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Hey!!!!!!!!!!!!!!!!, now you Americans listen very carefully, don't blame illegal immigrants, crime or even ethnic Americans. This is down to the people. I've had about all I can take from this lat fortnight from the you, the markets, even my crap. I think at the end of it all, when you've all got your money under your matress, that you will realise that every $1000 will only be worth $900. Paper value will slip. And besides, the majority of Americans spend on cards, so there won't be enough US bills in the ATMs.
Location: The land of erternal summer to Murfreesboro, TN
1,109 posts, read 2,959,770 times
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Quote:
Originally Posted by bale002
Yes, I just posted the following on the politics forum, most don't understand or they are interjecting politics into it.
Anyway, for what it's worth, here is my quick take on it, responding to the question, where will the money come from. I bold the more salient points.
==========================
They'll print the money, that's not hard.
The problem is where all the real resources are going to come from.
Pretty soon, and in some cases already, we will have real shortages of actual goods and services, like gasoline, possibly utilities and food.
The dollar price of what goods and services are actually available at will be expressed through high rates of inflation.
In the end it is a crisis of production - we consume more than we produce; among other things, we have given away expensive, inefficient housing to too many unproductive people and the result in monetary terms is debt and inflation.
At this pace it is not inconceivable that we may have to implement some kind of rationing system, whether credit to begin with, then of real goods and services, such as gasoline, even utilities and food.
This bailout is designed to avoid a wipe-out of the savings of the productive and a crisis in the payments system, which would then lead to shortages of basic goods and services.
But even if the bailout passes and has some effect, it does not address the underlying real economy problem of production - consumption = saving + investment.
The most disturbing aspect of this bailout plan is that they are talking of continuing to subsidize unproductive people so that they can continue to live in inefficient housing and consume.
Ain't gonna work.
Until they talk about restoring the productivity of the average US worker (real productive work, not some government make-work), then we only drag the crisis out, not resolve it.
Good luck!
THank you for your answer. I agree. What you say makes so much sense!
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