Thoughts About the Current State of the Economy and Financial Affairs
Financial Nirvana or Collapse?
I often chat in newsgroups on topics such as the current state of the economy. I myself feel that the economy is very poor and broken. I also think nothing can save it from eventual collapse.
But talking with these people on certain newsgroups you would think that nothing is wrong and people are accumulating wealth like never before.
The first problem we run into is the definition of wealth. What exactly is true wealth. That can be argued greatly. My definition of wealth is gold, silver and other hard assets that tend to appreciate in value as time goes on due to the value of fiat currency declining.
What I am finding a lot of is people pointing to the "strong" dollar as comfort as a crutch. Here is what I know. The dollar is strong against other currencies but what does that mean? What will that do for me?
My answers are the dollar is only strong because it's the tallest midget or the cleanest dirty shirt of currencies and no this will not help me. The dollar continues to buy less and less particularly the type of items and services that yep you guessed it are left out when inflation is calculated by the criminal elite.
So where it stands the dollar is an asset in steady decline (purchasing power) and holding it especially long term will never help me.
Getting back to the economy in today's world. Poverty is easy to overlook. Sure someone can have a cushy job with great pay and they are used to it so poverty is an idea that is not even on the back burner. They figure, "hey I am doing great, the economy must be good."
When you start looking under the surface, economic demons are everywhere. First the unemployed and under employed. Millions upon millions of people. Some argue the figure includes the kind of people who are not in the classification as ready to work some examples include students and elders.
Even if it were true these kind of people are included in the statistics I would say "so what" they are still not earning overall so for the purpose of this it still works out to be comparable data.
The truth is industry has been in decline for awhile now. It started in the 70s and took a dramatic turn for the worst since the year 2000. I remember things were fairly good but once the year 2000 came the decline in quality of jobs and life nosedived.
People point to new industries created since then. Hey that's great but these new industries employ far fewer workers and they tend to automate. The new industries simply can not replace the former.
Wages have been stagnant at best. In my area skilled workers generally make $10 to $15 an hour. The great old Unions have long vanished and the little union work left is a far cry from what it used to be. Even if you are in a union these days you still can make a poverty wage and pay union dues on top of that.
Part time work is being the norm and if you want to work your way up to full time you face a variety of barriers financial and political.
Yes there are people out there who simply have no problem. Nothing I say is going to apply to then. They were in the right place at the right time. I am happy for them. But when they start to think in terms of the economy as a whole being in the same successful state as they are they start to lose all credibility.
The number of people getting government aid in one form or another is huge and it's not surprising. Furthermore I would even encourage it because the economy is in such dire times.
The cost if healthcare is tremendous. I don't know how or why people even pay for some if these plans. No wonder why people have no money to spend.
Rents. If you are a renter you are getting financially slaughtered. And as a home owner you are being bombarded with property tax, insurance and upkeep. Housing is a no win situation and is a complete financial drain if resources.
These are the basic problems I see in the economy today and that's not even the half of it.