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"Taxation without representation?"
Anyone understand the concept? Anyone?
So when Bernanke says the Fed will further reduce the standard of living for the Middle and Lower class, I have one question:
Which elected official can you turn to to prevent this devaluation?
The answer is none. The Federal Reserve doesnt answer to anyone in the Federal Gov.
Is this not "Taxation without representation?"
Wake up.
"Taxation without representation?"
Anyone understand the concept? Anyone?
so deflation is a taxcut?
awake or asleep, Human-Americans can't, even if the sleep heads wanted to, compete with Corporate-Americans.
Inflation is taxation?
Expand on this statement. How? What is the mechanism and how is it similar to taxation?
It pretty simple.
Lets say the government need a trillion dollars. They can either collect the trillion dollars in taxes or they can simply print a trillion dollars and put it into circulation. That trillion dollars then dilutes the pool of other dollars in circulation and they automatically become incrementally less valuable than they were before the money supply. Thus, a hidden tax as everyones net worth drops.
Inflation happens when the Fed increases currency supply. This power exists independently of our elected representatives.
Inflation reduces the value of money. So for the guy making $3000 a month, inflation means his buying power is reduced as inflation causes prices to rise. An indirect tax on his earnings. Now his $3000 only buys $2700 in goods/services.
Whats worse, who gets hit the hardest? Those that have the least feel this disprportional tax the worst. The rich dont get hit so hard, because the reduction in the value of their currency is offset by the increase in the value of assets.
For those renting, borrowing lower and middle class debtors, the reduction equates to a direct reduction in their standard of living.
The mechanism is the printing of additional currency. The taxation happens when this tax is used to benefit Wall Street and Banking en ies, where the lower and middle class are the ones who will pay.
And it all happens at the direction of the unelected banking interests in charge of the Fed, and with a sleight of hand so slick, very few understand it or question it.
"Taxation without representation."
CC, my mother in' hero.
And how do you feel about the fed being completely outside of the reign of the electorate?
Bernanke is poised to expand our currency even further. And there isn't a representative or senator that you can call to try and stop it.
"Taxation without representation."
Unless he cooked the mother in food, you don't hear that too much around here.CC, my mother in' hero.
Soak in in, CC. You got a admirer.
When the VRWC Lie Machine wants to block the economy from growing, to keep people unemployed, in pain, impoverished, it spews lie about (Dem) deficits and inflation, so people vote the horrific Repugs back into power to shut down govt.
Krugman said a much larger stimulus, $1T?, $2T? (for a $13T GDP economy) was needed short term due to the size of the Banksters' Great Depression, the stimulus and getting demand going again (in an economy that is 70% consumer spending), to get taxes coming in again. The risk of inflation was vastly outweighed by the BGD and the risk of a long-term depression and stagnation.
Well, here we are about 2 years later, the too-small stimulus isn't completely spent, SS COLA absent for the 2nd year in a row, inflation is Too Small To Mention, citizen savers earn nothing while the financial sector sucks 100s of guranteed $Ms out of T-Bonds, BGD drags on with no sign of 9.5% unemployment relenting and needs many years to come down to full rate of 5%, GDP growth is looking like 1% for 2010.
Who was right, the VRWC inflation-fear-mongers or the Krugmans?
The wealthy VRWC, insulated from the pain its inflicting, wins again, inflicting and extending maximum pain on the non-wealthy and starving the beast of the taxes it needs
to function.
So all you inflation fear-mongers go GFY.
He knows more about economics than you, evidently.....Unless he cooked the mother in food, you don't hear that too much around here.
Soak in in, CC. You got a admirer.
How in the do politics and taxes play any part in whats going on with the federal reserve, dumb ass? Those aren't elected officials calling the shots that reduce the middle class to shambles through foreclosures and layoffs.
The right wing is manipulated by the Bankers/Wall St, not the other way around. Pull your head out of your ass, Boutons.
Sad but true. I really don't know how I would take the events of the past 2 years if I were in my late 50s or so, had worked my whole life by doing the right thing and saved up in my 401k hoping to be secure in my later life....only to be ed royally in every orifice.
It's sad because most people who saved had no idea what was coming or what to do when it happened. I realize some people probably adjusted accordingly and maybe even avoided massive losses from 07 to 08 but the majority did not.
Essentially all the wealth that responsible middle-aged middle-class americans had ac ulated by being "responsible" was sucked right away from their accounts and transferred to a very small elite.
Then to add insult they're going to redistribute the wealth again via inflation.
Sucks but theres absolutely nothing any of us can do.
"How in the do politics and taxes play any part in whats going on with the federal reserve, dumb ass?"
The Fed is trying to get the economy going again, an economy cratered by Repug/VRWC politics that deregulated the financial industry and freed up $1T in tax cuts, a $1T cash that went looking for fast, high returns in the commodities and housing markets.
The Fed doesn't operate in a vacuum, you ignorant asshole. The Fed is basically a secret, private club setup by and operated by the financial sector.
"Those aren't elected officials calling the shots that reduce the middle class to shambles through foreclosures and layoffs."
The ELECTED Repugs have blocked all Dem efforts to get the economy moving again, to keep the maximum number of people in maximum pain running up to the mid-terms. The ELECTED Repugs also blocked Spitzer and 18 other state AGs from shutting down predator lending, the Wall St got the Repug Exec to take down Spitzer, aka, the Sheriff of Wall St.
"The right wing .... the Bankers/Wall St"
... are the same thing, you ignorant asshole.
The Fed is nothing but a bunch of bankers who see the time is right to pluck max wealth from the middle class. The collective population's nuts are in a vice, and the time is right for chopping. They have propogated boom/bust cycles since bankers were given control of our economy...[THE KEY] spreading cheap credit to general public AND THE GOVT, and then shutting down currency, stalling the economy and reeling in everything and everyone they have on a hook.
This doesnt fit in your good guy/bad guy scenario...time to do some study on the fed, Boutons.
The banking interests dont give a about which party you join, because they own them both. And then once they get into office, and need to bring home fat to the cons uents, who do you think ALL POLITICIANS turn to? How about the FED!!!
Yes thats right, we are ALL on the hook to the fed, from you, me, the mailman, Obama, Boner, Mccain...we the people, we the govt, we the nation are borrowing from the fed. But those that are lucky to reach the utmost upper reaches of financial wealth benefit from their policies while the rest fall flat on their ass...
And your contention that the Right is Bankers/Wall St is only correct so far as the Right is bought and paid for...but if you cant see that its a rigged game and that while the two parties appeal to distinct members of the voting public, the Fed buries us ALL...
Then you need to do more study on the subject. You stopped at the two parties, which is exactly where they want you to stop, because then you wont ever question how lenders who initiate currency make up to and over 1000% interest on govt debt through fractional reserve lending, printing money out of the game, and sending poor people into despair. And no, those decisions arent made by politicians.
Wake the up.
Considering the currency markets as well as the OPEC price manipulations, inflation is really not a big deal. If anything they have done well keeping inflation in check.
The president also appoints the fed chairman. At that point you could argue that defense spending or really anything for that matter could be construed as taxation without representation.
Really having 2 maybe three choices in cons uencies of multiple millions is where representation breaks down.
Yep, but it still beats any alternative wal-mart greeting mattress stuffing reliance on SS checks for cat food. As long as they don't sell off shares that have depreciated in the short-term, they have not lost anything in a way. They can even buy more shares now.
By the time you hit your 50's, you should already be transitioning to much less riskier investments if you are scared of losing a big chunk of your nest egg.
In your 50's you could easily already have $1mil+ saved up. It could be worth the risk to now be able to swing your $1mil+ sword in the market and try to get a modest 8% return for the next couple of years. Because of the sum and compound interest you could be making $100k+ a year (TAX FREE) from your retirement account alone just from sitting. on. your. ass. Add in other investments outside of your private retirement account and the sky won't be falling too badly.
The game is rigged, but if you don't play - you lose.
For the OP though, we are awake. What now? Nothing. Nothing can be done. Nothing will be done. It is what it is.
Last edited by BlairForceDejuan; 10-16-2010 at 04:55 PM.
With the slight difference that labor prices will follow.
It is really more of a tax on capital than on labor. Generally people's paychecks follow inflation.
It would also have the effect of diluting currently held debt.
Bit of a blessing and a curse.
F-
Please study the material.
If it doesn't happen at a national level, then we should, because it will change the global money exchange rates, won't it?
Well, Fed's been done QE, and announced QE2, still no demand, still no inflation, so inflation scare mongering has been fake and wrong so far.
Do demand push, no wage push, no inflation.
(banks are loving it, borrow from the Fed 0%, lend to the govt at 3%, guranteed, risk free)
Don't forget, the banks are also buying US debt. I just wonder if they are doing that with the 0% loans.
So you think they are intentionally causing harm?
Do you have some first hand statements that shows they are intentionally "plucking" wealth from the middle class?
Seems like you are implying an aweful lot of motive here. Am I right or are you going to backpedal from this claim too?
Yes. Banks are making a lot of risk-free profits. Nice if you can get it.
Of course now they are going to have to swallow all that bad debt from their ty lending and mortgage packaging practices.
I don't doubt for a second CC knows way moren I do about economics. That aint too uncommon, and CC is hardly common.
If you know something too, please teach us Parkay. Hand waving at the fractional reserve banking concept while barking repeatedly at perceived "currency manipulation" did not convince. Thanks for your consideration.
Last edited by Winehole23; 10-17-2010 at 12:04 AM.
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