# Dollars To Donuts



## JimBo99 (Apr 25, 2006)

This is off topic, but has a direct impact on my camping experience. When I earn a Dollar, I can take it to the market and buy a certain amount of things. But if I save it (even if it earns a paltry intrest), it buys less and less as time goes by. If I don't get a raise, and the dollars I earn buy less, then my work has been devalued by that amount. I pay more for fuel, maintenance, food, park fees and rates, etc. The Dollar was for over a hundred years backed by gold, and until 1965 by silver. Today it is backed by nothing. The US now owes over 8 trillion dollars in debt, and half of that to foreingers. That debt is backed only by the government's ability to tax the citizens. But whoa! Taxes are being cut and spending is in orbit to Pluto. The govenment can't tax close to enough to pay the bills, so it issues bonds to itself and prints the Dollars. As more and more Dollars are printed the ones in circulation (in all forms- bills, deposits, 401k's, stocks, bonds, etc) become worth less in buying power value, even though the number of them in our accounts may increase. This is inflation of the the Dollar supply, and true inflation. When we see prices increase that is only a result of Dollar inflation, and not inflation, even though we commonly refer to it as that.

Soooo What do you think of this assessment and where do you think we are headed financially in this country? What is real money? What does my future travel and camping experience look like?


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## WMIOUTBACK (Apr 4, 2005)

JimBo99 said:


> This is off topic, but has a direct impact on my camping experience. When I earn a Dollar, I can take it to the market and buy a certain amount of things. But if I save it (even if it earns a paltry intrest), it buys less and less as time goes by. If I don't get a raise, and the dollars I earn buy less, then my work has been devalued by that amount. I pay more for fuel, maintenance, food, park fees and rates, etc. The Dollar was for over a hundred years backed by gold, and until 1965 by silver. Today it is backed by nothing. The US now owes over 8 trillion dollars in debt, and half of that to foreingers. That debt is backed only by the government's ability to tax the citizens. But whoa! Taxes are being cut and spending is in orbit to Pluto. The govenment can't tax close to enough to pay the bills, so it issues bonds to itself and prints the Dollars. As more and more Dollars are printed the ones in circulation (in all forms- bills, deposits, 401k's, stocks, bonds, etc) become worth less in buying power value, even though the number of them in our accounts may increase. This is inflation of the the Dollar supply, and true inflation. When we see prices increase that is only a result of Dollar inflation, and not inflation, even though we commonly refer to it as that.
> 
> Soooo What do you think of this assessment and where do you think we are headed financially in this country? What is real money? What does my future travel and camping experience look like?










It appears to me that you strongly believe in getting the full value of your dollar now based upon your set-up! All kidding aside, it is a very nice set-up. I don't like the state of our economy and I believe many others feel the same way, hence less consumer spending. The economy is especially poor here in Michigan due to the struggles of GM, Ford, Chrysler, Delphi and countless other auto parts manufacturers. I work in the food distribution industry and even restaurants have been feeling the full effect of the poor economy. This is scary because dining out is one of the last luxuries consumers give up.

I'm guilty of less spending. In fact, I opted to buy a used tow vehicle rather than new because I don't have faith in the economy. My wife and I are also on a mission to significantly reduce our debts in anticipation of a fading economy. Perhaps I am only contributing to the problem by holding onto my money and perhaps my dollar will be worth less in the future, but I don't have enough confidence to spend right now.


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## Highlander96 (Mar 1, 2005)

I'll get back to this later.

Tim


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## Highlander96 (Mar 1, 2005)

Money Supply or M1 as it is known has only increased 0.2% in the past year. In comparison, Britian has increased 5.7%, Canada 12.3% and Japan 3.2%

In addition, the US GDP (Gross Domestic Product) has increased 3.5% over the same period of time.

Real Money or RM = Liquidity.......No credit....

Just my $.02,

Tim


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## GlenninTexas (Aug 11, 2004)

Last time I bought donuts I think it was around $1 for 2 donuts. (basic Glazed) Unless your very rich and spring for the ones with sprinkles on them.









Regards, Glenn


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## JimBo99 (Apr 25, 2006)

GlenninTexas said:


> Last time I bought donuts I think it was around $1 for 2 donuts. (basic Glazed) Unless your very rich and spring for the ones with sprinkles on them.
> 
> 
> 
> ...


Donuts certainly contribute to inflation - my waistline that is


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## wolfwood (Sep 19, 2005)

GlenninTexas said:


> Last time I bought donuts I think it was around $1 for 2 donuts. (basic Glazed) Unless your very rich and spring for the ones with sprinkles on them.
> 
> 
> 
> ...


I go for the French Cruellers....at least the air inside is free.


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## stapless (Feb 20, 2005)

interesting thought. however, I'm in no condition to answer in an insightful way. I'm going to go have a couple beers







. I seem to get VERY good at solving all the worlds problems after that







. I'll let you know what i come up with.

scott


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## HootBob (Apr 26, 2004)

What kills me is that we have this high pay doctors here from other countries and they don't pay any taxes beside sale tax and what really burns me up is the wives are able to get food stamps even thou they live in 1-2 millions dollar homes
They are the one that should get taxed to H***
Sorry for Raving
Had to vent that off
Sorry Again

Don


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## sleecjr (Mar 24, 2006)

HootBob said:


> What kills me is that we have this high pay doctors here from other countries and they don't pay any taxes beside sale tax and what really burns me up is the wives are able to get food stamps even thou they live in 1-2 millions dollar homes
> They are the one that should get taxed to H***
> Sorry for Raving
> Had to vent that off
> ...


vote for flat tax!


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## N7OQ (Jun 10, 2006)

HootBob said:


> What kills me is that we have this high pay doctors here from other countries and they don't pay any taxes beside sale tax and what really burns me up is the wives are able to get food stamps even thou they live in 1-2 millions dollar homes
> They are the one that should get taxed to H***
> Sorry for Raving
> Had to vent that off
> ...


vote for flat tax!
[/quote]

I go for that as long as everyone pays the same %


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## JimBo99 (Apr 25, 2006)

I kthink we ought to do away with income tax and balance the budget (can't borrow to spend). Go with a sales tax only. The more you spend the more tax you pay.


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## willie226 (Apr 4, 2006)

This is my 2 cents worth but with the way that everything is getting so expensive 
and in in todays world both parents have to work to pay the bills I think we are heading
towards another depession I Hope this won't happen butthe Goverment needs to wake 
up and do something









OK I Had to vent that off too!!!!!!
But again My 2 cents worth








Willie


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## ROO-ING (Jun 24, 2006)

All I know is that I am working harder then I have before and I am making less. The dollar does not go as far as it use to. Gas prices are up and it takes a big chunk of our income just to get to work. I think alot of people feel the same way.

Roo


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## Thor (Apr 7, 2004)

GlenninTexas said:


> Last time I bought donuts I think it was around $1 for 2 donuts. (basic Glazed) Unless your very rich and spring for the ones with sprinkles on them.
> 
> 
> 
> ...


Tim Horton's has Boston Cream donuts on sale for $0.60









Thor

Regarding $$$ - Spend now, live today because you cannot take it with you.

Thor


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## Kenstand (Mar 25, 2004)

ROO-ING said:


> All I know is that I am working harder then I have before and I am making less.


I agree with this statement and I would think many people feel this way too. However, in my town (and probably yours too) I see lots of new business centers, malls and large homes being built. That tells me someone in the economy is doing OK.


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## Moosegut (Sep 24, 2005)

Now ya see?! That is exactly why I spend every dollar I get when I get it. Why hang onto it? It's worth less in the future so I spend it now when it's worth more. Hmmmmmm . . . . . . . perhaps that's why I don't have the proverbial pot . . .

Oh well, at least now I have an excuse to give DW for my penchant to spend. JimBo, I hope you don't mind if I send you the medical bill when I give this excuse to DW and she hits me over the head with a frying pan.









Scott


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## Thor (Apr 7, 2004)

Moosegut said:


> Now ya see?! That is exactly why I spend every dollar I get when I get it. Why hang onto it? It's worth less in the future so I spend it now when it's worth more. Hmmmmmm . . . . . . . perhaps that's why I don't have the proverbial pot . . .
> 
> Oh well, at least now I have an excuse to give DW for my penchant to spend. JimBo, I hope you don't mind if I send you the medical bill when I give this excuse to DW and she hits me over the head with a frying pan.
> 
> ...


LMAO

Thor


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## JimBo99 (Apr 25, 2006)

Moosegut said:


> Oh well, at least now I have an excuse to give DW for my penchant to spend. JimBo, I hope you don't mind if I send you the medical bill when I give this excuse to DW and she hits me over the head with a frying pan.
> 
> 
> 
> ...


Better be careful Scott, DW might get into a spendin' mood before you!


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## JimBo99 (Apr 25, 2006)

Kenstand said:


> All I know is that I am working harder then I have before and I am making less.


I agree with this statement and I would think many people feel this way too. However, in my town (and probably yours too) I see lots of new business centers, malls and large homes being built. That tells me someone in the economy is doing OK.
[/quote]

New homes, malls, spending at the malls, etc is mostly funded by debt. People are using credit cards freely. 70% of consumer spending is coming from new debt. The government credit spigot is wide open. Because of the massive credit expansion, more people have been able to borrow tons of money to bid on homes, stocks, bonds, etc. This causes the price to bubble up and up and up. We look at our homes and stocks rising as an increase in value. Then people refinance their homes to take out equity, which they think is profit. They spend this money and it looks as if the economy is good. The economy is really terrible, but looks good on the surface. Anybody, and any nation can LOOK good on credit, but when the lenders stop lending the music stops! It's mostly a house of cards. Things will revert to what they are really worth.

The housing market bubble is already busting, and our foreign creditors are very nervous. I'm nervous that most of our credit comes from Asia and the Middle East. The day is coming when all these fancy new malls will be ghost towns, and houses will sit on the market until they are bought by foreiners and rented to us. Why the major change in the bankruptcy laws last October? They know what's coming and financial institutions will be protected, at the expense of the citizen. More than my two cents, but that's what I get for looking behind the curtain in Oz.


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## Highlander96 (Mar 1, 2005)

Jimbo,

I agree with most of what you are saying..........

However, the US Economy is getting stronger. I work as a Industrial Price Economist for the US Department of Labor. I am in the field every day interviewing company officials and evaluating their price and labor situations.
We are experiencing growth. However, that growth is in the Services sector (NAICS 423000 and higher).

Our economy has almost reversed itself since 1972. During that time we were focused on Manufacturing and it consisted of 70% of the US economy. In 2002 70% of the US economy was in the Services Sector (US Department of Labor/BLS 2002).

BTW....We have a house down the street from us that has been reduced from $689,000 to $649,000 and they can not get anyone in the door to look at it.

Lastly, credit will be the death of most people today. I used to work with people who carried $50k in revolving credit card accounts.

Happy Outbacking!

Tim


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## Oregon_Camper (Sep 13, 2004)

Reading this sure makes me want to go SPEND SPEND SPEND....


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