Hyper-inflation

[jpd80]

To balance the budget, the government would have to eliminate job-killing regulations and reduce entitlements. Fifty per cent of the people pay no taxes and therefore in one way or another recieve entitlements. It would be political suicide.

I didn't say all at once, realization and evolution of a plan has to come from both sides of the house. The point is to keep pressure on both parties and stop them thinking that they have unlimited time and can delay until after the next election. Which is what both sides of politics are trying to do BTW....

 

The plan laid out is to tax the rich. Even if the rich went along with this, it would only make a small dent in the deficit. They will be moving their businesses out of the country at an even faster rate. There will be less revenue, and more entitlements to pay because of the employees that will be laid off. There is a huge bubble of baby boomers retiring that is just starting now. Baby boomers are the largest tax-payers and consumers. Now they will be recieving entitlements, and not paying taxes and not consuming those big ticket items. They will be downsizing; selling the 3000 square foot palace for the 1500 square foot townhouse. Interest rates have nowhere to go but up. When they do, the deficit will balloon. The financial crisis is on-going and getting worse. It is not something that just happened, like a tsunami. We are in the opening stages of a Great Depression; a lot worse than the last one. The government can't prevent it. All they can do is delay and mask it, but the inevitable will only be worse when it comes as a result. How it plays out is impossible to predict, but it will be nasty. It could be a breakdown of civilization, all-out war, with our side winning or losing, anarchy a-la-Road Warrior, concentration camps, dog-eat-dog famine; pick your poison.

 

You're whipping yourself into a frenzy.

All of these things have been with us for quite a while, Treasury just avoided a huge depression by propping up the banks and lending institutions. What a lot of people still don't get is that in tough times, you have to continue the cycling of money in the community, when lending freezes up, no one can buy stuff, businesses go broke and people lose their jobs.

 

So the policies so far are imperfect but have avoided much worse, more like the kind of things you're predicting and I don't kid that they're not a real possibility, maybe their specter is a strong incentive for politicians to not fail the people, the consequences are very serious indeed.

 

 

Trim, where you see all of this as a foregone conclusion, a lot of know there is still plenty of time for correction but that it must be done

in several stages by stopping the ship going in the wrong direction with balanced budget and by review taxation and health care/pension

liabilities.

 

The real action will take place next year, at the moment, it's all too hard for either house, their minds are not focused yet....

Until then you won't see any drastic domestic financial events, the switch in focus is to Europe and its increasing financial woes....

With a predicted global recession, that will give the US time and reason to restructure itself and make permanent changes to balance budgets.

Edited September 21, 2011 by jpd80

[sprinter]

You're trying to extrapolate the exceptional borrowings that have occurred during the financial crisis

into the norm we can expect over the next ten years, that is not going to happen for two reasons:

 

1) The amount of borrowings needed is going to sharply decrease as the government is forced to balance budgets

2) the amount of borrowings has reached 90% of GDP, further borrowings wil spike a drop in credit rating and increases in interest.

 

The IMF has privately warned US treasury to get its house in order and must move back from the edge before they stage a back door intervention.

 

 

Ninety percent? Not really. Repeat after me "The United States government lies to make things look better". Or maybe they just have poor memory. They don't want to mention the "unfunded liabilities". Our government institutions don't want to make honest reports using GAAP. But the media is glad to regurgitate the lies to keep the natives from getting restless.

 

Honestly describing the current monetary system of the United States in just a few words, you could do far worse than stating that it is “money from nothing, cash ex nihilo.”

 

That’s because for the last 40 years – since Nixon canceled the dollar’s gold convertibility in 1971 – the global monetary system has been based on nothing more tangible than politicians' promises not to print too much.

 

Unconstrained, the politicians used the gift of being able to create money out of nothing to launch a parade of politically popular programs, each employing fresh brigades of bureaucrats, with no regard to affordability.

 

Such programs invariably surged during political campaigns and on downward slopes in the business cycle when politicians hearing the cries of the constituency to “do something” tossed any concern about balancing budgets out the window of expediency. After all, the power to print up the funds for debt service whenever needed makes moot any concern over deficit spending.

 

Former VP Cheney, who fashions himself a fiscal conservative, let the mask drop when, in 2002, he stated that “Reagan proved deficits don’t matter.”

 

Those words were echoed just a few weeks ago, when both former Fed Chairman Alan Greenspan and Obama economic advisor Larry Summers, in separate interviews, said almost the same, paraphrased as, “There is no chance of the US defaulting on its bonds, not when our government can borrow dollars and print new dollars to meet any future obligations.”

 

Of course, Greenspan and Summers were referring to an overt default – of just not paying – and not to a covert default engineered by inflation. Unfortunately, like virtually all of the power elite, both miss the point that the mountain of debt that has been heaped up since 1971 is fast reaching the point of collapsing like a too-big tailings pile and taking the monetary system down with it.

 

Importantly, the debt shown in this chart whistles past the government's unfunded liabilities, in particular for the Social Security and Medicare systems. Adding those would more than triple the US government’s acknowledged obligations – to over $60 trillion.

http://www.caseyresearch.com/editorial.php?page=articles/us-monetary-system-verge-collapse&ppref=ZHB420ED0911G

[jpd80]

So the tactic your taking is that every time anyone else has any statistical evidence that contradicts you, your going to accuse it of being false because the government lies about everything and only you and Casey Research know the truth, although they use government statistics in many of their analysis. That's not circular its circular file logic. As garbage, refuse, just plain shit.

 

Where's Cal50 when you need em? At least he doesn't use conspiracy theories to attack empirical evidence. Your certainly smarter than this, or i thought you were.

 

Thank you for exposing his circular logic but unfortunately, a conspiracy theorist who says empirical data is all lies cannot be argued with.

 

 

On topic, the US is not looking at hyperinflation, that scenario is completely baseless and just crazy talk.

Edited September 22, 2011 by jpd80

[Trimdingman]

I read an interesting blog. A guy argues that zero interest rate proves that the dollar is worthless. If you borrow and just pay the interest, zero, theoretically, you can borrow as much as you want and never pay it back. That makes money worthless.

 

I don't listen to "experts" who are wrong more often than they are right. Either they are not experts, but idiots, or else they are paid liars. I like people like Peter Schiff and Gerald Celente who are right more than 90% of the time, but are scoffed at and ridiculed by the "experts". They both say that we are in a depression.

 

When the auto industry declines, watch out. There will be a domino effect throughout the whole economy.

 

I heard another interesting quote from Peter Schiff. He said that you can buy a gallon of gas for a dime, as long as that dime was minted before 1960 something when it was silver. According to that, the real price of gasoline has actually declined, but the dollar has declined by a lot more.

[jpd80]

I read an interesting blog. A guy argues that zero interest rate proves that the dollar is worthless. If you borrow and just pay the interest, zero, theoretically, you can borrow as much as you want and never pay it back. That makes money worthless.

That is a very shaky argument and only applies if you assume that every loan is an interest only loan.....

 

try to get a 0% interest loan, bet you can't.

 

I don't listen to "experts" who are wrong more often than they are right. Either they are not experts, but idiots, or else they are paid liars. I like people like Peter Schiff and Gerald Celente who are right more than 90% of the time, but are scoffed at and ridiculed by the "experts". They both say that we are in a depression.

Back at you, I don't listen to people who say the end of the world is nigh for the US economy

 

When the auto industry declines, watch out. There will be a domino effect throughout the whole economy.

Which makes you wonder because Ford is saying thet September sales put the SAAR at 13 million,

all without huge incentives and government pump priming - ti's the best it's been in years.......

 

I heard another interesting quote from Peter Schiff. He said that you can buy a gallon of gas for a dime, as long as that dime was minted before 1960 something when it was silver. According to that, the real price of gasoline has actually declined, but the dollar has declined by a lot more.

Relative cost to consumers versus income is all we can go on, it's the only way of determining affordability across different decades.

It's OK to buy a house for $30,000 40 years ago and reap the benefits of inflation and time but we whinge piddle about gasoline....

Edited September 22, 2011 by jpd80

[sprinter]

I see the college boy only knows the liberal left views and can't think for himself. Lets talk about statistics. Kind of like assholes, everybody uses them. Statistics are used by people trying to make their opinions look better that the other guy. Just like the government reporting debt to GDP. So just why do they do that? If you look at the government debt chart alone it is heading vertical and the government owes over 14.7 TRILLION DOLLARS! Is than not a lot of fuking money to owe? Doesn't make for a good show since it seems all we do is borrow, borrow and borrow. But let's switch gears and talk about Gross Domestic Product, GDP. And just how is GDP calculated? Maybe you have seen this equation: GDP = C + I + G + (EX - IM) So basically we have consumption spending + investment spending + government spending + exports – imports equals GDP. Oh, that government spending again. Just how closely related to government debt is that? Pretty close in my opinion. So if I was the government and want to deceive most of peons of the world who can't seem to think for them selves, what would I do? How about concoct a new chart to make the economy appear healthier than it really is. So let's just report debt as a ratio to GDP! That way as I borrow and over spend, the chart shows little deviation. So take another sip of your koolaid boys and go back to sleep. Uncle Sam says don't worry, be happy!

 

And where do you think all that borrow, borrow and borrow has been coming from here lately? Try the FED. It's a good thing they can generate money out of thin air using computers. Otherwise the printing presses would break down trying to keep up. And as I have stated before, hyper-inflation comes from over printing of money. Look what inflation has done to the dollar buy power since the FED took over in 1913. And they were created to 'smooth the bumpy road'. You don't have to be an Einstein to see where we are headed today. The government will paint the best picture of the economy to hide the true facts. But in the end, the ones prepared will suffer the least.

[Trimdingman]

How about someone with his head buried in the sand? Forget the tinfoil hat. Our way of life is finished. Look at the numbers, not at the lying politicians' take of the situation. The government is responsible, and they are taking measures to insulate themselves from taking the fall. They are blaming the "rich" to shift blame away from themselves. They will print money and encourage you to buy and consume so their bankster friends can get their assets out before the house of cards collapses, leaving the ordinary joe, who they pretend to care about, holding the empty bag. If you or I ran a ponzi scheme or a counterfeiting operation, we would be behind bars; but it is ok for the government and the banksters to do it.

[sprinter]

[quoteSon, i'm a 40 year old man going back to school on his own time after work because i want to. And because its paid for. I have 15 years at Ford and am a tradesmen.

 

Since I'm several years your senior, I will still call you "boy". Plus I have more time than you at Ford in skilled trades along with a BSME degree. Big Fuking deal. You act like you're three stories above everyone else on here. Let me tell you boy, you are not any better just because you are a 'tradesman' and college boy.

 

At least i (we) offer empirical evidence gathered from an outside source. You use your own opinion to reinforce your opinion.

 

I post evidence from others most times. You just choose to ignore it because it doesn't fit your left wing nut agenda.

 

Still waiting for you to tell me why they do it? Was that two different thoughts, or just a half ass jumble of words all mixed up and thrown against the wall.

 

Obviously you have zero reading comprehension. Next time I will write at a 3rd grade level for you. See Barack run, run Barack run!

 

 

Accuse them of using the statistics made up by false government bent on ruling the world and destroying Christianity? Give the all Donuts with sprinkles?

 

What an idiotic, pathetic comeback LMAO

 

And somehow the picture i get when i think of you typing this, is you in the basement with the lights off and your brand new tinfoil hat. I wonder why?

 

Probably because you are totally clueless?

//quote]

[sprinter]

Here are some new predictions from Peter Schiff:

http://www.infowars.com/schiff-fed-will-turn-to-qe3-in-failed-bid-to-prevent-economic-depression/

 

More money coming for QE3

 

So just how accurate has Schiff been in the past?

 

http://www.youtube.com/watch?v=2I0QN-FYkpw

 

Makes the others look pretty stupid.

[jpd80]

I see the college boy only knows the liberal left views and can't think for himself. Lets talk about statistics. Kind of like assholes, everybody uses them. Statistics are used by people trying to make their opinions look better that the other guy. Just like the government reporting debt to GDP. So just why do they do that? If you look at the government debt chart alone it is heading vertical and the government owes over 14.7 TRILLION DOLLARS! Is than not a lot of fuking money to owe? Doesn't make for a good show since it seems all we do is borrow, borrow and borrow. But let's switch gears and talk about Gross Domestic Product, GDP. And just how is GDP calculated? Maybe you have seen this equation: GDP = C + I + G + (EX - IM) So basically we have consumption spending + investment spending + government spending + exports – imports equals GDP. Oh, that government spending again. Just how closely related to government debt is that? Pretty close in my opinion. So if I was the government and want to deceive most of peons of the world who can't seem to think for them selves, what would I do? How about concoct a new chart to make the economy appear healthier than it really is. So let's just report debt as a ratio to GDP! That way as I borrow and over spend, the chart shows little deviation.

 

 

Interesting that you poo poo the relationship between debt and GDP but it's the same as personal debt versus income after tax and expenses,

what you have left is your capacity to pay. So as an example, you have a $14,700 debt and your after tax and expenses income is , $16,170

therefore the total debt is 90% of total annual nett income. That only seems a worry if you have no capacity to pay...

People paying off a $300,000 mortgage have an equivalent debt of 1000% "GDP" yet a lot manage because of capacity to pay

 

Yes, the debt is worrying but not while the US still has such a massive capacity to pay..

that is the main saving grace and one you refuse to take into account........

 

So I suggest you stop the chicken little "sky is falling" routine, it's getting very old

because the US is not about to fall over anytime soon..

Edited September 23, 2011 by jpd80

[Trimdingman]

Not surprisingly i believe that the Rich are responsible. Corporate America has bought our politicians and pushed the lie that they are the only way to prosperity and that the government is the problem. The GOP blames the poor and the government to shift blame away from themselves and their masters. And talk about schemes, here's my favorite. The Gop will convince you that spending will keep the terrorists from winning so you can leverage yourself to the max to buy their products so they can give themselves options and dividends which are taxed at less of a rate than the interest on your tiny little savings account.

 

The government in in charge, so they are responsible for the state of the economy. They have over-regulated, over-taxed, and over promised entitlements. Now, manufacturing is fleeing to greener pastures, reducing revenue to the government, and increasing entitlement obligations. To make up for the shortfall, instead of re-tracing their steps to balance the budget and bring manufacturing jobs back, they are borrowing/printing money, and increasing taxes on the ones who create the economy and the jobs. They will not increase revenue, they will reduce revenue, as businesses move off-shore to avoid this nightmare government gone mad. I can remember when I could easily get a high paying job. When I started at Ford, they needed 300 people. They had to hire over 1000 people to get 300 to stick. The line-up of people who quit and were collecting their final paycheck was longer than the line-up of new hires. Now, there are probably 100 applicants for every job opening, at half pay. When I started, there was a bonus if you stuck it out for 6 months, equal to full pay from day one. We got full pay after 90 days. People hired to-day will probably never see full pay. This is what socialism has wrought. In a freer market, with government keeping it's sticky fingers out, the pendulum swings to the workers, not because of unions, but because of supply and demand. Companies will compete for scarce labor by paying higher wages, like it was in the past.

[sprinter]

Interesting that you poo poo the relationship between debt and GDP but it's the same as personal debt versus income after tax and expenses,

what you have left is your capacity to pay. So as an example, you have a $14,700 debt and your after tax and expenses income is , $16,170

therefore the total debt is 90% of total annual nett income. That only seems a worry if you have no capacity to pay...

People paying off a $300,000 mortgage have an equivalent debt of 1000% "GDP" yet a lot manage because of capacity to pay

 

Yes, the debt is worrying but not while the US still has such a massive capacity to pay..

that is the main saving grace and one you refuse to take into account........

 

So I suggest you stop the chicken little "sky is falling" routine, it's getting very old

because the US is not about to fall over anytime soon..

 

I'm a little confused with your numbers since $300 is 1/1000 of $300,000. I don't see any way a person making $300 a month could make a mortgage payment of over $1300 per month at current rates close to 3.5%.

 

But I understand the point you are trying to make but don't agree it is viable. Where does the US government get its capacity to pay? Taxes, which have been diminishing due to people being un-employed and reduced consumer spending. According to the 'debt clock', assuming you are a taxpayer, your share of the current federal debt stands at $131,544. How is your 'capacity to pay' for that?

 

Any money we acquire from the FED leads to more debt which is the most significant problem we have lately. The US government is the equivalent of the guy who makes $10,000 a year buying the $300,000 house with a balloon mortgage coming due shortly. Our government doesn't have the money for that and I don't have $130,000 to pay my share either. Plus that debt amount doesn't even include the un-funded liabilities of Social Security, Medicare and government pensions that will be coming due with the baby boomers retiring. Those monies have been spent on supporting wars, paving roads and all kinds of government pork.

 

Of course Obama has a solution for our problem by wanting to increase the amount of taxes people owe. Which I assume we both agree is a losing proposition because it will only hurt any chance of an economic recovery. The only real solution is to cut spending dramatically. But I don't see that happening. You can keep believing everything is rosie and keep living in denial. Doesn't bother me at all. But others might do the research and decide to prepare for the worst. Were you ever a boy scout or know their motto?

[jpd80]

I'm a little confused with your numbers since $300 is 1/1000 of $300,000. I don't see any way a person making $300 a month could make a mortgage payment of over $1300 per month at current rates close to 3.5%.

I think you confused your self by thinking monthly payments, which is a way to go I agree but annualized GDP figures allow the performance of the US to be compared with other countries with different GDPs and debt levels....

I'm talking annual obligations, the mortgage example was $300,000 (US Debt 14.7Trillion) nett income 30,000 (GDP= 16.17 Trillion) ergo, the example mortgage is 10 times their annual income or 1000%...

 

 

Does that make more sense?

 

But I understand the point you are trying to make but don't agree it is viable. Where does the US government get its capacity to pay? Taxes, which have been diminishing due to people being un-employed and reduced consumer spending. According to the 'debt clock', assuming you are a taxpayer, your share of the current federal debt stands at $131,544. How is your 'capacity to pay' for that?

 

 

Any money we acquire from the FED leads to more debt which is the most significant problem we have lately. The US government is the equivalent of the guy who makes $10,000 a year buying the $300,000 house with a balloon mortgage coming due shortly. Our government doesn't have the money for that and I don't have $130,000 to pay my share either. Plus that debt amount doesn't even include the un-funded liabilities of Social Security, Medicare and government pensions that will be coming due with the baby boomers retiring. Those monies have been spent on supporting wars, paving roads and all kinds of government pork.

 

Of course Obama has a solution for our problem by wanting to increase the amount of taxes people owe. Which I assume we both agree is a losing proposition because it will only hurt any chance of an economic recovery. The only real solution is to cut spending dramatically. But I don't see that happening. You can keep believing everything is rosie and keep living in denial. Doesn't bother me at all. But others might do the research and decide to prepare for the worst. Were you ever a boy scout or know their motto?

 

Don't forget that Obama inherited a near $10 trillion debt right at the worst economical time possible and that if Treasurey hadn't thrown that financial bridge out, lending institutions would have permanently ceased lending and ultimately trading which would have caused a huge crash and an even worse depression. Lessons learned for the past is that you have to keep the money flow going in a credit crunch otherwise the confidence of markets will completely collapse.

 

I know this is not the best situation to be in, we all get that but the alternative was far worse. so it's all about where dowe go from here, do you

want to continue with the rhetoric that we must not try because everything will fail?

Or should we keep the pressure on both sides of politics to come up with an a political solution and long term plan that everybody can work with?

 

You're already starting to see it with conditions bootstrapped to the latest increase in debt ceiling, conditional upon reductions in debt and balancing of future budgets, slow progress i know but now that it's begun, both sides have a need to change away from giving the electorate everything it asks for.

 

This would be the perfect opportunity for a review of government processes, taxes, fees and charges upon business, local governments and taxpayers and I hope tat such an idea is championed as it offers a way to get the money where it's needed instead of being bled off through

bureaucracy and waste.

 

If we were to compare the US Government and Ford, I'd say the government needs to re invent itself and reduce the mindless duplication and bureaucracy that is preventing reform and efficient government, that's where this has to ultimately end but starting out, we need both liberals and conservatives to agree on a near future road map with milestones to check off progress, that is what I want to see happen.... progress.

Edited September 23, 2011 by jpd80

[Trimdingman]

Well, we disagree. What you espouse is exactly what the corporations want you to believe. Your just a pawn throwing out this strange goodness of mankind if you get out of their way routine that doesn't stick to the wall in any place.

 

Your familiar with Canada and Iceland right? Both are what you might welfare states with a fair amount of government regulation. Well, using your theory the government of Iceland went broke and using mine Canada avoided a majority of fiscal crisis pain. How you might ask?

 

Canada kept stricter banking laws and avoided the push for deregulation.

Iceland got convinced that it should deregulate its financial institutions to allow them to enter the Credit Default Swap sweepstakes.

 

I don't believe in the goodness of man and especially not when it involves money.

 

I live in Canada. The saying up here is "When America sneezes, Canada catches pnemonia." The recent unease in the U.S. markets has our dollar dropping from above parity to three cents below parity. We have a wealth of natural resourses. It is not rocket science that we will prosper when there is high demand for these resourses in a growing economy; but when there is a recession or even the rumor of a recession, and the expectation that demand for our oil and other commodities will diminish, our markets plummet even faster than the Dow. In the good times, the government will stand out in the sunshine and take credit where it is not due to them, but in spite of them, and when things turn south, they will point fingers instead of accepting responsibility. Canada does not pay it's fair share towards defense. Maybe that is why we have less debt per capita than the U.S. The U.S. has a bigger problem than Canada over illegal immigration. We are not a major player, so comparisons are irrevelant. We are like a 51st state without the vote. As America goes, so goes Canada.

[jpd80]

I live in Canada. The saying up here is "When America sneezes, Canada catches pnemonia." The recent unease in the U.S. markets has our dollar dropping from above parity to three cents below parity. We have a wealth of natural resourses. It is not rocket science that we will prosper when there is high demand for these resourses in a growing economy; but when there is a recession or even the rumor of a recession, and the expectation that demand for our oil and other commodities will diminish, our markets plummet even faster than the Dow. In the good times, the government will stand out in the sunshine and take credit where it is not due to them, but in spite of them, and when things turn south, they will point fingers instead of accepting responsibility. Canada does not pay it's fair share towards defense. Maybe that is why we have less debt per capita than the U.S. The U.S. has a bigger problem than Canada over illegal immigration. We are not a major player, so comparisons are irrevelant. We are like a 51st state without the vote. As America goes, so goes Canada.

Market confidence.

Energy is still needed so those oil and gas contracts continue regardless of what markets are doing, confidence will slowly return

but the down trend has more to do with people wanting Europe and US governments to face up to correcting their respective

financial messes to return stability to markets..So much of the instability we're seeing is driven by fear and lack of confidence,

that's where governments need to show leadership.

 

By that I mean having a doable plan that road maps how debt reduction will occur and show proof that it is happening.

By doing that, the markets will stabilize and begin to turn around...

Edited September 24, 2011 by jpd80

[Trimdingman]

Market confidence.

Energy is still needed so those oil and gas contracts continue regardless of what markets are doing, confidence will slowly return

but the down trend has more to do with people wanting Europe and US governments to face up to correcting their respective

financial messes to return stability to markets..So much of the instability we're seeing is driven by fear and lack of confidence,

that's where governments need to show leadership.

 

By that I mean having a doable plan that road maps how debt reduction will occur and show proof that it is happening.

By doing that, the markets will stabilize and begin to turn around...

 

 

The price of oil has dropped. The price of gold has dropped. This caused the Canadian dollar to lose value. Canada is like a straw in the wind against global market forces. Our economy will do fine on a level playing field because of sensible banking practices, but we are vulnerable to global market forces. America is a player. China is a player. Germany is a player. What they do will determine the future. America is not winning. Canada is tied to America, as it is our biggest trading partner. If America stops buying from us, or re-patriates our jobs, we will be in a deeper depression than the States.

 

There is lack of confidence because there is no substance, only bubbles ready to pop, and the people are starting to realize that. You want the government to show leadership to restore confidence. That means lying to the people. "Don't worry folks. That bump was nothing. The ship is stable. I'll take that life preserver off your hands. You will not be needing it." The believers will go down with the ship. The "saviors" will save themselves.

[jpd80]

The price of oil has dropped. The price of gold has dropped. This caused the Canadian dollar to lose value. Canada is like a straw in the wind against global market forces. Our economy will do fine on a level playing field because of sensible banking practices, but we are vulnerable to global market forces. America is a player. China is a player. Germany is a player. What they do will determine the future. America is not winning. Canada is tied to America, as it is our biggest trading partner. If America stops buying from us, or re-patriates our jobs, we will be in a deeper depression than the States.

Sure the price of commodities have dropped back but what were they before the US dollar began its slide...hmmm?

That's right, the inflated price of Canadian and Aussie dollar is coming back as a result of bad news in Europe and USA

but what will it be like in the new year when people realize the world is not coming to an end?

I'd say that both of those commodity driven currencies wil bob up and down near parity with the green back until the US corrects the deficit.

 

 

There is lack of confidence because there is no substance, only bubbles ready to pop, and the people are starting to realize that. You want the government to show leadership to restore confidence. That means lying to the people. "Don't worry folks. That bump was nothing. The ship is stable. I'll take that life preserver off your hands. You will not be needing it." The believers will go down with the ship. The "saviors" will save themselves.

The big wild car in all of this is China, if they thumb their nose and continue building up their infrastructure then

the Aussie and the Loonie may get carried along on the back of strong sales of oil and gas elsewhere in the world...

 

The problem is analysts can't predict with accuracy what is happening in the next three months let alone 12 months time,

and with that all the speculation of the US economy collapsing, Europe turning to crap is pure speculation, we just don't know...

 

What it may do is gel support for the US to get going reducing the deficit, fingers crossed politicians will exchange rhetoric for action...

[Trimdingman]

The point I was making, maybe not so clearly was that the Canadian economy is more dependent on demand for our natural resourses than good monetary policy. We could prosper under a socialist like Obama if there was strong demand for our minerals and wood. We could founder under a PM like Ronald Reagan with a socialist like Obama in the White House.

 

The Obama administration is drawing to an inside straight with his opponents standing pat. The chances of sparking a leap of faith and a recovery in the economy with two strikes against him, QE1 and QE2, by doing a Chubby Checker imitation;( "Oh come on baby, let's do the twist.") are slim to nil. Only the deeply programmed robots would still follow him to the abyss.

[Edstock]

We could founder under a PM like Ronald Reagan with a socialist like Obama in the White House.

A PM like Ronnie Ray-gun? That would be Stevie — in his dreams.

 

Check your meds, Trim, check your meds; dementia is not your friend.

 

[jpd80]

The point I was making, maybe not so clearly was that the Canadian economy is more dependent on demand for our natural resourses than good monetary policy. We could prosper under a socialist like Obama if there was strong demand for our minerals and wood. We could founder under a PM like Ronald Reagan with a socialist like Obama in the White House.

 

The Obama administration is drawing to an inside straight with his opponents standing pat. The chances of sparking a leap of faith and a recovery in the economy with two strikes against him, QE1 and QE2, by doing a Chubby Checker imitation;( "Oh come on baby, let's do the twist.") are slim to nil. Only the deeply programmed robots would still follow him to the abyss.

 

Nah, I suspect that the Loonie and the Aussie dollar are more commodity based currencies than anything, every time some large

area like Asia, USA or Europe has a stumble, it reverberates through the exchange rates but you know what?

 

Long term those regions still need energy ans raw materials to keep their economies going so even though the

ride may seem a little strange, it will rebound back in our countries' favors as the major players iron out their

problems, just be glad that Canada and Australia have barely any debts compared to US and Europe.

 

The world will continue but not as some people think or predict, not many people would have seen any

of this coming ten years ago, so even less will know what's ahead in the next decade, so don't despair.....

Edited September 26, 2011 by jpd80

[Trimdingman]

A PM like Ronnie Ray-gun? That would be Stevie — in his dreams.

 

Check your meds, Trim, check your meds; dementia is not your friend.

 

Did you understand what I was saying? Canada is more affected by the actions of the U.S. than it's own government. It is nice to finally have a conservative majority to put our house in order, but that could all be destroyed by the madness of the Obama administration. The world would have had this financial meltdown in 1980 if not for Ronald Reagan, the greatest man the world has seen in a thousand years.

[Edstock]

The world would have had this financial meltdown in 1980 if not for Ronald Reagan, the greatest man the world has seen in a thousand years.

How many prescriptions are you taking?

[Bored of Pisteon]

I wish i had some of his drugs.

 

Somehow we are to take it that in 1980 America would have had a housing correction with a financial leverage crisis if not for a man who wasn't elected yet. Even if the reality of the economic situation was different. Can anyone say High inflation in 1980. Yes We Can!

 

Next time you want to praise the man responsible for the 80's economic turnaround his name is Paul Volker.

:koolaid: :koolaid: :koolaid: :koolaid: :koolaid: :koolaid: :koolaid: :koolaid:

 

Well, If he was that great. How come we are not back on a gold or silver standard?

 

No, I don't claim to be the biggest star in the sky, but what from I read over time in your replies on various subjects. You seem to be fogged up because you are one of many who continue to act like one of the herd of sheep being led to slaughter. Continuing to blame Republicans while giving the Democrats a free pass is an argument that no longer works anymore. ESPECIALLY WHEN THERE ISN'T A DIFFERENCE BETWEEN THEM ANYWAY. THEY DON'T GIVE A FUCK ABOUT YOU, ME OR ANYBODY ELSE. Using the term "middle class" is just another polished up term to manipulate and play with people's minds and emotions. You either are rich or poor and that's it. (another signature line I used in the past)

 

Keep drinking the kool-aid, you got some learning to do; like all of us. The news media, big unions, big banks, big business feeds people like you a bunch of shit day in and day out.

Edited September 26, 2011 by Bored of Pisteon

[jpd80]

The pressure has to be on both sides of politics to bring budgets into surplus, no matter how hard that is to sell to the people.

It's bitter medicine but it has to be taken, the people can no longer vote in politicians because they give them everything asked for.

 

A change of mind set at the grass roots?

 

Maybe people should get their own houses in order and send the government a message....

Edited September 26, 2011 by jpd80

[Bored of Pisteon]

No, you don't remember that, your just making shit up. Thanks for playing.

 

Must be sad, and pathetic I may add to have someone telling you what to do, and what to say, and what to think doesn't it?