Paradox of Thrift: from Super Fed-Watch: May 20, 2012:

[bimetalaupt]

May 20, 2012 at 2:00pm

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Post by bimetalaupt on May 20, 2012 at 2:00pm

THIS IS A REAL PARADOX AS I JUST CAME BACK FROM THE STORE WHERE I BOUGHT BIRD SEED AND COCONUT FIBRE FOR MY BIRDIES.. OK I SPENT $7.00 FOR THE YEARLY RETURN OF A PAIR.. HE HAS LONGER TAIL AND A RED HEAD..SHE IS A BIT FULLER AND DULL.. I CALL THEM FRED AND FREDELL. DID I SAVE MONEY OR WHAT..NO I INCREASED THE ECONOMY BY $49.00. That was Fred.. math...$7.00 * multiplyer of 7 = $49.00 Now for 7 chicks from 7 eggs.. Fredell do your thing!!!



Just a thought,

BiMetalAuPt


Excerpted from the archives of the St. Louis Fed:

“[Saving] is a paradox because in kindergarten we are all taught that thrift is always a good thing.”1—Paul A. Samuelson, first American to win the Nobel Prize in Economics (1970)

People save for various reasons. Some save with a specific purchase in mind, such as cosmetic surgery or a Porsche, while others save just to have more money. Economists say that individuals save to buy durable goods and/or accumulate wealth to maintain a certain lifestyle during retirement or in times of financial uncertainty. These reasons all confer benefits to a saver. In the near term, the saver can finally buy the latest and greatest gadget, and in the long term, the saver can be more financially secure during retirement or unplanned unemployment.

Normally, personal saving declines during recessions because people want to maintain their existing level of consumption. During the Great Recession, though, saving increased. The chart shows the personal saving rate, the year-over-year growth rate of gross domestic product (GDP), and recession periods from 2000 to 2011. Before the Great Recession, the average saving rate for the typical American household was 2.9 percent. Since the recession started in 2007, the average saving rate has risen to 5.0 percent. This increase was largely driven by uncertainty about future employment, efforts to reduce debt, and wide fluctuations in stock and housing prices. Although this increase in saving benefits individuals who save more, some economists argue the dramatic change in saving behavior is detrimental to the overall economy. Given the benefits to individuals, how could saving harm the economy?

...

[Aman A.K.A. Ahamburger]

Ha! What is happening right now in the USA is crushing Keynesian thought. The savings that have "kept this recovery back" are now the very thing supporting the "skeleton crew." It's going to be fun to bury socialism and leave a system in place that does more for the common person than socialists ever dreamed.

U.S. Stocks Rally With Dollar on Economy Optimism; Crude Falls

[verrip1]

Dec 4, 2015 20:56:41 GMT -5 Aman A.K.A. Ahamburger said:

Ha! What is happening right now in the USA is crushing Keynesian thought. The savings that have "kept this recovery back" are now the very thing supporting the "skeleton crew." It's going to be fun to bury socialism and leave a system in place that does more for the common person than socialists ever dreamed.

U.S. Stocks Rally With Dollar on Economy Optimism; Crude Falls

Aham:

Keynes has a major following amongst statist, big government people.  Unfortunately for them, they're following a non-existant fantasy.  Keynes never supported government spending increases at all times because he considered them always stimulative.  Instead he supported use of temporarily increased government spending during recessionary times.

If these statist, faux Keynesians were right, Greece would have the most stimulative economy in the world. 

[Aman A.K.A. Ahamburger]

Haha... I hear ya man.

I know exactly what you're talking about with Keynes followers making his words faux.

Gotta change the system from the inside. You'll have to join us for supper with J.T. someday my friend.

[bimetalaupt]

New Test of trading vs not!!~ MMXVII-Alpha buy and hold: Low cost!! Derivative of Expert 50/50: The expert 50/50 has a record for 12.5% for bonds and 11.614%for stocks/elf.  Taxes only on interest and dividends unless cash only merger like Libby or Heinz.  As  advertised by Jim Cramer we reduced holding in stock to 7 with one ETF. IE we invest dividends 32 times a year free.  Interest from 30 year bonds Is moved to Cash or Money market fund after taxes. Reason being to reduce risk and be ready for the coming crash due to problems in the EU. 

we are working with computer analysis but it is clear most of the M3 is going into income producing equities like DUK or T.  With 100% income after taxes buying equity the Risk is to not reinvest.

Just a thought from Super Iron,
Bruce Duke-Lendrum MBA, PharmB, BS

[Aman A.K.A. Ahamburger]

Dec 5, 2015 22:37:01 GMT -5 bimetalaupt said:

New Test of trading vs not!!~ MMXVII-Alpha buy and hold: Low cost!!

Just a thought from Super Iron,
Bruce Duke-Lendrum MBA, PharmB, BS

That's what I'm looking forward to next year. This year our investment capital, and the year end, were used as a hedge for this future growth of four thing we have going on here..