The US economy is in the worst condition within the last 10 recessions. GDP, consumption, private investment, exports/imports, etc. are all off the chart. Yet--government consumption & investment are only pacing at an average rate. If the GD II is upon us, then this is troublesome. Why do you suppose the government is not participating like they used to in a severe recession?
because they don't care any more they are all in it for themselves politicians are not like that any more. they can't be held accountable because they can go somewhere else with the money they make. people need to do something politicians just want power and don't do their job.
....................................................................................... 1000% correct.... The "Harvard Kings" have FO America.... Unfortunately.... CALAMITY has to be the cure.... The "fraternal brat show" ....WILL END....
although i would like to agree with (and usually do (i think you are my kindred spirit on this forum)) the real economic situation is bad. natural resources are gone, people don't work any more, they expect everything and religious unrest is everywhere because people think it is the end time. that aside it is all rosie!
....................................................................................... And what is needed is efficiency ....not inefficiency.... The money that is invested has to have a payback.... The clunker program, the bank bail outs, and every single expenditure has been inefficient and nonsustainable....and has to be counted as a loss.....To date over $12 Trillion and counting....quickly moving from a 70/70 to a 10/70 economy.... It is utterly amazing that "graduates of Harvard" have not contibuted towards methods of sustainability and efficiency.... THEY cannot be the best that America has to offer.... There can only be a simple explanation for this moronic thinking and outcomes....the flawed lobbyist system....There is no "connect" between politics and good economics.....none....quite the opposite.... COMMON SENSE has left the game.... So much for the "Harvard Kings".... .............................................................................. And Larry Summers .....another idiotic "Harvard King"....was selling CDOs via DE Shaw to large Sovereign Funds after Bear Stearns had to shut down their CDO laden funds.... This guy is in line after "Burn it" anke.... Sad Sad Sad.... Pathetic....Such a blatent lack of credibility.... And just what are these "pitched to" Sovereign Funds going to be thinking ....when this idiot takes over from Bernanke ?????
I've heard rumors on the internets of a possible second stimulus this fall, nov or so. This administration is getting some serious heat right now for spending. I do not doubt Obama's courage against this heat. But... they may wait for a worsening situation. Please, less pork this time. It may just be more safety net spending as people run out of unemployment insurance. Most of the original stimulus hasn't made it though they say. I wouldn't know, I'm not checking on the "save the field mouse project."
the problem with stimulus is there are limits to how much money can be put in without a return on the investment. if continued stimulus is needed it is not doing its job. when the stimulus can not continue if the credit market is not restored the ability of investment is not there and that is a big problem there will be nothing to get economic recovery going. at the moment credit can not provide investment due to the lack of incentive (interest rates). if the interest rate stays low it will act as a disincentive especially if the real value of the currency falls. however if the interest rate rises the economy will collapse due to interest rate repayments due to the enormous debt. thus until the debt is paid of (2050) or another method of investment is implemented the fiscal stimulus will have to continue (if it can). if that is the case the way of producing output will have to change to a command structure economy. for this to happen the fiscal stimulus would have to invest in new building + manufacturing + research and development so far it is just diluting the currency to pay benefits to people not producing anything the output will fall and the currency will lose value. the only real way out is to find a new way of generating capital and investment which will have no affect on the current debt obligations. would you agree with that?
Libertad, have you read the following essay? It's 600 pages long but I liked it and I picked out the following quote to match the subject of this thread. Indeed the Roman Empire did crumble from within before the final blows were struck by the encroaching peoples who surrounded it. Rome fell victim to a social struggle in which its population began to feel that its labour was too valuable. Trade deficits mounted as labour in outlying provinces produced goods and services at prices which were far more attractive. Within every great society since the dawn of civilization, this tendency for labour to rise in price as prosperity befalls its econ-omy has been present without exception. When the United States was in its infancy,it too was the source of cheap labour for Europe. But as Europe lost its competitive-ness due to rising wages, America flour-ished. As prosperity came to the shores of the new world, eventually American labour rose in value and now our unions complain of cheap labour in the Far East. This is merely one of the natural orders in which wealth is transferred from one soci-ety to another. Sumptuary laws and great tariff walls cannot prevent this natural gravitation and transfer of wealth. Each society fights hard to hold on to its prosper-ity, but never has any society been success-ful in retaining it. http://www.scribd.com/doc/3932687/The-Greatest-Bull-Market-In-History-Martin-Armstrong
.......................................................................................... if that is the case the way of producing output will have to change to a command structure economy. for this to happen the fiscal stimulus would have to invest in new building + manufacturing + research and development so far it is just diluting the currency to pay benefits to people not producing anything the output will fall and the currency will lose value. the only real way out is to find a new way of generating capital and investment which will have no affect on the current debt obligations. would you agree with that? ........................................................................................ Ah ha..... You are getting warmer..... But the structure cannot be govt. driven.... It must be private enterprise driven.... The govt. in the car business.....the mortgage business....invention.....and just what are private firms to do....compete versus evergreen govt. funded competitors ????? .................................................................................... A 10/5C tax is a broadbased tax whose revenue will dwarf the current diminishing system....and provide personal freedom no country has yet to experience....the current system and recommendations are canabalistic, and demeaning....and worse.... One runs $10 through the govt...one does not produce a sustained $1.... It is just lost.... ............................................................................................. One needs to turn the current failed system off....and a workable solution on..... It is not happening.....and there is not a shred of communications that are anywhere close to being in the correct direction.... It is as if the govt. wants to win the race to the bottom....