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Lessons

Sun Jan 11, 2009, 8:37 PM
Perhaps more detail is in order...

Naturally most of us carry life in stride as a day to day dealing in which it appears to just slide into one after another paying heed only to those things that matter most and disregarding most all else (this is a presumption and generalization...work with me here.) So perhaps I may be the only one to see this but it is apparent that history is inevitably repeating itself.  Most of what I understand as the "great depression" was caused by an overall lack of regulation and protection for specific occurrences from recurring.  Spending was out of control at the time and the government failed to recognize the effects (out of ignorance or otherwise) what was going on.  

While I am a business major in college it has taught me many fundamental basics about how to deal with specific financial, business and ethical dilemnas to which most of us nearly disregard or do not fully understand.  That being said here is the basics of taxation and spending (whether government or not).

Money in (taxes) = spendable income less expenses

Since the US is no longer on the M1 index, a currency index that places values on the currency and forces the governemnts to note how much currency is in circulation, we can inevitably print to our hearts content devaluing the dollar further.  Likewise spending can go out of control without a worry because you could just print more, right? No sir bad idea.  It is also important to note that interest rates for lending are the lowest they have ever been, even since great depression.  So what does this all mean?

We havent learned our lesson as a consumer society.  Thats right I said it, and I am as guilty as the rest of us here in the USA.  Did we really think that this process of chewing up resources for over 200 years wouldn't eventually come back to bite us?  Spend, spend, spend thats the answer!  No sir.

Taxing the hell out of us is next folks because we are actually a broke nation at the moment.  Listen to all the headlines, or has American Idol played your attention away from it?  Twenty seven states are slashing spending by almost 15%, because if they don't the basic function we have grown to love, electricity, water on tap, police, firefighters, will go away; and this is a real threat folks.  Seriously.

Taxing us is the answer right?!  Well yes and no.  What? You say.  Well taxing us would certainly bring home the bacon for the government, but leave us with empty pockets and an overall deeper shit hole for an economy.  So now what?  Well credit cards got us here in the first place.  Yeah I said it, the fricken companies reap benefits of billions of dollars per year and only have to report to the SEC on their growth factors.  With no benefit to us who could use the 25% interest as a tax break at the end of the year.  But hell no we pay them a money benefit that is just shy of hiway robbery.  Likewise forcing them to pay out the taxes on it makes them lower interest rates forcing them to issue more credit lines to make up the losses...and voila the creidt crunch is fixed.

Also many people were given credit who should not have qualified for it in the first place.  They went under bankruptcy and foreclosures and swamped up the housing mess in a short period (about 3.5 to five years).  So how do we fix that?  Hmmm well artificially inflated prices need an adjustment.  Well since we are giving away free value-less money lets use it respectively.  Appoint a special commision in housing authorities to slash prices by 15% accross the board on housing sales in the last three years.  Pay the companies back with "bailout money" adjust the interest with respect to the governments lending rates plus the "lender holding fee" and voila the housing crisis is fixed.  But who am I?

Naturally I don't have authority to conscribe these into actual actions, nor do I have that deep of knowledge to understand the entirety of the situation from my commoner stand point. But it sure as hell sounds better than bailing out a bunch of piss poor business people for their overall lack of oversight and committment to the American People and whats right. Lessons must be learned over regulation, it is better to have than to under regulate by many standards.
  • Listening to: Rock n roll
  • Reading: the screen
  • Watching: my American lifestyle drain away
  • Playing: with the notion of running for president
  • Eating: my w**e...
  • Drinking: Drank coffee...
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January 11, 2009
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