Random Thoughts.....What Are You Thinking?

Well when you pay your credit card bill with your debit card, you debit the credit card account, and you credit the debit card account.

WOAH page.

Not exactly. Debt doesn't create wealth, it creates promises and reliability.

Production creates money.

For anyone who didn't watch way back when they showed it

You still didn't change your overall wealth by paying off a credit card bill.

For example:

Bank Account = $1,000
Credit Card Bill = $500
Net Worth = $500 (Bank - Credit Card)

You pay off the entire amount of your credit card.

Bank Account = $500
Credit Card Bill = $0
Net Worth = $500

No change in worth.

What's the term I'm looking for, base money supply, credit cards and loans don't affect that, but they do create more money in the other thing. Forgot the name offhand.

M1 Money Supply?

Or Opportunity Cost?

You don't create wealth for yourself, but you do create wealth for the bank issuing credit and for the merchant(s) you bought stuff from.

Maybe... as long as it's not the base supply, lol.

Also, going with your idea Chaos, here is why it is not correct.

Going with my previous example:

Bank Account = $500
Credit Card = $0
Net Worth = $500

Now you get $500 worth of items to produce

Bank Account = $500
Credit Card = $500
Net Worth = $0

You take those $500 worth of items and sell them for $1,000

Bank Account = $1,000
Credit Card = $500
Net Worth = $500

Production creates wealth, not debts.

I'll be damned, KN is teaching someone something.

I was referring to consumer spending, not production directly. Spending (debt) increases demand for production though.

Consumer spending still doesn't create money.

Because of the examples above. A person who spends money to buy a product did not increase their wealth at all, nor did they increase or create money (debt or otherwise) because all they have done is taken money or promises to pay back money and exchanged it for items and/or services.

However, production creates money because you are taking raw products, put effort into creating a tangible or sellable product, and selling it for a profit. Profit is the creation of money. That's why GDP is so important, it shows how much wealth and money is created by a country and population.

The music they had in the heavensward test stream sounded a bit like the first 25 seconds of this

So, no gym class lessons from me!

I'll agree with this.

I wasn't trying to generate wealth, I am just talking about trying to help *** balance their accounts in quickbooks and ***lol

Oh yeah before I forget KN there is something I wanted to ask you.

It's about W-9 (subcontractor).

Even though I'm writing for the Chinese, technically I'm subcontracted through a company (based in Texas, lol). I had to fill out a W-9 for them with just my SS number.

My question is, are they required to report how much they (the company in Texas) pay me, or is that form just a way for them to cover their ***?

There's no taxes taken out of my pay, etc. (Which I'm sure you're aware of on W-9s)

Did you ever hop onto Excalibest, KN?

Are they "bookkeepers" or are they just people who don't know what the *** they are doing?

*bookkeepers is a very loose term, because even the best "bookkeepers" I work with don't know what the *** they are doing.

Not yet, I'm still on free trial and I don't think they allow transfers.

^
Dameion whenever Kojo sneaks up behind him

They will be issuing a 1099-MISC with your income (gross checks) on Box 7, Nonemployee compensation, so they can expense that amount on their tax return.

I would suggest that you keep records of your expenses associated with your writing business (paper, computer, ink, % of your utilities, % of your rent and/or mortgage interest, % of any property taxes, so on) so you can deduct those on your Sch. C.

I would also suggest you to learn about Forms 2555 & 1116, former excludes income earned from your business as expatriate income, and latter excludes foreign taxes you paid on your 1040 so you don't have to pay them twice.

AKA get a CPA to do your tax return. Going to cost you at least $750 but you will probably save a bundle from paying taxes.

I should log on today.

Gotcha, thanks.

I'll have to contact someone in China that can handle that as my payments are wired into my PBoC account.

No problem.

Seriously though, record every single expense (except meals) you can think of and get somebody to tell you if they are deductible or not.

Also, remember that Obamacare requires you to have health insurance, even if you aren't living in the country. So, you should probably get that too (or lie and say you do, like IRS will ever know the difference, they don't even have a way to track if people have health insurance or not, it's an audit question only).

I have a Serbia Health insurance plan thingie, which is actually really useful.

I canceled my Obama gold plan after like 2 months (when I was briefly in the US for ~7 months) cause it was a waste of money and wasn't useful at all.

This.

KN, do you know anyone personally who knows what the *** they are doing?