An Introduction and Beginning

Salutations to you, the reader, and your fellows across the vast internet. Since you have stumbled here, I, the author, would be greatly honored if you continued to read my first blog here.

I am devoting this blog to economic issues mostly concerned with the current economic problems with the global and United States markets. I shall also be devoting this blog to my observations on atheism and my debates and talks on Mill Ave. in Tempe, AZ with the preachers out on the avenue. I shall also cover other issues as i see fit, but this in general will be what my tiny space upon this internet shall be about.

Well then, onto economics and the collapse of the US dollar and thereby the US market. While this is a general overview, I shall elaborate more later on in future posts.

To understand what is occuring within the US markets, we must delve into the depths of the market and look at what is truely happening within the system and not at the market fluxuations on a day to day basis. What is occuring in the US market is the market forces correcting the overspending of the American citizen.

Why is this happening? Well, we, as Americans, have a fiat currency. This currency is based on how much your currency is in demand, in other words, how much of your currency is needed by others to purchase your products from your country. The better your exports and the more your exports, the more you money is in demand, therefore the more your currency is worth. The dollar is special though, it has reserve currency status. This means that alll foriegn debt and international exchanges are done through dollars. This keeps demand high allowing for Americans to purchase more than they would normally be able to. Now, our economy is going down because we are overextended because we produce less and have no "real" wealth or products. This makes our currency worth less. Now due to our overleverage and overborrowing, we must repay our debts. Normally this would be done by production and a swift correctionary recession. However, the American public wants to not do so; they want their free lunch for all, extra cake and to eat it to without paying a dime. Someone always pays for everything, some way.

We are printing our money to pay our debts, this causes inflation. Now because of the deleveraging of American trust funds in global markets and having to pay off their Americna customers and inverstors, the causes high demand for our currency. This causes a deflationary reaction. This causes deflationary and inflationary forces to compete. Unfortunately for the American economy, the deleveraging is temproary and will probably not last very much longer, no farther I believe than Feburary or March. This will cause inflationary forces to reign and cause prices to go up and wages fairly flat due to the recession.

With all the unfunded bailouts, now of the car companies and the banking industry, who is coming to beg next? No matter what, this will not save the American economy, it will destroy it. All hail the American economic policy, Socialized Corpratism.

However, I now digress from my tirade on the horrid nature of the American economy. Below is a video. It is of a stock broker, Peter Schiff of EuroPacific Capital. I throughly enjoy his analysis. This is a video compilation of his predictions over 2006-2007 and I would like you to see the accuracy with what he has stated. He subscribes to the same economic theory that I do, Austrian Economics, put forth by Ludwig von Mises, Fredrick Hayek and Murray Rothbard.

Enjoy! It is a bit long, about ten minutes. I shall go more in depth on the issues at a later date.

JDM