Heads I Win, Tails I Break Even

Heads I Win, Tails I Break Even

The evidence is becoming overwhelming; our politicians and their cohorts are attempting to prevent an economic firestorm that would destroy the value of our money. Effectively this is gonna take the mess and drag it out as long as possible.

Everyone watching the economic news knows inflating the money supply reduces the purchasing power of the money. With our current accounting practices, debt instruments are money. So not only is my bank savings account available for loans, but so is the mortgage papers on my house. Well, not my house as it's paid for but rather your house. It's like this, the bank loans you money to buy a house, then the bank takes the mortgage as security and claims the security of the mortgage papers is a deposit and loans money based on the deposit to someone else.

Our country prints money, spends it, claims it is part of the national wealth and taxes it. This is the gist of GDP. It has little to do with increased productivity and everything to do with money churn. Churn generates taxable revenue. Therefore, thou shalt not save and it is preferable that you but consumables rather than durables.

We have to not only allow inflation, but we must. Every year we have additional people entering the workforce. Without inflation, the current workers would be forced to accept a cut in pay. BUT, any and all infaltion MUST be directly in proportion to increased productivity. Government jobs are NOT productive and in fact are net consumers of national wealth.
So with all the background stuff out of the way, just how does this relate to the title of this posting?

Though I live at the ragged bottom of the economic ladder, I paid off all my bills. I cut up my credit card and chose to live with the absolute basics. Every dollar I wish to move into the disposable income column must be removed from essentials. Every day, there is a fixed cost to existing. If I buy potato chips, the basic allowance for food is reduced. Cooking from scratch makes this possible however sooo boring. Beans and rice makes for a ho-hum meal.

I try to keep a running list of what would make my life easier and profitable when the econonmy tanks. Many times it is just an additional couple of cans of vegetables or a 5# sack of sugar over and above my current needs. Sometimes it is a particular tool. I always have a list of books that will help me or a friend build or maintain something.

With my buying pattern, if the economy goes down the toilet tomorrow, I have prepared as well as I could. If the economy goes into a protracted slow decline, I bought tools, food and books cheap. I will use them either way. By abhoring debt, I have only the criminal element to fear and they won't find much here of value. Something to remember, a torque wrench has little value to a person lacking the skills to use it.

Oops, let the cat outa the bag. Every manual skill will have some value to the community. The scarcer the skill, the more barter value it has. History has amply proven; If you want to win, invest in sin. Our nation was only 4 years into the '29' Depression when Prohibition was repealed. The people wanted and were getting alcohol regardless of prohibition. Government needed the tax revenue. Whether it is the economics of the home or of the country, it is all about income vs out-go. I'm not avocating breaking the law, but rather pointing out that the lowly skill of the beer-maker will find a place in the poverty-stricken community.