Do you agree with these statements about the US economy?

I was just reading a new story about the US economy. I read a few things that I just did not agree with. Do you agree with these statements or what are your thoughts about them?


"The recession is already so deep that extra money in the system will not cause inflation in the foreseeable future, or even in the long term," he said. "As the economy tries to recover, there will be too much unemployment and too many unused factories and stores for inflation to accelerate."




"The U.S. ran massive deficits during World War II, much larger than we expect to see during this crisis. Yet the two decades after WWII were very good times for the U.S. economy. So large, temporary deficits are completely doable.


Despite the problems, we are still a very rich country. We still have cars and other resources.


We're not any dumber than we were before.


We still have all those riches we had before.

Japan is still operating at a 190% debt of GDP, while we are approaching 80% to 85%. So by those standards we are doing well.


"Can the government go bankrupt? Could what is happening in Iceland happen to us?"

Open for discussion!!

Sorry mods wrong forum.

:sorry1:

You want change, here's an idea
Urine Test -- This guy has a point!!! This was written by a construction worker in Fort McMurray . Read on . . ..
I work, they pay me. I pay my taxes, and the government distributes my taxes as it sees fit. In order to earn that pay check, I work on a rig site for a Fort McMurray construction project. At any time I am required to pass a random urine test, with which I have no problem. HOWEVER, what I do have a problem with is the distribution of my taxes to people who don't have to pass a urine test. Shouldn't one have to pass a urine test to get a welfare check because I have to pass one to earn it for them?
Understand - I have no problem with helping people get back on their feet. I do on the other hand have a problem with helping someone sit on their arse, drinking beer and smoking dope. Could you imagine how much money this country would save if people had to pass a urine test to get a public assistance check?

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Originally Posted by chitown

I was just reading a new story about the US economy. I read a few things that I just did not agree with. Do you agree with these statements or what are your thoughts about them?

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We can only speculate - like you - about these things from the particular info that we choose to acquire from the sources we use.

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"The recession is already so deep that extra money in the system will not cause inflation

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in the foreseeable future, or even in the long term," he said. "As the economy tries to recover, there will be too much unemployment and too many unused factories and stores for inflation to accelerate."




"The U.S. ran massive deficits during World War II, much larger than we expect to see during this crisis. Yet the two decades after WWII were very good times for the U.S. economy. So large, temporary deficits are completely doable.


Despite the problems, we are still a very rich country. We still have cars and other resources.

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Rich? No, the US is in DEBT, both the gov and individuals.

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We're not any dumber than we were before.

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How do you know? What is the definition of "dumb?" Do you have valid stat data?

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We still have all those riches we had before.

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What are these riches? The US is driven by consumer spending - 70%.

Where are the "riches?"

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Japan is still operating at a 190% debt of GDP, while we are approaching 80% to 85%. So by those standards we are doing well.

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Apples and Oranges.

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"Can the government go bankrupt? Could what is happening in Iceland happen to us?"

Open for discussion!!

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The US government has been on the path of bankruptcy for 40+ years.

Insolvency.

Solution? You tell me before I tell YOU.

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Originally Posted by chitown

"The recession is already so deep that extra money in the system will not cause inflation in the foreseeable future, or even in the long term," he said. "As the economy tries to recover, there will be too much unemployment and too many unused factories and stores for inflation to accelerate."

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I would agree with the above.
The choice is economic stimulus or curbing inflation.
The choice made was the right one imo for the above reasons. Time will tell but to not stimulate the economy would create even greater problems than potential future inflation

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Originally Posted by chitown

"The U.S. ran massive deficits during World War II, much larger than we expect to see during this crisis. Yet the two decades after WWII were very good times for the U.S. economy. So large, temporary deficits are completely doable.

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Again I agree.
If you believe the Keynesian philosophy that in times of economic troubles the government must intercede.

The current and previous administrations in the US must also believe that asking for 1.5 trillion USD in bailouts and stimuli packages - certainly it is not a case of allowing the free market to operate

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Originally Posted by chitown

Despite the problems, we are still a very rich country. We still have cars and other resources. We're not any dumber than we were before. We still have all those riches we had before. Japan is still operating at a 190% debt of GDP, while we are approaching 80% to 85%. So by those standards we are doing well. "Can the government go bankrupt? Could what is happening in Iceland happen to us?"

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I couldn't be arsed to give the above too much thought.
What is rich?
Can the US go bankrupt? Sure. At some point those with the money will think that the US is not a good bet. what point is that? No idea. Nowhere near it yet but it is far from impossible.
False to compare USA with Iceland. Apples and oranges

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Originally Posted by chitown

"The recession is already so deep that extra money in the system will not cause inflation

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No inflation before 2010 is my best guess.

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Originally Posted by chitown

So large, temporary deficits are completely doable.

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Of course they are but6 America needs to be making stuff to exchange for money to pay that shit off instead of borrowing more to roll over the debt forward.

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Originally Posted by chitown

Despite the problems, we are still a very rich country

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As PAnda has pointed out nicely a million times already, America wont come out of thisd smelling of shit. It will be everybody who lent them the money that gets to eat the shit sandwich.

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Originally Posted by chitown

We still have all those riches we had before.

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Define riches, are we talking about pathetic consumer trinkets or happiness, wisdom etc etc?

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Originally Posted by chitown

Can the government go bankrupt?

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Not yet

^ I want to hear the definition of "riches."

Are you referring to natural resources?

Gold?

What?