The Public Sector was supported by loans. That money flowed into the private sector via public sector spending their wages and the money spent in the public sector from building an Olympic Stadium to buying a worker a hard hat. Cut taxes or/and borrowing, the tap is turned off and we all suffer.

The myth that cutting taxes generates growth is put out by the rich to keep their money. They won't build an Olympic Stadium or motorway and employ 1,000s to do it. They will buy more shares, a yacht, an expensive imported car. Those who get an extra $10 a week won't do anything but buy something made in China.

The myth that people work harder when paid more is also stupid. Who here is working harder now than they did in 2002 when it was easier? If you can earn a great income in 10 hours a week, few will work 60. Few would spend less time with their family, leisure and pleasure, because they're earning more.

But "I will cut taxes, so you can spend your money and it will generate growth." Get's people elected. Proof of this is happening in the UK today.

One job lost in the Public Sector, is one less person spending his wages in the local area.

We can't over inflate the public sector like some countries have done, but once inflated. Deflating it a dangerous route.

sadly in this world if one crashes so do all others... too interrelated

The whole situation is dire. Basically because the rich nations of the world have lived beyond the income for a long time. This is a simplified version of why it happened.

If a person spends $50,000 on local good it employs someone locally. If they spend $50,000 on imported third world goods it employs third world people. Yes you get 3 times more for your money. But someone looses a job.

So the alternative is for the rich advanced nations of the world to produce the super hi tech and advanced goods, the third world can't. A balance of trade is achieved and those producing the advanced goods pay taxes to support the people who can't get a job locally.

Works great, UNTIL. The third world starts to produce the advanced goods, the richer are bribed into not paying taxes, to support the local lass well off and borrow to fill the gap, and the rich buy imported third world goods because it's more value. AND invest in people investing in the loans given to the poorer people.

Suddenly the gravy train hits the wall. The advanced nations aren't selling enough to the third world, they have local people struggling to pay their debts, to banks they had money invested in. Yes that includes most of us, if we have any money in a bank or the financial system.

As Alex says, it's all a Global Network. You buy a MacDonalds Hamburger instead of a Texas Steak. You just helped employ a farmer in Brazil and a Texan farmer took a pay cut. Simplified, but true.

Solution is we all live a less affluent life style or ask the third world to go back to being the third world.

George Soros recently said they have about 3 months to fix the Euro. He may be saying that for his own personal gains, or not.

What you can count on is not getting any further warning. This is the warning. It's all going to be there on a Monday, then on Tuesday there will be bank runs and the shit is going to hit the fan.

everytime i read these threads i get the feeling the world is ending soon, especially with our doomsday expert Jesus H Christ...

sure, i might be fucked if it turns out it's not just a nickname on a message board, but until then i believe what i see when i go out outside and at least over here the world looks like a pretty happy place.

so i probably should just stop reading these threads.

and Paul, not sure if you mean the EU or the EURO but at least the EU will last longer than you (or me). despite of all the british sabotage attempts ;)

It was a bad idea from the beginning.

You don't understand one thing. I'm not getting paid for my scripts by some abstract EU. My clients are real persons from various countries. If the EU will collapse (personally I think it's just about time), my clients won't die or so.

Look. I was born in another union (USSR) which has collapsed as well. So what? Do I feel bad about it? Do I earn less money than if I'd still live in the USSR? No, I don't think so. Furthermore, even now my country has some forcefully attached republics, and 90% of people here would be happy to get rid of them (give them a real independence).

So I just don't believe that any artificial union like the USSR or the EU is doomed to disappear some day. I'm against all those visa's that hinder the people from traveling the World, but I also against any non-organic unions. There are many different nations with their own culture, economy and mentality. Putting them all into the same copper is a very dumb idea. :2 cents:

Americans have had this low tax myth pummeled into them for a very long time. Maybe they would like lower taxes, we all would. But at what costs?

Metering road use, so the moment they drive off in their car an automatic meter deducts money from their bank accounts to pay for the roads and upkeep. Police, Fire Dept., Paramedics, Disaster reliefs, etc. All run on the same system. Maybe make all the above run by private companies as well. Owned by billionaires.

Flying from an airport will carry a $100 to $1,000 airport charge to pay for the building, upkeep, flight safety, security, traffic control, etc to cover the costs.

And everything else all in the hands of people like BP. And when they fuck up, a private company will be in charge of investigating into why. Or more likely covering it up.

Police and crime detection will be a great way to save costs. If you need them, they will give you a quote over the phone before they turn up.

Army, defense, courts all run the same way. And The White House will be renamed as The House of Microsoft.

The poor will get SWEET FA. And if you live, work and play in a walled enclosure, guarded 24//365 pay highly trained guards. You will be fine. As the prisons will close because no one will pay for them.

</sarcasm>

This is the problem politicians have. There are 1,000s of things that have to be paid for. Running a country isn't cheap. You can't run it with guys one $50k a year. Or by outsourcing work to the third world. So they need to have taxes to pay for the costs. The problems are that the politicians won't get elected if they tell people that. Or raise taxes. So instead of running withing the taxes received they borrow money and now the US has a huge mountain of debt. And look like it's doing not so bad.

Well that's the US problem explained. Solution? Not a fucking clue. :Oh crap

Countries like Germany have benefited well from the EU and the Euro. they now have to pay the bill.

Ok ok .... armed uprising , chaos in the streets etc etc give it time, till all the peaceful protests turn violent. :winkwink:

happened in my country...it will not go down that way for 2 reasons:
1) nobody will actually pay 25$/apple...asking is one thing, getting is another...
2) personal savings will last at least 5-10 years in the west...in my shit hole 3rd world country they lasted for years...unimaginable hyperinflation devalued everything...salaries were 10$/month in foreign currency...savings lasted for quite some time...

no chaos will happen unless real famine strikes and even then there are billions of starving people around the world and most of them are calm about it....not arguing just telling you what happened and what i saw with my own eyes...it all goes down surprisingly quiet...



buy cigarettes...they are highly addictive to their users and store for a long time...in times of stress like global collapse of economy, you can barter them for food and everything else you need...a carton of marleys lasted me a loooong time druing the war...they are little gold sticks in times of crisis for addicts...

also do not prep at home...keep supplies only where ONLY you know...you can have as much guns as you want in your bunker but an idiot with a can of gasoline can burn you out when you are sleeping...you either have a real army or you have nothing and should not find false comfort in your supplies if they are not in a truly safe place....

a water purifier is also a very good investment...

Yes I know it's really so obvious it's a wonder millions swallow it. How would you vote given these choices?

1. Lower taxes and increased borrowing to make up the difference.

2. Higher taxes age to to grips with the borrowing.

3. Keep it as it is and keep borrowing as we are?

4. Lower taxes, lower borrowing and we take $100 billion a year out of the US economy.

5. Lower taxes.

6. We will build new roads, new hospitals, new schools, etc.


The problem with the last two, is they never explain how it will be paid for. Except with more myths. Lower taxes doesn't make the rich work harder, doesn't make employ more people. It might make them buy more imported goods or outsource more jobs to the third world. Think about yourself, how much would you need to start earning before you employed another person?

And while the country is waiting a man working for the public purse was made unemployed and spending less in the economy.

No shit indeed. :thumbsup

28th September 2011, note the last minute in particular. Turns out this guy isn't a big trader but he's been on the BBC warning people that savings are going to vanish and to prepare.

Personally I think he's a plant but that's not the point, the information is being placed out there in the mainstream media.

Crucifissio are you from Argentina?

Serbia...

Trust me I know what I am talking about :1orglaugh

http://i263.photobucket.com/albums/i...nDIN-small.jpg

Tell that to politicians who think it can be done.

I'm soo glad Norway voted no to joining the EU twice.. We would be soo fucked if we had joined and would probably have to bail out the failing countries now..

At least your country got a referendum, most countries in the EU did not and those who did have a referendum like Ireland voted no and where told to vote again until they picked the correct answer :disgust

USA has bigger debt per person than Greece. So the whole world is getting fucked not by Greece but fellow Americans who created this crisis. Remember 2008 and where all this shit started? No, it was not Europe. It was greedy American bankers. Watch good documentary "Inside Job" and learn more before being an American ignorant ass.

The scariest part of all this. The US will face the same debt problems.

Everyone is kicking the can down the road and a day of reckoning is coming.

A bear market has begun.

No it was the greedy American voters.

The politicians were seducing them with a life style they were not earning. Like every where else.

true that. now please reply to my emails or icq :)
thanks