Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
What baffles me in all of this, is why has America recovered better than most of the remainder of the industrialized world. Look for example at the American stock market, vs. nearly any other developed nation's stock market. The Great Recession started right here. The most egregious abuses we're right here. And yet, the recovery was also the strongest... right here. Why?
It helps when the US Dollar is the reserve currency of the world and when oil is priced in dollars. No other country would be able to get away with the QE policies that the Fed set due to that privilege. It's also why the US can run gigantic current account deficits without hurting the value of the US Dollar.
Let's refrain from blaming any politician at first. Let's talk about the current state of the economy. The media on both sides have generally pushed the narrative that it's booming in recent years. However, is that really the case? First and foremost, the only thing that has really boomed since the beginning of 2017 is the stock market. Everything else has continued humming along as it has since at least early in Obama's second term. We have nearly full unemplyoment but it doesn't feel like it. Wages are not rising like they should if the unemployment rate really was as low as the official number. This isn't a '90s economy. This is an '06 economy. It also doesn't feel like a 3% GDP economy. It feels more like 1-2%. I would say this economy is not bad per say but it's not as rosy as some would have you believe. I also think recession is coming sooner than people want to admit as well.
What are your thoughts on the current economy?
How will the rising interest rate, combined with static income and rising costs of living, factor into the potential for a recession?
It helps when the US Dollar is the reserve currency of the world and when oil is priced in dollars. No other country would be able to get away with the QE policies that the Fed set due to that privilege. It's also why the US can run gigantic current account deficits without hurting the value of the US Dollar.
The US dollar is plenty strong right now, so much so that I like the idea of investing in Canadian dollars. The CAN dollar is at an all time low. It will take a couple of years, but when the CAN dollar is again par with the US dollar, that will be a 25% increase in value.
As soon as the tariffs kick in, a recession could begin, and Canadians might recover faster with alternate markets. If Canada recovers first, the Canadian dollar increases in value compared to the US dollar.
What baffles me in all of this, is why has America recovered better than most of the remainder of the industrialized world. Look for example at the American stock market, vs. nearly any other developed nation's stock market. The Great Recession started right here. The most egregious abuses we're right here. And yet, the recovery was also the strongest... right here. Why?
The fall of Wall Street in 1929 did trigger a decade of depression, dust storms and food line-ups. Then came the war at the end of the depression in 1939, which greatly improved the economy in Europe first, and then in the USA.
The Amst stock exchange has been doing very well lately, and pretty sure I heard "DOW down _ pts not that long ago".
Regardless, recovery depends on economic stability and cooperation. Those who cooperate first find stability first. WW2 created allies and stability and when the war ended in 1945, everyone had learned the values of getting along.
Let's refrain from blaming any politician at first. Let's talk about the current state of the economy. The media on both sides have generally pushed the narrative that it's booming in recent years. However, is that really the case? First and foremost, the only thing that has really boomed since the beginning of 2017 is the stock market. Everything else has continued humming along as it has since at least early in Obama's second term. We have nearly full unemplyoment but it doesn't feel like it. Wages are not rising like they should if the unemployment rate really was as low as the official number. This isn't a '90s economy. This is an '06 economy. It also doesn't feel like a 3% GDP economy. It feels more like 1-2%. I would say this economy is not bad per say but it's not as rosy as some would have you believe. I also think recession is coming sooner than people want to admit as well.
What are your thoughts on the current economy?
The economy is improving, but real jobs are still missing.
Workforce participation is way down meaning people sit on their bums and are on 'disability' or collect welfare for having kids or are students. That trend has been going on since the 1990's.
Entry level service jobs require college degrees. Entry level blue collar jobs are usually in some service industry. Many jobs are just temporary.
Semiskilled or unskilled jobs are contracted out to independent contractor companies and filled with sub min wage jobs filled by illegals. Consequently, real wages have not increased in 20 year inflation adjusted.
College loan debt is now bigger than real estate subprime loans were.
Nafta and other trade agreements suck jobs out of america.
The fall of Wall Street in 1929 did trigger a decade of depression, dust storms and food line-ups. Then came the war at the end of the depression in 1939, which greatly improved the economy in Europe first, and then in the USA.
The Amst stock exchange has been doing very well lately, and pretty sure I heard "DOW down _ pts not that long ago".
Regardless, recovery depends on economic stability and cooperation. Those who cooperate first find stability first. WW2 created allies and stability and when the war ended in 1945, everyone had learned the values of getting along.
I think your analysis is too simplistic. Lots of factors contributed. Crazy debt spending the biggest of the bunch.
It helps when the US Dollar is the reserve currency of the world and when oil is priced in dollars. No other country would be able to get away with the QE policies that the Fed set due to that privilege. It's also why the US can run gigantic current account deficits without hurting the value of the US Dollar.
The US also sits on sizeable natural resources and the technological and financial means to exploit them.
All reflected in the dollar.
Thanks, yes, I'm not familiar with all the big picture factors but I am learning - slowly.
Debt spending on olympics has been known to regenerate an economy, so it's not always a bad thing providing there is responsibility with debt payment.
The German economy was jump started in roughly 1933 with debt spending on the volks wagon, the inexpensive, easy-to-repair people's car. That people's car came with an important message about the people, and that nationalism would make their lives better.
The US also sits on sizeable natural resources and the technological and financial means to exploit them.
All reflected in the dollar.
The USA might be sitting on a pile of black gold, but there are many questions around fracking, which is the only option to extract in most areas. There are questions about whether fracking results in fissures that cause earth core movement similar to earthquake.
The most valuable resource in the world is water and the USA relies on Canada for that resource. Imagine if Canada put a tariff on water! The dollar would move so fast we'd see more bodies falling onto Wall Street.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
