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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: arun gera who wrote (74176)	11/28/2010 12:36:22 AM
From: Maurice Winn	1 Recommendation Read Replies (1) \| Respond to of 74559

Arun, that's a very peculiar analogy. <It is more like flood victims in a valley when the floodgates were opened up on an upstream dam without warning. > Such a deluge would be more applicable to people naively holding the money assuming that it would retain some value, only to find the floodgates opened and a flood of newly-printed money was used to dilute and wash away their holdings and render the debts insignificant. That's not the problem that people are complaining about. Debtors would love that event. The reason the floodgates have been opened is because deflation has threatened in a big way without it [and house prices have halved anyway so that's deflation as far as a lot of people are concerned]. The basis for your monetary ideas seems to be that humans are mindless automatons, blown in the wind of hurricanes beyond their control and understanding; helpless mindless fatalistic defeatism. To the extent that we are all stuck within national boundaries, it's true that we are prisoners of the economic results of all that goes on within and outside our national borders. But on an individual basis, we have a huge amount of control of our financial decisions [taxation reducing that control a lot but still leaving plenty for us to go on with]. While it's true that NZ has been going down the gurgler for decades, my individual position relative to others has not. That's because when they were borrowing flat out and investing in speculative mania, I was doing the opposite. When they were spending up large, I was saving flat out. When they were loafing around, I was working. When they were boozing, I was sober. People make choices. Choices affect their outcomes [normally, though luck always has a say too]. Mqurice