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Metalworking (rec.crafts.metalworking) Discuss various aspects of working with metal, such as machining, welding, metal joining, screwing, casting, hardening/tempering, blacksmithing/forging, spinning and hammer work, sheet metal work. |
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#1
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Was starvation wages
When I suggested in a "starvation wages" sub thread, which
posited companies don't pay taxes, they just pass these along to the customer, that in [too] many cases the major corporations now depend on subsidies and tax preferences for most of their "profit", several people expressed doubts. You may find the following of interest. 700 billion has been hijacked from the makers and savers and given to the corporate "takers" by just the FRB. The technical term for this is "financial repression." http://www.bloomberg.com/news/2013-0...on-borrow.html snip America’s companies, from Apple Inc. (AAPL) to Verizon Communications Inc., are saving about $700 billion in interest payments with the Federal Reserve’s unprecedented stimulus. Corporate bond yields over the past four years have fallen to an average of 4.6 percent from 6.14 percent in the five years before Lehman Brothers Holdings Inc.’s demise, a savings equal to $15.4 million annually per every $1 billion borrowed. snip What in the way of *DOMESTIC* investment, job creation, and increased tax base has resulted? Wall Street is not Main Street, and the "market" is not the American economy. |
#2
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Was starvation wages
"F. George McDuffee" wrote: When I suggested in a "starvation wages" sub thread, which posited companies don't pay taxes, they just pass these along to the customer, that in [too] many cases the major corporations now depend on subsidies and tax preferences for most of their "profit", several people expressed doubts. You may find the following of interest. 700 billion has been hijacked from the makers and savers and given to the corporate "takers" by just the FRB. The technical term for this is "financial repression." http://www.bloomberg.com/news/2013-0...on-borrow.html snip America’s companies, from Apple Inc. (AAPL) to Verizon Communications Inc., are saving about $700 billion in interest payments with the Federal Reserve’s unprecedented stimulus. Corporate bond yields over the past four years have fallen to an average of 4.6 percent from 6.14 percent in the five years before Lehman Brothers Holdings Inc.’s demise, a savings equal to $15.4 million annually per every $1 billion borrowed. snip You make a lot of unsubstantiated assumptions. Bond yields are low because the demand for bonds is extraordinarily high. Just because a reporter gives the FED credit doesn't make it so. Nobody has twisted arms to get people to buy more bonds. The FED didn't create the demand for low risk assets. What in the way of *DOMESTIC* investment, job creation, and increased tax base has resulted? Wall Street is not Main Street, and the "market" is not the American economy. What sort of job creation and investment do you expect? Businesses do those things when they forecast the increased output can be sold. When they have no expectation of more sales they hang on to the money. But what is that "money" that the corporations are hanging on to? Do you think large corporations hold bundles of Ben Franklin's or large savings accounts at the bank. The "money" they are holding for the most part is bonds. |
#3
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Was starvation wages
On Friday, September 20, 2013 2:03:12 PM UTC-4, jim wrote:
You make a lot of unsubstantiated assumptions. Bond yields are low because the demand for bonds is extraordinarily high. Just because a reporter gives the FED credit doesn't make it so. Nobody has twisted arms to get people to buy more bonds. The FED didn't create the demand for low risk assets. So you are saying that high demand has resulted in lower interest rates? If that is true, why does a high demand for Gold result in higher prices? Dan |
#4
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Was starvation wages
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#5
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Was starvation wages
On Friday, September 20, 2013 11:56:40 PM UTC-4, Ignoramus3517 wrote:
The interest rate is the opposite (inverse) of price, when we talk about bonds. The lower the interest rate, the higher the price of bonds. For example, to simplify, a bond that promises to pay $100 in a year, would cost $91 if the interest rate is 10%, and $99 if the interest rate is 1%. The 1% bond is higher priced. i You are right, I do not know what I was thinking, or rather not thinking. I really know better. Dan |
#6
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Was starvation wages
On Fri, 20 Sep 2013 18:35:00 -0700 (PDT), "
wrote: On Friday, September 20, 2013 2:03:12 PM UTC-4, jim wrote: You make a lot of unsubstantiated assumptions. Bond yields are low because the demand for bonds is extraordinarily high. Just because a reporter gives the FED credit doesn't make it so. Nobody has twisted arms to get people to buy more bonds. The FED didn't create the demand for low risk assets. So you are saying that high demand has resulted in lower interest rates? If that is true, why does a high demand for Gold result in higher prices? Dan The interest rate offered on a bond is based on the anticipated market, or lack thereof, of the bonds. A bond that is issued by an entity that is perceived as being less reliable will be issued with a higher interest rate as the risk of ownership is higher and thus requires more incentive to buyers. So, if the demand for the bond is expected to be high the interest payment will be low, and vice versa. -- Cheers, John B. |
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