Mon, 07/02/2007 - 11:52pm — Xenophon
You’ll need to know this soon. I thought this was a good explanation of a well hidden scheme. Quick and dirty.
What you do is borrow money from Japan at .05% interest (nope not a typo) then you go and park that money in an interest bearing vehicle (something higher than half of a percent). At the end of the term you pull out pay off the principle plus any interest (.05%) and voila the rest is yours minus taxes and transaction fees.
The problem with this little money maker is that it increase the money supply and the velocity of money so you have too many dollars chasing too few goods.
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yup. add to that the destructive nature of 'private equity' firm
which basically have tied up all the money for investment in things that we need to keep the economy growing, and you've got a set of conditions ripe for global depression.
we will see.
It's the "too few goods" angle that bothers me
It seems like so much brainpower in recent years has gone into producing "new financial instruments" wherein money is bundled, packaged, broadcast, narrowcast, invested in something else which is also a "financial instrument" and otherwise aggragated and redirected and never winds up in any actual thing being produced.
The whole phrase "service economy" bothers me for the same reason. You can only make a living taking in each other's laundry for so long. Eventually you have to get new clothing...from where? We flood the whole damn world market with cheap cotton, but is there anybody left in this country who makes actual cloth? Much less makes that into garments people actually wear? I sure haven't seen any in stores lately. Of course just about the only place that sells clothing around here is, you guessed it, WalMart.
And the whole notion that it has become intolerable to just make a profit seems a bit perverse. There is no enough. To fail to make the greatest possible profit and also to make an even greater amount every year and eventually every quarter, is to, well, fail. A company which does this apparently emits a stench which causes the vultures to gather around. Rather than take their money and invest it elsewhere they storm shareholders meetings and demand the company be disembowelled for the sake of "profit enhancement."
We went through that when the US manufacturing sector was being trashed and more recently with the newspaper business/media in general.
They must not teach the basic Law of Money any more, which is that it is only an agreed-upon symbol of no intrinsic value. You still, as far as I know, cannot eat the stuff no matter how it's packaged.
Don't forget Hedge Funds and the CDO blowout ahead
We are balanced on the head of a pin and running around haphazard. Any way we turn sharp economic pitfalls lie. Free markets are insatiable. That is what regulation is for. Money policy in America consists of : fork it over. [When that's gone we'll print more!]
All of this float money also bloats stocks and bonds. Giving the government more debt to play with as well. Those boys need more cash to blow like any other binge personalities.
Who knows, chicken little...
B
http://b-political.blogspot.com/
Free Markets and Government Regulation
What puzzles me is that Government claims regulations promote competition in the marketplace. I used to believe this until I started working for the FAA and I found that regulations often times end up benefiting large companies with streamlined lobbying teams.
The Government:
* Takes your money by force
* Owns your property and you pay rent in the form of property taxes.
* Increases the cost of good and services through sales tax and inflation.
* Turns around and gives this money to large corporations, banks, oil companies, and bomb makers.
Ron Paul is the only Presidential candidate that I hear talking about fixing these problems.
GoRonPaul
This is all part of the plan
to destroy America by destroying our own manufacturing base and at the same time selling the US treasury to China by massive deficit spending.
When the Authoritarians decide it's finally time to enslave America, they'll do something like attack China (which owns the US economy) or stage another 9/11. The US economy will collapse and the middle class will instantly become part of a massive low class with just a handful of wealthy overseers.
Why else is Bush creating private mercenary armies that are owned by evangelical taliban christians? Why else are the top brass in the Armed Forces being replaced with evangelical taliban christians? Why else are all of the standing servicemen being cycled through the meatgrinder of Iraq, slaughtering civilians by the thousands? If not to train them all to mercilessly attack anyone that the Commander-In-Chief decides is a 'terrorist', meaning people like you and me that might say to ourselves, "Hmm, maybe this isn't the best thing for America?"
not so fast
When the Yen strengthens in relation to the Dollar, you are screwed. When you go back to convert your dollars back to yen you lose.. and most likely much more than what you gained in interest from the investment. THIS is the biggest risk to this scheme and his article fails to empasize this.