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2009-03-18 Home Front Economy

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Posted by Anonymoose 2009-03-18 16:55|| || Front Page|| [11133 views ] Top

#1 Money represents the economy.

The best way to raise money velocity is to cut taxes on employment and productive work (i.e. Income taxes, Corporation Taxes, Sales Taxes).

Posted by Bright Pebbles the flatulent 2009-03-18 17:34|| 2009-03-18 17:34|| Front Page Top

#2 Wont happen ever with Donks in the exec and congress. I don't believe there has EVER been a time where a donk has been in favor of LOWER taxes on the top earners or money makers including businesses.

Posted by Valentine 2009-03-18 21:01|| 2009-03-18 21:01|| Front Page Top

#3 Looters always rob the productive until there is nothing left to steal.

Obama, The shop is bare. Stop stealing.

Posted by Bright Pebbles the flatulent 2009-03-18 21:03|| 2009-03-18 21:03|| Front Page Top

#4 IIRC, JFK did, Valentine. Of course, he's the last Dem to call for tax cuts to stimulate the economy....

Posted by Barbara Skolaut">Barbara Skolaut 2009-03-18 21:10|| 2009-03-18 21:10|| Front Page Top

#5 Neither taxes nor the velocity of money is the issue here. It's the "bezzle," first defined by John K. Galbraith. Google it. Some examples, courtesy of Karl Denninger:
"== Liar loans: The borrower can't possibly pay off the loan on the original agreed terms and the institution that makes the loan "passes it" to an investor fully aware that the borrower almost certainly lied about credit capacity.
==Overly-rosy projections about growth in property values: The speaker is either incompetent (doesn't understand exponents - a fundamental mathematical concept) or is intentionally deceiving people.
== Overly-rosy projections about the stock market: "The market always comes back" and "over long periods of time it outperforms other investments." Both true, but both misleading; if you're 18 you might be able to wait for it to come back, but the market has remained flat to down from a given level for more than 20 years before. How long did you say it was before you intended to retire?
-----In short The Bezzle is "the lie" that is always present in business.

The truth is always some degree of lying in business transactions - always has been, always will be. And so long as The Bezzle doesn't become the underlying theme in business, it simply bankrupts the people who try to run it when they get discovered.

But when The Bezzle becomes the underlying premise and basis for business transactions that entire segment of the market is doomed.

Eventually the embezzled discover the fraud, and they get angry that the embezzlers stole their money. They revolt in whatever way they are able - if there is no law that gives them recourse and no government support for outing the bad actors they either turn to lawless actions or simply withdraw from the marketplace, refusing to continue to be a victim of someone else's grand scheme of theft... President Obama has ratified The Bezzle instead of working to put a stop to it, and as such he both owns and is responsible for the continuation of the slide in the markets since the election...Government is not responsible for the fraud, but it is responsible for turning its head and refusing to look, investigate and prosecute.

Government profited from the increased tax revenue and "fake wealth" that was "created" as a consequence of The Bezzle, and the campaign bribes, er, contributions that flowed from it.

Now government must choose - either put a stop to The Bezzle, here and now, or watch the market dismantle it piece by piece, firm by firm, and deal with the collateral damage - another 10-20 million unemployed (at minimum) and a Depression worse than the 1930s."

Posted by Anguper Hupomosing9418 2009-03-18 21:37|| 2009-03-18 21:37|| Front Page Top

#6 Now government must choose - either put a stop to The Bezzle, here and now, or watch the market dismantle it piece by piece, firm by firm, and deal with the collateral damage - another 10-20 million unemployed (at minimum) and a Depression worse than the 1930s."

I believe they understand that all too clearly.

Posted by Trader_DFW at work. 2009-03-18 21:47|| 2009-03-18 21:47|| Front Page Top

#7 They are printing to counter falling money velocity. I do know what I'm talking about.

Posted by Bright Pebbles the flatulent 2009-03-18 23:23|| 2009-03-18 23:23|| Front Page Top

23:49 JohnQC
23:37 HammerHead
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