Electomatic Political News

Gossiping The Elections, The Policians & The Electorates

electomaticus: http://www.electomatic.com/?p=42 SB: SB: for ordinary people the likely consequence is that their paycheque buys them less whilst prices shoot up…. unless of course...

electomaticus: http://www.electomatic.com/?p=42
SB: for ordinary people the likely consequence is that their paycheque buys them less whilst prices shoot up…. unless of course we were smart enough… and even prepared to provide ourselves with the stuffs we need
SB: Hell.. our factories just got done pickign up and moving to China FFS… so … umm
electomaticus: yeah – you cant compete on being cheaper – devaluating is utterly pointless….theres always a 5yo child labourer in Bangladesh who will produce Nike shoes cheaper
SB: it *could* eventually create jobs and force us to be more independant… but FFS what happens until then?
SB: we’re allready pushed out of our mortgages ect.
SB: jobs lost all sorts
electomaticus: Short-term – its gonna help the property market -> because they will put the money in bonds
electomaticus: But
electomaticus: Its also gonna trash whatever little confidence there was – and drive interest rates up – so ya all are gonna get reposessed anyway…
electomaticus: Only difference is, you can afford less food whilst going bankrupt, losing your house and your job
SB: fuck
electomaticus: And no – it wont help make you self sufficient – if it did, you would already have a positive import/export ratio (as the dollar already lost half its value) and you would see new biz shooting up faster than those closing -> but its simple really…producing a shoe in Bangladesh=50cents, in the US=10dollars … the dollar loosing say 25% value makes that 50cents to 9,95…makes no freaking difference and ruins alot of things in the proces
electomaticus: The government should invest in innovation, design, education, highly skilled things that cant be done by a crippled monkey
SB: *sighs*
SB: I’z scared
SB: I’m a bit paranoid I reckon, But I’ve been waiting for a big depression here since for-ever.. and all I fucking know to do is stock my cupboards cause Im scared my kids will starve…. I’ve alwasy kept my cupboards stocked
SB: whats the argument? what good do they think it’s going to do ?
SB: WHY? lol
electomaticus: Well, american economy is rotten to begin with – you owe a ton abroad, dollar is weak, the state deficit is enormous
SB: yes
electomaticus: so…printing more money – to buy bonds, to avoid another collapse on the property market
electomaticus: it makes the dollar worth less – thus driving up prices…it also makes it less attractive to invest/keep dollars (and you are MEGA reliant on your friends in China, Japan and the middle east to do that) – so to attract the same flow of investment/dollar reserves the interest rate is forced up (the higher it is, the more attractive it is) -> however, that kills your local investments (cause it gets more expensive for local biz to get money for new productions, setting up etc) and it makes the mortgages alot more expensive -> so…the biz cant maintain themselves or shoot up = lost jobs…mortgages more expensive=falling houseprices and more repossessions at a time where people are loosing their jobs = deadly cocktail
SB: fuck
SB: and China’s gonna be PISSED off
electomaticus: yeps
electomaticus: youve tricked japan, china and middle east to maintain dollar reserves/american bonds – to keep a safety net under the dollar -> so devaluating the value of those reserves…well you aint gonna be on the xmas card list. Same as if i was looking after your car – and you came back and id sold the engine and gearbox and jolly said: look its still here, want me to take care of another one for ya??
SB: damn
SB: what do you thihnk.. will they come beat us up?
electomaticus: And if they swap to pounds, euros or yens – your nationally bankrupt in one blow. Odds are they wont, cause itd ruin whatever value their investment still has – but some pissed off sheik in saudi arabia could pull the plug
electomaticus: nah, but they will force you into submission -> charging higher interest rates to fund your overspending -> thus making sure a bigger and bigger % of your taxes go to paying interest -> lower welfare, lost jobs, higher interest rates -> negative spiral
SB: doesnt help that Im sory Im American Damnit!
electomaticus: lol
SB: well damn
SB: what do we do to prepare?
electomaticus: what nationally or personally?
SB: what do *I* do?
electomaticus: sell your house, keep non-dollar assets (pounds, yens, gold, jewellery), get a job earning in foreign currency, LEAVE/IMMIGRATE
SB: *head desk*
electomaticus: do NOT take on any debts
SB: OMG my husband… *sighs… and *sighs* again
SB: and *shakes her head*
electomaticus: yeps, a nice credit card bill – thats suddenly charged double in interest….cute little carloan, pay day loan, mortgage, bankloan – its dangerous right now -> your national trust is keeping the interest rate low artificially – they cant keep it up forever
electomaticus: these things, its impossible to say *when* – cause they usually need a tricker to boom or they come sneaking in slowly -> but, read any non-political/independant economy analysis of the situation, it will happen sooner or later … the when & the extend is impossible to predict
SB: I *F-en* HATE credit cards.. they are a dissaterous idea unless you can keep the mindset of not counting your chickens before they hatch.. the only thing that makes them good is for building credit..
electomaticus: Well yeah, they werent exactly designed as a charity favour to people – theyre super good biz, cause the credit card companies get away with charging massive interests for little amounts
SB: but *everyone* goes into debt with the darned things.. it’s just too easy.. and they cant be trusted with it!..
SB: LOL and the offers come in the mail everyday LOL
SB: I only constented to ONE credit card, and as soon as it came in the mail, I activated it and promptly cut it in half
electomaticus: yeah of course – its worth sending you the offer – cause if you bite, youre captured for life …
SB: it goes on the credit report as paid every month
electomaticus: hehe, but my friend – you only need a credit report, if you want credit – and hopefully you dont
SB: HAHA True, but it’s not only for buying things.. mortgages/cars…. it’s also checked for all sorts of other things to be approved for, like jobs
SB: and govt. assistance
SB: and it makes E-Bay let me be an adult
electomaticus: yeah – so having a negative one can be bad, for getting insurance etc – you dont want a mortgage or carloan anyway if you got a brain
SB: so whats up with companies doing credit reports as a part of the hiring process?
SB: If your going to be working with their money they want to know your not liable to steal it
SB: and it shows responsability
electomaticus: its a bit naughty i think – but obviously if it shows that youre deeply unreliable economically – it might make you a less reliable worker & more liable to steal and cheat
SB: yeps