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/biz/ - Business & Finance


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18015654 No.18015654 [Reply] [Original]

How does the economy even work?

>> No.18015686

Who ever has the biggest most powerful military wins. That's literally it.

>> No.18015732

Men produce
Women consume

>> No.18015757

>>18015732
What do banks do?

>> No.18015803

>>18015757
Add debt to everyone transaction ever

>> No.18015830

Some people want things.
Some other people have things.
Who gets what is the question.

>> No.18015857

>>18015654
it is a confidence scam.

>> No.18015895

>>18015686
But you have to pay for the military. You do this by having people all over the world be constantly frying hamburgers just in case a soldier ever shows up with a dollar.
>>18015757
Loan people dollars so they can buy meat for burgers.

>> No.18015897

>>18015654
simple questions can sometimes be the most illuminating. so heres a bump and a question.
i came here because i have a question so dumb and ignorant im embarrassed to ask anywhere else. if i invest a dollar in a $1/share company and it jumps to $10/share, how can i reinvest my earnings? i have $10 and already own what i would buy.

>> No.18015905

It doesn't anymore.

>> No.18015913

the Jews control it. That's all you need to know.

>> No.18015933

>>18015897
please dont say "find another undervalued stock at $1/share" thats obvious and obscures the nature of the question. assume i like my position.

>> No.18015955

>>18015654
You want to start a business but you have no money so you go to banks and ask for credit. You use that extra credit to pay people and so the overall income increases overtime. That's called a boom. Eventually, more and more people get squeezed by debt and lower revenue thus they have to either sell their financial assets at an oversaturated market (meaning they sell at a loss) to meet their debt repayments or increase their productivity. Most of the time, what happens is people cut on costs and stop taking on new debt and repay their old debts which means less people are getting paid and slowly the economy enters a recession. This cycle repeats over and over.

>> No.18016093

>>18015955
It works great when a large portion of the demographics are farming families that you can give loans to buy the latest farming equipment to 10x their yield.
The longer you do this the more saturated all sources of growth like that become. For anyone to still be able to make money the banks and the total growth of the economy needs everything to boom and bust regularly which also helps create a survival of the fittest situation.

>> No.18016361

>>18015654
People have spent thousands of lifetimes trying to figure out how it works, and about the only consensus reached is the basic tenants of supply and demand, maybe.

>> No.18016444
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18016444

>>18015686
>Who ever has the biggest most powerful military wins. That's literally it.

>> No.18016483

>>18015654
supply and command

>> No.18016578

>>18015686
Soviet union had the biggest military in 1945 it didn't turn out well for them

>> No.18016586

>>18015654
it doesn't, which is why they shut it down.

>> No.18016612

>>18015654
Well clearly it fucking doesn't.

>> No.18016656

>>18016578
>implying theyve lost yet
Play the long game motherfucker

>> No.18016664

>>18015897
>>18015933
You liquidate your gains to cash and then simply reinvest those gains into a less risky company that will have a higher probability of netting you more gains. Simple as.

>> No.18016707

>>18015757
Insurance for your money. Then once they have your money. They lend it to people then change them interest.

>> No.18016719

>>18015654
You have supply and demand for a good or service. Even money has supply and demand. When supply is low (shortage) price goes up. When supply is high (gut) price goes down. When demand is low (sale) prices goes down, when demand is high (markup) prices go up.

>> No.18016753

>>18016719
In the case of money, when supply goes up, that leads to inflation. When the supply goes down, that leads to deflation. When the demand goes up, foreign currencies depreciate relative to your home currency. When the demand goes down, foreign currencies appreciate relative to your home currency.

>> No.18016770

>>18016664
so i move from high risk to low[er] risk, and pay taxes and fees at every liquidation?
is there a way to transfer to a different investment vehicle, if i dont need to liquidate, thereby deferring taxes?

>> No.18016805

>>18016770
>is there a way to transfer to a different investment vehicle, if i dont need to liquidate, thereby deferring taxes?
Yes, but it involves a lot of legal tax code loopholes, of which would be impractical if not impossible for somebody in your position. So I guess the real answer is no. The minute you pull out you are subject to taxation, provided your gains are within a taxable bracket.

>> No.18017310

>>18016805
thank you. i agree with your assessment of my situation. my parents late into retirement are getting crushed right now and are afraid to sell, i wonder if you could give me a few keywords i could suggest they bring up with their accountant to potentially stop the bleeding, knowing that theyll need their savings right now and cant afford a 10 year recovery to the prices they were at before the crash.

>> No.18017363

>>18017310
Tell them to ask about any and every possible deduction and credit they can take. Those two key words are what tax accountants are for. This goes for both federal and state. For instance, in my state, if you participate in certain agricultural business, you can claim tax credits on it. Taxman should know the details of it all.

Otherwise, they're just going to have to suffer through it with the rest of us.

>> No.18017542

>>18015654
by misdirection

>> No.18017701

>>18015654
The money machine goes "BRRRRR"

>> No.18017710

>>18017363
much appreciated

>> No.18017759
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18017759

>>18015654
1.) Make stuff
2.) Sell stuff
3.) Lie about the value of stuff you made
4.) Lie about the amount of inventory you actually have
5.) Get everyone to bet with money they don't have on odds that value and inventory will go up forever
6.) Insure the stock value, inventory of everything, and the bets on all of the above with fake money that doesn't exist
7.) Pretend you know the future so nobody finds out the truth and everyone keeps pitching in
8.) When something bad happens, money printer go brrrrr
9.) Everything falls to fucking pieces
10.) Start all over again

And that's basically the economy.

>> No.18018718
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18018718

>>18015654
>How does the economy even work?
Three basic groups of people:
1. People who either mine/farm/drill shit out of the ground (primary producers)
2. People who turn that shit into consumer and capital goods (shit you buy and shit needed to make shit you buy)
3. You, a worthless fucktastic neet sitting at home, in the dark, in your underpants