On the contrary, people are dumping US stocks. Chinese Shanghai Composite made a new life time high just yesterday.
bigdoug, the article you linked to was really good, and I just want to put in bold the main thing that stood out when I read it: that inflation is the greatest threat to the economy For those of you reading this who think "everything is alright" neither me or bigdoug said this. It came from non other than the Federal Reserve. Inflation is the most dangerous threat to the economy. But I have a question. Where is lexiseek, lorien, and Gtech? I haven't seen those guys posting in this thread, or any of the other "the government is great" "everything is fine" crowd. I guess the facts are too much to deal with. There is really not a lot they can argue about, because it is in black and white, all over the news. The only question now is what type of depression will we head into. Will it be deflationary, or inflationary? The Great Depression of 1929 was Deflationary. The people became poor because the U.S. dollar was scarce, and hard to get a hold of. Today, it seems we may have a Depression that is a mixture of deflationary and inflationary. I say this because, in the article bigdoug linked to, they talked about a "liquidity squeeze" and a "credit crunch." This means that the lenders will restrict the lending out of new loans, and since so many Americans are borrowers, they will be adversely affected, because they won't even be able to borrow paper dollars. But then in the same article, it mentions the danger of inflation, and this means the dollar itself may continue to slide in value. The future looks pretty bad. The only thing I can say is that today is a great time to buy a house if you're in the market for one.....
Paul Craig Roberts made some interesting comments recently. He said the real reason US might not have attacked Iran by now is China threatening the US dollar? D
people were dumping stocks recently because of the mortgage problems...these are happening in the extremely volatile sub-prime market...that is not unexpected that these will cause a little trouble. inflation is the biggest issue...but as for now, it is also in check. That is the reason that interest rates were not raised last week. The market has hiccups, and the markets and economy are perfectly capable of correcting these hiccups. However, liberals love to run to the govt. to fix every single problem. However, if you give it time and be PATIENT, then the economy will fix itself. It goes through a cycle, just like everything else. Nothing can happen overnight. And it is a great time to buy a house...all those people that thought investing in the sub prime market are losing out...it goes to show that if you play with fire long enough, you will eventually get burned. However, the future looks good. Comparing the dollar to the rest of the world is complete and utter BS (to use AGS' words)...I think it is time that everything stopped being compared to the dollar, and to realize that we have more of a global economy rather than one that is just based on how well the US is doing. We can thank clinton and his admin for really putting us in this global economy.
LOL, here you go again, playing the good guy bad guy, blaming the liberals for everything.......can't you see that both the Liberals and Conservatives are manipulated? Bush has spent billions of dollars with his stupid wars, and he is no better than Clinton in the 90s. Bush and Clinton hang out together, they're on the same team! The economic issue has nothing to do with liberals or democrats, republicans or conservatives, they're all working together to bring in the same goal at the top. First off, this situation with the economy is not a result of the "business cycle" and just about everyone in this thread already understands that. Its really simple: The U.S. Government(both political parties) spend money they don't have, and they run up huge trade deficits and debts... The government is so in debt that it has to borrow money from China, who has about a trillion dollars in their reserves because they sell us cheaply made good due to devaluing their own currency. Because the U.S. government is now in debt to China, China controls our foreign policy, and they can cause a massive recession by dumping their dollars. Now, the situation you see here at home with the sub prime mortgage crisis is also a result of borrowing. Dumb Americans got tricked by the banks in the early 2000s with low interest rate mortgages, which fluctuate, aka ARMs. Now the rates have gone through the roof, which the banks knew would happen, and millions of Americans are losing their home. The banks caused it, they knew it was going to happen, and it was not just a cycle.... Can't you see that the bankers and lenders are the masters? Borrowing money is the central problem. As I said in previous threads, you can't borrow money and expect to be free, whether you're a government or individual. Clinton is corrupt, Bush is corrupt, they're ALL corrupt. But when you get an exception like Ron Paul, who is a true conservative, he gets attacked by fake conservatives on this message board, who don't even know what a REAL conservative is, who get "conservative" and "neoconservative" confused. But another problem is that America is not based on HARD MONEY, like the founding fathers said. Gold, Silver, Platinum, this is what our paper currency is supposed to be backed by, but its not, and when that happens, the government abuses its power, prints too much money, and causes inflation, gradually robbing Middle Class Americans of their hard earned savings..... The only way this country can turn itself around is for the Government to get out of debt, stay out of debt, learn how to balance its damn budget, and back the dollar by precious metals! And stay out of other country's affairs. This is how American can become powerful again.
I also want to spend a bit more time talking more about the sub prime mortgage crisis. I want to explain how this scam works, and why millions of Americans are now losing their homes: 1. Traditionally, banks have only given loans to people with excellent credit and high incomes, because they were a good risk. 2. Sometime in the late 1990s or early 2000s, the lenders decided they would begin giving lower income families a chance to become homeowners. However, because the banks knew these families couldn't afford the high interest payments that they would normally charge, they came up with the idea of an ARM, or Adjustable Rate Mortgage. The basic idea of the ARM was that homeowners could get a house for a low introductory rate, but the rate had the ability to fluctuate, and the interest rate could shoot through the roof in about five or six years. Most of these lower income families felt that in five years, they could save money, become better educated, get a higher paying job, and continue to pay on the mortgage even when the rate increased. 3. Because of the thoughts stated above, millions of low income Americans signed up for these fluctuating interest rate mortgages. 4. The banking industry made hundreds of billions over the last five or six years, as it received monthly mortgage payments from millions of Americans around the U.S. who were making payments on their home. 5. The banks weren't stupid. They KNEW most of these people would default once the interest rates increased. But the banking industry didn't care, as they were making billions in monthly mortgage payments. 6. At the Bilderberg meetings in 2005-2006, the Elites/bankers decided that it was time for them to raise the rate. They had made enough money off the dumb lower income Americans who had made their monthly payments for the last five or six years, so it was time to "collapse the bubble." 7. Sure enough, the interest rates started rising in 2006, and have continued in 2007. This has caused millions of Americans to lose their homes, people who have paid billions in mortgage payments over the last five years, who could no longer afford to pay once the interest rate went up. 8. Now that the ingenious bankers/elites had collected billions in mortgage payments, and increased the interest rates, causing the current subprime mortgage crisis, the vacant homes of the former American homeowners depreciated in value. Now, the bankers could purchase the homes for a fraction of the billions of dollars they received in mortgage payments. 9. Now, not only did the bankers receive billions in monthly mortgage payments from millions of Americans since the year 2000, they can now use the interest on this money to buy back the abandoned homes for pennies on the dollar, effectively controlling a massive real estate market. 10. Once the real estate market recovers, the bankers will sale the property or loan it out once again, perhaps at more stable interest rates. Do you guys get why we're in this situation now? Powerful bankers scammed millions of Americans. Anyone who thinks the sub prime mortgage crisis is just a "business cycle" is an idiot, who knows nothing about finance. The banks set this game up from the beginning, and it is perhaps one of the biggest scams in American history. Unlike Enron, no one will go to jail. Now, some of you reading this will come in attack me, stating examples of mortgage companies who have gone bankrupt because of this crisis. You will ask: well, if they were in on the scam, why are they bankrupt? Simple. Because only the biggest banks and mortgage companies were in on this. If you were some small mortgage companies that didn't have connections to the powerful bankers, you would also set yourself up to become bankrupt. Remember, in ANY economic crisis, there will always be a small group of people who come out on top, and more often than not, they are the ones who started it.
That is a superb post and very eloquently put. Of course you will get attacked by some of the idiots in this P&R forum because they are so brainwashed that they cannot possibly comprehend that they would get f*ucked up the arse by people in power.
We had guns, but didn't have to use them to collapse the USSR. That's why I laugh when neocons use Communist Russia as a parallel for the war on terror. We beat the communists with patience and prosperity. China is also a major purchaser of raw materials and fuel as they rapidly industrialize. An attack on Iran would raise the cost of oil further, and possibly affect supply. That would reduce the momentum of the Chinese economy, where one half of the country nearly starves and the other is part of an industrial revolution. Right, and the great depression was part of the cycle, so we should just brace ourselves for another one? Paper money and a credit system historically has always collapsed. The value of a dollar has to be tied in some way to hard assets, otherwise it becomes speculative and increasingly volatile. The one thing you're overlooking is that the Fed prints money when the government has a shortfall. Every time they print another "free dollar", the value of all of your dollars deflate. This process has been going on for some time, and continues to go on. Instead of your money appreciating, it depreciates, and we're on the border, due to an expensive foreign policy and entitlements system of seeing the Fed credit system causing hyper inflation. This stuff is not a myth. Look at how devalued the US dollar has become in the last 5 years vs. leading foreign currencies. A US dollar buys you less, almost to the tune of 30+% less than it did several years ago. Who out there recently saw a 30% cut in their taxes, utility payments or increase in their wages? I'd recommend that you read up on the history of fiat money. It's not about left wingers, liberals, Ron Paul etc. It's recorded historical fact. http://en.wikipedia.org/wiki/Fiat_currency
Post of the month hands down. I got to tell you - You really know your stuff. You should start a blog Dude! I will subscribe. D
Most of these business cycles are likely not just business cycles. "If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered." --Thomas Jefferson
US economy is World economy and many countries are directly or indirectly dependent on it. A US economy collapse means collapse of World economy and nobody wants that including China. Personally I think it's just an attractive topic to write articles on and everyone likes to write article these day to earn some $ through adsense
Yeah, I think I have earned a whopping 4 cents here on DP. It's definitely all about the money, when you could get paid at least $0.01 a word writing this for a blog.
Actually this is a misconception spread by the media. If you can move value form one authority (lets use paper to gold) to another, you can move financial authority from one country to another. Remember, oil is an authority of all economy's in our time. That is why men die for it. Who controls the oil controls the world. That is why nukes are so important to the controllers. D
Not countries but some people will collapse. I can't remember last time I bought food in a store You are naive if you think we will collapse if US economy goes to hell .... That is just what media serves you Of course there will be difficult but hey I can live without all those goods US delivers around the world
well I see you know a little about the sub-prime market, but I am really wondering why you think this is all some sort of conspiracy? The real losers lately have been the sub-prime mortgages and the volitile Hedge Funds. They are probably going to continue to lose though. However, if you go back and look at what the markets have been doing, even with all the losses of last week, the markets finished UP for the week...and on the day, stocks are up over 78 points. It is not a chinese govt controlled conspiracy...much that you would like to think. My investments are doing great...