Home Forums Hunting & Shooting Hunter's Campfire Economic Crash??

Crony capitalism only becomes possible when government presumes to regulate some aspect of the market. [/quote]

Then please explain how the derivative market took down the American economy.

You clearly have no clue as to mercantilism if you think my straight-up free-market economics bear any similarity to it. The Zeitgeisters aren't free market advocates, either. Try again. Hint: you should look to folks like Mises, Hazlitt, Rothbard, and Hayek, if you're seeking to identify my influences in economics.

Certainly the Fed will attempt to keep our Dictator in Chief propped up by digital money. At some point, the $85B monthly will have to be accounted for. Looks like if Bernanke goes, Yellen will continue the monthly "digital heroin" to Wall Street.
At any rate, the Fed will continue to keep our historic POTUS
afloat with free money to the wealthy.
However, as can happen, the old "black swan" can land at an moment and turn this fragile "recovery" into a disaster.
But wait, we HAVE a swan approaching......its called the Patients Protection and Affordable Care Act.
The bottom line to all this is NOT what minutia the boys are debating above here.......we are in a bigger bubble than the "tech bubble" and the "housing bubble", only not many want to admit it.

I don't understand all the political crap or what makes all this economic stuff work. I'm a sinner but all I know to do is pray to Jesus to take care of my family and our country. I have a hard time wrapping my mind around a lot of this. They want our guns they want to make us solely dependent on them cause they know what we need better than we do, they want to control everything we do and they have people working on it 24 hours a day. How do we deal with this without stressing about it all the time? I think about this stuff all the time.

Seal,
It is a lot to take in and very stressful!
My best advice to you is to become self sufficient, take care of you and your loved ones, engage in critical thinking, don't believe the B.S. of others.
Many have an agenda that only serves them, beware of them!
Deal honestly with others and in good faith. The world revolves around good people doing the right thing! Trust your instincts.
And prepare my friend, a little extra food water, security... is wise and prudent.

Much of the digital money created by the Fed since 2008 is serving to replace the destruction of capital that occured during the various financial bankruptcies, and the devaluation of housing, and the various markets. As a result, this has been largly a reflationary, vs inflationary event. With housing prices in may area returning to their pre-bubble levels, and markets hitting all time highs again, IMO it's an indicator that if the Fed continues with a policy of Monetary Easing, we will move into an inflationary enviroment.

When the velocity of money increases we will have extreme inflation.
Right now much of the money printed is sitting in the banks balance sheets to make them look stable.
When that flood of money is released and when when the trillions of dollars held overseas comes flooding home because we have lost the worlds reserve currency status, hang on! Our false prosperity will come to an end.

Talk about spin.

Philosophically I like Hayek, and his Road to Serfdom is dead on, but wow, could his writing style be any worse? After 1929 Keynes lost his edge, but at least he's readable. Of couse Hayek studied under Mises, and was University of Chicago School of Economics at the same time as Milton Friedman.

In reality we agree upon more then you think, I just think there are easier, less disruptive way to accomplish your objectives.

Not at all. It was the failure to reflate that contributed to the length and depth of the Great Depression. Part of the purpose of money is to create a STABLE measure and store of value, both inflation and deflation can be equally destructive to these objectives.

Yep:



Oobies killed the velocity of money. Of course open market operations are not a one way street. If it were to pick up again, the Fed would quietly reverse course, selling bonds as the velocity increased.

Spot on posts AS.

Penguin has an equivocal view of market economics as corrupt intrinsically. He is govt/union oriented.

Central planning is a flop where you find it and a breeding ground for corruption. Private industry tends to do what it has to, to survive. Even derivative wrapping.

There is a legit role of govt law enforcement with regard to good ol fraud but that is very hard when they are in bed with the crooks.

Not a supporter but is it OK for me to make money in the mean time?

Absolutely, need to make the most of the situation. This is especially true if we move into a real inflationary enviroment. Then you won't be "making" anything, but just preserving your purchasing power.