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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (64221)	6/20/2006 4:06:34 PM
From: UncleBigs	Read Replies (2) \| Respond to of 110194

Grace, one of the few times I agree with you: The long run trend is for everything to get cheaper in real terms. In other words, over time it takes less of your time, energy and resources to provide the basic necessities of life: food and shelter. This trend is thousands of years old Just this morning I heard that we are going to need more robots to replace the baby boomers who are exiting the workforce. This is exactly why I think we are headed for debt collapse. A person can only service debt if he produces a unit of valued labor or sells an inflated asset. Eventually it all boils down to productive labor. That's how capitalism works. You get to consume the value that you produce. When a robot is doing the producing, how does that equate to a person doing the consuming? Where does a person get the income to pay for the production? Let's say a person sits around scratching his balls all day (well I do but that's another story) because his employer hired a robot to do the job he used to perform. Where does this person get the income to buy the robot's production? Helicopter money.

To: GraceZ who wrote (64221)	6/20/2006 4:36:08 PM
From: stockfiend	Respond to of 110194

Great post and fine points.

To: GraceZ who wrote (64221)	6/20/2006 7:45:26 PM
From: Gib Bogle	Read Replies (1) \| Respond to of 110194

"abandon it's movement towards socialism and Federal intervention into every day life" So let's try to guess what that might look like. Which country in the world would the US most resemble? How about Brazil, in the pre-Lula period? The problem with this reasoning is that the social conditions that develop when the constraints are taken off the powerful lead to ... the election of Lula.

To: GraceZ who wrote (64221)	6/22/2006 3:07:28 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

The long run trend is for everything to get cheaper in real terms........ There is nothing in your response that i would disagree with. But the problem is,that you are just stating a fact, most of the time you bring that topic up in discussions of inflation. The trend for everything to get cheaper is called progress. Better design and technology, improved engineering, better manufacturing, innovation = increased productivity. Do anything for a while and you get constantly better at it. But this has nothing to do with what is being discussed here on this thread, namely: excess money and credit creation, bubbles, government intervention and distortion of economy, fiscal mismanagement. In fact, excess money creation, if continued, will over time reverse the trend that you write about, by removing the incentives to save, work, invest and innovate, the very things that are drivers of that trend.