XPost: can.general, can.politics, ott.generalThei   
   From: Canuck57@nospam.com   
      
   On 14/09/2011 11:31 PM, John Fleming wrote:   
      
   >> $If you or I were 20 and could get a 40 year 1% rate from the government,   
   >> $just borrow a billion, buy gold, 40 years later that is a lot of   
   >> $inflation gains.  And why we have so much personal debt as a society.   
   >   
   > The problem with me at 20 is I wouldn't be smart enough to   
   > put 2 and 2 together to come up with 4.  I've matured a bit   
   > since then.   
      
   Haven't we all.  If I was 20 with what I knew now....   
      
   >> $It will come to an end one way or another.  The fraud is why the economy   
   >> $is crashing.   
   >> $   
   >> $A retired couple not market savvy gets $20K income from $1.5M retirement   
   >> $savings isn't going to pay much taxes and will ask or OAS.  An spend   
   >> $much less.  All point to more government expenses and less revenue.   
   >> $Government shoots itself in the foot and liberal economists are just too   
   >> $damned stupid to see it.   
   >   
   > Agreed.   
   >   
   > All low interest rates have done is spike the value of   
   > investment markets.   
   >   
   > Corporations aren't investing money, and are sitting on   
   > piles of cash instead.  So much for job creation and kick   
   > starting the economy.   
      
   Good corporation would do this, pay off debts and hoard cash.  Makes al   
   sorts of sense really.   
      
   At 0% interest rates it also sets the earnings bars lower.  In doing so,   
   with risk bars going up, makes no sense to invest.  The net after tax   
   return isn't there to cover risk and effort.   
      
   I parked 50% of my portfolio in cash, wait for these dips, buy more, and   
   maybe 2-10 weeks later sell for a 10-20% return.  90% of the gains   
   happen in 10% of the time.   
      
   Economy is too unstable to think long term.  And if investing corporate   
   cash, you need a long term stable view to cover the money invested.  You   
   don't want to invest then have uncle Obama and the fleabaggers extort   
   you with taxes for a net loss.   
      
   > South of the border, consumers are scared shitless and are   
   > reluctant to pick up more debt lest the join the third of   
   > the houses on the block where the mortgage is in default.   
   > (We're less scared up here; according to what I've read,   
   > Canadian consumers are piling on debt like there was no   
   > tomorrow.)   
      
   Canadian consumers are setting themselves up for a killing, and they   
   will be the victim.  If you are in debt, now is a perfect time to   
   eliminate it.  Only fools don't and deserve what is coming.   
      
   USA, it is likely permanent.  Home markets might bounce back a bit, but   
   may take some time before they even come close to getting back to where   
   they were.   
      
   >> $>  With a 2% interest rate, a senior would need over half a   
   >> $>  million in his or her RRSP.  And that assumes the capital   
   >> $>  pool is completely depleted after 30 years.   
   >> $   
   >> $Depends on the burn rate, but at subsistence yes.  I plan on cruises, 3   
   >> $months in Equator and the like.  But my retirement plan at 55 I actually   
   >> $save money, for the trips. ;)   
   >   
   > That's assuming a $20K per annum burn rate.  Spend more   
   > money, and either you need more in the RRSP to begin with,   
   > or you run out of cash in less than 30 years.   
      
   I do quite better than 2% annual return. ;)   
      
   >> $We may be closer to WW III than we think.  USA being the aggressor this   
   >> $time.  Chinese and Russia are not happy with USA/NATO/Euro Bank/Gov   
   >> $Regimes in Libya oil conquest.  And they are watching....   
   >   
   > Nothing like a war to get people to forget about their   
   > problems.  Argentina did it in the early 80s when they   
   > invaded the Falklands.   
      
   Excellent observation.  And it didn't help them at all in the long run.   
     Just some short term political greed.   
      
   >> $This winter sometime I am off to various places looking for investments   
   >> $and a possible move to South America.  I don't trust Ottawa in this   
   >> $mess, and as my grandfather said, always get out when times are good.   
   >> $And USA futures suck, I need more diversification than Canadian resources.   
   >   
   > You'll have to let us know what you find when you get back   
      
   Will do.  I want a quick exit option if Canada does something limp like   
   NDP or Ottawa screw up.  I just don't trust Ottawa...   
      
   >> $Note how USA is talking of reductions in medicade/medicare and social   
   >> $security but ignoring the $800B annually to the WW II war machine.   
   >> $NSA/CIA extra.   
   >   
   > Their finances are in a mess down there.   
      
   I have spent 100's of hours studying the US situation and quite frankly,   
   the only way out is for one very strong fiscally conservative president   
   and congress to really set America straight on debt.  Start by public   
   firing of Bernanke.   
      
   But I don't see it happening, once in the vortex, peole can't see their   
   only way out.  50% spending cut in DC....no less will save USA from   
   eventual bankruptcy.  And that is just the feds, civic, state too.   
      
   USA for all intense purposes is bankrupt.   
   --   
   First rule of holes:  If you're in one, don't keep digging.   
   So in the hole, why do we insanely want more debt?   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)