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The best definition of a pretend economy is the one that defines the entire set up we currently have. It is an economy of designed scarcity in order to increase earnings.
Rather than make a washing machine that would last a life time, and the technology exists for such things, these items are designed to require replacement within a certain period. Rather than plan an economy based on the best use of available resources to benefit humanity, we currently plan for obsolescence of goods and the purposeful destruction of resources to maintain the scarcity and improve profits. They burn diamonds and dump coffee.
And then we have all the idiots out there following the lunacy of right wing politics and blow hards like Limbaugh who claim there are plenty of resources and room to grow no matter how big the population and no matter how much we waste. But the cows are coming home now…
[quote=”sprite”]The best definition of a pretend economy is the one that defines the entire set up we currently have. It is an economy of designed scarcity in order to increase earnings.
Rather than make a washing machine that would last a life time, and the technology exists for such things, these items are designed to require replacement within a certain period. Rather than plan an economy based on the best use of available resources to benefit humanity, we currently plan for obsolescence of goods and the purposeful destruction of resources to maintain the scarcity and improve profits. They burn diamonds and dump coffee.
And then we have all the idiots out there following the lunacy of right wing politics and blow hards like Limbaugh who claim there are plenty of resources and room to grow no matter how big the population and no matter how much we waste. But the cows are coming home now…[/quote]
Great point Spirit… seems the “old school” idea of supply and demand is out the window these days… now prices are driven on fear and what some talking head THINKS might happen in the market. Look at oil right now… it’s being drive up by the FEELING that demand will increase with the economic recovery that the same people CLAIM is coming!!! NOT what we have as far as CURRENT supply and demand. When this recovery might happen seems pretty fluid as it seems these same folks keep changing the timeline and have failed to explain just what it is that is going to bring it about!!! But let’s face it… the pretend economy of the past 10 years and the churned bubbles we witnessed (Tech stocks, commodities, real estate, and associated financial instruments) were not REAL economic surges. They were pretend based on what people felt was something real. And now the real cost of our “playtime” has come home to roost!
It was a crazy time… companies would announce they were laying off 5000 employees and their stock would surge…. because some genius would say they were getting “lean and mean”.. never mind that we now had 5000 more people/families unable to buy their product… and apparently the enlighten management of these companies was so out of touch with REALITY that they had 5000 employees sitting around they apparently didn’t need!!! LOL Pure perception that had NOTHING to do with the real underlying value of the company or it’s stock price.
Real Estate was the big one… because it reached down to folks that were not playing the stock market or trading in commodities… it hit mom and pop… it hit main street… and it hit hard! More pretend economic games. And the banks were right there to make money on it… and when they had allowed folks to borrow their future…. what did they do… they repackaged all the loans and sold them to the market like they were REAL investment instruments… when in fact they were nothing more than junk bonds of a pretend investment~!
After QE3, 4, 5…. and the economy still isn’t where it was during the “good times”… perhaps we’ll see a readjustment of perception and real value!
This ain’t pretty….
“This is a chart of the US monetary base. In simple terms, it charts how much money the Fed has pumped into the system (at least that it admits). So it’s a kind of visual of the Fed hitting the PANIC button: when the monetary base explodes higher, the Fed is FREAKING out.”
See more at: [ http://www.zerohedge.com/article/why-you-should-be-freaked-out-about-stock-market ]
As stated in the article: “So if you think that all is well “behind the scenes” you’re in for a rude surprise. Something BIG is going down and it’s NOT good. ”
Scott
These charts add a little more color to the story;
http://www.shadowstats.com/charts/monetary-base-money-supplyUS Dollar: Costa Rica colones
494.59 colones:US$1
Wall Street shares slump as S&P downgrades US debt outlook
US budget deficit has moved from a surplus at the turn of the millennium to a deficit of 11% by 2009
[ http://www.guardian.co.uk/business/2011/apr/18/us-economy-credit-rating ]
[quote=”Scott”]Wall Street shares slump as S&P downgrades US debt outlook
US budget deficit has moved from a surplus at the turn of the millennium to a deficit of 11% by 2009
[ http://www.guardian.co.uk/business/2011/apr/18/us-economy-credit-rating ][/quote]
A side note; A massive geopolitical realignment is now taking place with news today from the Saudis which will devastate the dollar. The Saudis have realized that they are being betrayed by the West and have decided to play hardball by limiting production of oil production and going to Russia seeking a cooperative agreement to perhaps replace the US. The next step is removing the dollar as the world oil currency. The step after that is a huge spike in petrol costs in North America…probably just before the dollar crashes anyway.
I hope all you kiddies have your food survival packages and home safes filled with gold or silver ingots and your weapons oiled and loaded….you won’t need any fuel to cook with because you’ll have a lot of worthless paper to burn.
[url=http://www.youtube.com/watch?v=nI-BIVWlc7A]The next step is removing the dollar as the world oil currency. [/url]
End of America…
It’s a long video, but try to watch it. It’s worth it.Only true for some domestic products but since oil is the major component in most manufactured products your plan would screw the average Costa Rican to the wall. Sure would be a lot easier to drive the highways (all empty). If Baranke keeps printing money he will collapse the Dollar into oblivion and cause Hyperinflation….fuel has gone up 30% in 5 months and food is about the same. Inflation is tax – somebody has to help the thieves on Wall Street to cover their losses.
[quote=”gzeniou”]In fact it would do the opposite effect, the overall cost of living will decrease, as products would cost less, and trade would be greatly increased bringing in more income, why do you think China owns us and a good part of the rest of the world, and while their people are poor, you have to compare to where they were 20 years ago, their standard of living and wages have increased dramatically.[/quote]
[quote=”GoingLikeSixty”][url=http://www.youtube.com/watch?v=nI-BIVWlc7A]The next step is removing the dollar as the world oil currency. [/url]
End of America…
It’s a long video, but try to watch it. It’s worth it.[/quote]I saw this one a few months ago. There are numerous articles by respected analysts who have come to the same conclusion presented in this video. And I know quite a few people who have come to realize what has been happening and what is likely to happen next. What astounds me is that there are still those who believe that nothing extraordinary is going on, that this is just another “business cycle”. These are people who will be victims of the normalcy bias, which I believe is mentioned in the video.
Normalcy bias
From Wikipedia, the free encyclopedia
“The normalcy bias refers to a mental state people enter when facing a disaster. It causes people to underestimate both the possibility of a disaster occurring and its possible effects. This often results in situations where people fail to adequately prepare for a disaster…Upon hearing about the S & P downgrades last On Tuesday, I bought $250,000 worth of Swiss Franks. By weeks end the move had already saved me almost $2000 in lost value. ugh.
[quote=”electeel”]Upon hearing about the S & P downgrades last On Tuesday, I bought $250,000 worth of Swiss Franks. By weeks end the move had already saved me almost $2000 in lost value. ugh.[/quote]
I see you are trying to keep one step ahead of the falling dominoes. It seems to me that all paper is going in the same direction compared to precious metals and other commodities.
I am curious as to why you don’t just skip ahead past the paper currencies and go right on into gold or silver. Unless you believe that the central bank ponzi scheme might continue for another decade or so. How many more delay tactics could they have up their sleeve?Some of what Buffet and Munger are thinking about in regards to the US economy. I have been a great beneficiary of emerging markets and commodities, bought SLV at $27, currently at $47. That said I believe there is a bubble setting up to burst in Gold and Silver, time will tell.
Treasuries are paying little at the moment, but what do you think will happen when rates go up, say 6-8%. I think there will be no shortage of buyers and gold/silver get taken out. The US dollar may be taking a beating, but I just don’t see the beleaguered EURO taking it’s place in world markets. The entire “EURO Zone” is under a tremendous amount of pressure and it’s future is quite uncertain, Germany seems to have had enough. I certainly don’t see gold becoming the worlds reserve currency.
Put the wrong link in, this is the one I meant to add.
Lotus,
Are you serious? Do you really believe that the fiat paper currencies in the world can continue? Every single paper currency that has been brought into play throughout history has failed. Every one of them. They are designed to fail..designed obsolescence is exactly how central banks extract the wealth from workers and power from kings and nations. It is the essential component of these grand ponzi schemes..and they always work..to your detriment.
What is amazing is that people forget the disasters and as soon as one currency fails, impoverishing a population, another is eventually brought back in by the banks and the game starts again.
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