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I don't see how interest rates low hurts an economy. This allows businesses to borrow and invest in new plant and equipment, consumers to buy cars and houses at lower rates, etc..
The banks are not lending to YOU AND I. They borrow essentially free money from us (as in YOU AND I) and then loan it out in high interest vehicles (credit cards TO YOU AND I), or very low interest loans to foreign banks, and also they play roulette with it. First understand that banks are able to borrow (from YOU AND I) against deposits at 10 to 1 or more. It may be as high as 40 to 1 by now.
So, you deposit a dollar in the bank, and they borrow 9 (or more) back from YOU AND I.
If they only lend to multi-national businesses and banks, and play with the markets... rather than lending to YOU AND I... then we are the ones who are signing for the debt they benefit from.
Why do you think banks did so well after needing to be bailed out?
You honestly believe they helped OUR economy... or just theirs?
Wait and watch, and remember this thread. 2007/8 was just a test.
Something I would love an armchair economist to explain rationally: How are unemployment rates the lowest in 40 years, while our participation rates are also the lowest in 40 years? How is this even possible without any significant population expansion over the last decade, manufacturing dropping from 40% to less than 10% of the economy, and millions of jobs exported?
If a Republican is ever voted into the White House, then yes, the economy is going to crash (again).
And a Democrat will have to clean up the mess (again).
This process pretty much repeats itself over and over, like clockwork.
So you mean to say that the economy isn't a mess right now? The real unemployment is terrible, government involvement in everything has driven up prices, funny money is being pumped into a fake economy and the government is spending like a pack of drunken sailors. Yep, the Democrats are surely NOT fixing anything.
To compare the metrics of WWII to the crash of 2008 is economic tunnel vision. We came out of the war as a manufacturing powerhouse. We were the lender, not the borrower. We had massive returns on our investment in the war, not to mention the springboard effect on technology and scientific advancements; one of which would be NASA and the space program.
Do you honestly believe we will reap the kind of returns on our money printing (Quantitative Easing) as we did after WWII?
As far as the % figures go, you'll have to take that up with the publisher. I made it clear who said what, and at the bottom of the post is where I weighed in.
Thanks for playing.
_______________________________________
Too fun; I look up and this is already being addressed.
Fantastic!
The point of World War II and the debt is that it was never paid back but it was made irrelevant because deficits were smaller than economic growth. That's exactly where we are now. Our deficits have dropped radically while growth has increased beyond that.
If the nation keeps it up, our current debt will shrink as a p% of GDP and it will become irrelevant.
The point of World War II and the debt is that it was never paid back but it was made irrelevant because deficits were smaller than economic growth. That's exactly where we are now. Our deficits have dropped radically while growth has increased beyond that.
If the nation keeps it up, our current debt will shrink as a p% of GDP and it will become irrelevant.
Thanks for playing.
So... you believe the creative accounting they've been feeding us. You didn't actually answer the question I asked you directly... or, maybe you did by ignoring it.
You can hardly compare a couple hundred billion USD in the wake of historical economic expansion, with 20T of paper debt and virtually no economic expansion whatsoever. What exactly does "If the nation keeps it up" even mean? If we keep up this pace of under 2% growth, and doubling the debt every decade, we'll need to file bankruptcy. There will be no recourse.
See bolded: So I was absolutely correct. You honestly believe that lowering deficits from the highs equates to lower debt. The problem is the GDP hasn't expanded the way you imply. It's smoke and mirrors, and economic sleight of hand.
A sad game indeed.
Quote:
Originally Posted by MikeyCNY
If a Republican is ever voted into the White House, then yes, the economy is going to crash (again).
And a Democrat will have to clean up the mess (again).
This process pretty much repeats itself over and over, like clockwork.
How did Obama clean up the mess? You blame GWB for what Clinton set up. Who, BTW, reaped the rewards of what Reagan and Bush Sr left him. I know Gore invented the internet, but it was Reagan who started the process of making the ARPANet a public domain, as well as GPS for that matter.
The truth is that Republicans spend their time trying to fix what the Dem's break, and then get blamed for what was broken to begin with. When the fixes are realized (after they've left office) the DEM's promptly take credit and then proceed to break it again. I really dislike both parties, but I am disgusted by people who play the tune of a party for their own personal enrichment. THAT is what the current DNC is represented by.
Really? Where do you get your info? The US economy has been in a slow grow rut recovery and has NOT fully recovered.
Where do you get your info?
The U.S. is outperforming Europe in GDP growth. Unemployment is down to 5.0% and job growth hasn't been this good since the 1990s.
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