Thursday, January 22, 2009

Common Sense

If you watch the above video, besides seeing why I love Dr Paul so much, please, please, tell me what does not make sense to you, if anything. I need to understand the thinking of the average person on these matters, so that I can understand how we got here. Did he say anything that makes you say, "No, you have it wrong, Ron"? And what can you tell me that will help me understand your point of view? Or did he mention things that you have an incomplete understanding of and therefore you cannot make a judgement call about the validity of his statements? Or did you understand it all and simply disagree with his conclusions?

I, personally, agree that our problems today in the area of the economy are due to a systemic breakdown that could be predicted, and was, long ago. It is the simple culmination of living beyond our means for far too long. The bills have come due and we have no money in the bank, or even under the mattress, to pay said bills. I mean, if our standard business practice is to borrow money to pay for the latest round of production, and to continually grow, how could no one see that it would all come crashing down one day? Whatever happened to saving the fruits of your labor, to protect against stormy days? How did we ever get to a place where we always buy today and pay tomorrow, and not see anything risky with that?

It is time to grow up! Don't spend what you don't have, period. I'm talking to you, America, and not just the people. The government has spent waaaaaaay beyond it's means for far too long and it has to stop. Yes, the system (fractional reserve banking) will crash if we do that. Yes, it will be ugly. But at the end of it all, we will be a saner, more sustainable world, where no one lives upon the back of another. Hard work is what brings you prosperity. You want more? Work more and harder. Isn't that the American Dream? If you work hard enough, you will be successful?

7 comments:

Eli said...

Whoa! Do you remember the proverb "Before you pretend to know me, walk a mile in my shoes"? Without owning a business how can you know how to run a business? There's no way I can say that a business owner, no matter what his credit history, has not worked hard. For instance, I've been up since 5:30am. I'll go to bed at 10:00 Pm and I will have worked 12 hard hours on my business today. Yes-I have spent money to make money. That is how I have a business.
Own a successful business, then tell us how you did it. In the mean time I will continue to work hard to pay the bank that loaned the money to buy the product to meet the demand. Owning responsible debt has nothing to do with how hard a business owner works.

Miranda said...

But Elizabeth, I'm not talking about your business or how hard you work. You are not getting rich off the backs of others, are you? I'm talking about the IDEA that you have to borrow money to buy the jewelry to have for sale and that you have to factor your interest payments into the price you charge and your profit margins. The only one getting rich here is the bank! If you earned that money another way to buy the jewelry, or even if you had private investors who only expect a set dividend, not a compounding interest, you would make slightly more money. Right? And we would get marginally cheaper jewelry from you. Everybody is happier but the bank. Ursury is also mentioned in the Bible as something not to do, and most other spiritual texts as well. I'm saying it is not right to make exorbitant amounts of money from interest or speculation. If you are not doing that, I wasn't talking to you. And if your debt to income ratio is sane and not too hard to keep up with should the market drop, then I am not talking about you. I do have a mortgage after all. One that I am going to work extra hard to pay off as soon as possible so I won't have to pay so much damn interest to the bank. But I also have savings to cover job loss, so we can continue to pay the mortgage. My only debt is that mortgage. I'm talking about the people there in Vegas who bought more than one house during the housing boom and flipped them to make outrageous profits. Who paid for that cash in the pockets of the speculator? The poor schumck who is so far upside down on his loan for that house, he will never get out. That is making money on the back of someone else.
Peace, my friend.

Eli said...

Miranda, I by no means took your blog as a personal attack. And I hope we are at peace with our challenges.
There is not a business owner I know that figures into his price of a product the amount of interest on his loan. Interest is and expense and is tax deductable. So no matter what my interest rate, my customer will not see an increase in my rates.
As far as ursury (had to look that one up), a smart business man will find the best rate of interest and always pay off his highest interest first. But with out that loan he would not have a business.
Your paying off your house loan, while very smart and I am sure you will work hard to make sacrifices to allow that, I don't think it can be compared to a business and how hard a person works as owner or employee.
You have told me before that your husband makes way more than you need or he should, but that is what allows (in part) you to save. A businessman will think- do I keep my savings or use it to grow? I beleive my savings can make better interest by being invested in my company, than sitting in a bank (or under a matress). It's a gamble, but not a ludricious thought. Businesses project and when the present is doing good it's easy to project a more profitable future. I don't think there is a business out there making a budget for this fiscal year on a projected higher margin.
I'm not thrilled with the bail out. I do see the problem that we are setting ourself up for higher taxes in the future to pay another enormous debt. I don't believe that reconstruction of our present road systems, that are not designed for alternative energy, is the way to go. I do believe businesses should fail. (Why we are so afraid to fail or to succeed is beyond me, but that's another philosophy.)
But I do believe in the people of our country and that we will reinvent ourselves and we will always do what we think is best.
As our new president indicated, it's time to stop saying how restricted we are and start saying how much we can do! We fall down, we pick our self up and we remember what we tripped on. And if we don't remember we can continue to read your blog!
Love ya always!

Miranda said...

Ya know, I wish we could sit around and just hash this and other stuff out all day at the park! I miss those days...Way more fun than actually having to think about this enough to write it down!

Eli said...

We still meet on Wednesdays. Come before I forget what your hugs feel like.

TheOrganicSister said...

Elizabeth, this is yet another reason you need to find a way to make it to the Good Vibrations conference...so I can be privvy to my two favorites thinkers hashin' it out. :)

~Tara

TheOrganicSister said...

PS - Miranda, will you update my link in your sidebar. I'm tryin to create a brand here. ;)

~Tara