Message:

<p>[QUOTE=&quot;JCB1983, post: 1432169, member: 23885&quot;][Disclaimer- not trying to be rude]</p><p><br /></p><p>My overall opinion is that the multiplier effect is a dangerous beast. Essentially profits generate investing in further growth, which leads to further investing, and more profits, and more growth.... The beast has to be fed with consumption... bottom line. When you meet maximum capacity of consumption and are not producing profits then what? Where does the extra money get generated from unless it is printed? Essentially you have the same money continually changing hands. What about the reverse multiplier effect? Kind of a cop out in my opinion. One giant bubble. I could have misinterpreted your comments but that is the way I took it. And if it has to do with some banking system, I simply do not understand it.</p><p><br /></p><p>This expectation of consumerism must be met... It seems evident that the fed tackles this issue with expansionary monetary policy. Granted we are at low levels of inflation, but my generation has no clue about what happened in the 1970&#039;s.</p><p><br /></p><p>Also why would China/India all of the sudden invest so heavy in Gold? This is just speculation, but they are not as confident in US backed securities and expect future inflation via the USD.</p><p><br /></p><p><br /></p><p><br /></p><p>I know that this sounds kind of (doomsdayish, but this is how I feel about the issue). As far as what exactly is going on in the banking system I simply cannot wrap my head around it.</p><p><br /></p><p>Feel free to shred these opinions apart.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in