We deserve what we ask for.

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.
--Thomas Jefferson

At least some people were aware of the problem when banks have the run of the government (or at least the money of a country).

In the US, the Fed controls the interest rates used between banks. And for some time, they've kept the interest rates very low especially after 9/11. All this caused the housing bubble until 2005 and, for now, the commodities bubble. And we're going through the housing deflation (which I believe will last at least 10 years) and I'm sure the commodities will be next along with the stock market (I'm short with most of my investments). Fortunately in America, we won't have to worry too much about homelessness since most people today have too large home so taking in relatives and friends shouldn't be any problem during the coming long recession/depression ahead.

Copyright 2008, DannyHSDad, All Rights Reserved

Sunset of American Empire

When I read "The uninvited guest: Chinese sub pops up in middle of U.S. Navy exercise, leaving military chiefs red-faced" it seems what American Empire is starting her sunset. America is busy fighting several war fronts (Iraq and Afghanistan and maybe Iran next), mortgage mess is turning into recession and probably a depression. And we now have China trying to one up America, militarily.

I like Ron Paul's proposal to bring all military back home (back from Japan, S.Korea, Diego Garcia, Gitmo, to name a few places) so that we can focus on our country and even our military toys, if that is what we want to do as a country.

Copyright 2007, DannyHSDad, All Rights Reserved.

Buying a home now

As much I believe that we'll face serious economy downturn over the next few years:

The best time to plant a tree was 20 years ago. The second best time is now.

To grow fruits and nuts (for personal consumption, not for earning money) for the long term, we have to buy our own land, now.

So, the question I'm facing is, how to buy at the current inflated prices? I'm thinking just the land would be cheaper than trying to buy a home with large lot. But then buying a distressed home (foreclosed or "fixer upper") might be a good choice now that the news is out on how bad the real estate has become.

Copyright 2007, DannyHSDad, All Rights Reserved.