Day 2--Economic Guidepost: Currency ... Funny Numbers ... Inflation ... International Funny Numbers ... 529s Ponzi Scheme

  1. Origin: "I will pay you what your time is currently worth."
  2. Currency is the common intermediate product by which producers exchange their time in goods or services.
  3. The cost of anything is not funny number on funny paper but the time you must work to acquire the double funnies.

Funny Numbers on Funny Paper:

  1. In 1968, the average middle-class home sold for $20,000 which would buy 5 years in a nursing home.
  2. In 2017, that home sells for $200,000 but buys on only two nursing-home years.
  3. Today, to maintain a 1980 lifestyle a middle-class family must work ten weeks longer.
  4. The cost of living is the time you must work each day to buy the necessities of life to continue to live.
  5. Time, not funny numbers, is what counts.

Inflation: The cheapening of time

  1. If inflation erodes the buying power of your savings by 50% then inflation cheapened your original work time by half.
  2. Worst form of inflation: Unemployment, a 100% sudden cheapening of your work time.
  3. 24in4 will prevent un-, under- and mis-employment.
  4. "Inflation" echos its cheapening semantic cousins: flattery and flatulence.

International Funny Numbers:

  1. Individuals and nations have forever manipulated currency to transfer wealth from the wealth creators to the speculators or legal thieves.
  2. A simple formula eliminates the legal theft from currency manipulation based on the following question: To buy the basic goods for living, which would you rather be
    • a dollaraire who need only works one hour at one dollar, or,
    • a millionarie who must work sixteen hours at a million dollars an hour?
  3. The real absolute, universal and eternal value of a currency is determined by the number of necessary life hours to survive divided into the 24 hours of a day.
  4. In the above the question, the millionaire had a lifehour value of 1.5 while the dollaraire worker had a lifehour value of 24: Which economy would you want to live in? Do you value real fundamental time or unreal funnymentalist numbers?
  5. International funny numbers are the basis of monetary colonialism, sex trafficking, and other funny inhumanities.
    [The Super Brainbee provides a guidepost tool to determine the lifehour value of any global, national, state, local or family unit.]

529s: A Ponzi Scheme Feeding the Tuition Monster

  1. A Ponzi scheme occurs when the first participants are paid returns by the later participants--no wealth is created only transfered.
  2. Of 529 dynamics, if one does a cradle-to-grave analysis of who gets the most benefit and who pays the most, one sees that 529s fit the prior general summary of a Ponzi scheme. Furthermore, 529s are instance of the dog chasing his tail as various schemes to help citizens afford college further fuels the fires of inflation driving up the cost of higher education. Like 401ks, 529s are political Saltwater Solutions, that is, the immediate response is one of relief. However as the years go by the initial thirst quencher is like drinking saltwater, the thirst roars back worse than ever.

    1. The rich pay full tuition when the child is born. Eighteen years later, the child goes to college at nearly two-decade old prices without intervening inflation. The monetary difference between then and now is made up by raising tuition on the poor and muddled-class who pay as they go. Thus, like the traditional Ponzi scheme: The first-in get paid by later suckers.
    2. The traditional definition of inflation is more money chasing the same goods and services. Anyone thinks all these schemes to help the muddled class by grants and tax exemptions ignores the basic definition of inflation. Hillary Clinton's $350 billion college package is gasoline for the fires of inflation and fuel for the exploding national debt. And, education will not increase one iota like Obamacare's throwing money at healthcare. Putting more money into the buyers' pocket is inflationarily silly when the price solution is increasing the number of providers or efficiency of product delivery. (Despite promises, Obamacare has not increased efficiency or productivity of healthcare delivery.)
    3. Furthermore, the muddled-class pays the added bureaucratic costs of managing the various 529 programs. 529 programs are not self-financing. Tax dollars pay for the crony bureaucrats and obnoxious television ads. Anyone who thinks politically appointed cronies out-guess hedge funds and private equity firms is not in their right mind. The muddled-class pays the funding taxes, not the rich Trumpees.. Adding unneeded middle-men always drives up the price of any goods or services.
    4. Increased Federal Debt means de facto Federal College Loan: Anyone who thinks taking a tax-credit helps a student's education and career igknows how each tax-deficit credit adds to a jumbo student loan called the National Debt to be repaid by the students in the future ... with interest! In other words, the parents are not saving money, rather, they are borrowing money from the children and grandchildren they think they are helping. Because of probable social and economic collapse when the national and state debts are unmanageable, the 529 kids won't have to worry about paying off the debt. Like the jobless Syrian refugees, the 529 co-enabled, unemployed or under-employed college students do not and will not worry about either public or private debt.
    5. 529s are the nexus of igknowance, stupidity and greed of people who think they can get something-for-nothing but 529s are nothing compared to 401ks: In one generation, the muddled-class lost 90% of its retirement. It pursued the sports patho with self, siblings and offspring in the belief that they could get something-for-nothing by playing funny games with funny numbers on funny paper.

    Pro ... Con


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