The Economics of being Frugal

This is my horrible attempt at explaining why YOU spending less money will mean that everyone else in turn, is spending less money.

Hopefully it makes a bit of sense, I'm an English major, not an economist!

Category:

Education

Tags:

• economy
• money
• inject
• save
• girl
• upsidesmile
• supply
• demand
• depression
• planet
• earth
• sustain
• good
• tips

[upsidesmile]

So obviously, I am not an economist.

Oh well.

[markymarkuss777]

You don't your facts too well. We are in uncharted waters right now. They are saying you can't even compare this to the Great Depression because it's much much worse. It's the perfect storm of everything that could go economically. This American ship is going down. Buy storable food and water.

[upsidesmile]

You're right - I don't know my facts too well, as "I have a limited understanding of economics". Feel free to post a video response with more specified facts.

Also, I wasn't so much trying to compare this to the Great Depression, I was moreso saying that if we all stop buying so much, it probably won't cause another significant depression... and that the pros of consuming less would out-weigh the cons.

[upsidesmile]

AHAHAHA quit lying i know you aspire to be a yo-yo master...

plus it's easier to store yo-yo's than hula hoops!

(okay actually when i was little i really did have a yo-yo collection... i had like 12. they were really cool.)

[imrichyournot]

shes lucky shes hot. "I would recognize the enviromental implications and probably refuse the gift."

[gaston1966a]

I would write u a song... I like u

[aronking6792]

Best part of the video was 3:48 - 3:49

[faheeta]

It almost looks like ur wearing a KKK hood

[markymarkuss777]

I was right about this 8 months ago when I commented on this video, and I'm 99.9 percent sure I'm right about the next 9 months. This economic situation isn't that hard to understand if you look at the bigger picture. Americans don't have jobs, and now they can't tap into credit lines to run up anymore DEBT. China has recently said it will no longer lend anymore money to American banks. America is turning into a 3rd world nation, and it will become one by 2012. Take precautions now!

[markymarkuss777]

The first Depression was Deflationary where the money still had value, but there wasn't enough money going around. This will be Hyper-Inflation where there will be TOO MUCH money floating around. When you create more of something, what happens to the value of it? It goes down! I am now predicting within the next 9 months that our U.S. Dollar will be pretty much worthless. If you have U.S. Dollars, your best bet is to spend it first and foremost on food and water, and then gold/silver if you can.

[markymarkuss777]

Now that we aren't able to pay back foreign nations like China for this debt, and the U.S. Government along with the Federal Reserve printing money and pumping it into the economy, the value of the dollar will begin to go down. Which will make other foreign nations de-peg their own Fiat Currency (Paper money) from the U.S. Dollar. Which will create The Mother of All Depressions, which I stated 8 months ago. This Depression won't be like 1929-30's. This Depression will be Hyper-Inflationary.

[markymarkuss777]

So in the past couple years the stock market has been cut in half, and millions more jobs were lost this year. With this continuing trend, along with the fact that our manufacturing base is pretty much completely wiped out, we are now faced with a very bad situation. It will take years, if not a whole decade for us to regain our economic strength through creating new manufacturing jobs. We have now run up a 10 trillion dollar debt, and a 4 trillion dollar trade deficit.

[markymarkuss777]

You have a nation that is dependent upon people spending. With none of the manufacturing jobs, Americans were forced into tapping into their credit lines (Home Equity, credit cards) This is why we have had such a strong economy since 2002 is because it has been a phony economy based off of people spending DEBT to buy things they want. Now that the housing prices are beginning to fall, and the credit card companies are no longer lending, neither are the banks, the American public is tapped out!

[markymarkuss777]

The reason I saw all this coming (as you can see from my comments predicting it 8 months ago) is because I may not be an expert in economics either, but you don't need to be when the fundamentals of economics are pretty simple to understand. America sold out their manufacturing base under the Free Trade Agreements (NAFTA, GATT, etc.) This has caused Americans to lose their jobs. So as this happened the GDP or strength of our economy switched from PRODUCTION to 70 percent CONSUMPTION.