Balzac89
Undercover Mod
Perhaps prices would drop, but they would sky rocket first.
The Feds Decision
- Thread starter Balzac89
- Start date
Balzac89
Undercover Mod
All this growth is fueled by cheap Fed Dollars. Not if, but when rates go up the growth will decline.
The Fed can't fuel the economy forever. The purchasing was supposed to taper off after a rate of growth was achieved.
The engine will be flooded eventually, you can only prime so much.
The Fed can't fuel the economy forever. The purchasing was supposed to taper off after a rate of growth was achieved.
The engine will be flooded eventually, you can only prime so much.
ChesusRice
Well-Known Member
Soft landing is possible. It has been done before
Balzac89
Undercover Mod
There has to be a decline. The build up of debt causes the cycle. A big chunk of debt must be repaid to restart a new growth cycle. A new cycle of debt creation/ prosperity.
That's it in a nutshell. The only thing I would add is that while many debts will be repaid ("fire sales to meet liquidity needs will abound"), there are also going to be a lot of defaults. In the USA and elsewhere.
Somewhat ironically, if Japan would simply let the inevitable bankruptcies happen, they could end their long slide into the abyss in short order. Now, their demographic problem is a different animal, and, unlike the USA, they are resistant to increasing the population via immigration. The Japanese nuclear problem is another hairball. It's not like they have fossil fuel reserves to draw on.
What would I "use unemployment figures" for? Perhaps to engage in partisan propaganda flame wars? No thanks, I really have no particular interest in unemployment figures, conventional or otherwise. When unemployment gets severe enough the government will create jobs programs. Because that's what governments do, regardless of the political party in office.
I am curious: what is behind your love of the State? Are you a beneficiary of their largesse via SSI or similar programs?
LOLOLOLOLOL you go
ChesusRice
Well-Known Member
Doesnt have to be a decline
Output is catching up to pre 2009 levels. Where do you think the deficit cuts have been coming from?
Balzac89
Undercover Mod
That's not repaying debts that is just creating less debt at the moment.
ChesusRice
Well-Known Member
First step in paying off debt is bringing in more income thanyou are paying off in bills
Balzac89
Undercover Mod
And or Cutting expenses
ChesusRice
Well-Known Member
You mean like stop buying gas and not being able to get to work?
Balzac89
Undercover Mod
I mean like funding the Afghan War
ChesusRice
Well-Known Member
Talk to me again this time next year about that
Rob Roy
Well-Known Member
Is the "economy" a result of government policy or does it operate independent of the government?
cannabineer
Ursus marijanus
n.b. the change in debt to GDP contains zero information about the actual ratio. You're stripping that info out by going to a graph that plots the first derivative.the annual debt to GDP ratio is normal. it has been much worse.
we'll see about your predictions of a second housing bubble, to me it sounds kinda retarded. no offense.*
a lot of the other stuff you said is true enough, but tell japan that our debt to GDP ratio is unsustainable. they'll laugh while they continue to enjoy their high standard of living and their very sustainable, efficient, universal healthcare program.
smokinafatty
Active Member
I hope they sign something soon so I can go to work next week and don't have to start selling weed to pay bills. Buncha jackasses.
Balzac89
Undercover Mod
The Federal Reserves Monetary Policy doesn't really have anything to do with the complications in the Senate and House