Monetary Gains .at a standstill.

Thiruvananthapuram, India
February 14, 2009 6:16am CST
What possible reasons could be assigned to continuous periods of monetary instability and shortages? When all doorways to financial gains are kept shut, it is but natural that we become frustrated in our outlooks. What mars financial freedom from dawning unto you ? Any tangible causes that forbid inflow of resources?
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3 responses
@Aussies2007 (5339)
• Australia
15 Feb 09
It is a vicious circle which goes up and down like a yo-yo. And because its effects takes one or two years to reach all levels... it is almost impossible to control. Everytime time the economy looks good... people start over spending... which create inflation. Inflation is bad as it push up the price of everything and create a greater divide between the rich and the poor. To control inflation... the Federal Bank raise interest rates. This curb spending as most people have debts... and their repayments gets bigger everytime the interest rate goes up... which leaves them with less money to spend. When they go too far with increasing the interests... people start going bankrupt as they cannot repay their debts anymore. As people have no money... they don't buy anymore. Which means the industries cannot sell their goods anymore... so they start sending their workers home. Now those workers who already had a hard time paying their bills... will go bankrupt as they don't have a job anymore. When you reach that stage... you are in recession. So you start bringing the interests down again. But once people are broke... it does take a long time for things to pick up again. Like at least two years. I think they go too far when they push the interests up. They should stop at the first sign of things falling apart. But that's only one part of it... Since most countries are now part of the world economy... one country like the USA can affect all the other countries in the world. The rate exchange of the dollar plays a big part in it... since every country trades with other countries. It becomes a matter for the government to manage its budget. If it gets it wrong... the budget goes into deficit... and the government has to make some cut back... which further hurt the population. Again... the interests have a direct impact on the value of the dollar. High interests means high dollar value. So the interests are also used to control the government's budget. At the end of the day... it is the Federal Bank which control the world by playing with the interest rates. The government cannot tell the Federal Bank what to do. The Bank has the money and own the government. And the planet for that matter. lol There is still a lot more into it... but I don't have the time to write a book about it. lol
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@derek_a (10891)
14 Feb 09
I would say that monetary gains are subject to natural law like everything else. This is because it is controlled by human-kind and human-kind is only another part of nature that flows with the seasons of abundance and non-abundance. However, being creators, we can rise above our animal instincts, that are governed by nature and realize, that nothing ever really disappears or changes completely, it merely transforms. :-) Derek Frustration is the same too. Every desire that we create, has to have an opposite, or we would never know to what degree we would be successful.. :-) Derek
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@dragon54u (31623)
• United States
14 Feb 09
The tangible causes that forbid inflow of resources here is lack of jobs. Companies are cutting down and letting people go and as they do that, people quit buying. Then they let more people go because of the lack of buying. It's a vicious cycle. The only thing that will help is to leave it alone to correct itself. Businesses will fail, people will suffer, but other healthier businesses will take their place and eventually we'll get back to a healthy economy. This will be a miserable process but that's how it has to be.
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