wages fall, prices rise

darwinslair · August 6th, 2009, 08:31 AM

http://www.nytimes.com/2009/08/05/bu...er=rss&emc=rss

historically, if income levels drop, prices do as well because of lower demand.

However, when the government inflates its currency, it doesnt. It does the opposite. You have less money, and to add insult to injury, what you do have doesnt buy as much any more.

Tom

lorna-organic · August 6th, 2009, 10:00 AM

Tom, I've been meaning to tell you (lost track of the original thread) that your prediction regarding plastic money is already becoming true. Walmart announced to employees that they are phasing out paychecks in favor of plastic money. Any employee who does not have direct deposit regarding their salary, will be receiving their salary in the form of a plastic card. Walmart figures that will be about 40% of employees. They have been running a test program in one area, and feel that it is working--plan to implement it across the US.

So far I haven't noticed a big jump in prices this year, except on peanut oil and cigarettes. Though I am still reeling from the huge jump which happened about a year ago, affecting wheat products especially. I buy a lot of dog food. The price went up $2.50 per bag, plus the weight of the bag was lowered by four pounds--double whammy.

uprooted_kentuckian · August 6th, 2009, 11:42 AM

That has been around for years Lorna. It is a very cost effective and safe way to pay employees. It is simply a prepaid debit card. No issues there.

lorna-organic · August 6th, 2009, 01:23 PM

How does one pay, for instance, a mortgage, with a debt card, UK? I can see it working for people who pay bills via computer/Internet/electronic banking. Though I doubt most of the Walmart employees who prefer real paychecks to direct deposit are big on using computers.

darwinslair · August 6th, 2009, 04:04 PM

Quote:

Originally Posted by uprooted_kentuckian

That has been around for years Lorna. It is a very cost effective and safe way to pay employees. It is simply a prepaid debit card. No issues there.

I can think of an issue, or what is an issue for some, but not everyone.

Cash. It eliminates the face to face private transaction. And if you want to get cash, you have to pay a fee to get it.

Cash is going to go away. Has been going away. There has been a very long concerted effort to get banks to be a middleman in every transaction.

Makes sense. Greatly increases taxable transactions, and every transaction generates a fee for banks, be it check, credit card, or debit card.

Just another way to leech a bit more out of the system.

Tom

axhandle · August 6th, 2009, 05:42 PM

Quote:

Originally Posted by darwinslair

I can think of an issue, or what is an issue for some, but not everyone.

Cash. It eliminates the face to face private transaction. And if you want to get cash, you have to pay a fee to get it.

Cash is going to go away. Has been going away. There has been a very long concerted effort to get banks to be a middleman in every transaction.

Makes sense. Greatly increases taxable transactions, and every transaction generates a fee for banks, be it check, credit card, or debit card.

Just another way to leech a bit more out of the system.

Tom

Have to agree, one of my past credit card entities wouldn't negotiate a pay off,even though their interest rates have more than paid the balance.
And to boot, "it will affect your credit score if you pay it off".

Vultures

Ax

older than dirt · August 7th, 2009, 01:46 AM

If all the transations have to have a government controled third party inviloved the government will iknow what every transation is .

How better to control the people than to be in the middle of every transation.
After all money is electronic money , how long do you think it will be before gold is out lawed again as it was in 1933?
After gold is out lawed will we be throwing our gold into the streets ? Seems I've seen that thought somewhere before

silverseeds · August 7th, 2009, 02:12 AM

Quote:

Originally Posted by darwinslair

I can think of an issue, or what is an issue for some, but not everyone.

Cash. It eliminates the face to face private transaction. And if you want to get cash, you have to pay a fee to get it.

Cash is going to go away. Has been going away. There has been a very long concerted effort to get banks to be a middleman in every transaction.

Makes sense. Greatly increases taxable transactions, and every transaction generates a fee for banks, be it check, credit card, or debit card.

Just another way to leech a bit more out of the system.

Tom

I will bet you an ounce of silver, gold and silver coins come back before cash goes completely away, in place of plastic......

darwinslair · August 7th, 2009, 08:48 AM

Quote:

Originally Posted by silverseeds

I will bet you an ounce of silver, gold and silver coins come back before cash goes completely away, in place of plastic......

I dont think so.

Here is why.

right now they are NOT a legal medium of exchange. IF you use gold or silver in a transaction, you are required to sell it for market price, declare it as income (or loss) and they buy whatever item you are purchasing with the proceeds of your sale of it. (and then again pay any applicable taxes for the transaction)

While of course, in bartering, you can exchange anything for another thing, this is not a legal transaction unless you pay taxes, including capitol gains taxes, on whatever the medium of exchange was.

If gold and silver become currency forms in regular transactions again it will be because the government and their taxation system either do not exist, or they are incapable of exerting any enforceable power in local communities.

And with the muscle flexing I am seeing, they are going to exercise more and more power. Not less.

Tom

older than dirt · August 7th, 2009, 11:52 PM

Quote:

Originally Posted by darwinslair

I dont think so.

Here is why.

right now they are NOT a legal medium of exchange. IF you use gold or silver in a transaction, you are required to sell it for market price, declare it as income (or loss) and they buy whatever item you are purchasing with the proceeds of your sale of it. (and then again pay any applicable taxes for the transaction)

While of course, in bartering, you can exchange anything for another thing, this is not a legal transaction unless you pay taxes, including capitol gains taxes, on whatever the medium of exchange was.

If gold and silver become currency forms in regular transactions again it will be because the government and their taxation system either do not exist, or they are incapable of exerting any enforceable power in local communities.

And with the muscle flexing I am seeing, they are going to exercise more and more power. Not less.

Tom

I agree .
The government is broke & will need real money in a few years. FDR confiscted gold in about 1933 no reason obama can't do it again.
Would not suprize me to see the government declare it evil for thouse rich people to have gold & declare it illegal to own or trade gold

August 6th, 2009, 08:31 AM	#1
darwinslair Senior Member Join Date: Dec 2007 Location: an island in the middle of Lake Minnetonka (and a nice micro-climate) USDA Zone: 4a Posts: 6,895	wages fall, prices rise http://www.nytimes.com/2009/08/05/bu...er=rss&emc=rss historically, if income levels drop, prices do as well because of lower demand. However, when the government inflates its currency, it doesnt. It does the opposite. You have less money, and to add insult to injury, what you do have doesnt buy as much any more. Tom

August 6th, 2009, 10:00 AM	#2
lorna-organic Senior Member Join Date: Sep 2008 Location: central New Mexico USDA Zone: 7b Posts: 18,543	Re: wages fall, prices rise Tom, I've been meaning to tell you (lost track of the original thread) that your prediction regarding plastic money is already becoming true. Walmart announced to employees that they are phasing out paychecks in favor of plastic money. Any employee who does not have direct deposit regarding their salary, will be receiving their salary in the form of a plastic card. Walmart figures that will be about 40% of employees. They have been running a test program in one area, and feel that it is working--plan to implement it across the US. So far I haven't noticed a big jump in prices this year, except on peanut oil and cigarettes. Though I am still reeling from the huge jump which happened about a year ago, affecting wheat products especially. I buy a lot of dog food. The price went up $2.50 per bag, plus the weight of the bag was lowered by four pounds--double whammy. __________________ Lorna Boycott Land O Lakes products because they lobby for GM alfalfa. Boycott Monsanto, Bayer, Syngenta, BASF, Dow, DuPont, Scotts. Scotts is the sole licensed U.S. distributor of Monsanto's RoundUp. MiracleGro is owned by Scotts.

August 6th, 2009, 11:42 AM	#3
uprooted_kentuckian Senior Member Join Date: Apr 2006 Location: Outside Savannah Georgia USDA Zone: 8b Posts: 7,920	Re: wages fall, prices rise That has been around for years Lorna. It is a very cost effective and safe way to pay employees. It is simply a prepaid debit card. No issues there. __________________ . . "God who gave us life gave us liberty. And can the liberties of a nation be thought secure when we have removed their only firm basis, a conviction in the minds of the people that these liberties are a gift from God? That they are not to be violated but with His wrath? Indeed I tremble for my country when I reflect that God is just, and that His justice cannot sleep forever.” Thomas Jefferson[Notes on the State of Virginia, 1781]

August 6th, 2009, 01:23 PM	#4
lorna-organic Senior Member Join Date: Sep 2008 Location: central New Mexico USDA Zone: 7b Posts: 18,543	Re: wages fall, prices rise How does one pay, for instance, a mortgage, with a debt card, UK? I can see it working for people who pay bills via computer/Internet/electronic banking. Though I doubt most of the Walmart employees who prefer real paychecks to direct deposit are big on using computers. __________________ Lorna Boycott Land O Lakes products because they lobby for GM alfalfa. Boycott Monsanto, Bayer, Syngenta, BASF, Dow, DuPont, Scotts. Scotts is the sole licensed U.S. distributor of Monsanto's RoundUp. MiracleGro is owned by Scotts.

August 7th, 2009, 01:46 AM	#7
older than dirt Senior Member Join Date: May 2009 Location: 40 mil from Baker Creek in MO. USDA Zone: 6a Posts: 1,732	Re: wages fall, prices rise If all the transations have to have a government controled third party inviloved the government will iknow what every transation is . How better to control the people than to be in the middle of every transation. After all money is electronic money , how long do you think it will be before gold is out lawed again as it was in 1933? After gold is out lawed will we be throwing our gold into the streets ? Seems I've seen that thought somewhere before __________________ "Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery." - Winston Churchill . . It is seldom that liberty of any kind is lost all at once. Slavery has so frightful an aspect to men accustomed to freedom that it must steal in upon them by degrees and must disguise itself in a thousand shapes in order to be received. Last edited by older than dirt; August 7th, 2009 at 01:52 AM..