Showing posts with label stimulous packages. Show all posts
Showing posts with label stimulous packages. Show all posts

Thursday, August 6, 2009

Get me a Mogadon already, I'm over-stimulated

I wasn't going to write anything else about the state of the economy, In April I was getting bored with the relentless bad news; stockmarket plunges, company collapses and endless Government "stimulation" plans to resurrect economies all around the world and I thought I would devote my writing to getting down to the day to day business of the operation of the stockmarket and company performance.

Oh how things have changed.

Gee, now that the economy is improving, I thought I would have another go at telling you what I think about our economic situation and the apparent green shoots that are now starting to turn into large bamboo poles.

All the signs are that a large number of global economies are improving, economic indicators are up, banks are doing better, company profits are consistent with forecasts, manufacturing looks like it might have reached bottom, more cars are being sold (mmm), all is rosy with the world and Elvis and Michael Jackson are recording a duet in a Burger King somewhere in Kentucky.

This may indeed all be happening, but if you ask yourself why, then you might find yourself uncovering more questions than you answer.

This apparent lazerous turnaround in our collective economic fortunes -it isn't even a very strong one but people are behaving like it is-is linked to one thing and one thing only, the shit load of money that Barrack Obama and his progressive mates the world over have dumped into their economies.

But that is a good thing and its real right?

Well, no is the answer to both of those questions.

I have pointed this out before but this money is being printed by various central banks worldwide and some of it is borrowed and eventually it is going to have to be paid back.

That means higher taxes for those that are working, the middle classes primarily, and more wealth used to service debt and less productivity, in other words another recession sometime in the future or a continuation of the current one.

Socialism doesn't work, borrowing money to give to people to buy cars, shoes, computers, purchase imaginary carbon credits and flat screen TVs may seem like a paradise that keeps the wheels of commerce greased but what it actually does is put off the inevitable.

I really hate to be a pessimistic little bastard but we should all be very skeptical of these signs of economic recovery because they hide the fact that it is based on a lie and is not sustainable in the long run.

I know we have been stimulated to the point of a straight jacketed stupor but we really should ditch the over-priced Starbucks, cigarettes and borrowed moola and wake up.

Dont get me wrong, economically things are going to get better and business is doing OK, we just have to "get on and do it". But its time for careful rethink when it comes to the signs that things are all rosy again.

They are not, and we should learn not to get carried away with it all as some of us are currently doing -the big bounce in global stockmarkets is evidence of that.

Cautious optimism is needed.

Back to stocks again tomorrow.


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Related Amazon Reading

Stimulus Cash Finder: How to get your Share of the $787 Billion Stimulus Bill
Stimulus Cash Finder: How to get your Share of the $787 Billion Stimulus Bill by Rupert Hart
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2009 Congressional Stimulus Bill
2009 Congressional Stimulus Bill by 111th Congress
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Saturday, February 14, 2009

The Definition of Insanity

The definition of insanity is, doing the same thing over and over again and expecting different results. Albert Einstein

I have been mulling this opinion over for the last few months and think it is valid, simple and has a charming sort of 3rd form economics (14 yr old thinking for my foreign readers) approach to things.

Here goes.

Just what do Barrack Obama, Gordon Brown, Kevin Rudd and a whole host of other world leaders know that we don't?

I would argue, when it comes to the large sums of taxpayer dollars these imbeciles are doling out quicker than a rotund Wall Street banker in quicksand, that our leaders know very little indeed.

The answer to the Albert Einstein quandary is quite simple really and not as complex as those who dare to represent us might make out.

Why would one hand out very large sums of borrowed money to citizens to spend and "stimulate" economies when it is that very thing that got the globe and especially North America, in the proverbial in the first instance!

We must do the very opposite to this.

While not stopping spending entirely in the German or Japanese extreme, the answer to our current problems is to save.

Well duh !

Sufficient savings allows us to actually give us a real sense of wealth, rather than the plastic fantastic kind that contributed to this mess. That has to be paid back at some time and that time I would argue is now.

It is the same for individuals, business, large corporations and countries.

This is where reality and fantasy go in polar opposite directions and will probably have serious consequences somewhere else in the future.

What happens if you pile this much debt on top of debt to spend your way out of a problem caused by debt?

Well, eventually you have to pay that debt back.

So what Obama, Rudd, Brown et al are doing is postponing the inevitable and when that time comes the problem will be oh so more dire than it is currently.

Perhaps young Albert had something when he uttered those famous words that I posted above.

Here is another poignant ditty to end the lesson:

"Any intelligent fool can make things bigger and more complex... It takes a touch of genius - and a lot of courage to move in the opposite direction". Albert Einstein

Sorry for the complexity of my simplicity but it had to be said.


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From Fishpond.co.nz - Every Bastard Says No: The 42 Below Story





c Share Investor 2009