Thread: The strongest economy in the world

The very first post in this thread.

Brilliant.

Originally Posted by phomsanuk

Worth a glance,
Excerpt from:
The End of America? Not Quite - Seeking Alpha

I write this to point out that you can ignore the constant call of the doom and gloomers who are talking about the end of America and the quality of life going down the tubes. We are in for some belt tightening as the deleveraging process takes hold. But to call for the end of America reeks in emotionalism meant to sell ideas or newsletters. I have recently changed my thinking on all of this, and would encourage you to contemplate the ideas here to help you with a less stressful night of sleep tonight. Save some money by cancelling those newsletter subscriptions whose author is calling for the end of America, and causing you to become anxious and scared.

They are endlessly JEALOUS.
.

Why 'they'd' like to talk about Sarah Palin instead of...

Nearly 11 Percent of US Houses Empty.

Paying the price for overleveraging (more like an orgy of debt) and overdevelopment booner. It will take a while to work through.

It may not suit the economic recovery short term, but the fact that the US consumer has changed his spendthrift habits is certainly not all bad either. They are paying down debt, rather than splashing it on consumption- which was all too often financed by credit. Mum was right- that doesn't work.

The reality of the new century is that you will live in smaller houses and have less second homes than was the case in the latter days of the last century. That hardly matters- ridiculously big houses are a pain in the arse anyway. Actually, Oz overtook the US about 18 months ago as the world HQ of ridiculously big new houses.

Except for the uber wealthy 1% or so of course, this being the good ole' US of A. They'll continue to splash their wealth about, and you'll continue to enjoy reading titillating stuff about them in gossip mag's. But thats a case of mind over matter- they certainly don't mind, and given the reality of US politics (namely well funded lobbying), you don't matter.

Originally Posted by sabang

Paying the price for overleveraging (more like an orgy of debt) and overdevelopment booner. It will take a while to work through.

It may not suit the economic recovery short term, but the fact that the US consumer has changed his spendthrift habits is certainly not all bad either. They are paying down debt, rather than splashing it on consumption- which was all too often financed by credit. Mum was right- that doesn't work.

The reality of the new century is that you will live in smaller houses and have less second homes than was the case in the latter days of the last century. That hardly matters- ridiculously big houses are a pain in the arse anyway. Actually, Oz overtook the US about 18 months ago as the world HQ of ridiculously big new houses.

Except for the uber wealthy 1% or so of course, this being the good ole' US of A. They'll continue to splash their wealth about, and you'll continue to enjoy reading titillating stuff about them in gossip mag's. But thats a case of mind over matter- they certainly don't mind, and given the reality of US politics (namely well funded lobbying), you don't matter.

It was way back in '94 when I was in USA, but from what I saw traveling around the country for 6 weeks back then, the average Joe American didnt seem to own/live in particularly large or expensive houses. In fact I was quite surprised at relative lower standard of living for the average American compared to back home in Oz.

I have some relatives over in Indiana who are saving to send a daughter over here to Oz in the hope of finding a better future life. Just hope the idea doesnt catch on among the rest of 'em.

^ S'hhh.

White House Economic Advisor Claims That Spending Freezes Are Actually Spending Cuts

How much of your brain has to be surgically removed for this to make sense?

OBAMA TO THE NEXT GENERATION: SCREW YOU, SUCKERS! “In this budget, in his refusal to do anything concrete to tackle the looming entitlement debt, in his failure to address the generational injustice, in his blithe indifference to the increasing danger of default, he has betrayed those of us who took him to be a serious president prepared to put the good of the country before his short term political interests. . . . On the critical issue of America’s fiscal crisis, he represents no hope and no change. Just the same old Washington politics he once promised to end.”

What a total POS...

All this printing of fake digital $USs by the Fed has got to take its toll on the tradable value of the $US sooner or later. Just hope it comes with a gentle measured fall rather than a panic sell off crash.

More fiat money in circulation, even though its the illusionary digital stuff that only exists in the computers of the banks, will eventually make all the numbers stack up and balance in the end. Your $50,000 PA income will be safe. Only trouble is that your money will only buy half as much inside and outside USA. And some pundits are saying a lot less. Its USAs version of austerity to pay for the excesses of the past 40 years. Read inflation. But the only way for USA to go as they are in the unique position of owning the worlds default trading currency. While a big devaluation in the $US means all the workers, who actually produce stuff of real value, will have to work a lot harder for a lot less (which is going to be very good for the trade imbalance), it also means that USA will only have to pay back a fraction of their international debt in real value terms. Of course USA will meet all its international debt obligations in numerical $US terms, but those $s will only be worth a fraction of what they were in terms of tangible goods when they were borrowed.

Its going to cause a world of hurt for the average US Joe Citizen. And its going to erode a huge chunk of wealth for the countries holding large $US reserves and/or $US debt. But it will re-balance the USA books. And indeed it is the ONLY way they can.

Its going to cause a major redistribution of wealth in the world and probably cause financial chaos for a while till the world gets back on some kind of a trading standard that represents actual productivity rather than just the paper money of one country.

I am sure there will be an international uproar and calls to save the $. But I am just as sure the USA will give the rest of the world the finger and tell them to suck eggs, just as tricky Dick Nixon did when he abandoned the link to the gold standard and declared the $US paper money the world finance standard back in 1971 when USA was broke after the Veitnam war.
Its been a great ride for USA living the high life for the past 40 years on other peoples wealth and labour. But the parties about to end. Still, while the $US holds value there's no reason not to go deeper into debt (at an accelerating rate) and milk this system for everything its worth. Bernanke and Obama know full well what they are doing, even if it doesnt appear to make sense to the average person.

CBO Report: Each Job Created or “Saved” by Stimulus Bill Cost the US Taxpayer $228,055

The jobs created and saved by the economic stimulus law that President Barack Obama signed on Feb. 17, 2009 cost at a minimum an average of $228,055 each, according to data released yesterday by the Congressional Budget Office (CBO).In a report released Wednesday — “Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output from October Through December 2010” — the CBO said it now estimates the stimulus law cost a total of $821 billion, up from CBO’s original estimate that the stimulus would cost $787 billion.
In the same report, the CBO estimated that in the fourth quarter of 2010 there were somewhere between 1.3 million and 3.5 million people who were then employed who would not have been had the stimulus not been enacted. “CBO estimates,” says the report, “that ARRA’s policies had the following effects in the fourth quarter of calendar year 2010: . . . Increased the number of people employed by between 1.3 million and 3.5 million.

CBO: Jobs Created and Saved By Stimulus Cost At Minimum An Average of $228,055 Each | CNSnews.com

The CBO don't lie. What say you, you apologists for this miserable excuse for a POTUS, eh?

The electoral spanking delivered to the Dem's in the mid terms effectively put paid to any hope of the federal government playing much of a proactive role in job creation. So, the hope was for an ongoing, gradual but sustainable economic recovery. The good news is it's not all doom and gloom out there, by any means. Employment is on the recovery, albeit slowly and steadily.

The United States economy showed signs of kicking into gear in March, adding 216,000 jobs and prompting President Obama to proclaim a corner finally turned.

... The private sector has added, on average, 188,000 jobs in the first three months of 2011, and 1.8 million jobs since the recovery began. March was the 12th consecutive month of private sector job growth, and the stock market moved slightly higher on the report from the Labor Department.
http://www.nytimes.com/2011/04/02/bu....html?src=recg

Meanwhile, the US business sector is sitting on record levels of cash. When, if ever, is some of this going to go into job creating investment within the USA?

^
It won't. the whole thing was a massive scam on the part of Obama and his henchmen to bring down America. To wit - this sorry excuse of a Treasury Secretary.

Turbo Timmy Says US Will Run Out of Money Unless Debt Limit is Increased by May 16…



What’s he really saying: We can’t beg China and the Gulf Arabs for more money to fund Obama’s failed policies.

The United States will hit the legal limit on its ability to borrow no later than May 16, Treasury Secretary Timothy Geithner said on Monday, ramping up pressure on Congress to act to avoid a debt default.“The longer Congress fails to act, the more we risk that investors here and around the world will lose confidence in our ability to meet our commitments and our obligations,” Geithner said in a letter to congressional leaders.
“Default by the United States is unthinkable.”
Previously, the Treasury had forecast that the $14.3 trillion statutory debt limit would be reached between April 15 and May 31. As of Friday, Treasury borrowing stood just $95 billion from the ceiling.
Some Republican lawmakers have sought to use the need to raise the debt limit as a lever to pressure the Obama administration into agreeing on large-scale budget cuts.
The debt-limit showdown comes as Congress struggles to complete a spending package that would keep the government operating beyond Friday.
Republicans are seeking to use that bill to enact deep spending cuts and lawmakers are focusing on a proposal to trim this year’s budget by $33 billion, a relatively small amount compared with a projected $1.4 trillion deficit.
Geithner said a failure to raise the debt ceiling in a timely way would push interest rates higher and spark “a financial crisis potentially more severe than the crisis from which we are only starting to recover.”


Geithner warns U.S. to hit debt ceiling by May 16 | Reuters

''The US recovery is little more than an economic 'sugar-rush'

The US recovery is little more than an economic 'sugar-rush' - Telegraph

long article basically asking is USA really on the mend ?
optimists saying -banks are now lending again-Strengthening jobs data-
US has reached a “turning point”- some forecasts for 2011 growth have moved sharply upwards - from 2.6pc in December, to 3.1pc in February and 3.3pc today.
etc
but, the article is arguing no, it's all little more than economic “sugar-rush” from QE and protests from countries as diverse as Thailand, Australia, South Africa and China, all of them complaining that America’s unprecedented monetary expansion is causing dangerous bubbles in markets going way beyond US equities.

That’s why the Fed must surely call it a day as QE3 would cause a major diplomatic protest led by countries America cannot afford to upset.

The danger now is that when QE2 ends in less than 12 weeks’ time, global markets will be rocked by a surge in Treasury yields.
It is against this backdrop that the Obama administration and Republicans in the House of Representatives are now arguing over miniscule $30bn spending “cuts” – a row so vociferous that it could see the US government “shut down” at the end of this week, leaving government contracts unserviced and state employees unpaid.''

Hard to argue with the idea that more austerity is on the way for America

The UCA is FINISHED as a global leader, both militarily & economically.

If the USA had an effective political system, delivering the necessary fiscal discipline to rein in the deficit and reduce debt would actually not be that difficult. Unfortunately, thats wishful thinking.

Is this the Hope or the Change? Obama, Spending Three Times as Fast as Bush, Blames Bush.

Originally Posted by sabang

If the USA had an effective political system, delivering the necessary fiscal discipline to rein in the deficit and reduce debt would actually not be that difficult. Unfortunately, thats wishful thinking.

Its too late for fiscal discipline alone to stabilize the US economy. Though it is a fundamental cornerstone in saving the country from disappearing down a whirlpool of insurmountable debt. Somewhere down the line its got to happen though. But firstly, the easiest option is to flood the market with paper money and inflate their way out of international debt. Or at least a proportion of that debt depending on how much they want to devalue the $US by. Inflation through monetary oversupply is simply a backdoor way of imposing austerity measures on the public.
The poor and middle class have to work harder for less purchasing power. Wages go down on an internationally competitive scale. That encourages exports and should put the trade deficit in the black after a time.

No need to cut government spending either as inflation will take care of that too.

The plan is already well underway. Started under Bush and continued under Obama.

Originally Posted by Boon Mee

Is this the Hope or the Change? Obama, Spending Three Times as Fast as Bush, Blames Bush.

Hey, it makes a lot of sense to borrow as much as you can if you are only going to have to pay it back at 50 cents in the Dollar down the track.
Only trouble is that when the rest of the world wakes up to the scam they will stop lending USA real money. When that happens the $US will crash. Until that time though its spend and borrow as much as you can.

Everyone knows the current state of affairs is totally unsustainable, just no one wants it to end.

Originally Posted by Panda

Only trouble is that when the rest of the world wakes up to the scam they will stop lending USA real money.

They will only do that when they- the Chinese, Japanese, Arabs, and Germans- find someone else to export their products to. It's vendor financing writ large.

Originally Posted by who

Originally Posted by phomsanuk

Worth a glance,
Excerpt from:
The End of America? Not Quite - Seeking Alpha

I write this to point out that you can ignore the constant call of the doom and gloomers who are talking about the end of America and the quality of life going down the tubes. We are in for some belt tightening as the deleveraging process takes hold. But to call for the end of America reeks in emotionalism meant to sell ideas or newsletters. I have recently changed my thinking on all of this, and would encourage you to contemplate the ideas here to help you with a less stressful night of sleep tonight. Save some money by cancelling those newsletter subscriptions whose author is calling for the end of America, and causing you to become anxious and scared.

They are endlessly JEALOUS.
.

Just keep telling yourself that.