suv_guy_19 Posted June 1, 2009 Share Posted June 1, 2009 I know that a lot of right wing radio is talking about inflation in the range of Zimbabwe....22M%...somehow I doubt it. Quote Link to comment Share on other sites More sharing options...
Bored of Pisteon Posted June 1, 2009 Share Posted June 1, 2009 (edited) I know that a lot of right wing radio is talking about inflation in the range of Zimbabwe....22M%...somehow I doubt it. But everything costs more in Canada. Why is that? Why don't you explain it to all of us since you are an expert on U.S. affairs! Edited June 1, 2009 by Bored of Pisteon Quote Link to comment Share on other sites More sharing options...
mikem12 Posted June 1, 2009 Share Posted June 1, 2009 Last I seen our debt services were half a trillion, I don't remember if it was 07 or 08. We have all seen how much we have been borrowing since, I'd hate to see it now. It's almost over. What's almost over, life as we know it or the spending like a drunkin sailor? Quote Link to comment Share on other sites More sharing options...
BlueOval5.0 Posted June 1, 2009 Share Posted June 1, 2009 I love how an Australian is preaching here - your country has already moved to the radical left in the last election and we're right behind you. It doesn't take an economics major to figure out that if you spend as much money as these fools have in four months, there are two ways to pay off the debt: 1) increase taxes - we already pay enough income taxes between Federal, State, and Local. Of course, my kids and their future kids will be paying all this debt off long after I am dead. or 2) print money - an inflationary event As an Aussie, you should realize that the $ U.S. is back to its losing ways over the past several months and the Chinese are worried that the debt they are holding is worthless. If the USA was a business, it would be in bankruptcy itself - nevermind the companies they now run. Yes, inflation is coming just like it was in the late 70's and early 80's thanks to Jimmy Carter. Give it about 12-18 months and you'll see. Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted June 1, 2009 Share Posted June 1, 2009 But everything costs more in Canada. Why is that? Why don't you explain it to all of us since you are an expert on U.S. affairs! I really don't know...it certainly has nothing to do with inflation and probably more to do with having a smaller market and a usually weaker currency. It's certainly not because of our debt. Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted June 1, 2009 Share Posted June 1, 2009 I love how an Australian is preaching here - your country has already moved to the radical left in the last election and we're right behind you. His country was debt free until this year. Maybe the US could learn a thing or two from the radical left. Australia has balanced books, a form of universal healthcare, and taxes that are virtually identical in amount to the US. Quote Link to comment Share on other sites More sharing options...
Bored of Pisteon Posted June 1, 2009 Share Posted June 1, 2009 I really don't know...it certainly has nothing to do with inflation and probably more to do with having a smaller market and a usually weaker currency. It's certainly not because of our debt. But the taxes there has quite a bit to do with it wouldn't you think? Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted June 1, 2009 Share Posted June 1, 2009 (edited) But the taxes there has quite a bit to do with it wouldn't you think? Well since Canada has lower business taxes than the US and any consumption taxes are added on at the point of sale, no. Things still cost more here even before GST and PST (or QST...or HST instead of both). It also has to do with the requirements that most things come with English and French labels. Our taxes, are on average, slightly higher than the US...but there are a number of factors in our favour. It all depends on perspective. Edited June 1, 2009 by suv_guy_19 Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted June 1, 2009 Share Posted June 1, 2009 anyway, the problem I was addressing had to do with paying of the debt, not the cost of goods in Canada and the US. Quote Link to comment Share on other sites More sharing options...
Bored of Pisteon Posted June 1, 2009 Share Posted June 1, 2009 Well since Canada has lower business taxes than the US and any consumption taxes are added on at the point of sale, no. Things still cost more here even before GST and PST (or QST...or HST instead of both). It also has to do with the requirements that most things come with English and French labels. Our taxes, are on average, slightly higher than the US...but there are a number of factors in our favour. It all depends on perspective. See, that's the problem that a lot of us have with this proposed 25% Value Added Tax. HOW YOU PEOPLE PUT UP WITH THAT SHIT IS BEYOND ME. Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted June 1, 2009 Share Posted June 1, 2009 Well...we don't pay 25%...it can get sickening....but...Canadians aren't as hateful of government (in most places anyway...and even in the places where they are, they're still less hateful) overall and so we usually trust them to do a good job. There was a lot of opposition to the GST when it came in, but in reality, a VAT is the best tax that there is. If you can shift some tax away from income and towards purchasing, everything works out better. Our government cut the GST from 7 to 5% over the last three years, and many economists say it was the wrong thing to do. It's nice to pay less tax, but in reality, taxes are quite necessary. The trick is finding the right balance. One of the difficulties lies with the fact that the US is very conservative. Change and anything different seems to be very difficult. Also, the fact that Americans mistrust government so much (possibly with good reason when it comes to the US federal government) is another difficulty. Quote Link to comment Share on other sites More sharing options...
Roadtrip Posted June 2, 2009 Share Posted June 2, 2009 One of the difficulties lies with the fact that the US is very conservative. Change and anything different seems to be very difficult. Also, the fact that Americans mistrust government so much (possibly with good reason when it comes to the US federal government) is another difficulty. I'm gonna go out on a limb and say that $63.8 trillion in debt is a pretty good reason for Americans to mistrust the federal government. Quote Link to comment Share on other sites More sharing options...
fmccap Posted June 2, 2009 Author Share Posted June 2, 2009 Deflation is more likely in the immediate future. That is what we have been going through for a while now, but looking at things you know what the future holds. Quote Link to comment Share on other sites More sharing options...
fmccap Posted June 2, 2009 Author Share Posted June 2, 2009 I know that a lot of right wing radio is talking about inflation in the range of Zimbabwe....22M%...somehow I doubt it. Yea, it'll be 18M% and you guys will rejoice saying it's better than expected. Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted June 2, 2009 Share Posted June 2, 2009 If it goes that high, I'll eat my hat. Quote Link to comment Share on other sites More sharing options...
fmccap Posted June 2, 2009 Author Share Posted June 2, 2009 If it goes that high, I'll eat my hat. I hope you have one made out of something tasty. No, it won't go that high but it will be more than people think. Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted June 2, 2009 Share Posted June 2, 2009 I hope you have one made out of something tasty. No, it won't go that high but it will be more than people think. I would say that if it even went into the double digits, it would be surprising. I could be wrong on that though, and we'll have to wait and see. One thing is for sure. When this crisis ends, the US will have to find a way out of deficit. Quote Link to comment Share on other sites More sharing options...
fmccap Posted June 2, 2009 Author Share Posted June 2, 2009 I would say that if it even went into the double digits, it would be surprising. I could be wrong on that though, and we'll have to wait and see. One thing is for sure. When this crisis ends, the US will have to find a way out of deficit. That's the thing, when is it going to end? What is the way out of our deficit? I don't see one. Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted June 2, 2009 Share Posted June 2, 2009 When growth resumes, the object should be to put the books in balance....IMO anyway. Quote Link to comment Share on other sites More sharing options...
fmccap Posted June 2, 2009 Author Share Posted June 2, 2009 When growth resumes, the object should be to put the books in balance....IMO anyway. When and if, big question. Remember it was originally said in the second half of 2008? The books are to far out of balance and a further out of balance is just starting to occur(SS and Medicare). Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted June 2, 2009 Share Posted June 2, 2009 Yes, the date keeps moving back, but I the end of the year is realistic. Quote Link to comment Share on other sites More sharing options...
fmccap Posted June 2, 2009 Author Share Posted June 2, 2009 Yes, the date keeps moving back, but I the end of the year is realistic. I heard that back in the first half 2008. What about the second question? Quote Link to comment Share on other sites More sharing options...
Roadtrip Posted June 2, 2009 Share Posted June 2, 2009 I would say that if it even went into the double digits, it would be surprising. I could be wrong on that though, and we'll have to wait and see. One thing is for sure. When this crisis ends, the US will have to find a way out of deficit. With your propensity for communicating vague, inconsequential, noncommittal, and mealy-mouthed Orwellian double-speak positions, you would be a strong candidate for a job on the Obama Administration's communications team. Quote Link to comment Share on other sites More sharing options...
Trimdingman Posted June 2, 2009 Share Posted June 2, 2009 If it goes that high, I'll eat my hat. You will have to because you will not be able to afford food. Inflating the currency will get the government off the hook for their huge debt. However, people who have been foolish enough to listen to the government and save their money will be wiped out. We have done nothing practical to stop the inflation of the 70s and 80s, just artificially cut interest rates. Real inflation is probably 5% per year above what we see. Multiply that by twenty years, plus add on the effect of the trillions in new debt we are piling on. The dam is about to bust. Interest rates have to equal more than inflation to maintain the buying power of the investment plus make a modest return. With so many people in danger of losing their jobs, there is greater risk in loaning money. Therefore interest rates should be rising. Instead, they are falling. It looks like desperation to prevent the whole system from collapsing, or at least delaying the collapse until "they" can get their money out and leave the rest of us holding the bag. Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted June 2, 2009 Share Posted June 2, 2009 With your propensity for communicating vague, inconsequential, noncommittal, and mealy-mouthed Orwellian double-speak positions, you would be a strong candidate for a job on the Obama Administration's communications team. Why would I have some kind of committed position to something that I don't have all the information about? Jumping to comclusions does little good. Quote Link to comment Share on other sites More sharing options...
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