I am a book lover. My favorite types are short ones with enormous print size.
This has something to do with my deteriorating eyesight and slow acting brain. About one book per month is all I can manage. This and the daily newspaper ( The lousy Houston Chronicle ) and a few reactionary conservative periodicals is about all I can handle.
Lest I offend my liberal friends, family and other admirers, I will not mention the book that I am working on now. Next on the list is THE REASON WHY.I had read this wonderful history long ago and found our old copy hidden away. I opened it ant it promptly fell apart. Bless Barnes and Noble. They ordered a new one for me and it has just arrived. That one is next on my list.
A package arrived just a few minutes ago. A book from Granddaughter Frances.
It is an historical novel about the same Crimean war called FOLLOW MW TO GLORY.
I am thrilled. My reading needs for the rest of the year are taken care of.
Friday, October 26, 2007
Wednesday, October 17, 2007
Economics 101 ( Conclusion )
There seems to be a pausity of interest in my thoughts on economics but I bravely soldier on.
As previously mentioned, the world is awash in our ever shrinking currency.
It does not behoove the holders of dollars to allow the dollar to continue to go down in value. These creditors are therefor buying US bonds in huge amounts.This in turn allows our profligate government to continue piling deficit upon deficit without actualy going bankrupt or rendering the dollar almost worthless.
So now the good news---Everyone, even our enemies,has a vested interest in keeping our currency sound.
Why should we care ? Let our children and grandchildren worry about a bankrupt social security system, or medicare and medicade, or other unfunded liabilities.
As previously mentioned, the world is awash in our ever shrinking currency.
It does not behoove the holders of dollars to allow the dollar to continue to go down in value. These creditors are therefor buying US bonds in huge amounts.This in turn allows our profligate government to continue piling deficit upon deficit without actualy going bankrupt or rendering the dollar almost worthless.
So now the good news---Everyone, even our enemies,has a vested interest in keeping our currency sound.
Why should we care ? Let our children and grandchildren worry about a bankrupt social security system, or medicare and medicade, or other unfunded liabilities.
Saturday, October 13, 2007
ECONOMICS 101 ( CONT.)
Thanks to our terrible international balance of trade, the world is awash in dollars, trillions of dollars in the hands of individuals, banks, companies and governments. With the precipitous decline in the value of the once almighty dollar, many holders would like nothing better than to get rid of them. They would prefer pounds, euros, and other currencies. Some of their holdings are still used in international trade. Some is spent in purchases of US real estate, corporations and even in US infrastructure. Billions are parked in US government securities. Oil producing countries don’t want the dollars very badly so they sell reluctantly and demand ever more dollars
per barrel of crude.
Too many dollars are chasing too few places to put them. Economics 101 tells us that this is the classic formula for inflation. This situation is now out of the hands of the US government. The debasement of our hard earned dollars and our accumulated nest eggs are in the hands of foreigners, some of which are not our friends.
One doesn’t like to think of where this might end. Perhaps, when the wages of our workers sink to the equivalent of the Chinese worker’s our balance of trade might turn around. Then this country might not seem like the promised land anymore.
That is pretty pessimistic. We are still a great and powerful nation.
Let us hope there is some better future for us.
Thanks to our terrible international balance of trade, the world is awash in dollars, trillions of dollars in the hands of individuals, banks, companies and governments. With the precipitous decline in the value of the once almighty dollar, many holders would like nothing better than to get rid of them. They would prefer pounds, euros, and other currencies. Some of their holdings are still used in international trade. Some is spent in purchases of US real estate, corporations and even in US infrastructure. Billions are parked in US government securities. Oil producing countries don’t want the dollars very badly so they sell reluctantly and demand ever more dollars
per barrel of crude.
Too many dollars are chasing too few places to put them. Economics 101 tells us that this is the classic formula for inflation. This situation is now out of the hands of the US government. The debasement of our hard earned dollars and our accumulated nest eggs are in the hands of foreigners, some of which are not our friends.
One doesn’t like to think of where this might end. Perhaps, when the wages of our workers sink to the equivalent of the Chinese worker’s our balance of trade might turn around. Then this country might not seem like the promised land anymore.
That is pretty pessimistic. We are still a great and powerful nation.
Let us hope there is some better future for us.
Friday, October 12, 2007
ECONOMICS 101
The dollar has been shrinking for over a centuray. This causes the cost of goods and services to rise. We call this inflation or, as I prefer, a debasement of our currency. Since this has been going on for quite a long time, it is fair to assume that it is government policy. Why, you might ask, would the govenment do such a thing ?
1) This seems to help reduce the national debt. It is fairly obvious that it is easier to pay off debts with cheap dollars than it would be to pay with high priced dollars.
2) As the dollar sinks, apparent incomes rise and our graduated income tax system makes more people pay more and higher taxes, thus increasing government revenue.
3) Our negative foreign balance of payments is enormouse. Cheaper dollars make our products cheaper to buy and foreign products more expensive. Ergo, we should export more and import less and improving the negative balance.
Does this sound like a win-win situation ? There are downsides to this and we will examine them shortly.
( To be continued )
1) This seems to help reduce the national debt. It is fairly obvious that it is easier to pay off debts with cheap dollars than it would be to pay with high priced dollars.
2) As the dollar sinks, apparent incomes rise and our graduated income tax system makes more people pay more and higher taxes, thus increasing government revenue.
3) Our negative foreign balance of payments is enormouse. Cheaper dollars make our products cheaper to buy and foreign products more expensive. Ergo, we should export more and import less and improving the negative balance.
Does this sound like a win-win situation ? There are downsides to this and we will examine them shortly.
( To be continued )
Tuesday, October 2, 2007
The Burlap Barrel ( Cont)
We are saddened to report that our Monday night trivia game
has been discontinued. Business is down about 50% and there is some
danger that the bar may close down. Last night was the last game and
there were very few participants. Not a cigarett in sight.
Thanks alot, officious bureaucrats. What will you think of next ?
has been discontinued. Business is down about 50% and there is some
danger that the bar may close down. Last night was the last game and
there were very few participants. Not a cigarett in sight.
Thanks alot, officious bureaucrats. What will you think of next ?
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