• Got the Contributing Memberships stuff finally worked out and made up a thread as a sort of "How-To" to help people figure out how to participate. So if you need help figuring it out, here's the thread you need to take a look at -> http://www.corvetteflorida.com/forums/showthread.php?t=3581 Thank you, everyone! Rich Z.

ECONOMY 101

Z06 Rocket

Z06 Rocket

New member
It's a slow day in a little East Texas town. The sun is beating down, and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit.

On this particular day a rich tourist from back east is driving through town. He stops at the motel and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs in order to pick one to spend the night.

As soon as the man walks upstairs, the owner grabs the bill and runs next door to pay his debt to the butcher.

The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.

The pig farmer takes the $100 and heads off to pay his bill at the supplier of feed and fuel.

The guy at the Farmer's Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit.

The hooker rushes to the hotel and pays off her room bill with the hotel owner.

The hotel proprietor then places the $100 back on t he counter so the rich traveler will not suspect anything.

At that moment the traveler comes down the stairs, picks up the $100 bill, states that the rooms are not satisfactory, pockets the money, and leaves town

No one produced anything. No one earned anything.

However, the whole town is now out of debt and now looks to the future with a lot more optimism.

And that, ladies and gentlemen, is how the United States Government is conducting business today.
 
This country could get out of debt if we paid it off by selling California .It's about to fall in the ocean ,it's always having fires ,mud slides and it has the worlds largest supply of nuts.
 
Well actually, in the original post, if the rich tourist was the government, the government would have laid down an IOU from China on the motel desk, or else just drawn an image of the $100 bill on blank paper.

USA dollars aren't back by a damn thing once we went off of the gold standard. They are only worth what people are willing to exchange merchandise and services for them. They are just PAPER that sellers of merchandise and services are free to determine their actual value AT WILL. Everybody is thinking the prices of everything is spiralling upwards out of control. That is not the situation at all. The VALUE of our MONEY is spiralling DOWNWARDS out of control! Unfortunately, the government has no incentive to stop this process. When you have runaway inflation and your money is becoming worth less and less every day, the natural reaction is to spend it as quickly as you can before if becomes less valuable. So what this does is to present a false picture of a thriving economy when people are spending their money. When in reality, people are DUMPING their money as quickly as they can. So our elected officials can point to this "booming" (literally) economy and pat themselves on the back at how effective their "stimulus" packages have been saving us from an economic depression. So what they are doing is pulling us from a burning bus and tossing us over a cliff instead.
 
vett boy said:
This country could get out of debt if we paid it off by selling California .It's about to fall in the ocean ,it's always having fires ,mud slides and it has the worlds largest supply of nuts.
Click to expand...

Actually you couldn't California is practically bankrupt owing more than it is worth and borrowing billions of dollars just this year along to cover a deficet.

Rich Z said:
Well actually, in the original post, if the rich tourist was the government, the government would have laid down an IOU from China on the motel desk, or else just drawn an image of the $100 bill on blank paper.

USA dollars aren't back by a damn thing once we went off of the gold standard. They are only worth what people are willing to exchange merchandise and services for them. They are just PAPER that sellers of merchandise and services are free to determine their actual value AT WILL. Everybody is thinking the prices of everything is spiralling upwards out of control. That is not the situation at all. The VALUE of our MONEY is spiralling DOWNWARDS out of control! Unfortunately, the government has no incentive to stop this process. When you have runaway inflation and your money is becoming worth less and less every day, the natural reaction is to spend it as quickly as you can before if becomes less valuable. So what this does is to present a false picture of a thriving economy when people are spending their money. When in reality, people are DUMPING their money as quickly as they can. So our elected officials can point to this "booming" (literally) economy and pat themselves on the back at how effective their "stimulus" packages have been saving us from an economic depression. So what they are doing is pulling us from a burning bus and tossing us over a cliff instead.
Click to expand...

That is why I am putting all my savinging in hard assets at a fixed rate today and sell when it will take more dollars not because the asset increased in value but because it takes more paper to do it.

I have been working on a plan that hopefully comes together this year to start a business to do just that on a large scale.
 
vett boy said:
This country could get out of debt if we paid it off by selling California .It's about to fall in the ocean ,it's always having fires ,mud slides and it has the worlds largest supply of nuts.
Click to expand...

:NoNo: Hay don't forget the fairies. Born in L.A. and wont go back
 
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