United States Heading towards a Depression?

I was reminded recently of this 2008 quote from investment analyst Marc Faber, which is even more true today:

"The federal government is sending each of us a $600 rebate. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline it goes to the Arabs. If we buy a computer it will go to India. If we purchase fruit and vegetables it will go to Mexico, Honduras and Guatemala. If we purchase a good car it will go to Germany. If we purchase useless crap it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US. I've been doing my part."​

 

some of the money goes to the middle men, distributors that are american

 

I think those are called pimps and bartenders.

 

So silly.



Trade deficit has been decreasing since the last 5 years and is hardly much when compared to the size of the US economy.

 

It's a huge amount when you consider that it never stops. In June, we shipped $49.9B in wealth overseas. Annualized, that's about $600B/yr. That's a nation which spends a lot more than it earns.

 

That graph shows it is racing to the moon !

 

What is being discussed is employment, the pursuit of low wages exemplified by the Republican initiative to employ Mexican truck drivers to displace American workers (within this country) is a small example of their policies, causing the problems they then deny they are responsible for.

The trade imbalance is a hoax - the higher receipts are retained by the native company's in the hands of fewer people is the actual outcome of Republican / "Conservative" Democratic policy precipitating the present recession and the cause for the decline in middle class living standards and well being.

 

Racing to the moon means the deficit is decreasing (good thing)

 

I wholeheartedly agree, though I suspect the small uptick in 2001 and huge uptick in 2009 have more to do with recession than a change in where manufacturing for products consumed in the US takes place. The minute the US economy moves ahead, I have no doubt that deficit number will go right back down again. How could it do otherwise when we produce almost nothing in this country? Looking at the chart, 1997 seems like a pivotal point where we suddenly didn't care about our trade deficit. It would be interesting to know what changed that year.

Breeze, I'm with you on the truck driver issue. Let American truckers move merchandise across the US. Now can you figure out why the SEIU, Obama's principal support group, would protest AB1070 in a push for cheap immigrant labor(legal or otherwise?) which displaces American jobs and lowers wages?

 

Okay, I looked at it right this time... Duh. Thanks. It is racing up to zero. Dont ask me if that is good or bad. What does it mean ?

 

If its zero it means the export value is equal to import value, No money is coming in or going out. Thats a rough general explanation.

 

Hmm... okay. Thanks.

 

The SEIU members are "legal" immigrants that are cop resistant - the existing laws that prohibit "illegal" immigrant employment are sufficient and where the money should be spent with enforcement instead of race profiling and right wing grandstanding....lyching mobs.

Agree, why have any immigrant workers at all.

 

Definitely. Just in last month the U.S. lost 27,000 manufacturing jobs and gained 28,000 health care jobs. No economy can survive without providing valuable goods and services to it's neighbors.

 

Didn't we established a few months ago that Breeze is about 12 or 13?

He's a child that lives with his parents. That's why I've stopped dumping on him. Notice how his writing seems to almost pout, like he's stamping his feet demanding to be taken seriously.

 

I guess you have something to say on occasion Corwin......just not when there is nothing on your mind.

 

Breeze, then you tell us, how old are you?

 

While Breeze ponders whether or not he wants to tell the world his age...

Castro just announced that his communistic/socialistic economic model does not work. LINK

 

I know.. That's just hilarious. Sad it took this long for him to realize that.

 

Well hello Captain Obvious!