Monday Moaning Deflating Economics
Last week I got really angry at some high placed guy at the European bank. I mean for real. It was just a stab at the economy and pretty much kill it, if you ask me.
Now the argument that he lowered the interest rate again to a 0,05% is a good thing as it will stimulate the economy and people to get a loan again. And thus spending more money, which again is a good thing.
Now the other reason concerns me and got me angry.
They are and were afraid of the low inflation rate. I mean serious, they are concerned about the fact the inflation was LOW.
A simple understanding teaches us that inflation is making money less worth or products more expensive. Now if we know that. How can we, or better as he said, why should we be concerned when that doesn’t happen. What is wrong if money keeps its value? What’s wrong with product staying the same price?
We already had 100% inflation in the past 15 years. We already saw our milk becoming twice as expensive or bread or gas for that matter. Next to that the money we are getting for our jobs did not raise that much. So getting less money but having to pay twice, plus the economic difficulties we are enduring already made the gap between rich and poor bigger. Do we truly need more inflation to where the poor are even worse off if they cannot pay for their food? Or other products for that matter.
Do we really want more inflation than we are already getting? What kind of world economics demands more inflation? Have we built that much on loans and interest? Does everything only revolve around what we earn from interest? If that is true and we want more inflation so we can raise our interest rates have we not abandoned some fundamentals a honest world. Should we teach our children that the world turns and is built on what we have lend and loaned.
All that money on our banks in our pockets is money we pay interest over. That money is not ours. We are merely lending it. Everything we do is done with money from another country. While other countries do things with money we loaned them.
Not a single country or most likely most country are not even capable of sustaining themselves, because of that.
We want more inflation? Since when? How can someone say that on international television while he is appointed to safe guard the money of the countries, Cold hard cash earned over the back of millions and just seen as meaningless. How can one say that knowing full well it will just widen the gap between rich and poor.
The less we have to spend, the fewer products are made. The fewer made the less people we need to work to make it. The fewer people who would make an honest wager to spent on products.
This economy is sustaining itself by upping and lowering rates and not thinking about the people who can spent the money. Not to forget we get more machines to do our work to produce more keep cost low. But if I am not working I do not have the money to buy it. And if the inflation causes money to be worth less that my dollar won’t even buy me a loaf of bread.
Now I have not studied economics so it may not entirely be as bleak as I make it sound. And maybe I am just a fool for not understanding. But I do understand that this is not the way to keep on going.
To say we need higher inflations is stupid in every way since those struggling would only struggle more.
Now there is a second concern as some economics have said that since China stopped building so much steel and concrete demand has dropped 15% worldwide. This obviously will be felt by those providing the product and thus will most likely sell at a cheaper price to downsize the stock. So those economics who keep an eye out on worldly economics also say a worldwide deflation is going to happen.
Is it really a bad thing? What is wrong if the people with the most money have a deflating wallet. The thing is we rarely lower prices overall. Sure we do for steel, Concrete or grain. But bread is not getting any cheaper for the people who are buying it.
Have we not exploited the economy enough or the people really? To support those who only want more. Isn’t it a bit ridiculous that we thrive on the loans we have instead of our own hard work? Funny to see we rather get rich lazy than being a fair worker. That we still need these hard working people to help those lazy, who just earn interest by having the working class needing loans.
It is all about the money. And never about the people. It makes me sad to think a human life is worth so little.
Beginning to look like the saying: money stinks, is becoming true. That within the world of economics nothing is done to make it fair for everybody. That it is one way trafficking of money. Those who have money can make money by lending it out. Pretty simple thinking I know but true.
In a time not so long ago that was called loan sharking. And was considered a criminal act. Sure maybe the rates are more normal, but who makes the rates? Somewhere along the line in history we made a dive or took a wrong turn. And all we are doing now it trying to fix it with some patching. Hope we find a real solution one day. But what do I know right, I have not studied economics, all I know is that the money in my pocket is gone ten times faster these days.
Just another Monday Moaning rant by me
My Dad always says property needs to drop in price so that mortgage repayments are no more than three times the gross wage value as it always used to be, he is worried about children’s ability to ever leave home and start families when 44% is taken from wages in taxes and student loan repayments.
It is a disturbing fact that so little is done for the future as we still patching and fixing things we have done wrong ages ago. I hope for another bubble burst so that youngster also get a change to start families, but also hope they are taught well how to get along with money. Soon as prices pick up they are the first to feel the hurt when they used to party. I know this all to well myself.
Smart dad you got there lady… and thank you kindly for your thoughts on this.