Conquer Club

If only all global economic systems could be boiled down to some pictures of smiley faces with captions.

huamulan wrote:If only all global economic systems could be boiled down to some pictures of smiley faces with captions.

Just curious. Are you a college student?

Is this the proper thread for political/government mockery and pictures?

Juan_Bottom wrote:

That there was drawn by a single guy looking over the fence at my delicious green lawn.

Marriage is more like having one of those office water coolers at your house. At first it's amazing and you can't believe how great the water is. After a while you realize you have to change the bottle, empty the drip catching tray and try to clean the thing. There's a lot more work having one of your own than drinking from the one at the office.

Holy pimpdave!

Phatscotty wrote:

This is kind of accurate.

It just takes longer for people to realize the effects of inflation.

Essentially, it's a short-term "fix" with long-term consequences, which people often overlook (except Bernanke, who is aware of this).

People want something for nothing, so new money is lent into existence. This is to satisfy short-term demand, while ignoring long-term consequences. It's how the US funds deficit spending.


Many people, who demand that the government provide this or that, unknowingly also lend support to a primary cause of many of the US' problems. It's amazing to see this happen.

Phatscotty wrote:

AFAIK, the correlation between wages and inflation is far stronger than between "the printing of money" and inflation.

Juan_Bottom wrote:

Well, technically, it was the Republican Party who passed into law the 40-hour work week (in fact, Nixon advocated a 32-hour work week but he couldn't get the votes in Congress). Of course, that was 80 years ago and was a vastly different Republican Party (which, I suppose, is the point - fantasizing that the virtues of individuals from the distant past are shared by the professionalized leadership class of organizations of the present (see: the recently Mafia-purged Laborers International Union of North America [LIUNA]*) is probably a recipe for disappointment.

Also, I'm not sure it's cause for celebration that the president who presided over the first military trials of civilians at Gitmo, signed NADA authorizing no-trial life imprisonment and maintains a personal "kill list" is calling for more Police during a period of record-low crime.

• * Well, they've supposedly been Mafia-free since the last round of FBI raids a few years ago but I just went to their website and - I really hate to generalize - but I find it a big coincidence that half the members of the Board of Directors have Italian last names ... http://www.liuna.org/AboutUs/Leadership ... fault.aspx

edit: nevermind --- looks like that was short-lived

"Heeeey, I'm LIUNA General-Secretary Armondo Sabotini - youse all can trust me with the pension accounts! Dontch I look trustworthy?"

i think inflation is basically created by spending money you don't have.
kind of like credit and loans.

most people have a lot of things that are nice. but the bank owns them. it's too late now, but if they had tried to earn what they got before they got it, then things wouldn't be so bad and cost so damn much now.

if getting a loan for a car is so easy, then why not raise the price of a car?

why get a car loan for a small dependable ford pickup when you can get one just as easy for a mercedes.

hell, you're good for it right?

BigBallinStalin wrote: This is kind of accurate.

It just takes longer for people to realize the effects of inflation.

Essentially, it's a short-term "fix" with long-term consequences, which people often overlook (except Bernanke, who is aware of this).

People want something for nothing, so new money is lent into existence. This is to satisfy short-term demand, while ignoring long-term consequences. It's how the US funds deficit spending.


Many people, who demand that the government provide this or that, unknowingly also lend support to a primary cause of many of the US' problems. It's amazing to see this happen.

Hey you really meant it when you said you dont understand demagoguery!

Hehe, jk.

I dont think it's as black and white as you make out though. The recent spanish one is propping up banks to counter their poor investments in a housing bubble right? So sure its going to protect a few dumb banking execs, but is it not protecting many joe averages as well?

So yes the long term consequence is pretty bad (inflation); but isnt the short term consequence just as dire for your average joe?

Apologies if this is a little ignorant or under-researched; I havent thought it all through.

What kind of person pays for a car or holiday using a loan?

huamulan wrote:What kind of person pays for a car or holiday using a loan?

A car I can understand, but I don't think anyone pays for a holiday with a loan. That would be ridiculous.

Timminz wrote:

huamulan wrote:What kind of person pays for a car or holiday using a loan?

A car I can understand, but I don't think anyone pays for a holiday with a loan. That would be ridiculous.

Ever heard of a credit card?

Nola_Lifer wrote:

Timminz wrote:

huamulan wrote:What kind of person pays for a car or holiday using a loan?

A car I can understand, but I don't think anyone pays for a holiday with a loan. That would be ridiculous.

Ever heard of a credit card?

visa and mastercard loooove november and december.

ho ho ho... merry christmas.

Using a credit card is the same as taking out a loan. What's wrong with cash/bank transfer/debit card?

Lootifer wrote:

BigBallinStalin wrote: This is kind of accurate.

It just takes longer for people to realize the effects of inflation.

Essentially, it's a short-term "fix" with long-term consequences, which people often overlook (except Bernanke, who is aware of this).

People want something for nothing, so new money is lent into existence. This is to satisfy short-term demand, while ignoring long-term consequences. It's how the US funds deficit spending.


Many people, who demand that the government provide this or that, unknowingly also lend support to a primary cause of many of the US' problems. It's amazing to see this happen.

Hey you really meant it when you said you dont understand demagoguery!

Hehe, jk.

I dont think it's as black and white as you make out though. The recent spanish one is propping up banks to counter their poor investments in a housing bubble right? So sure its going to protect a few dumb banking execs, but is it not protecting many joe averages as well?

So yes the long term consequence is pretty bad (inflation); but isnt the short term consequence just as dire for your average joe?

Apologies if this is a little ignorant or under-researched; I havent thought it all through.

So, there's basically three ways to think about this issue:


If you assume that the policymakers and politicians are well-intended individuals, and that they can actually manage these economies with no significant knowledge and incentive problems, then your criticism is correct.


I tend to think that they are well-intended but lead themselves into negative, unintended outcomes.

Or, I tend to think that they are self-interested (politicians mainly), who use Keynesian economics in order to promote a sense of political control and to distribute funds to whoever they deem, so that they can secure more votes and maintain their careers.


It just depends on your assumptions. 1) well-intended with great knowledge and incentives, 2) well-intended yet lacking knowledge and/or incentives, 3) not well-intended, and/or simply self-interested and rational in that sense.


(after reading the above, I'll answer your questions. I'm just providing some background info in relation to the general tone of your post.)

Money is not being 'created' for the Spanish bank bailout. It's money lent by the European Union (i.e. the EU lends money it already has).

huamulan wrote:Using a credit card is the same as taking out a loan. What's wrong with cash/bank transfer/debit card?

If you pay off the credit card every month (like I do), then it's the same thing as using cash or debit, but better. There are more protections on credit cards, including the ability to dispute charges if something shows up that's not supposed to be there. Plus it's not directly linked to your bank account, which makes it much better for online purchases. It's much easier to just cancel a credit card if it gets lost and there are many other protections available if someone starts using it before you get it canceled. Plus, credit cards build up your credit score, which helps you get better interest rates on future big loans.

huamulan wrote:Money is not being 'created' for the Spanish bank bailout. It's money lent by the European Union (i.e. the EU lends money it already has).

Wait, who exactly is lending out the money? Who authorizes these bailouts?

By EU, do you mean by unanimous decision from each EU member? If so, whose money is being lent out? Each government must take some of its reserves and lend them to Spain at some proportional amount?

BigBallinStalin wrote: So, there's basically three ways to think about this issue:


If you assume that the policymakers and politicians are well-intended individuals, and that they can actually manage these economies with no significant knowledge and incentive problems, then your criticism is correct.


I tend to think that they are well-intended but lead themselves into negative, unintended outcomes.

Or, I tend to think that they are self-interested (politicians mainly), who use Keynesian economics in order to promote a sense of political control and to distribute funds to whoever they deem, so that they can secure more votes and maintain their careers.


It just depends on your assumptions. 1) well-intended with great knowledge and incentives, 2) well-intended yet lacking knowledge and/or incentives, 3) not well-intended, and/or simply self-interested and rational in that sense.


(after reading the above, I'll answer your questions. I'm just providing some background info in relation to the general tone of your post.)

Yeh, hence I support the bailout; but I want it to come with a tonne of conditions (stripping the power away from individual politicians and giving it to people who actually know how to fix some of the issues rather than blather about the evils of austerity).

I dont know the details about the spanish one, but from the Greeks reaction I get the impression it wasnt strict enough.

Nola_Lifer wrote:

Timminz wrote:

huamulan wrote:What kind of person pays for a car or holiday using a loan?

A car I can understand, but I don't think anyone pays for a holiday with a loan. That would be ridiculous.

Ever heard of a credit card?

Ever heard of America?

See, here in the United States, everyone deserves to have multiple automobiles, a large house, exotic vacations, and multiple big screen televisions. If they cannot pay for it with cash, they can pay for it with credit cards or mortgages. If they cannot pay the credit cards or mortgages, then they get bailed out. Because everyone should be equal. /rant.

thegreekdog wrote:

Nola_Lifer wrote:

Timminz wrote:

huamulan wrote:What kind of person pays for a car or holiday using a loan?

A car I can understand, but I don't think anyone pays for a holiday with a loan. That would be ridiculous.

Ever heard of a credit card?

Ever heard of America?

See, here in the United States, everyone deserves to have multiple automobiles, a large house, exotic vacations, and multiple big screen televisions. If they cannot pay for it with cash, they can pay for it with credit cards or mortgages. If they cannot pay the credit cards or mortgages, then they get bailed out. Because everyone should be equal. /rant.

*raises hand*
Isn't the bolded idea perpetuated by capitalism and the need to consume, though?

-rd

Where's the part about us throwing the printed money into the black hole that is the banking industry? Oh wait, that doesn't fit into your narrative of the economy being a pile of shit because of poor people being greedy, never mind.