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Money & Finance > The Pirate's View on This So-called Recession
 

The Pirate's View on This So-called Recession

Hello all. I am going to delve slightly into politics and economics right now. Forgive me for leaving the decadent search for pleasure I am usually writing about. But, I have to speak up about this recession nonsense everyone seems to be so worried about.

First off, who knows what the US economy is based on? Let me tell you oh uninformed and unenlightened. The US economy is based on people SPENDING money. It is not based on people building retirement accounts or saving for a rainy day. It is a purely hedonistic economy which seeks immediate gratification in the form of people spending their money buying stuff they don't need, with money they don't have, to impress people they don't like.

So, when all of these news people and politcos go on TV and wring their hands and whisper dire words of warning about a recession what happens? People, who are mostly sheep and believe whatever they hear on TV, get scared. What happens when people get scared? They STOP spending money. And then what happens? A RECESSION.

This whole business about a recession is the same things that happens in almost every election cycle when the press wants to put a certain candidate in office. Right now, the press wants to control what happens so they start talking about a recession, people have gotten worried and what has happened? The economy has slowed.

If you don't think we are still the worlds dominant economy, look how all of the markets react to whatever is going on here. No other country effects things the way the US economy does. We are still building cars in Detroit, we are still pumping oil in West Texas and Alaska, we still sell millions of drive thru burgers every day, we build houses, grow cattle and cotton. The markets have not disappeared.

If you want to have an effect on the economy, do not be afraid. Spend your money. Buy a car, a house, a boat, a laptop, a steak...whatever. The key is to keep the money moving and the economy functioning. Do not believe what you hear on TV. Remember, all of this talk about a recession is a self-fulfilling prophecy.

Step outside the herd. Think for yourself.

Peace

posted on Mar 7, 2008 1:25 PM ()

Comments:

Normally I do agree with your posts. Not everyone in the US has the funds to spend as you do. As far as wells pumping oil in Texas and Alaska. Why is it still over $100 a barrel and gas prices thru the roof? These prices are causing the price of necessities like produce to go up. If there's a choice between food and a new TV, I'll take the food.
comment by draco on Mar 29, 2008 10:45 AM ()
I admit more consuming is necessary for the economy, but when there isnt money left for more consuming then you have a problem. Employment is an important thing too, too little jobs mean too many people without a job, less income, less consuming.......so it is a difficult problem. Political choices need to be made. Money for investments or money for war is an important one.
comment by itsjustme on Mar 13, 2008 4:26 AM ()
Some of what you say I agree with. However,what has happened in the housing market tends to discount some of what you say. When people were spending money freely, builders overbuilt, people bought homes on ARM's, only to have them sold to private investors, which drove up their payments. Suddenly, builders couldn't move their houses because the market was gutted with people trying to sell their homes. So builders started giving away things such as free pools; that then left the used homes on the market sitting there. People could not compete with builder incentives, so the price dropped considerably. They still couldn't sell because now they owed more than what the realtors were telling them that they could get for their homes. Then, came the bankruptcies and foreclosures. In an effort to offset this, the Fed's lowered interest rates. That hure the people who really control the wealth in this country--people over the age of fifty. When interest goes down, their cash flow drops significantly because their money in CD's and the stock market is not making them money. So, they pull in their reins and a recession looms. It is not the piddly money the Middle Class spends that drives our economy. It's the big investment dollars from the wealthy.
comment by redimpala on Mar 12, 2008 10:59 AM ()
Anyone want to help the economy??? I have a list of things that you can buy me--keep the money flowing!!!

Unfortunately your theory doesn't hold water--people DON'T have money to spend for necessities so they are using credit cards for food, gas, etc. How do you spend what you don't have??? I did, in the past, and went bankrupt!!!

Pay a mortgage or buy a car???
comment by greatmartin on Mar 7, 2008 5:22 PM ()
Money is like water; it flows. If you dam it up it gets murky and decreases in value. From where I sit, it couldn't hurt to pay of some old bills with the much-vaunted tax rebate. Nothing tastes as good as being out of debt feels.

I live poor as a church mouse, but I am a contented church mouse. I get to a restaurant maybe four times a year. Haven't been in a bar since the last time I went to The Elephant Walk in the Castro, and that's been decades now. I don't buy everything that comes past me, and I give more to charity than I spend on toys for myself, annually.

The point is, money isn't the be all and end all, it is just one aspect of life. The "economy", as it affects me, is the electric bill, the price of gasoline for the car, gas for heating and cooking, the AT&T bill, and my rent.

Different incomes have different values, I guess, and vice-versa, Neither is bad or good, just different. If everybody was the same, I would choose being The Dalai Lama over being George Bush, but thankfully I'm Stephy instead. I like it this way, with everyone different. That way we get to share lots of stories. I stepped out of the "herd" back in 1966. No regrets. Life is good, and having fun can be free! Carpe Diem AND Noctum!
Hugs, Stephy
comment by thestephymore on Mar 7, 2008 4:31 PM ()
I learned something new...thanks.
comment by mattguru18 on Mar 7, 2008 4:07 PM ()
Chris,good post and make a lot of sense there.
Right,think for yourself that is the saying there.
comment by fredo on Mar 7, 2008 2:05 PM ()

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