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#195352 - 02/08/10 04:07 PM Re: Longterm trend -inflation [Re: benjammin]
clarktx Offline
Enthusiast

Registered: 07/01/08
Posts: 250
Loc: Houston, Texas
I agree 100%. But as you said people have to go against their nature. I think most people have a tribal mentality even with our sophistication. What you described above is completely true but will only occur in a very small fraction of the population. Oh the humanity.


Edited by clarktx (02/08/10 04:08 PM)
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#195365 - 02/08/10 05:58 PM Re: Longterm trend -inflation [Re: clarktx]
benjammin Offline
Rapscallion
Carpal Tunnel

Registered: 02/06/04
Posts: 4020
Loc: Anchorage AK
Yes. Sadly I feel we have been molly-coddled into a society that rejects challenge and expects entitlement. I watched "Zombieland" this weekend. I found it interesting what one character would go through for a twinkie. Some good lines in that movie, despite being rather simple minded most of the time.

We ought to post the rules list from that movie. I'll see if I can find it somewhere.
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The ultimate result of shielding men from the effects of folly is to fill the world with fools.
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#195840 - 02/13/10 11:24 PM Re: Longterm trend -inflation [Re: Blast]
Byrd_Huntr Offline
Old Hand

Registered: 01/28/10
Posts: 1174
Loc: MN, Land O' Lakes & Rivers ...
We feel the next survival situation we will encounter is an economic one. My wife and I are doing the same thing as some of you. We are buying hard goods, and paying down our house at an almost crippling rate. That knocks off 17 years and 45K in interest, and if all goes well, will insulate us from what is coming. With the national debt that has already accrued, taxes and interest rates will be high enough to change all of our lifestyles permanently. In the recession of the late 70's, the government printed more money, and as an example, the mortgage interest rate went to 24% in 1982 (that's the year I bought my first house). Anytime the gov't prints more money, the fed must collect it back through higher interest rates, and banks must follow suit. This keeps the value of the dollar from falling, and prices from skyrocketing (inflation). We are in a recession now, and the government is again printing more money. This is the scarey part...In the late '70's, they printed an extra 25% relative to the existing money supply. In 2009, they printed an extra 120% relative to the existing money supply. Do the math.....and be prepared.
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#195841 - 02/13/10 11:38 PM Re: Longterm trend -inflation [Re: ki4buc]
Byrd_Huntr Offline
Old Hand

Registered: 01/28/10
Posts: 1174
Loc: MN, Land O' Lakes & Rivers ...
Originally Posted By: ki4buc
[quote=hikermor]

Assuming 1955, US$0.75, that's US$5.75 per hour in 2007. First run movie at US$0.50, that's US$3.83 in 2007. As you can see, for some reason movies haven't kept pace...



That's because popcorn and two Cokes costs $15.99 at the theater now.
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The man got the powr but the byrd got the wyng

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#195843 - 02/13/10 11:49 PM Re: Longterm trend -inflation [Re: benjammin]
Byrd_Huntr Offline
Old Hand

Registered: 01/28/10
Posts: 1174
Loc: MN, Land O' Lakes & Rivers ...
Originally Posted By: benjammin

That's how the free market system works. Seems awfully fair to me. I didn't choose a career I liked. I chose one I was darned good at and that had a significant future demand potential. Then I worked hard for a long time to become very good at it. If it was easy and enjoyable, more people would be doing it and the value would thus diminish.

So the simple solution to inflation is to beat enough people at the game that you can make sure your earnings increase at a higher rate than inflation does. Either that or hope you are lucky. As Burgess Meredith once said, you can hope in one hand and dump in the other and see which one fills first. Not everyone gets to win. We got evicted from Eden a long, long time ago.


This is what concerns me; the gov't TARP program has propped up failing businesses with unlimited borrowed money which we taxpayers are on the hook for. Other businesss have to compete against them using only their own resources. This is the opposite of the free market system. In the long run, no company is 'too big to fail.'
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#195845 - 02/13/10 11:58 PM Re: Longterm trend -inflation [Re: MartinFocazio]
Byrd_Huntr Offline
Old Hand

Registered: 01/28/10
Posts: 1174
Loc: MN, Land O' Lakes & Rivers ...
Originally Posted By: martinfocazio
Originally Posted By: Eugene
f you had purchased $1,000.00 of Nortel stock one year ago, it would
now be worth $49.00.


Not quite true, as I did buy Nortel stock a while ago, and it's worth $0 now.

If you panic sold in 2008 and 2009, you then missed out on a rally of epic proportions.

I continued to contribute every month to my 401(k) - even as month after month, it lost more and more value. But each month, my dollars bought more of the devalued stocks, and then, on the turnaround, I watched as my holdings increased by 5 figures in a matter of days. The stock market is a 25 year + game, and it's only part of the game. 10 Year TIPS for some of your holdings, and a bit of bonds and some nice, juicy ultra-high risk stuff for money you can afford to waste - because it pays so well. Read "Black Swan" and enjoy.



I am worried about my 401k, and I'm honestly looking for someone to calm me down. Have you factored in the probability of interest rates in the 40% range, along with a devaluation of the dollar and a doubling of the current income tax rate? The national debt is approaching the GDP and confgress just votedto increase it. These scenarios would also cause another market 'correction' and look very likely to me.
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#195880 - 02/14/10 11:06 PM Re: Longterm trend -inflation [Re: Byrd_Huntr]
Susan Offline
Geezer

Registered: 01/21/04
Posts: 5163
Loc: W. WA
Here in WA, our governor, Queen Christine, is trying to find a way to increase every existing tax, and new ways to tax everything else.

One of the new taxes is ticketing people for going through yellow traffic lights. It isn't really illegal, but they're doing it anyway, as a source of revenue. If you don't show up to fight it, you have to pay the ticket. If you don't go to work so you can fight the ticket, you lose your job money for that day. Now they want to cut the yellow light times down to four seconds -- if you try to stop too fast to stop in time and get rear-ended, you're caught, if you can't stop in time, you're caught, and if you speed up to make it through, you're caught.

It's a pity they weren't that creative when they were SPENDING the money.

Sue

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#195889 - 02/15/10 02:32 AM Re: Longterm trend -inflation [Re: Susan]
UncleGoo Offline
Enthusiast

Registered: 12/06/06
Posts: 390
Loc: CT
Originally Posted By: Susan
...One of the new taxes is ticketing people for going through yellow traffic lights. It isn't really illegal, but they're doing it anyway, as a source of revenue...
Sue

State law (RCW 46.61.055(2)(a)) specifically states that you MAY enter an intersection on a yellow light, until that light turns red:"Vehicle operators facing a steady circular yellow or yellow arrow signal are thereby warned that the related green movement is being terminated or that a red indication will be exhibited immediately thereafter when vehicular traffic shall not enter the intersection." In addition, the normal response time to a stimulus is between one and one and one quarter seconds for a normal driver. They cannot arbitrarily assign a length of four seconds to all yellow lights, without regard to the posted speed limit on that roadway, because four seconds may not allow a reasonably perceptive driver to react, AND STOP, at higher speeds, given the braking ability of the vehicle combined with the coefficient of friction of the roadway (I'll spare you the mathematics). Drivers who are rearended while attempting to stop, are victims of drivers behind them, who are violating RCW 46.61.145(Following too closely). This cannot be attributed to the changing of the light, as the drivers of the following vehicles should have left enough room for ANY emergency braking by the lead vehicle(e.g. a small child running into the roadway).
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#195891 - 02/15/10 03:28 AM Re: Longterm trend -inflation [Re: UncleGoo]
Susan Offline
Geezer

Registered: 01/21/04
Posts: 5163
Loc: W. WA
Yes, and everyone seems to know it.

They're using it simply as a source of revenue, making up their own little rules as they go.

One of my rail crews says if you just show up in front of the judge, he/she will cancel the charges and the fine. If you don't/can't show up, you're 'admitting guilt', and KA-CHING! BUT it doesn't show up on your driving record. And since it's all done by camera, not live cops making a decision... *shrug*

They'll probably get some attorney one day and he'll fight it and win and they'll stop, but in the meantime they're making quite a bit of money at $124 a pop.

Western WA isn't exactly Mensa Country. It all sounds totally insane to me.

This must be where they got the idea...
6 Cities That Were Caught Shortening Yellow Light Times For Profit

Sue

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#195903 - 02/15/10 11:49 AM Re: Longterm trend -inflation [Re: Susan]
Byrd_Huntr Offline
Old Hand

Registered: 01/28/10
Posts: 1174
Loc: MN, Land O' Lakes & Rivers ...
I am seeing the same thing. Instead of patrolling and attempting to prevent crime, the state and local cops are sitting in the median and trying to catch and tag speeders. The company I work for has experienced a huge increase in federal state and local public agency inspections. Fire, Agriculture, Health, Osha, BATF, Weights and Measures...all looking for fine money (which, I'm happy to say, has mostly eluded them in my place of employment).
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