Not politics, just economics. Cancel out debts if you can friends.

http://mises.org/daily/3907

 

I have read information like this even before he stepped into office. it is very eye opening to the reality of the situation. I do not understand why people did not see thiscoming. I think people did not think. The honeymoon is over...now reality steps in.

 

The author links Obama policies and those of FDR.

Allow the other shoe to drop... FDR was re-elected three times.

 

But we learned from that! I guarantee he will not be re-elected 3 times!

 

That is a problem.
He has 16 year recovery plan.
The best parts are in next decade, if you'll just give him a chance.

 

I don't think we can afford the remainder of the first 4, much less another decade!

 

That is because they are very similar. Spending should decrease during a recession/depression to allow price correction. That has been short-circuited with gov't stimulus plans (cash for clunkers, $8000 housing tax credit, 787 billion dollar stimulus plan, etc.)

These 'efforts' by the gov't only lengthen the pain, instead of allowing the malinvestments to correct themselves in the free market.

 

The article is pretty much dead on, and I certainly don't have the answers to these problems. But the ridiculously low interest rates started with Reagan and have rolled downhill ever sense.

 

Unfortunately, high interest rates were needed to combat the inflation that was produced in the 60's and 70's by profligate gov't spending. Once the malinvestments are cleared out and gov't spending is reduced, interest rates can be lowered.

The problem is that our gov't always feels the need to control interest rates when the free market should be allowed to control them. This is what is called for in the Constitution and this is also the reason the founders called for Congress to control the value of money (not the Fed, which is controlled by private banks and consults other central banks), which would allow the free market to control interest rates.

Unfortunately with summits like Copenhagen etc., it appears that it will be too late to turn back now. They are telling us that "Americans need to get used to a lower standard of living", meaning, other nations are going to rise up (such as China, Brazil, Russia, India) to the level of the U.S. and the U.S. will simultaneously be brought lower. This is why I am telling everyone that can that they should be retiring debt, if possible. There is no telling how long unemployment will be high, or if even if it will go higher.

 

That is the point where economics start getting over my head. I grew up around people that refered to the depression era quite often. Allot of them wouldn't get close to the stock market because of the things that happened after the 29 crash. my Grandfather was a perfect example. He would watch the market and make his predictions. But wouldn't invest.
IBM, he woulda been king if he wasn't affraid to invest. But his John Deere was more important because it was tangable.
But he worked hard, invested everything in land and timber, very conservative.
But I know people that were depending on savings, but the 80s, no one could live off of savings. The interest rates went to hell. I know poor widow women, that their husbands left them decent savings to live on. Then the goverment took that away with the low primes. Just goes to show you,Nothing is a safe investment but land.... and that is if you don't pay to much for it.

 

#1. Order the book "Economics on One Lesson" by Henry Hazlett

From the Mises.org

This will help with a very good basic understanding of Economic theory and how the current administration is dooming us for a long long time. It was written in the 1940's and you will be astonish how clearly it spells out our current situation.

Next.

LAND is NOT a safe investment. It's not liquid, doesn't have a stable value (the value is in the eye of the beholder) it could be very valuable today, and go to pot overnight (Look at Florida and California)

Your mind is your most precious investment. Next is the people you are connected with, last is your ability to do things. (I would rather be a jack of all trades and a master of none in these days)

 

Thought you were going to tell people be prepared to move to those mentioned countries.

We need to reopen Ellis Island for those that will be leaving the US!

I have encouraged my child to study languages, and think of going abroad before she even starts paying into the wasteful government programs.

Hope she listens, when I'm old and my government retirement is defaulted (Military retirement) then I will need a place to go, hopefully she will be much better off than me.

 

It is land with trees. we've made money off of hardwood, pulpwood and poles over my lifetime. The market is just crap right now. But when the market comes back, my trees will be even bigger

 

Good deal, but.....what if you had a forest fire? and.....how long does it take for a tree to grow?.....and how mobile is your trees.

Don't get me wrong, I wish (grew up on 90 acres with a good sized woods) I had a forest like you, I would get more life enjoyment besides the investment than I would get with something like stocks, or gold. Investments that you can use and enjoy (like land) have a further intrinsic value besides the dollars you make on it.

 

Controled burns actually make a forrest more productive. Just add the mineral Lime

edit: Another quality of land. They just aren't making much more of it.