Monday, April 11, 2016

Creating the 1%

An insider says things look worse than 2009.  Well, of course, nothing was done last time to fix the problem.  The powers that be just doubled down on the bad bet.  But what do they care, they win more when things get worse for everyone else.  The elections manifest this.

Interest rates are the problem, as the banker notes.  Everyone agrees, but no one agrees where they SHOULD be, and few point out interest rate at any level are a bad idea.

Interest on loans is

1. Not necessary for peace and prosperity and econ dev.

2. Not possible without state backing

3. Always does damage.

How come we have it?  It's how the 1% gets there.

Feel free to forward this by email to three of your friends.


Anonymous said...

John, your discussion of living in a world of no interest loans and such is intriguing. I'm younger than you, and I cannot imagine finance being any other way (it just seems to make sense that we do it this way) - I suppose I was effectively conditioned by the government and bankers to think that our current system is the only way to do finance and business.

How do we change back, if it is even possible?

In starting my import/export business, can I manage my business and finance in the old way that you blog about, even though the current system, at least for now, is still in place?

John Wiley Spiers said...

It is not a question of changing back, it is merely a question of choosing your terms and conditions and what patterns and practices you wish to maintain.

By all means form a false economy company using all of the false economy patterns and practices, and drive a car for which you will never pay. Alternatively, Raise no money for your business, find customers first, develop your offer, then use vendor financing. At the same time refuse payment by debit or credit card, insist on billing your customers and giving the standard time to pay (30 days?) This is not a matter of changing back, but just starting out right.

Rent, don't own for at least the next 30 years. Get married and have kids as soon as possible (but make sure your wife is on-board for the business struggle as opposed to the corporate struggle). Never mind "health care" or other bennies, there are obamacare-exempt alternatives... and what they call medicine today is detrimental anyway. Pay cash for real medicine.

Anyway, I could go on, but I think you take my point...


Anonymous said...

Yes, medicine today is detrimental. My favorite doctor who is now retired blasted (in hindsight) the big pharma salesmen who would stop by to offer him incentives such as free (unhealthy) catered lunches for him and his whole staff, tickets to big events, etc. all so that he could prescribe their medicine to patients. My doctor eventually needed bypass heart surgery because of the junk food that he took from them. In many cases the same exact medication pushed by salespeople in the states is sold across the mexican border for 300%-400% less. Who was really paying for big pharma's hefty salaries and incentives? The patients and Medicare (U.S. taxpayers).