Walmart is but an (excellent) example of global warning. short term: who cares. Long term: who cares? gold and silver, unless your holding Buffett's a/b shares.
We have abused our own economic system for too long now to reverse the tide. Too many of us fail to get it. We buy at the WalMarts and concern ourselves with price only and buy only foreign made (now mostly China) products and put our next door neighbor out of a job. I daresay that in my opinion, WalMart is now probably the most unpatriotic company I have ever seen in my entire life. Shocking when they were on the Buy American campaign while Sam Walton was alive. He is turning over in his grave right now. In my opinion, Walmart has done more to destroy our country economic base than any other single entity. You wait and see. >>
The abuse isn't in the purchasing habits of consumers. It only makes sense to get the best quality at the lowest price available. The abuse is in our manufacturing and finan- cial situation. Manufacturers run plants based on the status quo and management is more intent on destroying the unions than in making a profit. Money is loaned at 5 or 6% and savers are paid .5% if that. Wall street rewards managers who move or shutter plants while managers make obscene profits for destroying companies or moving them where workers are more easily and cheaply abused.
It will require some personal and public acceptance of responsibility to begin to correct these insanities, but to date no one seems to have the stomach to accept responsibility.
We finally disagree on something. The oil will never run out.
True - oil will never "run out". It will eventually become scarce enough that the price will be too high for the average joe to consider using. People who are willing to buy it at $100/gallon will get it - but the supply will never run out.
When I was in college in '89 our physics prof said the earth had enough oil to last roughly 35-40 years. So we're looking at 20-25 years now. I don't think anyone knows what the supply is, the oil companies keep the supply so closely regulated to elevate prices that they might only be tapping into 5% of what we have. That's the beauty (for them) of an oligopoly.
Throw all economic theory aside and consider this:
As our economy advances, becomes more technological and machine-driven - doesn't it make sense that the work week would SHORTEN and the retirement age would come SOONER?
OTOH, an inflation scenario would be infinitely more desireable than deflation, with dollars so valuable that no one would spend, no one would buy, no one would produce. And what of the truism that paying off old dollar debts with inflated dollars vs. paying off same with dollars that are much dearer now than at the time of incurring the debt?
Not likely the government is going to run out of trees, so inflation is by far the more likely scenario as a mechanism of debt default. Problem is, the instant a major foreign bond holder smells a deliberate inflationary program, they are, as Drucker was suggesting, not likely to wait around to be the last to cash in before the dollar goes lower. No one will want to be the last to sell, and a panic is not out of the question. Unfortunately, the process is self-reinforcing. Selling dollar denominated assets out of fear of a falling dollar increases the supply of dollars, driving down the price, increasing the fear of further price declines, and so on. The traditional cure is to raise interst rates, as Argentina did, but as we all know, the entire US economy is geared to low interest rates and will be until a self-sustaining recovery takes hold as evidenced by an improving employment picture and rising incomes. So far, incomes have continued to decline and at 1,000 new jobs in December, one cannot claim that the employment picture is improving. So the net of it is this: if the Fed is forced to raise interest rates too soon to protect the dollar before the economy is in a self-sustaining recovery, you can expect a highly chaotic outome. The nominal price of your coin collection will be huge; a $1000 collection may sell for $10,000. But then a cup of Starbucks coffee will cost you $23. No one inceases their wealth this way.
Estragon: I can't go on like this. Vladimir: That's what you think. - Samuel Beckett, Waiting For Godot
Comments
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We have abused our own economic system for too long now to reverse the tide. Too many of us fail to get it. We buy at the WalMarts and concern ourselves with price only and buy only foreign made (now mostly China) products and put our next door neighbor out of a job. I daresay that in my opinion, WalMart is now probably the most unpatriotic company I have ever seen in my entire life. Shocking when they were on the Buy American campaign while Sam Walton was alive. He is turning over in his grave right now. In my opinion, Walmart has done more to destroy our country economic base than any other single entity. You wait and see. >>
The abuse isn't in the purchasing habits of consumers. It only makes sense to get the
best quality at the lowest price available. The abuse is in our manufacturing and finan-
cial situation. Manufacturers run plants based on the status quo and management is
more intent on destroying the unions than in making a profit. Money is loaned at 5 or
6% and savers are paid .5% if that. Wall street rewards managers who move or shutter
plants while managers make obscene profits for destroying companies or moving them
where workers are more easily and cheaply abused.
It will require some personal and public acceptance of responsibility to begin to correct
these insanities, but to date no one seems to have the stomach to accept responsibility.
True - oil will never "run out". It will eventually become scarce enough that the price will be too high for the average joe to consider using. People who are willing to buy it at $100/gallon will get it - but the supply will never run out.
When I was in college in '89 our physics prof said the earth had enough oil to last roughly 35-40 years. So we're looking at 20-25 years now. I don't think anyone knows what the supply is, the oil companies keep the supply so closely regulated to elevate prices that they might only be tapping into 5% of what we have. That's the beauty (for them) of an oligopoly.
2 Cam-Slams!
1 Russ POTD!
Thats how "scarce" it is.
our money and the geometric increase in debt we are in for serious trouble. Between the
choice of depression and inflation, politicians will generally choose inflation. Cheaper dollars are one way
of cheapening the national debt but will lead to inflation, hyperinflation and a long period required to
restore our nation to fiscal and monetary normalcy. What appears to be the beginning of recovery is merely
a temporary bubble caused by the rapid increase in circulating dollars and deficit spending. The chickens will
come home to roost right after the National elections. The cost of homes in California is rising as much as
20% a month. Someone knows something about the coming inflation and potential rise in interest rates.
Pay down all debt that is not fixed, save, have some real assets such as a home, rare coins of impecable
quality and a sack or two of silver coins wouldnt be the worst hedge. I would expect Social Security to be
capped, full retirement raised to 72 amd SS taxes raised by 30%. In 2004, no matter who wins the election
expect dramatic changes as the Federal Government must seek huge sources of new revenue to sustain itself.
Camelot
As our economy advances, becomes more technological and machine-driven - doesn't it make sense that the work week would SHORTEN and the retirement age would come SOONER?
2 Cam-Slams!
1 Russ POTD!
social security is being shredded. Furthermore, underfunded pension plans
will begin to go under, bankrupting the Federal Pension Insurance system.
Inflation will devalue the small amount of savings people have and loans will,
within a year or so, become so costly as to be unavailable to most working people.
Survival will require those people lucky enough to have jobs to continue working
in order to have medical coverage and a steady source of inflation geared wages.
People will survive but it will be most difficult and painful.
Camelot
Bacc - 'round these parts oil wells are drilled for $4/ft. So only $8000 for a 2000 footer to out-wit those evil oil companies!
HARD assests are for me!!!!
Vladimir: That's what you think.
- Samuel Beckett, Waiting For Godot