by theluckycountry » Wed 24 Jul 2024, 04:07:29
$this->bbcode_second_pass_quote('Shaved Monkey', '
')
its only a problem if it someone forces you to pay it back
Print your way out add a few zeros... BAU
That works if you can export the money inflation, which the US did for the longest time. Now the printed money is staying at home and that's what causing all the price inflation. The more money in the system, the higher prices rise. Zimbabwe.
It's been well over two decades since the US began to morph from a service economy to a Financial economy. The bulk of GDP now comes from making loans, selling insurance, derivatives, leveraging. It's why these insane companies are allowed to form borrowing hundreds of millions from banks and billions from investors. They are pointless and doomed to collapse but while they are afloat they generate money creation and money velocity in the system.
When the banks write the loans they don't care if they go bad, after all it's just created money, it doesn't mean anything. But as the money flows through the system, velocity, it gets spent and re-spent generating taxes all along the way. If a dollar is spent ten times it's taxed into oblivion, it's gone! A company like Tesla would have never got off the ground back in the 1970's because back then companies had to make a profit (what a novel concept) If they couldn't make a profit no one would touch them. Today you have banks willing to lend to anyone, because if they don't, they collapse, which is what should happen and will happen one day soon.
But until that comes they trade on, getting bailed by the FED and the taxpayer when their liabilities become too great! Then they go right back and fund money burners like Musk with twitter, the shale oil mobs, city real estate, WeWork etc. Because it's a financial economy, it's all based on that! What sort of economy comes after that I don't know but they do have Good banks and Bad banks where the assets are held. Bad banks, the majority of banks, hold all the crap, all the mortgages that will be defaulted, all the rubbish securities etc. The good banks, the insider banks hold all the good paper like farm loans and quality securities. It was the template used in the GD. All the banks closed one day, but only certain banks were allowed to reopen.
The roth and the IRA and all these pension plans are part of the financial economy. They buy the garbage no one would touch and push the price up, people see the price rising and rush in too like a bunch of lemmings. Then the pin is pulled and the price of the companies collapse and the middle classes lose again. Tesla, Bitcoin, they are all controlled by Wall Street, manipulated for profit but not for the people. A couple of weeks ago Nvidia had a market-cap over 2 Trillion dollars. It did a stock split because the shares were over $2000. They all do that. And right after the split (June 10) the price peaked and began to fall. The purpose of the split it to mask the magnitude of the fall but to the dumb public they say ..
"Nvidia split its stock to make stock ownership more accessible to employees and investors,” Whenever you hear a promise like that, get your money out fast!
The big companies always say that and the share price always falls right after. I honestly don't know why the public doesn't catch on? Dumb as Dog$ht I guess. Tesla's collapse of 40% was a classic in this regard. If you have $100 in your wallet and suddenly you only have $60, well bugger! But it's not the end of the world. If you had a $million in the stock market and then you have $600k, well there goes your retirement luxuries. But be of good cheer, you have added to the GDP by making that initial purchase. You have helped make America a vibrant and thriving Financial economy.
Now as for those remaining $600k worth of shares, well according to law they are not yours, they are probably held as "street name" and in the legal name of the broker, held at a digital depository. If the broker goes belly up you're in trouble because you are at the end of a long list of beneficiaries. That's how the law states it now under the new "Financialization" rules. You can have them put in your name, it costs more, but you are still not the legal owner, even though you paid for them. Possession in nine tenths of the law remember.
We're 17 years past the peak now and the 3rd World is going hungry and dark. We'll be next, we're well on the way in fact.