8/8/11 --633.78, 6th Largest Drop In Dow Jones HistoryGold - 8/9/11, high, so far, $1774.80 http://finviz.com/futures.ashxFutures - http://www.sgxniftydowfutureslive.com/index_files/DOWFUTURES.htm
can't blame this on anyone. This is how it's suppose to be...
It should be noted that because of our banking system in this nation (fractional reserve), that if everybody was conservative in their finances, our system would collapse over night. Our money is based on a complex debt and lending system, where money is only created if people are borrowing. And the best product used to keep the system going? A 30 year mortgage. Which is why the Federal government has promoted the lie that taking a 30 year mortgage out on a home is a good financial investment. Such is bad math, and is almost never true. But people have bought the lie, and actively promoted it. In a nutshell, with the fractional reserve banking, if banks stopped lending, the cash flow would dry up. There would be no money. Which is why we saw the deflation of our currency upon the housing bubble explosion. A system built on debt and enslaving people in debt must of necessity collapse one day. The show can't go on forever. Though we are a nation with great natural resources which God has blessed us with, our "wealth" as a nation is nothing more than an illusion based on debt. Money is created everyday out of thin air, all because of debt.
We really are a consumer nation and according to the government its our consuming that even keeps this country afloat. I really don't know about this but its what they have said. We depend on trade along with other countries who depend on us for trade, its all a complex weaving of web that is one thing is severed it can disrupt the chain.Now the real kicker, the ones that are most oblivious to the situation is the most uneducated on the problem, ie my generation and the next one to come. Economically what my generation needs is voices that know what their talking about and doing NOW to stand and teach the younger generation what is going on and the danger of it all. My generation also was all so eager for "change" I guess that happened eh?
Indeed. Our economic system is designed around consumerism. Things must be consumed in great volumes for it to be maintained.