nothing about firing government workers or reducing government pensions in your scenario. "Like Donald Trump said yesterday: US has to do something about the trade deficit with China and OPEC. Nearly $500B savings there if applied with right mind. " it is the debt that is destroying the US not the trade imbalance. it is the swollen public sector and government interference in private enterprise that is destroying the US. it is always easy to blame others.
What is the big deal about printing money anyway? So what? It doesn't create inflation or devaluation of USD. This is not Greek Drachma, this is American Dollar. Keep printing USD as much as you want until sheeple wakes up.
brilliant analysis with not one iota of proof. it is the british pound 120 years later. what do u think the market is telling you with the price of gold or the dollar vs, swiss franc. that is devaluation.
Printing is to discourage China and OPEC buying US dollar. Once this succeed, dollar will fall and inflation will take care of underwater housing price and unemployment. China just start buying Yen recently. No one wants to be the strong currency and I doubt Japanese will tolerate that neither. In the end, we will do competitive devaluation until inflation comes back and unemployment goes away.
this is a false premise constantly repeated by people with no understanding of business history,. you do not lessen unemployment or create prosperity by creating inflation. when you create inflation people are only interested in keeping ahead of inflation and not in producing anything. show cases where there has been inflation and the country has prospered and had growth. your premise has been promoted by every two bit dictator particularly in africa and south america. the end was always an economic disaster.
Exactly *how* is the US supposed to pay for these trade deficits? 1. Huge unemployment 2. Dollar tanking 3. Huge public & private sector debts like never before. 4. Many industries can no longer compete effectively. (Calif buying trains from China now!?). & you say it's not the monster trade deficits???!!!
No. You are equating QE as the same as africa and south america dictatorship debt. In order for that scenario to happen, you need to borrow in FOREIGN currency first. IE, if Argentina has tons of debt in US dollar, when they devalued their currency, their debt DID NOT shrink. US debt are all in US dollar. That is the key point.
cutting government spending means reducing governmental operating tools which includes workers and related expenses. when US is producing on its own instead of buying from outside, then US or any other country is taking money from one pocket and putting it into another.............this increases the money multiplier and result is economic growth which means more tax revenues and with 'stupid spendings' in check, the federal balance sheets start showing positive numbers i.e. no need to issue debt and print bills. Give it another 6-8 years and commodity cycle cools down then oil prices will come back down also and $250B annual savings will be available..............until and unless some Republican RAT President (Republicans Are Traitors) creates a new war or screws up balance sheets with hyper defense spendings or not needed tax cuts and other hateful agenda, then we are talking real chaos and melt down.