alt.politics.economics

*Anarcissie* wrote in message
news: @ ...
> On Aug 24, 12:07 am, Vide...@ wrote:
> > On Aug 23, 8:34 pm, jxro...@ wrote:
> >
> >
> >
> > > On Aug 23, 5:57 pm, Straydog wrote:
> >
> > > > On Thu, 23 Aug 2007, Vide...@ wrote:
> > > > > On Aug 23, 3:40 pm, ro...@ wrote:
> > > > >> On Wed, 22 Aug 2007 06:18:08 -0700, *Anarcissie*
> >
> > > > >> wrote:
> > > > >>> On Aug 21, 5:37 pm, ro...@ wrote:
> > > > >>>> On Tue, 21 Aug 2007 06:36:09 -0700, *Anarcissie*
> >
> > > > >>>>> It seems to me that at some
> > > > >>>>> point, however, the inflated money is going to
> > > > >>>>> leak into the lower realm and begin causing
> > > > >>>>> inflation there, which will have important
> > > > >>>>> political and financial consequences.
> >
> > > > >>>> I've already explained that. When prices of working people's
labor
> > > > >>>> increase by 2%/yr, that's "inflation." When the prices of rich
> > > > >>>> people's assets increase by 20%/yr, that's "a booming economy."
> >
> > > > >>> You're talking about talk. When the price of
> > > > >>> labor increases, then the prices of things produced
> > > > >>> by labor, and bought by those who labor, will also
> > > > >>> increase (unless there is some remarkable jump
> > > > >>> in productivity, which is unlikely). The government
> > > > >>> will then find it much more difficult to pretend that
> > > > >>> no inflation is taking place. I think they are trying
> > > > >>> to put off this day of reckoning.
> >
> > > > >> Of course. The whole point is to arrange the economy such that
the
> > > > >> increases in money supply go into asset prices, not labor prices,
so
> > > > >> that wealthy asset owners can purchase more and more labor
without
> > > > >> having to do anything, while the laborers get less and less
ability to
> > > > >> acquire assets in return for their labor.
> >
> > > > >> -- Roy L
> >
> > > > > hey roy, nice one. in the past i have gotten you permission to add
to
> > > > > my economic quotes collection that i post every once in a while,
of
> > > > > course you have given me permission. can i add the above to it.
> > > > > it is of course like many of your others not only completely true,
> > > > > but so well said.
> >
> > > > Hi Video, Hi Roy...
> >
> > > > You don't have to explain anything. Just remember: "The rich get
richer,
> > > > the poor get poorer" And, guess who causes it? The rich. They can
> > > > otherwise be given the pejorative label: _parasites_.
> >
> > > I would say, now the rich have screwed up
> > > their own system.
> >
> > of course that would be contrary to free market dogma. remember the
> > great huckster ray-guts, the government is the problem, not the
> > solution.
> > six years later they needed a bailout, then another one 7 years
> > later, then another one 3 years later, and of course today. what a
> > record. plus they are piling debt upon us that is unpayable. and
> > poisoning us to boot.
>
> But for how long? Free money for the rich eventually
> makes all money worthless.
>

According to the 'Independent (London)' yesterday, the UK has hit a bit of a
milestone: the total of personal debt now exceeds annual GDP for the first
time. That's just personal debt, mortgages, credit cards, loans, etc. The
majority is mortgage based, which is no surprise given the housing price
boom of the past few decades here.