Friday, October 21, 2011

Add Dave Ramsey to list of OWS Trashers

You can add Dave Ramsey to the list of radio show hosts that have no idea what OWS is trying to accomplish.  You can also add him to the list of arrogant pricks who peddles himself on the radio to sell products and generate income.  Pay no attention to the matter that a lot of what he says is not true, pure speculation or hyperbole.   Last night I heard him giving a lecture on the fact that because people were protesting and upset that it AUTOMATICALLY meant they wanted something for nothing and that they didn't understand how money worked.  He further went on to imply that people were stupid and suggested that these protesters had a flawed concept about how money works.  He then went on to tell some bull shit story his Rabi told him that was such a load of crap I couldn't believe he would even repeat it.  He tried to convince the audience that everywhere money is used it is making money.  He also said that that them money would grow every time it was used as if it were magic.  He failed to mention anything about interest and compounding interest, or how paying high interest fees can make a money exchange a lose for one person and win for the other.  He wrongfully tries to apply his own theory that the "pie" as he called was ever expanding.  He made it sound like all you had to do was have a piece of junk in your garage and some stranger would come up and offer money for it that was less than you would have to pay to haul it away.  and then conveniently he said this guy was able to sell it this piece of junk to someone else for more money and yee ha everybody wins. 

Interesting thought but it is bull shit.  His concept of real money is not about how the real money system works.  He is confusing the spiritual concept of infinite abundance with the real world concept of paper dollars, gold bars, green backs, foldies or whatever you want to call currency today.
He also falsely blamed the economic solely on the fact that people are afraid to invest and to spend now so that was the entire problem.  He mentioned nothing about the trillions of dollars that were vaporized out of the economy, made no mention of millions of people that are unemployed and he made no mention that our money supply system is run by the Federal reserve and that what gives money velocity is the ability for it to be lent out at higher interest rates that the borrowee is currently paying and more significantly by the banking laws that allow banks to loan out 10 dollars for every dollar they have in their deposit accounts. 

He also made no mention of the fact that banks are hoarding capital and will not lend on a depreciating asset to the tune of 200k large.  You don't see banks lending that kind of money on vehicles  and they certainly won't do it on real estate that could be another 10 % less in a month.  Even with a substantial down payment banks are reluctant to take the risk because the last thing they want now is to add to their back log of foreclosures. 

So another self righteous blow hard is out to deny the OWS protesters their right to protest namely because they are too stupid to know how the money system works and only people as smart as Dave can tell the world the absolute truth.  His pitch is total bull shit.  The system is based on leverage and credit and if we have neither it doesn't matter how many pieced of junk you sell out of your garage, the economy will still suck.  Not tot to mention the fact that if the item in the garage was worth anything it probably would not have been slated delivery to the local dump. 

If he wanted to explain this ditty as how we need to live spiritually and how our faith affects our view of money and our interaction with it, then I would have less of a problem with the analogy.   However, as it stands it was just a simplified story that evidently turned on a light switch in Dave Ramey's head that said hey if I tell some stupid story that I say is from a Rabbi, it will give me credibility and people will not realize" I am just on the radio to hawk my books and to sell tickets to my seminars."
Didn't work on everyone this time. 

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