Pretty soon, most people in the U.S. will be on welfare, food stamps, and medicaid. We will have no buyers of our treasuries, and then we will all be sent back into the stone ages. Check this site out... http://usdebtclock.org/ We already have 11% of our population on food stamps.
Ok so printing debt money out of thin air is a viable solution? So why stop at recovery, let's go into a full blown expansion via government stimulus. I think you may have just discovered the secret to perpetual prosperity. Wow, I wonder why noone else have tried this before.
Ha Ha! I never advocated something so extreme but thanks for the chuckle. I am actually implying a question if you got that.
I think you were pretty clear in stating that the stimulus helped avoid a Great Depression. Which means you believe that printing debt money is a viable solution to improve the economy. So I say, why stop there, why go beyond improving into a full blown expansion, just keep printing more stimulus?
Somebody would buy them if the interest rate were high enough to compensate for the perceived risk. If not, the Fed could just keep printing money as the $USD PLUNGES... bankrupting nearly all Americans.
Having no stimulus, when every other major country was, is just as extreme as perpetual stimulus. As I already mentioned. Nobody knows its all speculation until after the fact. You could be right. We will know in several years.
The bailouts and stimulus might have prevented a collapse last year, but it wasn't a fix... just a postponement... there's another and bigger one in the making. If we don't "take our medicine" at some point, a solution will be FORCED upon us which will be worse.
I agree. On our current trajectory ensures USD decline is inevitable. Collapse like Iceland or Argentina don't think so. Who knows though? I do know, after spending time recently in Europe, and having relatives there, that things aren't so rosy there either.
As long as they extend benefits will also assist today's employment report. The US has already double digit unemployment and with the benefit extensions they still have hugh layoffs. The are trying to tell us the number is less, well what were they thinking eventually the number has to go down they already reported the unemployed prior. I can see it now. Only 10 thousand jobs lost while in fact the whole country is unemployed. These numbers are so stupid and not a true picture. I am blessed I am able to trade from home. Where do the self employed fit in?