Financial topics

[John]

> Maybe I wasn't clear enough but it's my thought that with this
> presidency 3/4 over we are now going to see the disasaters
> unfold.

Yes, I understood, but I wanted to respond by looking ahead to the
next set of disasters that will be coming in 2013.

John

[Higgenbotham]

> Maybe I wasn't clear enough but it's my thought that with this
> presidency 3/4 over we are now going to see the disasters
> unfold.

Yes, I understood, but I wanted to respond by looking ahead to the
next set of disasters that will be coming in 2013.

John

My thought earlier today was that if we have to pick from the current list of candidates it might be better to think about leaving the country.

[Trevor]

I have to admit, John, I pretty much agree with your statement about Obama and Hilary. Setting up a website where you're supposed to report if anyone says anything "fishy" about their policies, especially the health care bill, was downright frightening.

As for the republicans, I'm not too fond of any of them. Most of them aren't ready to be president, especially under our current circumstances. Gingrich is intelligent, particularly since he has some knowledge of generational theory, but his personal life is an issue.

As 2012 dawns, I'm just waiting to see the kind of disasters we suffer this year. I'm not sure a war with China's going to happen that soon, but despite claims, we're not going to see much, if any, economic improvement. Even the hacks are admitting unemployment is going to remain high.

[John]

My thought earlier today was that if we have to pick from the current list of candidates it might be better to think about leaving the country.

To where?

John

[Higgenbotham]

My thought earlier today was that if we have to pick from the current list of candidates it might be better to think about leaving the country.

To where?

John

There really is nowhere to go. It was just a thought that popped into my head as I recognized the inadequacy of all of these candidates.

[Trevor]

My thought earlier today was that if we have to pick from the current list of candidates it might be better to think about leaving the country.

To where?

John

There really is nowhere to go. It was just a thought that popped into my head as I recognized the inadequacy of all of these candidates.

Maybe a country where the people in charge aren't idiots. Now where would that be? Hmm... drawing a blank here.

[John]

There really is nowhere to go. It was just a thought that popped into my head as I recognized the inadequacy of all of these candidates.

How about an innocuous farm in the middle of Kansas?
Or Siberia?

Oh wait .. the Chinese are taking over in Siberia

[Higgenbotham]

There really is nowhere to go. It was just a thought that popped into my head as I recognized the inadequacy of all of these candidates.

How about an innocuous farm in the middle of Kansas?
Or Siberia?

Oh wait .. the Chinese are taking over in Siberia

In Kansas, the Ogallala aquifer is going dry.

[Trevor]

One thing I noticed about the Great Depression is that debt did not fall immediately. For the first few years, it continued to skyrocket.

For one thing, during the first couple of years, most people had no idea about the sheer depth of the problem. In 1929 and 1930, even if things had gotten difficult, they were not yet desperate. People had gotten used to prosperity and most mainstream economists were saying: "The worst is over; recovery is just around the corner." The public believed it, at least initially, and even if some become more cautious, many continued to spend, believing things would go back to the rapid growth they had before.

Secondly, others had to go farther into debt in order to keep their homes and feed their family. Even if they were unable to pay it back, considering that the alternative was hunger and homelessness, they would go into as much debt as necessary in order to prevent that.

Personal debt only started plummeting around 1933, once things had gotten really desperate, when people trying to keep their homes were unable to borrow any more, and when it became apparent to everyone that this was not a short-term problem; this was going to last many years.

What I'm noticing is that belief is starting to come around, but has not yet fully taken hold. Most people I know are trying to save as much as possible and get their debt paid off, but our government is continuing to spend at a scale I wouldn't have believed three years ago. They're screaming about cuts that are trivial, while planning to increase spending still more. The only thing that will convince them that they have no other options is a full-scale economic collapse, and I don't believe that's too far off.

[Higgenbotham]

One thing I noticed about the Great Depression is that debt did not fall immediately. For the first few years, it continued to skyrocket...

Personal debt only started plummeting around 1933...

http://www.debtdeflation.com/blogs/wp-c ... AndGDP.png

Most of the graphs show debt to GDP, which peaked in 1933.

Most people I know are trying to save as much as possible and get their debt paid off...

That's what I hear many people saying too, but the overall statistics don't seem to show that they are really saving very much. Apple Computer's sales are very good, though, as an example.