What is Digg?153 Comments
- s0m31john, on 09/07/2008, -11/+58Too bad voters and the media ignored the only candidate that knew anything about economics. Ron Paul.
- richmomz, on 09/07/2008, -2/+48Prices on just about everything have doubled or tripled in the last ten years and unfortunately most of our paychecks haven't kept up. The few 'savers' that bought gold or other tangible assets did ok as prices kept up with inflation, but the poor people that still keep the bulk of their assets in savings accounts or CDs are indeed getting shafted.
Yet official government statistics claim that inflation has only been between 2-4% in the last few years so something doesn't add up. For anyone interested in what our real rate of inflation looks like I recommend visiting www.shadowstats.com (if you're too lazy to look, our current rate of inflation/money supply growth is at or near double digits). - stradf, on 09/07/2008, -3/+37This article is right on spot. The irresponsable spenders are rewarded while savers will ultimately lose.
Morale of the story? Spend your cash -- now. - scabbers, on 09/07/2008, -1/+31I'd have bought gold, but you can bet the moment I did such a thing a meteorite made of PURE GOLD would land.
- zadadka, on 09/07/2008, -1/+30Economies cannot run solely on credit without Savers / Investors to provide the lifeblood for loan funds in the first place....any shortfall requires banks to go borrowing themselves, which is in no small part how this mess started.
Interest rates must (and will) rise to attract savers, they must be consistent (not loss-leader) and remain attractive... anything else is just another financial time-bomb to bite us harder later. - mdoverkill, on 09/07/2008, -2/+27This is what happens when you have a Fractional Reserve banking system run by greedy bankers
- duggdowncatisad, on 09/07/2008, -0/+21That's why you wait until THE DAY AFTER Halloween when candy is dirt cheap and stock up on it.
- DigitAl56K, on 09/07/2008, -0/+20No it isn't. Did you read the article? The economy is *hurting* people who do save. At the same time, the government is bailing out everyone who acted irresponsibly, so they don't learn and the economy crashes for everyone.
- inactive, on 09/07/2008, -2/+19Just shows that the Dems and the Reps are ***** everyone over. The dem controlled congress serves up the ball and the Reps hit one over the backfield wall... Bailouts, bailouts, bailouts... and we are *****...
- DigitAl56K, on 09/07/2008, -3/+18Here is what I like most: Given that the government is taking over Fannie Mae and Freddie Mac there is no national health care but those with no property are now officially paying at least tens and more likely hundreds of billions of dollars for other people's houses.
Ironic much? - OfNumbers, on 09/07/2008, -2/+17I almost ***** a brick yesterday strolling through the candy aisle after I saw a bag of Reese's Mini-Cups costs about $9.13 now.
- Lhandroval, on 09/07/2008, -3/+17If only we spent federal funds on financial education rather than passing a series of bailout laws that teach the lesson that if you overspend, the government will have your back...
Oh well, I need to stop daydreaming anyway. - Stroggoth, on 09/07/2008, -0/+14>Prices on just about everything have doubled or tripled in the last ten years and
>unfortunately most of our paychecks haven't kept up.
That is what debt will do to our dollar. The more we borrow, the higher the costs as the value of the debtor sinks. That war in Iraq combined with other wasteful spending in the trillions has driven the per capita debt to highest-ever levels. Kudos on your point about our real rate of inflation - it is obviously skyrocketing out of control - just look at the cost of buying a new car these days. $30-40K is fairly typical. - inactive, on 09/07/2008, -1/+14Such as the Fed has been doing for the last 90+ years?
- DutchGuilder, on 09/08/2008, -0/+13Seems like you mistakenly believe that credit originates from the deposits of savers and investors. Long ago that was true, but not anymore. Today new money is created from debt, which is backed by more debt, which is in turn backed by nothing (except "loan fees" which are counted as "deposits").
I too used to think "this can't be true", but it is: http://www.youtube.com/watch?v=rxQgMSMLhyw&feature ...
>Economies cannot run solely on credit without Savers
This should read "cannot run forever" or "cannot run without cycles of pain". - wilf_brim, on 09/07/2008, -1/+14Screw this saving crap. I've been putting loads into cash for the past two years. The facts cited in the article are absolutely true, not exaggerated, and spot on. I'm gonna blow $400 on parts for a home server I was thinking about putting off until later this year
- publiclurker, on 09/08/2008, -1/+13While I share your feelings, I can't help but think that a large gold meteorite landing on earth would cause a lot more significant problems than a crash in gold prices.
- vivisimonvi, on 09/07/2008, -0/+12We all should write Ron Paul's name on every paper dollar we spend! Peaceful civil disobedience!
- Sahdow, on 09/07/2008, -1/+13Home Servers! ***** yeah!
- otbeverly, on 09/07/2008, -0/+11I understand the orange crop report is supposed to be released tomorrow.
- scaaven2, on 09/07/2008, -1/+11Or just buy a foreign currency and sell it when the dollar is weaker.
- dood, on 09/08/2008, -0/+10The next day after I buy a bunch of gold, Walmart will start selling do it yourself iron to gold alchemy kits.
- plainOldFool, on 09/08/2008, -0/+9But Satin feels sooooooooooo nice. If you meant Satan, well yeah, he's a douche.
- TopJack, on 09/07/2008, -8/+17No worries. A filthy-rich Ahlzheimer's patient running for president along with a white-trash hillbilly witch who wants to ban books and force rape babies on women will make everything better.
Look! A celebrity politician! Pay no attention to broke Americans with no home! - inactive, on 09/08/2008, -0/+9LEAVE THE SAVERS ALONE!
- Visarga, on 09/07/2008, -0/+9Finances are so complex that regular people, even accountants, can't wrap their heads around them. Such being the case, it is possible to collapse the country into a scheme that would favor a small minority of the financial elite while the population is happily oblivious.
- DutchGuilder, on 09/07/2008, -1/+9> Yet official government statistics claim that inflation has only been between 2-4% in the last few years so something doesn't add up
The "official" stats on inflation don't include housing, food, or energy. They are just cooked up to make the government look like it is doing a good job. - pak314, on 09/08/2008, -0/+8Perhaps start a brick laying business?
- inactive, on 09/07/2008, -0/+8"Institutions that screwed up but were too big and important to be deprived of an inalienable right to cheap deposits that they can loan out at several points higher. "
The reserves haven't been there in years. If you deposit $100, they will loan out $1000 on it. They are creating money out of thin air. That is why your money is worth so little. - Sidemarx, on 09/07/2008, -0/+7The reason for removing housing/energy/food was originally because it was thought they were simply volatile and over the long-term would trend just as the headline numbers due - you probably already knew that. Thus you had core and headline CPI - although the FED now prefers PCE as it rotates the bundle of goods measured to more adequately measure what current people purchase. Whats worrisome now is that the headline numbers appear to a more accurate representation of inflation than do the core numbers. Thus the usual argument "I pay for housing, food and gas," I think it should be counted in inflation numbers.
P.S. If headline inflation is scaring you don't look at PPI or the misery index - there is more to be expected down the line and stacking unemployment and inflation prints a pretty grim picture. - charlietuna, on 09/07/2008, -1/+8When you have ten minutes or more Google "Money As Debt"
http://www.youtube.com/watch?v=vVkFb26u9g8
I promise it will really catch you attention (and you will not be Rick Rolled). - moogle516, on 09/08/2008, -2/+8Yes ***** retirement, all my money goes towards hookers and blow. My retirement plan is a Colt 45 to the mouth.
- LanceUppercut, on 09/08/2008, -0/+6True but i think it is crazy that one associates movies with eating popcorn. I don't go to movie theaters anymore, too many people whipping out their cell phones feeling important when they really aren't, did the whole home theater at home thing. You are welcome to bring your own popcorn anytime.
- TPorter72, on 09/08/2008, -0/+6Shhhh. The guy thought he was onto something.
- moonshn, on 09/08/2008, -0/+6where do you go about purchasing silver like that?
- A2007HokieAlumn, on 09/07/2008, -0/+6This article offers no solution...what form of currency and/or tangible asset (i.e. gold, silver, copper, OIL) should I be investing in for long term? Please help me Digg community, sarcasm encouraged.
- inactive, on 09/08/2008, -1/+7You know when I almost ***** a brick? When I decide to treat myself to a theater movie for the first time in a long time and found that a bag of popcorn and a drink are 20 dollars. The next time around, I brought an oversized purse, with a bag of my own popped popcorn and my own drink. Getting thrown out is absolutely worth not paying 20 dollars for a .50 worth of popcorn and .20 worth of pop.
- SpykerSpeed, on 09/08/2008, -0/+5Commodities are fickle and could be overvalued now, but the only certainty is the dollar will continue to fall unless government policies are changed fundamentally. So keep your money invested in ETFs that reflect foreign stock indexes. Diversify geographically.
- inactive, on 09/07/2008, -1/+6That's why I invested in pork belly futures
- dialectical, on 09/07/2008, -0/+5Actually, what we have seen in North America and around the world is Stagflation. Stagflation is when prices increase but economic growth and purchasing power remain the same or decline. This was made worse by the fact that low interest rates and easy to get credit was used to make up the difference. It was a triple whammy left over from the tech boom and the United States' nearly unmanageable debt.
- specialK16, on 09/08/2008, -0/+5Fellow diggers, give me an opinion.
What would you do if you already had a CC debt, and now that you realized how ***** up things can get when credit runs out of control (either because you had an emergency or because you are just a ***** up administrator), how would you begin to kill your debt and save? - Sahdow, on 09/07/2008, -0/+5Spend your money on a time machine that will take you 5 years back or more so that you could tell your past self to buy gold instead.
- SilverBlade2k, on 09/07/2008, -1/+6Americans? becoming responsible? HA.
The irresponsible ones will always be complaining because they can't continue to be irresponsible!
The 'responsible' consumers have every right to complain now because the irresponsible consumers have ***** everything up.
Maybe the American system should be re-tooled. Responsible consumers should be awarded and the irresponsible ones should be hammered down hard and force them to change their habits. - fabkebab, on 09/08/2008, -1/+6Dave Ramsey
- pak314, on 09/08/2008, -0/+4Good news mortimer.
- ZenMojo, on 09/08/2008, -3/+7Meanwhile, this is what Republican lobbyists use for giftwrap. (No, this is not a joke.)
http://www.youtube.com/watch?v=xXj-oQm-NbE - DutchGuilder, on 09/08/2008, -0/+4Speaking of numbers, in the wake of giant mortgage/debt/credit problems America is facing it is very disturbing that the Fed no long has to publish its M3 numbers. That can't be a good thing for average citizens.
- foohookups311, on 09/08/2008, -1/+5Amen on the Dave Ramsey. He is a bit religious if you don't care for that kind of thing he still sends a powerful message on how to get out of debt. Basically in a nut shell you will have to spend less then you make and put the difference into an emergency fund. This is sometimes easier said then done when you are already used to a certain lifestyle.
- ichbeineinrcg, on 09/08/2008, -1/+5Go ***** yourself and your salad, skinny. Me and the rest of the obese Americans are having Nutrageous Bars for dinner.
nomnomnomnomnomnomnom - DangerCollie, on 09/08/2008, -1/+5I'm going to keep saving, but it is a loser right now. It will erode over time, even in t-bills, which is really bizarre when you think about it. That means the Chinese, Saudis, everyone buying US debt is losing money on it. How long can that go on?
But I'm going to keep saving because I just don't know any other way to live my financial life. If I buy things, I try to buy things that functional and intrinsic value. -
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