United States Heading towards a Depression?

The video does not play... says "embedding disabled by request".

 

What If China Collected on U.S. Debt? - http://youtu.be/T1dDIrOCbUo

 

Here's why ... first, realize that all of our "dollars" are created out of thin air and we can create as many as we want. The newscaster asks what would happen if they try to collect on the money they lent us. Well, we (the Federal Reserve) would simply have to make some computer entries and create the money to pay them out of thin air.

The next question the newscaster asks is "Would they" demand payment? I think a better question is whether the Chinese government officials are so stupid they don't realize that we create that money out of thin air. I don't think they are stupid so a better question is why they would save worthless dollars (instead of buying oil for their strategic reserve or grain for their stockpile)? And since they have to know dollars are created out thin air why invest in something (US treasuries) that merely promise to only pay back MORE of the same worthless dollars? I think it is because they know they could dump them all at once and start a stampede of other countries dumping their dollar holdings too and the "dollar" wouldn't be worth the paper its printed on (and barely more than the computer entries that most of it is). Basically they know our Archilles Heel is our phony money and it constitutes a very effective weapon system.

BUT, if you disagree and think we have pulled the wool over China's eyes and they don't really know we create money out of thin air consider the idiotic newscast's next point ... It reports that "some" Chinese are asking why China doesn't sell some of the 1.4 trillion dollars and "buy" Chinese money with the dollars. ABC NEWS ARE IDIOTS! China creates its money (the Yuan) out of thin air too. It doesn't need to "sell" dollars to buy their money lol. The US doesn't print China's money and make them buy it from us? That is the most idiotic news report. The fact they released it as a cartoon reflects the intellectual level of the material in it

 

Sounds like someone is going to find out what is going on soon.

 

Did Bigfoot tell you this?

Let me guess - you also believe in UFOs and 911 Conspiracies, but you don't believe in inflation?

 

You`re right ..to some extent. It is true that the money lost their "value". This happened the day they started to be made of worthless metals and paper. Before that, you know that the coins were made of gold and silver and the value of one of those coins, was the value of the metal that coin was made of. Now, currencies are printed on "nothing" for the masses. We use "worthless" money to make the trades between us. The governments however, are doing the trades in gold.

China will not come to the USA with ships to load the dollars in, nor they will transfer the cash to their banks. If they will take something that will definitely be the gold, as the gold does not lose its value.

The money made out of thin air is actually a joke. It doesnt even matter if you have 100 bills or 1000 bills in your pocket. What actually matters is the real value of each of those bills and how much [gold] can you buy with them.

 

Please send me your "worthless metal and paper".

In the meantime, you should read up on inflation.

 

lol,
if you would take that helmet off, perhaps you`d see everything i wrote and you wouldnt take the things out of context.

 

American exports are up 34 percent, good news.


p.s. >

This is an interesting article: What Export-Oriented America Means

It's a prediction for the near future of America (over the next few decades perhaps) related to exports, written by a professor of economics at George Mason University.

 

If we can depress the US dollar to 30% of it's previous value, our exports should go gangbusters. Manufacturing will skyrocket, as we will be competitive with some of the cheapest wages in the world. Hell, we could pay our factory workers $200 an hour, and for that, they might be able to buy a tennis shoe made in China.

 

If you have the time, read the second link. It's written by Tyler Cowen. The article was interesting enough to me that I'm going to try to remember his name. With the remark about China, he actually believes their growth is going to be beneficial for us.

Anyway, he lists 3 causes for optimism. In the article it goes in more detail for each, but a snippet of each:

I would be interested in what you think about that. This isn't really about Obama-Romney per se. He did mention Obama in the first paragraph. However, I don't think this article is biased towards particular candidates. I read the author is actually a moderate Libertarian.

 

No, not only United States people all over the world are heading towards depression. Lorn Austin’s Concierge Medicine Company MedicusMD focuses on providing the best healthcare for patients and highly fulfilling and rewarding careers for the Doctors too. What exactly does a Concierge Company do that makes it stands apart from visits to a practicing physician is something that intrigues most people says Lorn Austin.

 

Interesting article, but let me ask you this. If you had to chose one of the following four options as the principal cause of our manufacturing/export increase in the last 4 years, which would you chose?

a) High tech factories in the US are producing more for less, without cheap labor, and finally came of age three years ago (his artificial intelligence point)
b) The US dramatically increased its oil production, allowing us to become a net oil exporter (his energy exporter point)
c) Emerging worldwide economies, who mostly have emerged based on manufacturing with cheap labor, will have high demand for goods manufactured in the US (His growing world market point)
d) The dollar has fallen in value by 30% and oil costs have doubled since Obama took office making everything manufactured abroad outrageously more expensive to transport to, buy, and consume in the US.

Even if a, b, and c were contributing causes, d is obviously the direct cause.

To his other points, they all have a measure of truth to them, with some pretty major caveats.

1. Artificial Intelligence (Automated Manufacturing Domestically vs Cheap Labor Abroad)
This has been true for a very long time, but if the author thinks we have the world market cornered on automation, he needs to have a look at the number of people graduating with math and science degrees from the US. He needs to look at our math and science scores from our union run primary and secondary education systems, and compare that to the scores being produced out of India and China. He needs to look at the ethnicity and national origin of the people within the US doing well in math in science, because they are mostly Asian.

Then, have a look at the raw body count coming out of India and China's schools and a population of over a billion each. If we think about people with scientific training the way we think about transistors on a circuit board, China and India are set to operate with an i7 compared to our Pentium II, based on nothing more than body count.

I'm not saying we can't win, but I'm hard pressed to see our massive advantage here.

2. Oil rich US becomes world oil exporter
Are you kidding me? I believe we have known the US has some of the worlds largest oil reserves for some time. The problem her in the US is, we won't permit it's extraction from the ground, especially when it comes to fracking.

Yes we have MASSIVE oil reserves, off shore, in ANWAR, and all over domestically via fracking. Unfortunately, our president is a such a big believer in anthropological global warming, he used the gulf oil spill as an excuse to shut down federal drilling for a year, causing a 14% dip in federal permits during his reign. His EPA is used like the gestapo to drive domestic energy business overseas, while at the same time sending billions of taxpayer dollars to Brazil to help fund their state run oil exploration company. The only massively increased oil production we see in the US is coming from areas that don't require federal permitting, like the North Dakota.

We in the federal government of America believe that any kind of dirty work, oil exploration, fracking, dirty manufacturing, is all acceptable so long as it doesn't happen in the US. How do you think China got all those manufacturing jobs in the first place?


3) Foreign economies create more demand, thus fueling domestic manufacturing
Increased demand is the best part of Globalization, so this is half true. In fact, demand for US goods is already through the roof abroad. Take the Iphone for instance. Unfortunately, the Iphone, a US designed product, is manufactured in China like everything else. If the trade borders are truly open, you will see the production for all this demand move to wherever it is the cheapest and legally viable.


If we want to see an export climate that is not fueled by the devaluation of our own currency, we will need to have a hard look at the EPA, its rules, and how it does it's business. Driving farmers out of business because their cows fart too much is just ridiculous. We would then have to look at our domestic "green" policies and wage policies and apply them to our import taxes and rules. Sending jobs overseas because they are too dirty to do in the US is absolutely stupid. Either foreign countries comply with the same rules domestic manufacturers would have to follow, or they need to have their imports taxed accordingly, allowing domestic companies who pay the costs of being "green" and labor friendly to compete. Either option is a pretty good formula for economic failure.

By the way, just yesterday the president said he was going to keep climate change front and center as a campaign issue this year. I'm curious to find out how many people think controlling cow farts is more important than a healthy small business climate right now.

 

Actually, it's that Pelosi and so many Democrats have so much of their personal wealth invested in alternative energy boondoggles that they are trying to suppress domestic oil production to drive prices up. They think this will make make alternative energy more affordable (complete bullshit).

The only viable alternative energy solution is nuclear, as the rest of the world already knows.

 

If the declining dollar was the direct cause for increased exports, how do you explain the fact that "America was the world’s leading exporter virtually every year during the latter half of the 20[SUP]th[/SUP] century, losing that title to Germany only in 2003, and later falling behind China?" Of course, for Obama to come into office saying he wants to see more Made in America products all over the world, and make a 5 yr goal to double exports is wonderful. He's helping to make it happen, and I don't think the direct cause of this is by losing value of the dollar. HOWEVER, this is not an article about Obama. You may not have noticed, this article is explaining what is likely to happen over the next several decades. Anyway, thanks for your viewpoints.

> I just got up, have to get busy now...

 

Globalization. Under Clinton, we came up with rules that let us send our production abroad cheaply.

Couldn't agree more.

Not the direct cause, but a direct cause. Another is the fact US per capita oil consumption has been in general decline for a decade, and massive decline since the recession started, allowing us to export refined gas at times. There are other reasons as well, none of which are attibutable to Obama. Even the declining dollar has been brought to us by Bernanke (in support of Obama's massive increase in government spending).

Seriously, consider the premise of your article. Are you really saying that Obama has created artificial intellgience automated factories since his arrival? Do you really believe Obama is in favor of oil production? Is there any evidence that Obama has something to do with demand in emerging markets? If not, what specifically has Obama done with a basis in fact, that has had an effect on increasing US exports?

Our declinging currency value against a country that manipulates it's currency to keep it's value low, is an undeniable fact of the Obama recovery.

I did notice, and I happen to agree with it's predictions about our manufacturing industry.

 

IT MAY occur but will regain soon its position.

 

I'm slightly confused by your answer. After you claimed the dollar falling in value was the direct cause of increased exports, I asked, "If the declining dollar was the direct cause for increased exports, how do you explain the fact that "America was the world’s leading exporter virtually every year during the latter half of the 20th century, losing that title to Germany only in 2003, and later falling behind China?" Your answer ^ it was globalization caused by Clinton's policy. The 20th century was from 1901-2000. Suppose you could say the latter half would be 1950-2000? Clinton was President from 1993 to 2001. He wouldn't have much to do with what happened before 1993. But are you trying to say his policies made Germany the leading exporter in 2003 (and the US an eventual 3rd leading exporter)?

No I'm not saying that. The article isn't either.

I'll assuming you mean domestic oil production. I Googled it. The title of this article is kind of offensive (they don't like Republicans), but they're trying to make a point that Obama has approved at least as many (if not more) oil drilling permits than Bush did. I don't really know. Don't usually pay that much attention to "oil" news.

?

I Googled this too. Here's the first 2 of the results I clicked on, could find more. >

Anyway, whether you believe it or not, my intention wasn't really to post pro-Obama stuff. Honestly, there was just some great news in that article. Going to sleep now. Hey, check out my site, it looks better! I may become an exporter eventually. Have a good one.

 

This article ( please remember what slant they have ) says jobs are still going overseas: LINK


Corwin said we should look to nuclear for energy. I agree, but not for forever. Here is what a prominent physicist says about the inevitable sources of energy for humanity.

[video=youtube;6GooNhOIMY0]https://www.youtube.com/watch?v=6GooNhOIMY0[/video]​

 

WWII made us the worlds leading manufacturer. The end of the cold war opened the door for outsourcing to China. Under Clinton, outsourcing became more mainstream. By 2003, enough of our manufacturing had moved overseas to take us out of the #1 spot. I wasn't crediting Clinton, though NAFTA definitely helped the process. The Clinton presidency is simply when the shift accelerated.

LoL. Why even read articles with such ridiculous titles. Obviously the information within is tainted. Try Politifact, who generally and sadly leans left. Oil permits down by 15% under Obama, up under most other presidents.

In a nutshell, both those sources say Obama has increased exports because Obama says he has. Not a single policy change directly linked to increased exports, though I am aware he has pushed another free trade agreement.

LoL. Nor was it my intention to get you to post pro-Obama stuff. I actually had to read up the thread to figure out how we got here.

Seems you provided a rise in US exports as good news, I pointed out rising exports based on currency devaluation was not necessarily good news. You provided an article citing some other potential causes of rising us exports, I pointed out how those other potential causes have not yet been implemented and some have been actively worked against by the Obama admin, and from there, we get the usual partisan bickering.

Bickering aside, the facts remain, and I trust that once you recover the dirty feeling that comes from linking Obama propaganda , you'll see the facts, free from partisan spin.

The article read a little bit like it had been written by Fareed Zakaria. Have a good one.