Global Depression 2022 - Time to do the Breadline Boogaloo!

[Tacitus Kilgore]

Wasn't that a thing because the US Govt bailed everyone out back in '08? And then we have the fucking Jews at Blackrock and their obscure schemes and suddenly you get the feeling it's the world out for you.

The government printed up trillion of dollars and gave it to rich people. The rich people claimed they would use it to make jobs. They never did. Like with the Bush era tax cuts they pocketed the money and just added it to their money collection. That's what rich people do.

What caused it was people using credit cards and driving themselves into debt, but the biggest offender was the government giving loans to people through government funded banks that would pretend to be private banks. That would be Fannie Mae and Freddie Mac. I know, it reeks of nigger bullshit. That's because it is. They would give loans, mostly to minorities so they could buy houses. Also, the government and liberal leftist organizations would go around twisting the arms of private banks into giving minorities loans. They basically said give us a loan or we will call you racist and the banks gave them loans. Loans for houses they couldn't afford, and they couldn't afford to pay back the loans. The other thing that caused it was the house flippers. People who would buy some dump for a cheap price and then put a few thousand dollars worth of work into it and selling for like $200,000. They buy some shithole shack for 20,000 then put 5,000 worth of work into it then sell it for a lot more. Who bought those houses? Minorities with loans from the fake government banks Fannie Mae and Freddie Mac. This just encouraged more house flipping.

 

[Tealeaf]

It's because of the QE the central bankers do. When interest rates are low, like they were in the 2010s, it makes property investments encouraging for everyone. Unfortunately, this means the big players like investment banks, firms like Blackrock, or Chinese billionaires will take the largest slice of that pie and drive the prices through the roof.

Right now, housing prices are going down because the interest rate rise and shit economy in general is making it harder to find buyers meaning it's less profitable for Blackrock to sit on houses. Interest rates are also making the bankers choose other assets to invest in so it's slowing down their purchase of land and homes which also drops the price. Unfortunately, it will take a while for things to really deflate and some markets like the West Coast and New York still have the Chinese investors parking their money there (hopefully Chairman Pooh makes them sell and donate the proceeds to the CCP).

While loose credit pumps up real estate values too, the main culprit to high cost of living is local NIMBY politics ensuring that housing stock grows slower than the population in the vast majority of cities.

This means that the rising housing costs are backed up by real demand by people living in the homes being sold and rented, so it’s not just a speculation bubble. Speculation just speeds up the process.

 

[Ancient Pioneer]

Like with the Bush era tax cuts they pocketed the money and just added it to their money collection. That's what rich people do.

Tax revenue increased by 44% between the Bush Tax cuts in 2003 and 2007. The 2001 round was done in response to the dot-com bubble bursting only for 9/11 to occur which threw extra angst into the economy then US launched Two wars during the 2001-2003 period which kept the economy flat. From the second round in 2003 onward the Bush Tax cuts were highly successful at raising tax revenue. The 2000s were a very flat decade in terms of economic activity so a 44% increase in tax revenue is quite impressive. The Trump tax cuts on the other hand did not appear to raise much new revenue since most of the Bush tax cuts were made permanent, the link between high tax rates getting in the way of economic expansion has been known for millenia and appears in the Wealth of Nations and was even known to the Romans as demonstrated by Julian the Apostate's spat with Florentius. Florentius needed money and obtusely felt he could just raise the tax rate to get the difference, Julian lowered the tax rate and the magnates stopped smuggling and avoiding taxes because it was far cheaper to just pay them than dance around them. The result was a net increase in tax receipts and the lower classes stopped getting crushed and began the process of expanding their wealth in the region. Not that it mattered much since the Germans just came and looted them of their new found wealth in short order.

 

[George Lucas]

Tax revenue increased by 44% between the Bush Tax cuts in 2003 and 2007. The 2001 round was done in response to the dot-com bubble bursting only for 9/11 to occur which threw extra angst into the economy then US launched Two wars during the 2001-2003 period which kept the economy flat. From the second round in 2003 onward the Bush Tax cuts were highly successful at raising tax revenue. The 2000s were a very flat decade in terms of economic activity so a 44% increase in tax revenue is quite impressive. The Trump tax cuts on the other hand did not appear to raise much new revenue since most of the Bush tax cuts were made permanent, the link between high tax rates getting in the way of economic expansion has been known for millenia and appears in the Wealth of Nations and was even known to the Romans as demonstrated by Julian the Apostate's spat with Florentius. Florentius needed money and obtusely felt he could just raise the tax rate to get the difference, Julian lowered the tax rate and the magnates stopped smuggling and avoiding taxes because it was far cheaper to just pay them than dance around them. The result was a net increase in tax receipts and the lower classes stopped getting crushed and began the process of expanding their wealth in the region. Not that it mattered much since the Germans just came and looted them of their new found wealth in short order.

Reaganomics gets a lot of shit but it’s essentially just a law of nature. I’ve said it here before: all a Republican politician needs to do remain popular is lower taxes and keep criminals locked up, something a lot of them fail to do reliably.

If anyone hasn’t read Wealth of Nations, it is absolutely required reading for anyone educated. People think it’s a prescriptivist book for Capitalism. It’s not. It’s a description of how economics fundametally work. Capitalism is a set of laws that govern all economies, and Smith’s ‘solution’ is to essentially stop trying to fight nature and embrace the beauty of it.

 

[Ancient Pioneer]

Smith’s ‘solution’ is to essentially stop trying to fight nature and embrace the beauty of it.

Laissez Faire is just as destructive as forcing the economy where it doesn't want to go, allowing monopoly to form or the crony capitalism that exists show that an economy needs to be managed to an extent, a natural ecosystem will not be as vibrant as one enhanced by human intervention.

 

[George Lucas]

Laissez Faire is just as destructive as forcing the economy where it doesn't want to go, allowing monopoly to form or the crony capitalism that exists show that an economy needs to be managed to an extent, a natural ecosystem will not be as vibrant as one enhanced by human intervention.

Monopolies and crony capitalism exist in countries that are not Laissez-Faire, like the U.S., so I don’t see how that’s relevant.

As to whether managing an economy like keeping a garden is superior to an unregulated economy, well, it’s a foolish exercise as no unregulated economy can exist. At the very least, the state needs money to offer protection to her people. What’s more important is to understand that actions have positive and negative effects. There is no escape from this, so it’s all a matter of deciding what is more important in a given situation. Smith gives a lot of opinions on policies that were popular in his day. For a modern example, granting a monopoly to a telecom company will provide for more reliable networks, but prices will always be higher than if competition is allowed. That’s really the point of the book: there is no way to win against nature.

 

[contradiction of terns]

I'm not sure how I feel about this, but...

Global Inflation Could Bring a Worldwide Depression, George Soros Says

 

[Toy Soldier]

I'm not sure how I feel about this, but...

Global Inflation Could Bring a Worldwide Depression, George Soros Says

Ya' gotta eat a few kids before you can build the autobahn.

 

[The Ugly One]

Laissez Faire is just as destructive as forcing the economy where it doesn't want to go, allowing monopoly to form or the crony capitalism that exists show that an economy needs to be managed to an extent, a natural ecosystem will not be as vibrant as one enhanced by human intervention.

Ancap Laissez-Faire isn't actually what Smith describes. He primarily focuses on how beggar-thy-neighbor policies don't work and specialization is what drives improvement. He didn't have any concept of entrepreneurship, but most of his observations are still pretty insightful.

You know how the Biden admin thought they would destroy Russia by preventing it from exporting food, fuel, and fertilizer? And how it turned out that it was this huge economic self-own because, uh, turns out we need diesel? This is exactly the kind of brain-dead policy Smith talks about that was popular in the late 18th century.

 

[Male Idiot]

Hungary is going to tax foreign banks, insurers, big store chains, air travel companies and media companies to fund the army and the energy sector. For "most of their profits" .

 

[Maurice Caine]

I'm not sure how I feel about this, but...

Global Inflation Could Bring a Worldwide Depression, George Soros Says

 

[Kujo Jotaro]

Sometimes the "Cassandra's" are correct.

 

[teriyakiburns]

Sometimes the "Cassandra's" are correct.

The issue I take with this guy is that he's arguing that this energy shortage is the result of natural causes, when it's actually the result of political interference. There is plenty of oil still out there, not to mention huge areas of the planet that have had more than cursory exploration for oil, but it is unavailable for exploitation, because successive governments around the world have denied access. The shortage is caused by "green" policies that are deliberately designed to curtail energy use.

 

[Kujo Jotaro]

The issue I take with this guy is that he's arguing that this energy shortage is the result of natural causes, when it's actually the result of political interference. There is plenty of oil still out there, not to mention huge areas of the planet that have had more than cursory exploration for oil, but it is unavailable for exploitation, because successive governments around the world have denied access. The shortage is caused by "green" policies that are deliberately designed to curtail energy use.

There is plenty of oil right now, and there will continue to be plenty of oil in the future; but what happens when plenty of oil just wont cut it? I don't agree with everything he says in the interview, but his broad points I find interesting, and believe they hold some truth. As oil production continues to diminish demand for oil is staying relatively steady( if not increasing) this can continue for an indeterminate amount of time, essentially as long as reserves can be funneled into supplies to keep up the illusion of a strong energy base; once this illusion is dispelled all bets are off.

Our society is built upon cheap plentiful energy, and for it to continue to grow this cheap energy needs to flow. Political and social factors undoubtedly have contributed to the recent decline in energy production (covid policies etc), however there is no paucity of evidence to point towards a decline in energy production pre pandemic. Dismissing this issue out of hand purely as a result of pandemic policies and nations banning oil production in oil rich areas is in part how we've come to this point; what I mean by this is that the prediction of "peak oil" has been bandied about for decades, and the consistent, and thus far dubiously correct retort of "we will find oil/energy elsewhere" has perhaps lulled us into a state of complacency. The ROI for energy will only continue to decline as long as we are dependent on fossil fuels, green energy is superfluous at best if not out right a net negative, and nuclear needs to clear the hurdle of public opinion(something tells me the AC going off in mid August might change some peoples minds) before plants that will take years to complete can even start producing energy.

Peak oil like many gradual phenomena is often thought of as occurring at some set point, and perhaps we will look back once it has finally occured and fix a date, but in reality it will be a slow grind that will see prices climb until they simply become unsustainable. The rise in gas prices over the years is not simply a result of monetary inflation but a severe spike in the amount of energy required to generate even more energy.

Perhaps we have another decade of relatively cheap energy ahead of us, perhaps not, either way the problem of diminishing energy production stands naked for all who chose to see it.

Things will always just work out, right?

 

[Badungus Kabungus]

Now in the UK, GPS-protected "luxury" meats.

 

[Hippopatumus]

Separate from the lockbox, that is some depressing looking steak.

 

[Male Idiot]

Now in the UK, GPS-protected "luxury" meats.
View attachment 3322523View attachment 3322524

the box looks more expensive than the meat.

 

[teriyakiburns]

the box looks more expensive than the meat.

That's because it's the co-op. They sell cheap shit.

 

[Da Grim Reaper]

History has shown that after the collapse, there's rebuilding, and progress.
So I'm not worried at all, humanity works in cycles after all.
After WWIII, we'll all be just like the Boomers.

 

[Justa Grata Honoria]

History has shown that after the collapse, there's rebuilding, and progress.
So I'm not worried at all, humanity works in cycles after all.
After WWIII, we'll all be just like the Boomers.

Lol this doesn't happen during humans lifetime and also cant happen if they don't have complete change of mindset and habits among the populace even the Chinese who had broad education culture, meritocracy based bureaucracy culture, monasteries where they made sure very little knowledge is lost, and written language that is readable in any point of the last two millennia is of their history, they still got two three centuries of dark ages where people slaughtered each other until new dynasty comes out of it to control the shit .

I would be very worried about collapse it always comes with conflicts and rise of various warlords, constant wars and conflicts combined with serious population decline .