Vive le France

[BlueBee]

Kingbee maybe the reason you’re pessimistic is because you believe that the only way out of a fiscal crisis in austerity.  That is simply FALSE.  Focusing (obsessing) only on austerity and debt reduction simply makes matters worse by triggering recession.  (Read your first link).  That’s not the way failing businesses are dealt with in capitalism, so why would it work for entire countries?  The right wingers also seem to think there is something heavenly about paper money and that is should never be devalued.  Another myth that is false.  

I see things in the light of reality, so I’m an optimist; not a pessimist.  The only thing that is guaranteed in the future is change; embrace it and move on.  The bees don’t worry about what our debt is or the Fed printing money.  I wouldn't worry too much either unless all your assets are cash hoarded under a mattress.

[kingbee]

Oh boy, here we go again, the first thing that must happen for a failing business to survive is to affix a tourniquet around the severed arm or leg to stop the hemorrhaging of cash.  Like Shakespeare’s rose you can call it a stop loss program, or anything else you wish but in short it is an austerity program, short, sweet, and hard to beat.  I sure hope Barry isn't depending on you to wench us out of the ditch he drove the economy into. 

[kingbee]

... right wingers also seem to think there is something heavenly about paper money... that is should never be devalued... I wouldn't worry too much either unless ...your assets are ...under a mattress.

Paper assets like cash are better than non paper assets like bank deposits or equity in a home.  The government can always seize or nationalize bank accounts, history is full of examples.  Likewise, selling realestate in a hyper inflationary economy is next to impossible because no one knows what the money will be worth tomorrow, or next month, or when ever the sale is finalized.  Then your left holding a bag of quickly evaporating money.   At least cash money makes a serviceable mattress filler, and if push ever comes to shove you can start a fire with it.  Try that with your Union Pension, SS benefit, or IRA.

[BlueBee]

I thought your love for Mr Government bailout Iaccoca was one of your more colorful comments until I read this one!

What are you claiming?  In a hyper inflationary economy you want to keep your assets in cash?  

Have you ever read about Zimbabwe?  Come on fellow right wing beeks, surely you have to agree with me (at least for ONCE) that hoarding cash in a hyper inflationary economy is a CRAZY idea!!!

[kingbee]

Just saying that you can at least burn your paper money to cook up a little road kill, but that a debit card or CD certificate makes a very poor fire and besides the former is hard to light.  So if you are going to hoard cash during a run away inflationary period, its better to hoard the real thing.

[buzzbee]

Hmm,I guess if a dollars value has no meaning,the government shouldn't be rushing to save someone who has a  home is suddenly only worth half of what it was.

[kingbee]

... .

The problem with owning real assets during a runaway period of inflation is how are you going to sell something to raise cash to say eat, if the cash will become worthless in a few days.  You certainly can't sell your house and finance it yourself without coming up short, and you can't do a contract sale without loosing everything, and with a check needing several days to clear well there you go again. 

It may acually come down to the UAW rank and file screaming at the Union's leadership to invest everything in Chinese auto company stocks and securities.  Then even if the value of the Chinease stocks remain the same of even falls slightly, the UAW pention fund makes a huge profit each and every day from just the inflation.  That is what soured the German Middle Classes on the financial class after WWI, profiteering off of foreign stocks and investments while the middle classes' "SAFE" bank accounts went kaput at the speed of light.  Hitler never forgot to remind them of this fact at every opportunity, just like his minion, Obama does today.  At the hight of the German inflation the Wiemar Government kept at least 300 paper mills running day and night just to supply enough paper to the mint's printing presses.

[BlueBee]

Now I’m really confused   Buzzbee is talking DEFLATION, while Kingbee is talking Hyper Inflation.  I thought our beeks unanimously claimed deflation was not happening?  Make up your mind already; y’all are starting to sound as wishy washy on the facts as Romney! 

Non cash asset prices go UP during hyperinflation and hence your home becomes worth 2x what it was while your cash becomes worth ½ what it was.  How does it make sense to hoard cash?  What kind of math are y’all using?

As for the UAW pension fund investing in Chinese autos, WHO do you think is the number one auto maker in China?  LOL, think about that one for a minute……

[kingbee]

...
As for the UAW pension fund investing in Chinese autos, WHO do you think is the number one auto maker in China? ...

That's a no brainer, at least I think it is.  Government Motors is China's biggest auto coroperative.  

However, the fact that coolie labor is what is keeping Government Motor's head above water at the moment doesn't seem to squeeze much juice with many of the UAW's rank and file.  I am always hearing ban Chinese imports from many UAW types.  

In the past California asked for and got racists laws to ban Chinese workers from these shores.  The whole country now seems to want to prevent the Chinese from earning a living by working in their own land.  Many workers here benefit from the fact that the GM workers in China underwrite or subsidise the UAW by GM's Chinese profits ending up in Detroit banks so the profits earned by Chinamen can be payed out to us greedy Americans.  

While this is not the whole story, I think that it is a fair synopsis.  The trouble is that this is not a sustainable path for the long term survival of either Government Motors, or the UAW.  Things will have to change and change drastically.  Since Halloween is almost here I think it is fair to say that GM, the UAW, and the President are all three whistling past the auto company grave yard.  I BTW don't want to see this happen, but I feel like the poor soul in the crow's nest on the Titanic, screaming warning after warning into the ship's telegraph while the greatest ship in history rushes forward to meet her doom without changing course.    

Oh, and on the day that Government Motors got it's bailout, they opened a profitable factory in.... RUSSIA of all places for crying out loud.    

[kingbee]

... maybe the reason you’re pessimistic is because you believe that the only way out of a fiscal crisis in austerity.  That is simply FALSE.  Focusing only on austerity and debt reduction simply makes matters worse by triggering recession...

Hay BB, don't tell it to me, tell it to the new French Socialist Government. 

The French steel industry is a basket case.  The French Auto Industry is out of gas.  France has a ballance of payments problem because of their high labor cost coupled with very low French worker productivity. The French are battling a crippling recession that is fast becoming a full blown depression and France has tried everything but austerity.  Now France is on the verge of trying austerity coupled with higher taxes on both its business and its citizens.  Every week my dire predictions about the sorry looking future of France are coming true.  Believe my when I say that I would rather they did not.  So my question for you is this, "How much longer before the shooting starts in the streets of Paris?" 
http://news.yahoo.com/hollande-likely-shrug-off-shock-therapy-review-000118888--business.html

   

[BlueBee]

Well, let’s see…..since France has sensible gun laws, I would say never. 

OK, I really can’t argue with you about Renault; you are RIGHT.   I give the French credit for trying, but Detroit invented the automobile and is still the best at it.  That said, Renault stock is up 31% this year.  That is almost double what your beloved “Government Motors” is up this year. 

As for productivity, I suppose that depends upon how you measure it?  If you get your definition from Fox “News”, then France in probably lower than a snake’s belly.  However if you get your definition from our friends in the great state of Pennsylvania, then France is MORE productive than the USA.  Go figure.  http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP%29_per_hour_worked
 
The real mystery is why previous president, and CONSERVATIVE, Nicolas Sarkozy didn’t solve all these problems?