Caribbean travel tips and tricks

Traveling internationally has never been easier, nut you’ve probably found that international airfares are not cheap. You may have also spent some time going through the search engines for discount international airfares only to become totally overwhelmed. So to start you off on your search here are some of the hottest deals on the web to help you quickly and easily find the best deal.

You may be surprised to hear that there are search engines that deal specifically with people who offer discount international airfares. They are worth looking into as everyone uses different sources for their deals so that they have different discounts on international airfares. There are three search engines that deal with companies offering flights to Europe:

- Goo Flight This search engine covers 35 countries which serve over 230 cities including the most popular destinations to England, Ireland, France, Italy and Spain. They currently have offerings from 16 airlines.
- Sky Scanner This search engine operates on a slightly different premise. You first enter specific dates, trips or locations and it will undertake a complete search of its database to match your criteria. Most of the other sites just list the availabilities.
- Apple Fares This search engine was recently bought out by CheapFlights.com. Their main focus is on cheap airfares across Europe so if you plan on traveling around Europe once you arrive there, for more details visit to www.auto-cons.com this is an excellent site to help you find cheap airfares as you travel around Europe.

The following sites are great resources for intercontinental airfares or for travel within the US:

- Fare Chase This site is simple, easy to navigate and use. It’s so good that Yahoo just bought them out!
- Quito This site claims to be the biggest cheap airfare search engine of them all. It may well be true as it has a staggering amount of airfares and options available.
- Epode although it’s a UK site it allows you to search its database with a combination of factors, such as airlines, for more details visit to www.the-spam-files.com
different fares, traveling partners and ages.

There are alternatives to the pure search engine style cheap airline sites. There are also websites that list the best and cheapest airfares currently available. Take a look at some of the best:

- LowCostAirlines.org This site carries a lot of information including lists of the budget and discount airlines, cheap airfare deals, a search engine and also a forum for you to search and discuss where to get the cheapest airfare. You can find out where the discount airlines are based so that you can get the best deals for traveling to a particular destination.
- Attitude Travel this is an extensive site that includes details of the cheap international airlines that fly to and from Europe.

One of the most effective ways to get cheap, or often free, airfares is to travel as an air courier. My sister used this method to fly for free to attend my wedding. While it’s not suitable for everyone as you give up some of your luggage space to courier the goods, you don’t really have to do anything with the goods themselves. It may not be ideal but for really deep discounts it’s well worth considering.

Rajbir Singh
http://www.articlesbase.com/internet-marketing-articles/do-you-find-cheap-international-airfares-693298.html

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Merry Christmas is on the threshold. People are anxiously waiting for Christmas holidays. Now to get around a city or an attractive place during holiday, the advance booking of hotel is necessary. This festive season is the ideal time for outing. So, have a gala time with your near and dear ones by booking a hotel which offers discount packages on Christmas. There are lots of discount packages available and among them you can pick one which can be considered as the best hotel package of this Christmas.

The travel destinations are huge to opt from during Christmas celebration. The hotels of these travel destinations make proper arrangement for the guests and also the hotels offer various facilities in affordable price. The travelers gather from various parts of the world and that is why the hotel accommodations become full. On the eve of Christmas the big chain hotels also offer Discount Hotel packages. These hotels are easy to find because all the major cities of the world has big chain hotels. To name some of them are Hilton hotels, Hyatt Residency, Holiday Inn, Fairfield Inn, and ITC Hotels etc. These grand luxury hotels offer high quality accommodation at much discounted rates during Christmas and New Year Celebration.

Have a nice get-together at your favorite city anywhere in the world to celebrate Christmas. The budget travelers can also do the same for this is the right time for tour because the discount packages can help to curtail the expenses to some extent. So book discount hotels through Hotel Finder to avail hot Christmas deals. So, start packing bag and get ready for the tour. Take the opportunity of such lucrative offers because discount packages are not only confined to hotel accommodation but the discount offers include discount air fare, discount shopping, etc. Enjoy a great holiday ahead with your friends and family.

Peter Fleming
http://www.articlesbase.com/destinations-articles/grab-the-best-hotel-packages-this-christmas-694887.html

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I have searched Thai airways fares from Kolkata to Sydney and back. I also searched Sydney to Kolkata fare from Sydney to Kolkata. Surprisingly the aircraft is same but one way fare is double than two way fare, how it could be?

That is normal. Nowadays airlines say that they break up the flights and that it is the same to buy one way or return, but that is not true. I have no idea why they do it or how it can economically be an advantage to them.
It is normally cheaper to buy a return ticket (round trip ) and just not use the second portion.
Do be aware though that if you buy a round trip ticket and plan to use only the ‘return’ part, not the going part, the ticket will be cancelled. If you do not show up for the first part of the journey they assume that you do not need the second part/return and cancel the whole thing.

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I have searched Thai airways fares from Kolkata to Sydney and back. I also searched Sydney to Kolkata fare from Sydney to Kolkata. Surprisingly the aircraft is same but one way fare is double than two way fare, how it could be?

That is normal. Nowadays airlines say that they break up the flights and that it is the same to buy one way or return, but that is not true. I have no idea why they do it or how it can economically be an advantage to them.
It is normally cheaper to buy a return ticket (round trip ) and just not use the second portion.
Do be aware though that if you buy a round trip ticket and plan to use only the ‘return’ part, not the going part, the ticket will be cancelled. If you do not show up for the first part of the journey they assume that you do not need the second part/return and cancel the whole thing.

read comments (1)

Yep,they say that the hurricanes scared some folks away from Florida. Well, I just came up with a really good reason for you to revisit the state. Florida contains some of the finest Bed and Breakfast inns in the nation, and below I present some of the ones that stood out to me.

1. The Addison is a serene 14-room inn representing a unique blend of old-style elegance with modern amenities. Traditionally, the values may seem to clash but the builders and owners have merged them together in a beautiful blend. This Inn was selected as one of the ten Best Overall Inns of 2009-2010 by BedandBreakfast.com. It also consistently maintains a number one ranking on TripAdvisor.com. Located on Amelia Island in the historic district of Fernandina Beach, the rooms feature porches for relaxation and an enchanting fountain courtyard. The area is a nature-lover’s paradise with pristine beaches, four major State Parks and a National Park. One can bike, hike, play golf, horseback ride, shell, bird watch, or go backwater or deep sea fishing. Signature breakfast dishes include fresh fruit smoothies, breakfast in a boat (baked potato shell stuffed with scrambled eggs, cheese, and crumbled bacon), banana pancakes with pecan toffee syrup, spicy breakfast quesadillas, praline French toast, and perfect Peruvian coffee.

2. If you can look past the wild and funky website, the Cedar Key B & B is an inn well worth visiting! Located in the second oldest city in Florida, the historic inn was built in 1880. Originally, the town was known for its cedar, out of which Eagle and Eberhardt pencils were produced; today its claims to fame are clam farming and tourism. Besides boasting some of the cleanest and most comfortable lodgings imaginable, this inn’s draw is also the amazing array of activities in the area: boating, kayaking, air boats, fishing, bird watching, playing with dolphins, biking, hiking, scuba diving, plus a famous Arts festival and the October Seafood Festival. Or if you like football, attend a Florida Gators game in nearby Gainesville. A few nice added features of the inn is the pet friendly status, last minute specials, delicious breakfast, and an endless array of amenities such as teas, cookies, biscotti, hot chocolates, coffees, and a bottomless jar of the freshest homemade cookies you’ve ever placed in your mouth.

3. Casa Grandview is located in the vibrant, upscale city of West Palm Beach. This Bed & Breakfast combines some of the most desirable features of the secluded and quaint B & Bs with the services of a luxury resort. The Casa offers romantic cottages, quaint bungalows, art deco cabana suites, stylish tropical coastal villas, and classic city oasis retreats. What a fabulous array of choices, many with kitchens, elaborate baths, and spacious living areas. The owners stock each suite with only the best gourmet foods for your breakfast, and, if desired, for additional meals. Everything you need is available including complimentary Wi-Fi, HD TVs, premium satellite service, music and movie channels, iPod docking stations, and CD players. You can even check emails and surf the web while catching some rays poolside or dozing in a hammock. You will be waited on with 5-star service or left alone for some glorious privacy. Whatever you want is what you get at Casa Grandview.

4. Elizabeth Pointe Lodge is a Nantucket ’shingle style’ inn that overlooks the rich blue Atlantic. What can I say? USA Today deemed this oceanfront inn as one of the 10 greatest places to sit on the porch. Travel and Leisure magazine recognized it as one of the fifty great beach resorts in our nation. The book, 1000 Places to See Before You Die, tagged this as a place where the emphasis is on pure relaxation. The Road Best Traveled distinguished the inn as one of the 12 Best Waterfront Inns in America. The honors go on and on. Besides offering full concierge service and 24 hour room service, there are also gourmet treats offered all day, a lavish wine and hors d’oeuvres reception each evening, and an oceanfront breakfast with scads of sumptuous offerings in the sunroom. In every way, Elizabeth Pointe is determined to go above and beyond your needs and expectations.

5. Florida Trend Magazine states that the Herlong Mansion of Micanopy, Florida is “easily Florida’s most elegant Bed & Breakfast.” In case you don’t know, this quiet little town is south of Gainesville, near Cross Creek, the village the author of The Yearling made famous. The ten fireplaces and high ceilings of the inn are perfectly accented with mission oak woodwork and mahogany inlaid floors. Photos can never do justice to the warm beauty of this place. Wide verandas between enormous pillars on the first and second floors contain cushioned swings that overlook an impeccably manicured lawn with ancient towering oaks. The breakfast isn’t wildly fancy but offers delicious traditional fare such as homemade biscuits and perfect omelettes, rich coffee, and apple bread. And, if you like, you can have a candlelit four-course dinner catered with roses, champagne, the works. Treat yourself to casual elegance for just one night, or more…

6. The Seven Sisters Inn is located in Ocala, Florida, region of rolling green hills and thoroughbred horse ranches. Built in 1888, the Queen Anne Victorian home was judged a “Best Restoration Project” and is listed prominently in the National Register of Historic Places. One startling uniqueness of this inn is the rooms, which feature décor from the four corners of the globe. One enters through elaborately carved Indonesian doors, then there is a Bengal Safari room, a Cape Cod Lighthouse room, an Egyptian Treasure room, an Oriental Zen-like room, and a room from Old Paris featuring imported French fabrics and décor. Visitors feel as if they are traveling the world as they lounge in front of their fireplaces or relax with spa showers, Jacuzzi, Victorian soaking tubs, and heated towel bars. And when you wake the next morning, get ready for an award winning breakfast on white china and crystal, including three-cheese French toast with Ginger Peaches, Eggs Pesto, Chicken Puffed Pastry, Raspberry-Oatmeal pancakes, or Tomato-Zucchini Quiche. The “Seven Sisters” will make you happy.

7. The Williams is a beautifully restored antebellum mansion located in the historic seaside village of Fernandina Beach. There are three separate buildings, each offering rooms for guests: the Williams House, the Hearthstone House, and the Carriage House. You will be captivated by intricate moldings, massive pocket doors, true wood floors, and hand-carved mantles created from heart pine, cherry, or mahogany. Sweeping verandas, original tiled fireplaces and crystal chandeliers make visitors feel as if they’ve slipped into a time warp. If you appreciate the days when great pride and craft were marks of the homes of the wealthy, you will love the William’s House. But it isn’t just a home to wander. The owners cater to your whims, including your desire to wake to a breakfast you’ll remember. Your first course will feature fresh fruit and muffins, scones, or pound cake. Your second course may include strawberry croissant French toast or blueberry strata. Enjoy this with fresh orange juice or rich Colombian coffee. No one will leave the William’s House either hungry or unhappy.

8. Can you keep a secret? There is a Bed & Breakfast inn in Key West called Atlantis House. This is one of those places you will not want to tell your friends about, lest the next time you want to book a night there, it will be booked two or three months ahead. It has only two exclusive rooms: that’s right, the Master suite and the Garden suite. The owners, Steve and Kayla Kessler designed, built, and maintain the property themselves. The inn is nestled in a lush tropical garden bordering the roiling Atlantic. Not long ago, this inn was awarded “The Best of the South” award from BedandBreakfast.com, and it was deserved. I just don’t know how they found the thing. If you want, you can kick back on your own sun deck or spend some romantic moments in the breezy, vine-covered gazebo. Or if you’re a little more adventurous, Steve happens to be a licensed Captain and with his boat, The Contender, he’ll be happy to take you fishing. Then Steve and Kayla will prepare you the perfect dinner with “the catch of the day,” or maybe a lobster Steve caught for your dining pleasure. Steve can also offer private, guided snorkeling tours of the most beautiful coral reef in the Continental United States. Then, after a hard day of sunning or fishing, Kayla, a massage therapist, can massage all your troubles away. Now remember, this is our little secret, cross your heart.

9. Palmer House is an inn nestled in a little town called Lithia, Florida. This is another B & B that was listed by BedandBreakfast.com as one of the “Best in the South” for 2009-2010. It’s a very tranquil place with grandfather oaks, butterfly gardens, hammocks, and bicycle trails. But, hang onto your hats, because nearby are almost all the tourist attractions Florida offers, including Orlando’s. In fact, Lithia is the perfect location from which you can go for day trips either to Busch Gardens or the Tampa Bay Bucs on the Gulf coast or Disney World and Universal Studios on the Atlantic coast. You’ll get home in time for some cookies and milk before bedtime and you’ll awaken the next morning to fresh coffee, quiche, a breakfast casserole, and their signature dish, almond-crusted French toast.

10. On charming Anna Maria Island, near Sarasota, Florida, you will find the Harrington House. It is actually comprised of the Main Inn, the Carriage House, the Huth House, and the Dodt House. You thus have the option of staying in a bungalow, a beach house, a villa or a condo. You can lounge on your balcony opening out onto the Gulf of Mexico, you can kayak with the dolphins, tour the island by bicycle, or swim in the Gulf or the heated pool. Nearby Sarasota and Bradenton offer the Ringling Museum of Art, Selby Botanical Gardens, the Bishop Planetarium, shopping at St. Armand’s Circle, or fine dining at Longboat Key. But, whatever you do, don’t miss the Harrington chef’s most popular breakfast dishes: Buttermilk Pancake Sundae or Jo’s Bacon and Crab Roll.

Yes, in a state chock full of Bed & Breakfast inns, these are a few of the ones I wanted to introduce you to. Maybe there are others to equal some of these. However, I don’t think you’ll be disappointed with any of those described above. It’s time you discover the world of difference between a typical hotel and a Bed & Breakfast inn.

Debra Fortosis

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Yep,they say that the hurricanes scared some folks away from Florida. Well, I just came up with a really good reason for you to revisit the state. Florida contains some of the finest Bed and Breakfast inns in the nation, and below I present some of the ones that stood out to me.

1. The Addison is a serene 14-room inn representing a unique blend of old-style elegance with modern amenities. Traditionally, the values may seem to clash but the builders and owners have merged them together in a beautiful blend. This Inn was selected as one of the ten Best Overall Inns of 2009-2010 by BedandBreakfast.com. It also consistently maintains a number one ranking on TripAdvisor.com. Located on Amelia Island in the historic district of Fernandina Beach, the rooms feature porches for relaxation and an enchanting fountain courtyard. The area is a nature-lover’s paradise with pristine beaches, four major State Parks and a National Park. One can bike, hike, play golf, horseback ride, shell, bird watch, or go backwater or deep sea fishing. Signature breakfast dishes include fresh fruit smoothies, breakfast in a boat (baked potato shell stuffed with scrambled eggs, cheese, and crumbled bacon), banana pancakes with pecan toffee syrup, spicy breakfast quesadillas, praline French toast, and perfect Peruvian coffee.

2. If you can look past the wild and funky website, the Cedar Key B & B is an inn well worth visiting! Located in the second oldest city in Florida, the historic inn was built in 1880. Originally, the town was known for its cedar, out of which Eagle and Eberhardt pencils were produced; today its claims to fame are clam farming and tourism. Besides boasting some of the cleanest and most comfortable lodgings imaginable, this inn’s draw is also the amazing array of activities in the area: boating, kayaking, air boats, fishing, bird watching, playing with dolphins, biking, hiking, scuba diving, plus a famous Arts festival and the October Seafood Festival. Or if you like football, attend a Florida Gators game in nearby Gainesville. A few nice added features of the inn is the pet friendly status, last minute specials, delicious breakfast, and an endless array of amenities such as teas, cookies, biscotti, hot chocolates, coffees, and a bottomless jar of the freshest homemade cookies you’ve ever placed in your mouth.

3. Casa Grandview is located in the vibrant, upscale city of West Palm Beach. This Bed & Breakfast combines some of the most desirable features of the secluded and quaint B & Bs with the services of a luxury resort. The Casa offers romantic cottages, quaint bungalows, art deco cabana suites, stylish tropical coastal villas, and classic city oasis retreats. What a fabulous array of choices, many with kitchens, elaborate baths, and spacious living areas. The owners stock each suite with only the best gourmet foods for your breakfast, and, if desired, for additional meals. Everything you need is available including complimentary Wi-Fi, HD TVs, premium satellite service, music and movie channels, iPod docking stations, and CD players. You can even check emails and surf the web while catching some rays poolside or dozing in a hammock. You will be waited on with 5-star service or left alone for some glorious privacy. Whatever you want is what you get at Casa Grandview.

4. Elizabeth Pointe Lodge is a Nantucket ’shingle style’ inn that overlooks the rich blue Atlantic. What can I say? USA Today deemed this oceanfront inn as one of the 10 greatest places to sit on the porch. Travel and Leisure magazine recognized it as one of the fifty great beach resorts in our nation. The book, 1000 Places to See Before You Die, tagged this as a place where the emphasis is on pure relaxation. The Road Best Traveled distinguished the inn as one of the 12 Best Waterfront Inns in America. The honors go on and on. Besides offering full concierge service and 24 hour room service, there are also gourmet treats offered all day, a lavish wine and hors d’oeuvres reception each evening, and an oceanfront breakfast with scads of sumptuous offerings in the sunroom. In every way, Elizabeth Pointe is determined to go above and beyond your needs and expectations.

5. Florida Trend Magazine states that the Herlong Mansion of Micanopy, Florida is “easily Florida’s most elegant Bed & Breakfast.” In case you don’t know, this quiet little town is south of Gainesville, near Cross Creek, the village the author of The Yearling made famous. The ten fireplaces and high ceilings of the inn are perfectly accented with mission oak woodwork and mahogany inlaid floors. Photos can never do justice to the warm beauty of this place. Wide verandas between enormous pillars on the first and second floors contain cushioned swings that overlook an impeccably manicured lawn with ancient towering oaks. The breakfast isn’t wildly fancy but offers delicious traditional fare such as homemade biscuits and perfect omelettes, rich coffee, and apple bread. And, if you like, you can have a candlelit four-course dinner catered with roses, champagne, the works. Treat yourself to casual elegance for just one night, or more…

6. The Seven Sisters Inn is located in Ocala, Florida, region of rolling green hills and thoroughbred horse ranches. Built in 1888, the Queen Anne Victorian home was judged a “Best Restoration Project” and is listed prominently in the National Register of Historic Places. One startling uniqueness of this inn is the rooms, which feature décor from the four corners of the globe. One enters through elaborately carved Indonesian doors, then there is a Bengal Safari room, a Cape Cod Lighthouse room, an Egyptian Treasure room, an Oriental Zen-like room, and a room from Old Paris featuring imported French fabrics and décor. Visitors feel as if they are traveling the world as they lounge in front of their fireplaces or relax with spa showers, Jacuzzi, Victorian soaking tubs, and heated towel bars. And when you wake the next morning, get ready for an award winning breakfast on white china and crystal, including three-cheese French toast with Ginger Peaches, Eggs Pesto, Chicken Puffed Pastry, Raspberry-Oatmeal pancakes, or Tomato-Zucchini Quiche. The “Seven Sisters” will make you happy.

7. The Williams is a beautifully restored antebellum mansion located in the historic seaside village of Fernandina Beach. There are three separate buildings, each offering rooms for guests: the Williams House, the Hearthstone House, and the Carriage House. You will be captivated by intricate moldings, massive pocket doors, true wood floors, and hand-carved mantles created from heart pine, cherry, or mahogany. Sweeping verandas, original tiled fireplaces and crystal chandeliers make visitors feel as if they’ve slipped into a time warp. If you appreciate the days when great pride and craft were marks of the homes of the wealthy, you will love the William’s House. But it isn’t just a home to wander. The owners cater to your whims, including your desire to wake to a breakfast you’ll remember. Your first course will feature fresh fruit and muffins, scones, or pound cake. Your second course may include strawberry croissant French toast or blueberry strata. Enjoy this with fresh orange juice or rich Colombian coffee. No one will leave the William’s House either hungry or unhappy.

8. Can you keep a secret? There is a Bed & Breakfast inn in Key West called Atlantis House. This is one of those places you will not want to tell your friends about, lest the next time you want to book a night there, it will be booked two or three months ahead. It has only two exclusive rooms: that’s right, the Master suite and the Garden suite. The owners, Steve and Kayla Kessler designed, built, and maintain the property themselves. The inn is nestled in a lush tropical garden bordering the roiling Atlantic. Not long ago, this inn was awarded “The Best of the South” award from BedandBreakfast.com, and it was deserved. I just don’t know how they found the thing. If you want, you can kick back on your own sun deck or spend some romantic moments in the breezy, vine-covered gazebo. Or if you’re a little more adventurous, Steve happens to be a licensed Captain and with his boat, The Contender, he’ll be happy to take you fishing. Then Steve and Kayla will prepare you the perfect dinner with “the catch of the day,” or maybe a lobster Steve caught for your dining pleasure. Steve can also offer private, guided snorkeling tours of the most beautiful coral reef in the Continental United States. Then, after a hard day of sunning or fishing, Kayla, a massage therapist, can massage all your troubles away. Now remember, this is our little secret, cross your heart.

9. Palmer House is an inn nestled in a little town called Lithia, Florida. This is another B & B that was listed by BedandBreakfast.com as one of the “Best in the South” for 2009-2010. It’s a very tranquil place with grandfather oaks, butterfly gardens, hammocks, and bicycle trails. But, hang onto your hats, because nearby are almost all the tourist attractions Florida offers, including Orlando’s. In fact, Lithia is the perfect location from which you can go for day trips either to Busch Gardens or the Tampa Bay Bucs on the Gulf coast or Disney World and Universal Studios on the Atlantic coast. You’ll get home in time for some cookies and milk before bedtime and you’ll awaken the next morning to fresh coffee, quiche, a breakfast casserole, and their signature dish, almond-crusted French toast.

10. On charming Anna Maria Island, near Sarasota, Florida, you will find the Harrington House. It is actually comprised of the Main Inn, the Carriage House, the Huth House, and the Dodt House. You thus have the option of staying in a bungalow, a beach house, a villa or a condo. You can lounge on your balcony opening out onto the Gulf of Mexico, you can kayak with the dolphins, tour the island by bicycle, or swim in the Gulf or the heated pool. Nearby Sarasota and Bradenton offer the Ringling Museum of Art, Selby Botanical Gardens, the Bishop Planetarium, shopping at St. Armand’s Circle, or fine dining at Longboat Key. But, whatever you do, don’t miss the Harrington chef’s most popular breakfast dishes: Buttermilk Pancake Sundae or Jo’s Bacon and Crab Roll.

Yes, in a state chock full of Bed & Breakfast inns, these are a few of the ones I wanted to introduce you to. Maybe there are others to equal some of these. However, I don’t think you’ll be disappointed with any of those described above. It’s time you discover the world of difference between a typical hotel and a Bed & Breakfast inn.

Debra Fortosis

read comments (4)

AIR Original Soundtrack. It's the piano version in the "Kanon AIR Piano Arranged Re-feel" album.
I really like this track, it gives out the "summer feel".
The video became darker once uploaded, can I blame Veoh? XD
Enjoy, it can be a good relaxation music
I messed up a little though ^^'

Duration : 3 min 35 sec

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There are many similarities between the U.S. economy today and the U.S. economy of the early 1970s. I don’t need to over-elaborate on the details of the likeness of the two eras, because it’s actually the one distinct difference that is going to matter going forward.

First I would like to take a brief look into some of the similarities. In 1959 the U.S. entered the Vietnam War. The U.S. was not well versed in jungle war fare. The war dragged on with no end in sight while support from the home land was waning. The price tag, along with casualties, continued to pile up at a very uncomfortable pace. Quite similar to the war in Iraq today…

Being that taxes are a very unfavorable way to pay for war, monetary inflation began to run rampant until the U.S. was forced to sever any formal tie between the dollar and gold. There wasn’t anything fancy to this situation. It was simply a case where the monetary base had grown so dramatically that there was absolutely no way to back the currency by gold anymore.

The greatest gold bull market in history ensued. We saw gold soar from $50 /oz to $850 /oz before a man by the name of Paul Volcker stepped onto the scene as chairman of the Federal Reserve. More on Mr. Volcker in a second.

Let’s discuss the main difference between then and now. It is very simple: personal consumer savings. I’m sure you are very familiar with the analogy of guns and butter. Essentially there is a maximum amount of economic output that can occur at any time, and the allocations of the land and resources has to be determined between industrial out put, and agricultural output. Now it’s obviously not quite that simple, but you get the idea.

During the Vietnam War, the U.S. was producing large quantities of tanks, ammunitions, air planes, and all of the other goods that are essential in fighting a war. They then shipped these goods to the front, and this contributed, in part, to a trade surplus and domestic savings.

There was also a significant amount of private savings. In the 1970s, the notion of a negative consumer savings rate would have been laughed at, but times change. Also at this time, Americans didn’t use their homes as credit cards to buy that new car or boat.

Banks were flush with the consumers’ savings, and because of this, they didn’t much have to worry about capital ratios like they do in today’s economy. They were able to make loans for investment spending, residential housing, and just about everything in between. When the war ended, the GIs came home and began doing just that; taking out loans and spending some of their savings.

At this time, monetary inflation as a result of the war and the large amount of savings sloshing around in these banks started creeping into the prices of tangible goods such as metals, food, and energy. Social Security benefits were rising at an annual pace of near 10%. The system, much like today, was flush with liquidity. The difference today is the price at which the money was loaned.

In 1979, Paul Volcker stepped in as chairman of the Federal Reserve. He realized one important thing, and that was that we needed to keep faith in the U.S. dollar or the Federal Reserve, along with the fractional banking system of the United States, would collapse. Volcker was not necessarily a champion of free markets. His goal was never to purge the system of excess liquidity, but raising rates to 20% brings that about as an unintended consequence.

This was a painful choice, but it was much less painful than the alternative. Mass bankruptcies ensued, and we truly saw the ultimate weakness of Keynesian economics. That weakness is the inability to tighten credit standards once the flood gates of easy liquidity have been opened. A contraction of money and credit in a Keynesian economy is painful proportionally to the extent of the initial growth in the monetary base and credit.

It’s the Keynesian school that has, more or less, driven monetary and fiscal policy since the Great Depression

Keynesian Economics Today

Now one might think that the essential failure of the Keynesian school of economics is a reason to do something else…anything else. It sure makes sense to me, and I’m sure it makes sense to you dear reader, but by now, you are well aware of our ability as a nation to commit the same dumb mistakes again and again.

At this point I would like to bring these ideas into present context, but I am going to break down Keynesian economics into its most basic form, and then we can relate it to our current economic situation.

The example I’m going to use is not my own. I do not know its original author, but it is an example I read in an economic journal. I apologize that I do not have the original source, but it is an awesome way to describe Keynesian economics.

In economics, it is often very useful to breakdown a theory and apply it to an elementary situation. It is very important to understand this notion, as I will relate back to it throughout the rest of this essay.

Imagine that there is an economy of just 3 farmers and a lending unit. Each farmer borrows $100 to sow his land. So at this point, we essentially have a monetary base of $300.

As with any loan, the farmers must pay interest. Let’s say the interest is 10% on each loan. All three farmers have a fine year and produce a significant enough crop to pay back each loan. The first farmer pays the $110 that he owes. The second farmer pays the $110 he owes. The problem is that there is now only $80 left in the monetary base, and there is no possible way for the last farmer to pay off his loan.

Well, not necessarily. There are two options. Option one is that the authority can increase the monetary base. Option two is actually a spin off of option one and essentially carries the same end result.

Let’s say a fourth farmer enters the scene and borrows a $100 dollars for his crop. Now there is significant funds in the monetary base for the third farmer to pay off the last loan, but the forth farmer is left holding the short straw.

You see, the only way to keep a Keynesian economy growing is to increase the monetary base and/or aggregate credit outstanding, otherwise there will simply not be enough money to pay back the due credit.

This scenario regarding the three farmers is a grossly simplified version of the U.S. economy since the great depression. Please note that when short term lending dried up, our economy ceased to function properly. Our inability to exist without lending is a result of decades of Keynesian economics. As always, please feel free to send in your email questions, but don’t think that through complex investment derivatives and globalization, this scenario is suddenly sustainable. I understand that there are many other issues that factor into this equation, but what you will actually see is that these investment vehicles and globalization have only postponed the inevitable and exasperated the system.

The next part of this series will take a deep look into what role our trade deficit has played in the growth of our Keynesian based economy, and how foreign reinvestment of U.S. dollars into our domestic economy has been our lifeline.

Nicholas Jones
Analyst, Oxbury Research

Oxbury Research
http://www.articlesbase.com/economics-articles/the-downfall-of-keynesian-economics-and-the-us-part-1-of-3-706750.html

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How should I go about this for May/June. What should I do to get the good deal and how much might it run?

Last time I pad $300 for 5 nights during the week (Monday through Friday) including air fare and hotel. This was all during the week and with my friends at the Plaza Hotel.

Assume this time it will be over a weekend (Friday night fly in, monday morning leave). Wondering if I can get two people for $400 or less at a similar hotel?

I recommend to book air fare and hotel seperately for the best price. For air fares kayak.com is great and for hotels visit http://www.vegas-hotels-online.com - it has the latest Las Vegas hotel promotion codes and offers available.

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