Is US economy a big Ponzi scheme?

Discussion in 'Economics' started by freewilly, Dec 18, 2008.

  1. FED just keep printing money, and the rest of the world are buying it (or have bought it). The US manufacturing is gone. The US doe snot make anything anymore(or much less), other than green backs.
     
  2. W4rl0ck

    W4rl0ck

    Never forget that the "Fed" is a private corporation and does not represent the interests of the US citizens. :D


     
  3. frankxu

    frankxu

    Agree with you. :D
     
  4. We pretty much have a monopoly on selling computers, airplanes, and telecommunications equipment... all the stuff that every country needs to not be in the stone age and you think we dont produce anything?

    Not to mention we are the worlds leader in creating medicines.

    And did i forget that the world loves our hollywood movies? In almost every country in the world, you can see a hollywood movie somewhere dubbed in the language of that country. When was the last time you went to the movie theater and saw a film from another country dubbed in english? Probably never.

    Its like you think if we dont have any automakers, thats it for the USA. Its not...it really isnt.
     
  5. talknet

    talknet

    If you consider the $2.5 Trillion Bail-out then FED just keep printing money and distributes it.

    USA government clearly knows that there is "no sales future" because of "global meltdown". But USA government has invested $2.5 trillion dollars with "worthless giant companies and Banks" without any "business brains". These giant companies have been declared Bankrupt if it wasn't for Fed's help.

    Bankrupt companies do not survive for long and they shut down after sometime.
     
  6. This ain't no Ponzi scheme. This is an outright plunder. So far, only the wealthy, who least require government handouts, not to mention that they are responsible for the current mess, got any benefit from the bailout. Paulie & Bernie should be kicked in the balls, only if they had any!
     
  7. 7 Trillion over-and-above what was needed.

    Yea, thats Ponzi.

    As for the Fundamental Sound"ness" of the US economy.

    Its quasi ponzi. America does innovate and control the manufacture of many high-tech, industry leading products.

    But the haymaker is its reserve status. Without that, I doubt the US Gov could float 1/3rd its current debt level without rates going through the roof.
     
  8. And therein lies the MAJOR problem.....:mad:
     
  9. Yea, time will tell.

    Its gonna happen. The question is: how soon?

    Rogers, Faber and Schiff think it's right around the corner. In years, not decades.

    Banana Republic, here we come.
     
  10. Currently, the Gummint takes in about $2.6 Trillion in income taxes, but routinely spends about $3.1 Trillion. This is not something new... has been going on at a signfiicant rate since FDR's time. In fact, deficit spending was a big part of putting Americans to work after the depression.

    Since FDR's time, there have been deficits virtually every year... both parties equally guillty overall.

    Deficits took a big jump under Reagan with defense spending.

    Deficits widened with Congress glomming onto the idea that "Reagan proved deficits don't matter". Of course, deficits DO matter.

    If the US is to avoid becomeing a 3rd world economy, the Gummint must cut back and stop deficit spending. But our Gummint rarely cuts back at all on anything. Gummint and deficits just keep growing and growing.

    Were the $USD not the world reserve currency, the free market would have chucked us into the trash a long time ago..

    THE GUMMINT IS DESTROYING AMERICA WITH THEIR GREED!!
     
    #10     Dec 18, 2008