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Warning
Sept 18, 2008 2:23:29 GMT -5
Post by rams on Sept 18, 2008 2:23:29 GMT -5
I seldom do this, if ever, but in light of certain Keynesian economics that has finally come to roost, on a pan-regional area, it is best to warn to liquidate and vacate now, any 1st world country under these conditions;
1. Its debt yield against principle is +51% (example: USA=244%)*
2. Any country that is levered to the exposure ratio over 100% (example=UK)
3. Any country that has a real estate insolvency ratio of over 30% (USA=207.2%)
4. Any country that liquidity rate is less than 35% (most of the 1st world)
Answer:
operate at No Debt cash and carry own what you have at no mortgage rent instead of own find countries with a debt-trade ratio-dollar rate at better than 5 to 1 (Mexico=7.6 to 1 dollar) learn to not buy on time, anything.....
* = The US is now at a point that at the accrued debt principle rate/level, if the interest payment owed, alone, is serviced daily at $1BN per day, would be paid off in 455 years. We are now past the point of no return of servicing just the leveraged debt interest, not the principle. The $85BN bailout yesterday of AIG, put us over the irreversible milestone line.
Just a thought.
1st world is about to learn a lesson......
RAMS
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Warning
Sept 18, 2008 4:40:19 GMT -5
Post by Roland of Gilead on Sept 18, 2008 4:40:19 GMT -5
Most of us have little choice in this, although I do now live mostly without debt. I'm making payments on a 73" HDTV, but it's very short-term. Like most selfish baby-boomers, I guess I'm just hoping some semblance of normality persists long enough to get me safely off the planet.
With my limited understanding of economics, it sure appears to me that we could be headed for something so horrible it will make the Great Depression of the 1930's look tame by comparisson, don't you agree? At least then we had a manufacturing base. We no longer have the tools to dig ourselves out.
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Warning
Sept 18, 2008 12:35:43 GMT -5
Post by rams on Sept 18, 2008 12:35:43 GMT -5
I agree. We are at a point of crucial resolve if things are not changed suddenly.
It is very bad.
RAMS
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cdh
Full Member
Posts: 104
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Warning
Sept 18, 2008 13:23:17 GMT -5
Post by cdh on Sept 18, 2008 13:23:17 GMT -5
Agreed....we are on the slippery slope. cdh
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Warning
Sept 18, 2008 16:17:43 GMT -5
Post by Shadout Mapes on Sept 18, 2008 16:17:43 GMT -5
NS! LOL Five Sterns! ***** ><Tomasina ChicaWolverina! Most of us have little choice in this, although I do now live mostly without debt. I'm making payments on a 73" HDTV, but it's very short-term. Like most selfish baby-boomers, I guess I'm just hoping some semblance of normality persists long enough to get me safely off the planet. With my limited understanding of economics, it sure appears to me that we could be headed for something so horrible it will make the Great Depression of the 1930's look tame by comparisson, don't you agree? At least then we had a manufacturing base. We no longer have the tools to dig ourselves out.
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Warning
Sept 19, 2008 3:36:57 GMT -5
Post by Roland of Gilead on Sept 19, 2008 3:36:57 GMT -5
By the way, you seem to put much of the blame on Keynesian Economics, and although I think much more of the blame is to be placed on Laissez-Faire "you're on your own" policies, I thought everyone might enjoy a refresher on just what John Keynes believed: ____________________________________ Keynesian economics (pronounced /ˈkeɪnziən/, also Keynesianism and Keynesian Theory, is an economic theory based on the ideas of twentieth-century British economist John Maynard Keynes. The state, according to Keynesian economics, can help maintain economic growth and stability in a mixed economy, in which both the public and private sectors play important roles. Keynesian economics seeks to provide solutions to what some consider failures of laissez-faire economic liberalism, which advocates that markets and the private sector operate best without state intervention. The theories forming the basis of Keynesian economics were first presented in The General Theory of Employment, Interest and Money, published in 1936. In Keynes's theory, some micro-level actions of individuals and firms can lead to aggregate macroeconomic outcomes in which the economy operates below its potential output and growth. Many classical economists had believed in Say's Law, that supply creates its own demand, so that a "general glut" would therefore be impossible. Keynes contended that aggregate demand for goods might be insufficient during economic downturns, leading to unnecessarily high unemployment and losses of potential output. Keynes argued that government policies could be used to increase aggregate demand, thus increasing economic activity and reducing high unemployment and deflation. Keynes's macroeconomic theories were a response to mass unemployment in 1920s Britain and in 1930s America. Keynes argued that the solution to depression was to stimulate the economy ("inducement to invest") through some combination of two approaches : a reduction in interest rates. Government investment in infrastructure - the injection of income results in more spending in the general economy, which in turn stimulates more production and investment involving still more income and spending and so forth. The initial stimulation starts a cascade of events, whose total increase in economic activity is a multiple of the original investment.[1] A central conclusion of Keynesian economics is that in some situations, no strong automatic mechanism moves output and employment towards full employment levels. This conclusion conflicts with economic approaches that assume a general tendency towards an equilibrium. In the 'neoclassical synthesis', which combines Keynesian macro concepts with a micro foundation, the conditions of General equilibrium allow for price adjustment to achieve this goal. The New Classical Macroeconomics movement, which began in the late 1960s and early 1970s, criticized Keynesian theories, while "New Keynesian" economics have sought to base Keynes's idea on more rigorous theoretical foundations. More broadly, Keynes saw his as a general theory, in which utilization of resources could be high or low, whereas previous economics focused on the particular case of full utilization. Anyway, you can read much more here: en.wikipedia.org/wiki/Keynesian
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Warning
Sept 19, 2008 8:00:41 GMT -5
Post by davidlee on Sept 19, 2008 8:00:41 GMT -5
I think we should all just head on down to the Yucatan with Robert, form a commune, grow agave and make tequila. I'll be the master taster and cook! What will the rest of you contribute?
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cdh
Full Member
Posts: 104
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Warning
Sept 19, 2008 11:04:55 GMT -5
Post by cdh on Sept 19, 2008 11:04:55 GMT -5
My time lol
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Warning
Sept 19, 2008 13:24:51 GMT -5
Post by Roland of Gilead on Sept 19, 2008 13:24:51 GMT -5
I think my charming presence should suffice!
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