Thursday, July 1, 2010
Now's the Time to Strike
Stick your Austerity Program, here is a simple solution to our financial problems and it will end foreign domination of our product lines from food to cars. Short term pain perhaps, but if you are fast enough or are already prepared for Shit to Happen then this is the answer
A drastic devaluation of the dollar as demonstrated by Iceland solves the problem of trying to pay off the debt run up trying to save the financial system (the same system that screwed itself) by doing it with cheap dollars.
Not only that but a big consideration of mine is accomplished by devaluing the dollar making imported goods way to expensive so we would have to reopen closed factories , put million back to work, increase tax revenue ,allow seniors to live in comfort, and return a large part of the 22% unemployed back to work. Hell , we might be able to rebuild destroyed cities , the possibilities are endless.
Ok, you know somebody has to pay the price, yep , that's true and guess who gets stuck this time. The very same people who caused the mess in the first place. Poor dears, will be reduced to a million bucks or two. I feel their pain...LOL
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Inflation, i.e. devaluation of the dollar, rocks. Let's say that back in the day when $100 was worth $100, you got paid $100 per week and you accumulated $100 in debt. Now lets say the value of the dollar has been cut in half, meaning that $100 in today's dollars is $200. You get paid $200, but the debt you accumulated back in the day is still only $100--it is not adjusted for inflation. That makes the loan twice as easy to pay off--hell, it might even revive a toxic asset.
ReplyDeleteEXACTLY..BUT IT GETS COMPLICATED FROM HERE. It would make the price of oil immediately to x's whatever you devalued by. Say it would go to $12 buck a gallon gasoline, ouch, but if the whole world devalued at the same time, think new world currency what would be the results long term. I think I just ran out of math, but with no other way out of the deficit problem , I say roll the dice. Some argue we still need to buy Chinese junk, I say not at these prices, I'll wait till some North American makes it. There's little we import that we need tomorrow. Oh I can think of all kinds of problems, but not as big as the ones Austerity will cause. Think WW3, shit we might get that one anyway, but I'm willing to take the chance.
ReplyDeleteDevaluation is the economic "nuclear option". Much of this problem could be solved simply by returning to the still quite reasonable taxation scheme of the 1990's, and lifting the wage base on the SS portion of the payroll tax.
ReplyDeleteCheck out this song that one of my favorite bloggers wrote for Independence Day. Melds perfectly with the title of this post.
ReplyDeletehttp://tiny.cc/uj16x
Your definition of roll is up to you