Quote:
Originally Posted by forestgump99
Wow! That is scary. Their GDP fell 1.6% instead of going up an expected 2%.
Hope the US is not next.
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Quote:
Originally Posted by LordBalfor
The U.S. is NOT "next".
Compared to Japan (and Europe for that matter) the U.S. recovery has been a "marvel".
Ken
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When you get up to speed, you'll learn that the US changed how GDP was calculated in July 2013. This new method of calculation artificially inflates GDP by an unspecified amount.
For the record, the lowest "bump" was 1.57% 1Q 2010 and the largest 3.89% 4Q 1970
The claim is 3Q GDP rose by 3.5%
If you want to compare the new method to the old method, this is how you do it....
Find the upper limit:
3.50% 3Q GDP
1.57% subtract
------
1.93%
Find the lower limit:
3.50% 3Q GDP
3.89% subtract
-------
-0.39%
Now, put it together:
3Q GDP fell in the range of -0.39% to 1.93%
That means your economy contracted --- meaning that you have been in a recession since 4Q 2013
Or your economy grew up to 1.93% for 3Q 2014.
The 3Q profit and revenue reports from many business show a decline. For example, McDonald's reported a 0.5% drop in same store sales from 2013 for 3Q. Many business reported lower than expected revenues or profits.
Does that gel with a 3.5% GDP increase?
Quote:
Originally Posted by dsjj251
No, i spoke like someone who actually understands economics and business.
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Except you don't.
Quote:
Originally Posted by dsjj251
People like you think cleaning out the dead would in an economy is a good thing( and in some cases it is), but you forget small details like the fact that recessions do not create a 1=1 exchange for jobs.
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Why would recessions create a 1:1 job exchange?
Recession are about inefficient use of Capital that is dead wood creating a drag on the economy.
Quote:
Originally Posted by dsjj251
I'll give an example, if GM and Chrysler had gone out of business, there is no guarantee that 2 new car companies would have sprung up and created jobs to replace those jobs, nor that Ford would have simply grown to replace them.
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And you have just proven beyond any reasonable doubt that you have no understanding of economics.
If GM and Chrysler had gone out of business, then it would be due to the irrefutable fact that each had violated the Three Laws of Business:
1] You must produce a product or offer a service that is in demand; and
2] The product or service you offer must be of the highest quality relative to price; and
3] Your product or service must be competitively priced.
GM and Chrysler violated all 3 Laws.
The made boring cars that looked like they were designed by a 3-year-old; the cars were recalled for problems every other day, and the were not competitively priced domestically or globally.
In your Bizarro World, we're supposed to be bled dry to bank-roll 8-Track Tape manufactures, because no companies will replace the ones that go out of business, in spite of the fact that they shouldn't be in business.
When GM and Chrysler die, that frees up lots of Capital to be used in other sectors of your economy.
You must be so proud of yourself having destroyed public education in the US at all levels.
Had you moved into your 5th Level Economy in the mid-1990s like you were suppose to, the Capital from the defunct GM and Chrysler could be used to expand your 5th Level Economy creating high-paying R&D jobs.
But, sadly, ideology is more important to you than a strong economy with high paying jobs.
Quote:
Originally Posted by dsjj251
The truth is free markets are not perfect,but for some reason people like you think they are.
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They are as close to perfect as can possibly be, and that's Light Years from people like you.
Quote:
Originally Posted by LordBalfor
And there is NO SUCH THING as a "free market" -
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Yes, there is.
Quote:
Originally Posted by LordBalfor
no where on the entire planet is there a national-level economy that is a "free market" economy - NO WHERE - and there likely never will be.
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That's because people like you interfere.
It's a circular argument to do everything in your power to inhibit and prevent Free Markets and then claim that Free Markets don't exist or don't work.
"
Everyone else does it" is not an excuse....but it is a fallacy.
Quote:
Originally Posted by LordBalfor
LOL
What other fairy tales do you have to spin?
The U.S. dollar will remain the world reserve currency for the foreseeable future. There is simply NO OTHER viable alternative either present or on the horizon.
Ken
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When the Japanese and Chinese introduce a unified currency there will be.
If you understand economics, then you understand that a unified Asian currency is the only solution to Japan's problems.
And that viable alternative could arise anytime after 2020.
Economically...
Mircea
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