War and Peace: What is your money doing for you?

Day 694, 21:43 Published in USA USA by dreaeuh

WAR:

In recent news, the US has attacked Hungary by invading Manitoba to our north. The immediate attack is heavily weighted towards the US currently, but as the previous attack earlier this week showed, the Hungarians will hit back with increasing overwhelming strength. However, the dual-prong of the US and Canadian attack may split the attacking force enough to allow either the US or Canada to emerge as victors.

If we say the average Hungarian can afford twice as many weapons as the American worker and hits with more than double the attack, the weaker Hungarian soldiers are four times as effective as an American soldier.

Statistics:
Q1 weapons
4.49USD or 8.89 weapons per 1 gold.
3.54HUF or 9.09 weapons per 1 gold.
Q5 weapons
34.81USD or 1.14 weapons per 1 gold.
227.24HUF or 1.19 weapons per 1 gold.
Wage information
Hungary Minimum Wage 2.00HUF or .062 gold.
Hungary Q1 Wage (average) 2.40HUF or .074 gold.
US Minimum Wage 1USD or .025 gold.
US Q1 Wage (average) 1.02USD or .025 gold.

These statistics show that the average Hungarian unskilled worker can afford 1 Q1 weapon every two days while the average American unskilled worker can afford a 1 Q1 weapon every four days. This is giving the Hungarians a step up, as an armed soldier has an increase of over 120% over the unarmed soldier.

The next congress could do well by subsidizing the costs of war via Q1 weapons (to those who need them) and increasing the minimum wage.

Increasing the minimum wage will increase the amount of currency being spent in the US, which should eat up much of the slack, especially in the weapons and food industry. Either way, earning enough to buy food and save for a weapon can only help the US in future conflicts.

PEACE:

The US has an amazing amount of USD dollar reserves. With a current stockpile in the Treasury of almost 80,000USD, a pending money issuing for 200,000USD, a deposit of 80,000USD at the Fort Knox Federal Reserve 3 days ago, and 123,000USD on the open market, we have to ask the US why it is stockpiling all of those reserves? Not only stockpiling reserves, but asking for increases in tax prices for both homes and grain with a recent 50% increase in tax prices on food.

This attempt to inflate the USD dollar by printing more money while increasing the costs of food is simply going to decrease the average citizens ability to not buy items other than food. Housing prices are rather high (though I do not have the historical information to juxtapose with current prices), but an average citizen would need almost 900 days of savings to be able to buy a Q5 home or almost 180 days to afford a Q1 home.

If the US would convert the amount of reserves into gold, they would have approximate 12,000 Gold at the rate of .025 USD per gold.

The Congressional Budget Office has "set" the price of the USD at .025 gold by offering 123,000USD at that pricing, making any offers below that a reasonable loss, preventing anyone from selling USD at a discount rate to people needing while allow the USD to Gold rate to hover at increasing shrinking margins.

Once the margins close to a neglible rate, the USD would most likely not be used for trading for profit or puchasing goods and we will go through a period of price stagnation, wherein only Americans would have any desire to buy USD and would rather buy currency elsewhere for the purchase of gold.

The market exists for a reason, it manages itself, it reaches equilibrium itself. Printing hundreds of thousands of dollars and setting the prices at which those dollars can buy back gold is trying to manipulate a market trying to reach equilibrium.

At a given point, the market exhausts itself and economists like you and me will buy elsewhere. There will be no profitability in any sector if there is no currency exchange margin in the US.

Just a few things to think about.

Note from the editor:

Please contact me for favorable exchange rates. I would be willing to post a section that allows the buying and selling of currency and possible options. Email me to discuss.