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i'll take you off ignore long enough to give you a reply:
you act like there's a finite supply of money.
i'll let you in on a little secret: there's not. The Federal Reserve can print money out of thin air. The government and the private sector are not in competition with one another for dollars.
Haha, you never had me on ignore, or you wouldnt have seen my reply.. haha
Hey Cletus, what you dont understand is if I buy something off of you, you get cash, and you can take that cash and pay someone to cut your grass, who then takes that money out to buy food, and the owner of the company and waitress go out and pay rent etc..
Quote:
Originally Posted by Cletus Awreetus-Awrightus
Private sector banks can borrow from the federal reserve regardless of whether the federal government runs deficits or not.
Actually the banks loan money to the federal reserve in exchange for 6% return. Tell me Cletus, why would they loan money to you at 4%, if the federal reserve is paying them 6%?
You display your lack of comprehension of economics almost non stop.
I agree. There is very little Obama could have done to avoid the situation we're in, of deflating private sector debt / inflating public sector debt.
We could have raised rates as opposed to cutting them. People would then have had even more of an incentive to save while making extra money to spend all without going into more debt.
But thats not good news at all. If I cant take on more debt, then I cant invest, I cant buy, which doesnt create jobs, doesnt boost the economy, doesnt boost housing prices etc.
To pretend all debt is bad is just silly.
I could spend on my credit cards, or borrow form the bank, so to say it is impossible to borrow, is simply not true. Most people simply choose not to take on more debt at this time. If they did, then consumer spending would rise, so I am not saying debt is evil. I don't know why you think someone said all debt is bad. I think spending and debt taking will pick up as soon as housing market picks up. Spending will expand the economy, and shrink the national debt vs GDP ratio.
We could have raised rates as opposed to cutting them. People would then have had even more of an incentive to save while making extra money to spend all without going into more debt.
But the federal government cant afford rates being raised. For every 1 point increase its another $160B in yearly deficits.
Individuals and businesses are waking up to the fact that crushing, unsustainable debt is devestating to their future. Unfortunately, the people in our government aren't that bright and are living in lala land.
I could spend on my credit cards, or borrow form the bank, so to say it is impossible to borrow, is simply not true. Most people simply choose not to take on more debt at this time. If they did, then consumer spending would rise, so I am not saying debt is evil. I don't know why you think someone said all debt is bad. I think spending and debt taking will pick up as soon as housing market picks up. Spending will expand the economy, and shrink the national debt vs GDP ratio.
Your credt card spending isnt going to bump up the economy because you have to take money out of the economy in order to pay it back. It just changes when it gets spent.
And no one said it was impossible, but its clearly far more difficult to borrow now than a few years ago. Dont pretend its not.
I agree, but you wont find liberals here saying that. They think higher deficits jump start the economy.
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