7 reasons U.S. needs a Good Depression now

Discussion in 'Economics' started by turkeyneck, Jul 5, 2011.

  1. By Paul B. Farrell, MarketWatch

    SAN LUIS OBISPO, Calif. (MarketWatch) — No, do not raise the debt-ceiling. You heard me: Block the debt ceiling vote. Don’t raise it. America’s out-of-control. A debt addict. Time to detox. Deal with the collateral damage before it’s too late.

    We need to fix America’s looming credit default, failing economy and our screwed-up banking system. Now, with a Good Depression. If we just kick the can down the road one more time, we’ll be trapped into repeating our 1930’s tragedy, a second Great Depression.

  2. Locutus


    Zeitgeist. People actually *want* a depression now? For fuck's sake, I wish I was born in 1960 so I would've been in my thirties in the 90's. Or in 1880.

    Stupid time to live in, this is. Everything is awesome and nobody is happy. Well, I am, but nobody to share the joy with. Even millionaires don't "feel rich" these days.

    Everybody has a car, a nice house with multiple rooms in it no less, running water, electricity, almost unlimited entertainment options (internet, tv, games etc etc). Compare even the unemployed to how average people were living in the 60's. I doubt ANY unemployed bum is going to want to trade with them.


    Edit: Also I don't take Farrell seriously or anything. He's always been wrong about everything, it's just that he isn't the only one saying it and a fair number of people seems to share his ideas.
  3. m22au


    Maybe things are only "awesome", and "everyone has stuff" because of easy monetary policy and excessive borrowing by individuals, businesses and governments.

    It's not possible to borrow one's way to prosperity, and in the long term (shock horror!), debt needs to be repaid, defaulted upon or printed away. If default or printing occur, then things won't be so awesome.
  4. Locutus


    All this bullshit about debt and everything is also starting to piss me off. Debt is a construct that is pretty much imaginary. So is fiat money. Debt and money works for the economy, not the other way around. It's like the law; if it doesn't work anymore you fix it. Somehow people see it as more rigid while it isn't at all.

    What is real is people who make stuff and people who want the stuff (and every person supporting supporting the production in some way) and this is GOING BETTER THAN EVER BEFORE. Humanity's progress has been a monotone increasing function since the very beginning. But no, apparantly the monkeys can still only be happy when we've had above-trend (i.e. unrealistic) growth for multiple years.

    Anyway, the Bernank said we are going to get back to trend growth and if he says so I believe it. He's been right about a lot of things, but not the real estate bubble.

    Also, I would be happy to enter in a binary option contract on whether Bernanke has been referred to as "the saviour of the economy" (or similar terms) in any authorative source by 2014. Any takers?
  5. Debt is an arragnement to give a cash injection upfront for future installments. I hate to brake it to you but if people stop paying debt they will stop the payments to the investor so pensioners insurance companies and savers will lose their money. When that happens people will not lend again. You cannot default on too much debt without having a wipe out of other peoples incomes.

    What you are suggesting would collapse all pension funds and insurance funds and prevent any future investment.
  6. Where have you been for the past 3 years??
  7. Locutus


    I know what debt is. I was merely making a simplistic point that while there may be something wrong with our financial system/markets, there is absolutely nothing wrong with our ability as a species to provide very well (better than ever before as I said) for ourselves.

    The point I was getting toward, was that a "depression" would certainly impair this ability more than necessary. And the arguments given for having a depression are often along the lines of some misguided desire to "purge the financial system". It's the most retarded thing I've ever heard. People want to sacrifice wealth so some imaginary made-up thing can "become healthy".

    Please. The financial system exists to serve us and as long as we are still growing globally and everything is functioning well, why would you want to mess with it?
  8. If there was a republican in the White House, all the "Serious" talk on the debt wouldn't be taking place.
  9. No western government intends on doing anything. I think they are not intelligent to appreciate what is going on or they are in denial. Remember they do well out of the system. It is hard to see fault in something when you do well from it. The only time they will act is when they are personally affected.
    #10     Jul 5, 2011