Discussion in 'Economics' started by annaland, Jul 23, 2006.
Does anyone believe that we may be going into another great depression?
Likely yes, but not until the world rejects the $USD.
Based on what?
Two things eventually end all empires. Debt and debuchery.
When the U.S. spends 3 billion a day between Iraq and trade deficit with China, how long can that be sustained before market forces turn the dollar into confetti? And then the homeowners with adjustable mortgages are turned into sausage meat.
When the transgendered demand their own public restroom and you're the bigot because you dont want to pay for it. I submit the US has far greater problems than a revisit to 1929-32.
But what's the alternative? Syria? Cuba? Sri Lanka?
Fact is the head of the Taliban, the Bush family, Al Gore, Exxon, Fabian Socialists will ALWAYS have the whitest sheets and the hottest whores. Nothing new under the sun.
Buy gold. Or buy bullets. Learn Spanish and Mandarin and be thankful that India already speaks English.
Anything specific you think will lead the US to "depression"?
I've already got more than my share of debt... I just hope I get in on the debauchery.. and SOON!
My man, gnome
My main reasons are the US Debt, the world rejecting the dollar, the possibility of WWIII breaking out - if it hasn't already. Finally, if prices keep growing that may cause under-consumption and over-investment, a key cause of the the great depression.
Yes, many problems here, and I hope that Mr. gnome finds his satisfaction (debt is no fun, hope you do better with the latter) .
I recently read that the Japanese Central Bank holds more U.S. Treasuries than the U.S. Fed reserve bank. And that is a source of fear: Japan will dump U.S. dollars.
In the event that the U.S. were to destabilize and the dollar get crushed (the average U.S. taxpayer were to become completely isolationist), how would Japan fare against its waring neighbors (and they have a long memorey): North Korea and China. Maybe time to call the U.S. Navy?
I believe this is more complex than just money supply numbers. Possibly the U.S. has a trump card.
Possibly the other players at the table are fully aware of the game Uncle Sam is playing.
hope not but be ready for US$ index to fall to 60s reaching roughly 30% correction from today's levels.
Guys: You act as if Japan or the Euro Zone is more "solvent" than the U.S. Clearly they're not. Japan has twice the per capita amount of government debt as the United States. Yea, we're a mess. But so are most nations. Government sucks across the board.
My advice? Buy the most expensive home you can afford. I'm serious. Use the extreme negative sentiment on real estate as the contrary indicator it is. Someday you'll be able to pay off that huge mortgage in one night of cab driving. Just like in Argentina. The WSJ had a story twenty years ago about a guy in B.A. who had 3.5 years left on his mortgage. The subway fare to the bank was more than the balance of his payments.......
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