It's Official, Bridgeport, Connecticut Is A Dismal Town

[fightingquaker13]

I sure understand, I hate being sent away for work!  Seems like I always get sent to some place I really don’t want to be, and something always goes wrong.

But looking at that “Big Girl” I can’t help but wonder about who is spending that kind of cash in this economy?

Great pic Badgersmilk, if the Gov. continues on the same path, that is all our money will be worth!

I'll give you an answer. Here in Palm Beach a guy just bought this old historic mansion on one of the most desireable spots on the Island (it has a little cove for moorage). The thing had been on the market forever and the price kept dropping, still, no takers. Guy comes in with a cash deal. Chinese tycoon? Saudi Prince? Russian mafia? No, a bankruptcy lawyer.
FQ13 who thinks his social calender might be a bit empty

[jp1]

I really think I would support an amendment that would ban lawyers from serving in any type of public office!  With everything going on they always come out on top. The elected lawyers always pass laws that help their own and screw the rest of us, while exempting themselves from the law they pass, it really is a bunch of B.S. I'm never voting for a lawyer again!

[tombogan03884]

I sure understand, I hate being sent away for work!  Seems like I always get sent to some place I really don’t want to be, and something always goes wrong.

But looking at that “Big Girl” I can’t help but wonder about who is spending that kind of cash in this economy?

Great pic Badgersmilk, if the Gov. continues on the same path, that is all our money will be worth!

That's all it's worth now.
The only reason our money has value, being back only by the "Integrity of the US Government", is because people keep excepting it.
If a few hundred people started saying "No, I don't take that worthless paper, do you have cabbages or some other actual item of value ?" It would threaten the entire world economy.

[fightingquaker13]

That's all it's worth now.
The only reason our money has value, being back only by the "Integrity of the US Government", is because people keep excepting it.
If a few hundred people started saying "No, I don't take that worthless paper, do you have cabbages or some other actual item of value ?" It would threaten the entire world economy.

The same is true of gold or diamonds. Yeah, they're pretty, but they don't eat so good. Currency, be it gold or fiat money, is valuable becauase it is scarce and fungible, and holds a store of value. When it becomes over abundant, inflation results. Ironically, the first modern global inflationary crisis was caused by Spain bringing too much gold back from the New World. Gold plumeted in value as too much coin pursued the same amount of goods. Paper or precious metals, its only worth as much as your trading partner thinks it is.FQ13

[tombogan03884]

FQ, could you, in little words, explain why the stimulus has got to result in eventual hyper inflation of our currency, and the consequences of that.
I'm trying to explain it to a guy at work, "we'll be f&cked", lacks some of the detail he was looking for.  

[Sponsor]

[fightingquaker13]

FQ, could you, in little words, explain why the stimulus has got to result in eventual hyper inflation of our currency, and the consequences of that.
I'm trying to explain it to a guy at work, "we'll be f&cked", lacks some of the detail he was looking for.  

Two small words: monetary policy.
The government controls the money supply. It doesn't control production of anything else.
Remember, money is a commodity like any other. Its no different than pots and pans. The more there is, the less its worth.

In an ideal world, if you do it right, more money (running the presses through deficit spending) increases the amount of dollars. More money in people's pockets equals more demand. Demand will stimulate supply and create jobs. This broadens the tax base and the debt is paid down. A rising tide lifts all boats.
In a less than ideal world? Too much money is pumped into the economy. It is chasing too few goods. Productivity remains stagnant, and all you do is devalue the currency. To put it simply, the demand for say, a winter coat is constant. The variable is how much it will cost me to buy it. If money is scarce, $50 is fair. If the printing presses are running hot? $5000 would be fair. The dollar amount is irrelevant. What matters is keeping the currency supply fixed to the rate of actual and expected production. Too much or too little are equally bad.
Now, our problem is that we are producing more pieces of paper that say "The full faith and credit", than we have assets to back those up. The only difference between the dollar and the peso is which you want in your safe deposit box for a rainy day. Me? I'd choose euros.
Hope that made sense.
FQ13

[tombogan03884]

See if I'm on track here,
In 1873 a Cowboy made $40/month A new Winchester (The contemporary latest and Greatest ) cost $40
In 2010 factory workers are making around  $1600, While AR (the current latest and greatest )has settled around $800
making the AR worth a lot more MONEY, but only half the value.

[fightingquaker13]

See if I'm on track here,
In 1873 a Cowboy made $40/month A new Winchester (The contemporary latest and Greatest ) cost $40
In 2010 factory workers are making around  $1600, While AR (the current latest and greatest )has settled around $800
making the AR worth a lot more MONEY, but only half the value.

True, but, the idea that gold holds all things constant is BS. In 1935, the US pegged the value of an ounce of gold at $35. Since then, inflation has said that a 1935 dollar is worth a little north of 16 2010 dollars. Thus an ounce of gold should be a little south of $600 dollars. Yet it is around $1300. Why? People's perception of value. They'd rather have gold than currency, even though the current price is objectively irrational. The point here is that currency is a commodity. Its intrinsic value is zero. Its use value is whatever people think its worth. That evaluation is a product of social and political concerns. Don't belive me? If I were to offer you two ounces of gold for a box of .22LR today, you'd take it and laugh. Four weeks after a TEOTOWAKI event? You'd be laughing in my face and asking if I had any MREs.
FQ13
PS as far as the AR vs the Winchester? Id bet production and material costs play in here. Stuff was objectively more expensive back then as production was less effecient. Factor in modern methods? That Winchester would probably be worth the same 2 weeks wage or less. Doubt me? Everyone's grandmom knew how to sew and owned a sowing machine. How many of our daughters/granddaughters do? Why bother when you can buy new off the net for $15?
FQ13

[sledgemeister]

Hopefully in the next few months us foreign types should be able to buy guns at reasonable prices!! 



That upward trend is the Aus $$ compared to the monopoly US $$.
Might even be affordable to take a trip over to the land where they speak with funny accents 

[billt]

True, but, the idea that gold holds all things constant is BS. In 1935, the US pegged the value of an ounce of gold at $35. Since then, inflation has said that a 1935 dollar is worth a little north of 16 2010 dollars. Thus an ounce of gold should be a little south of $600 dollars. Yet it is around $1300. Why? People's perception of value.FQ13

This is true. What more or less proves it is how much Gold is pushed as a commodity today. They're advertising it on TV every 5 minutes, and people are buying into the scam, big time. Everyone has to have it, or should. People like Glen Beck are the greatest Gold salesmen on the planet. All of this is creating an artificial demand based on nothing more than fear of something that might happen. Same with Silver. It's at $23.00+ an ounce. A year ago it was at $16.00. What's changed? Inflation? Nope. If anything there is deflation. Look at the price of houses and new automobiles and trucks. Yes, a few things have gone up, but no where near enough to push Gold and Silver to where they now sit. Just like the housing market 5 years ago, it has had a "false demand" of sorts placed on it.

The only difference is instead of banks loaning money to idiot's who can't pay it back, we've got guys like Gordon Liddy and Glen Beck telling us it's time to dig that bunker in the back yard and buy Gold, NOW! As always, run with the sheep, and you'll be slaughtered. I look for Gold and Silver to take a major dump a few months after the election, if not sooner. Then, when everyone can't sell what they've got at a huge loss, will be the time to buy it. Again, just like housing.  

If you think about it right now Gold and Silver are sitting right where AR-15's and AK-47's were right after Hussein's election. Their prices skyrocketed based on the perception that something bad MIGHT happen. In the case of AR's and AK's it was the fear Hussein would ban them. He didn't, people ran out of money and credit, and the prices plummeted, and availability went through the roof because people who bought them were dumping them, and manufacturers were producing them 24/7. Now they are all but half price if you shop around. Watch Gold and Silver do the exact same thing. Houses, black rifles, and soon Gold & Silver will join these commodities as abundant and CHEAP!   Bill T.