Thursday, February 25, 2010

Buubbbllllleeeeeeesssssssss

Years ago, I recall asking my wife, "How do they do it?" "How do people afford to live in all those $500,000.00 plus homes?" We had always been aware of which bills were due, and there wasn't as much surplus available, as most people might expect for a dentist. We lived in a $250,000.00 home and I could not imagine a mortgage for a home worth twice what ours was. Now that the housing bubble has burst I find that those people really could not afford their homes. They simply owed more than they could possibly repay.
The other area of the economy that always puzzled me, was the banks. I would always scratch my head in wonder, "How my local bank branch could afford to have three managers and all those tellers?" Having run my own dental business for twenty- five years, I had a sense of what was involved in working to produce a profit while maintaining a payroll for one or two employees. "How do they afford to keep all these ladies, dressed professionally in all the branches. It would require a huge amount of crown and bridge charges on a continuous basis. Now that the demise of the dollar has become public knowledge, it makes sense. If banks are charged nothing, or close to nothing to borrow money, to lend at a six to ten point advantage, that's a lot of tellers salaries. This bubble has not officially burst yet, but it will.
The counterfeiting printing presses of the Federal Reserve private banking cartel must be working overtime. As the Fed continues to dump worthless dollars into the economy, the resultant actual value of the paper Federal Reserve Note is diminished. It has lost its meaning.
It would be like adding extra letters to sentences, to the point that the letters loose their meaning. The letter "a" has a meaning when used in the word "cat". It does not mean cat, but a vowel, with certain phonetics sound. Nooooowwww iiiiifffff wwwwweeeee sssssttttttaaaaarrrrttttt iiiinnnncccccrrrreeeeaaaassssiiinnnnngggg ttttthhhhheeeeee nnnnnnuuuuuuuummmmmmbbbbbeeeeeerrrrrr ooooofffffff llllllleeeeetttttttttteeerrrrrrsssss
ttttthhhhhheeeeeeee lllleeeeeettttttttttteeeeeerrrrrrrrsssssssss llllllllloooooooooosssssseeeeee ttttttthhhhhhheeeeeeiiiiiirrrrrr mmmmeeeeaaaannnnniiiiinnnnggggg aaaaaannnnnndddddd vvvvvvvaaaalllllluuuuueeeee

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