Friday, December 31, 2010

CONSUMPTION VS INVESTMENT

"MALL ZOMBIES"
For 30 years the US SAVINGS RATE has declined, to almost ZERO last year, now it's near 5%. For 30 YEARS the YEAR/YEAR change in GDP has fallen. For 30 YEARS countries like CHINA have exploited cheap labor and SAVINGS to become the dominant MANUFACTURER AND EXPORTER AND LEADER OF GDP performance in the world!


For 30 years ever since GREENSPAN took over the FED we have had falling interest rates and become a CONSUMPTIVE SOCIETY and slowly but surely our manufacturing base has been decimated, with MANY HIGH PAYING JOBS going with it, replaced with WALMART GREETER JOBS @ $10 an hr.


LOW INTEREST RATES, USING THE HOUSE AS AN ATM MACHINE, failed gov't and FED policies all AIMED at CONSUMPTION to the point our economy is 70% CONSUMER DRIVEN!!!!! In many world forums our Presidents exhort others to be more like us!!!!


The US $ since 2001 since even MORE AGGRESSIVE interest rate cuts and policies were implemented, to avert "healing" effects of NORMAL Recessions, the $ has lost 40% of its PURCHASING POWER AND VALUE! WHat about STABLE CURRENCY MANDATE AT FEDERAL RESERVE?
The $ TRILLIONS spent on "repairing the US economy have been focussed on? CONSUMPTION!!!! BLEEPIN' IDIOTS!!!!!!!!!!!!!!!!!!!!!!!!!!!
As recent Consumer behavior has exhibited a desire to DELEVERAGE and SAVE, REPAIR.....the actions of the GOV'T and the FED go counter to that and are attempting to RAPE AND PILLAGE SAVERS, If you had $400,000 in a MONEY MARKET today, your income would be about $50 a year!!!!!!!!!! that isn't whacky??? WRONG? savers spend and invest a-holes!!!
As Consumers have begun to try and reset themselves, the very policies that should assist them are counter to that end! THE GOVT has stepped in and spent over $2 TRILLION in place of Consumers, and who funds the Gov't?
Companies that do well, like CAT because of these policies, hire and build plants OUTSIDE of the USA!!! ALL THAT MOUTHWASH speak of OBAMA on how he would get companies to build and hire here were stale hot air....$'s continue to FLEE this country and end up over there.
CHINA produces 97% of all RARE EARTH MINERALS, this is why crappy little companies havebeen bubbling up on the ticker, in a mania like investor (bag holder) spree.....while our GOVT wastes most of its time on goosing consumers which does not create lasting well paying jobs, the OTHER GUYS are INVESTING and BUYING THE WORLDS RESOURCES!!!!!!! HELLO WAKE UP!!!!!
As I suggested showing how WEAK the response and rebound have been in Consumer Sentiment polls and any Housing chart, FED LOW INTEREST RATES, 0% rate sorry, has only helped to DESTROY our manufacturing base and enslave us. IF current policies were working, HOsuing and COnsumer Sentiment data would look more like OTHER RECOVERIES!! instead they look like NO RECOVERY but what has? an HISTORIC 88% rise in stock prices!!! 98% OF Americans have the bulk of their wealth in their HOMES!!! UH OH!!!!!!!!!!!!!!!
WE NEED A MANUFACTURING RENNAISANCE! If we remain slaves of the FED and the BIG BANKS, this can never happen.
Current policies such as TWERP, POMO and QE whatevers, aid the STOCK MARKET, in a SICKENING ATTEMPT TO DO WHAT?????????????????? Create the "wealth effect" and get Consumers to do what?????????????? CONSUME!!!!!!!!!! OMG!!!!
Consuming LESS initially might be hurtful to some businesses, but as new, better paying jobs are created spurred by INVESTMENT......we would become richer as a nation and more balanced@!!!! CURRENT POLOCIES ENSURE THIS CANNOT HAPPEN!!!!
US DEBT has reached 100% of US GDP!!!
SO as they talk and show you pictures of MALLS packed with shoppers, no doubt aided by GOVT assistance (20% are), understand how sad and sickening that vision is, demand REAL CHANGE! MORE BALANCE MORE FAIRNESS.....SAVERS SHOULDN'T be forced into RISKY ASSET CLASSES FOR RETURNS>>>WHERE IS THE BALANCE?
Thank goodness the FED continues to buy up Treasury Bonds.... with money from???
So, when you look around and see GAS OVER $3 at the pump, but PUMPS $5 for 2 pair or 3 suits for $99, thank current policies. When you see GOLD at record highs and a $ you can wipe your ass with, thank current policies. WHEN COPPER and most other commodities hit all time highs, but GOVT stats show little inflation, thank current policies of manipulation and decption.
When the DEBTS of the ugly whore mongerers, greedy Banksters get hoisted onto the public for "our own good", thank current policies. When your neighbor tells you how great a deal he just got from thebank, so he can now rent his house for a year instead of be thrown out his foreclosed home.....THANK CURRENT POLICIES! have agreat New Years, wish for and DEMAND REAL CHANGE....REAL LONG TERM PLANNING!
Duratek

No comments: