying attention to investmen in the real asset base that must provide the basis for that spending.
The failure of investment is what is destroying the middle class...the middle class was created as a by product of investment in real assets. Without investment in the creation or maintenence of real assets there will be no middle class...just those who cling to a decreasing real asset base and those who have no assets.
Liberals, Democrats and Minorities (especially Negros).
We just need to let the job creators do their jobs and back them with tax incentives and subsidies. The working people just can't be trusted with their money.
We just need to let the job creators do their jobs and back them with tax incentives and subsidies. The working people just can't be trusted with their money.
Since when? if the real asset is producing income more than the cost of debt plus depreciation in the real asset, then it does not matter. I think you are putting forth an example of house ownership by common citizen of any country vrs investment into machines and other support real assets for the industry.
House ownership is a by or after product of the investment into real industries. However, there is another argument of 'creating production efficiencies'. You can bypass new investment into real assets of an industry by finding ways to make them more efficient and cost effective.
This is what is going to happen in next 5 years when Robots will invade our daily lives with real momentum. Industrial processes and home services type deals will become more efficient and cost effective.
Btw, you are promoting investment into assets in a debt heavy economy. Where is this investment going to come from? More printing? that will result in inflation or currency devaluation.
Only way US can thwart default now is by a) hyperinflation or b) fiscal discipline borderlining on economic dictatorship. Freel doms of all sort will still be there but 'overspending' will result in jail term for the politicians.
