Is the U.S. economy about to collapse?

24

Comments

  • FinsburyParkCarrotsFinsburyParkCarrots Seattle, WA Posts: 12,223
    I don't care, as long as Gordon Brown doesn't use it as another excuse to put the price of a pint up by twenty pence.
  • gue_bariumgue_barium Posts: 5,515
    I've been watching the news allot today and word is Americans are borrowing more money than they can afford and the U.S. dollar is about to collapse and be worth as much as 50% less in the next few years.. and America's homes are really worth 30 to 40% less than American's think..

    I've been taking sacrifices to get ahead and save as much money as I can over the last few years. Word is to spend the money on foreign assets before it drops. What types of foreign things can you trade the U.S. dollar for?

    In Tijuana? Or elsewhere?

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  • mammasanmammasan Posts: 5,656
    Boston, MA wrote:
    It's more than a real estate bubble. It's also a dollar bubble. The greatest currency bubble burst of all time. And we are completely unprepared. It lasted a long time backed by the US market as well as military stength. It couldn't last forever. No fiat currency ever has. This will be the worst of all time, with people starving in cities with no access to food and water if something isn't done. It's not a matter of it, only when.

    Vote Ron Paul 2008!

    The stock market dropping is because of the real estate and mortgage industry. With thousands of people not being able to pay off all those sub-prime loans investors are getting a bit worried and lenders are being a bit more tight fisted now. The slip on the US dollar is something completely unrelated to the stock market. We do need to do something to rectify the dollars slide because if it does continue to slide we face oil producting nations switching the petro currency from the dollar to the Euro. That would really screw us big time and we would see oil prices double in this country over night. More the reason why we need to invest in creating a sustainable easily mass produced alternative fuel source. Can you imagine the impact if we developed a corn based ethenol. It would break our dependency on foreign fuel, it would aid our farmers, and it would bring a much needed boost in foreign investments into our country. The dollar would climb back up to the top of the currency ladder.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • mammasanmammasan Posts: 5,656
    JamMastaE wrote:
    the fed is keeping it afloat with money they print out of thin air with no gold backing making it worthless

    That is why we need to return to the Gold Reserve.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • JamMastaEJamMastaE Posts: 444
    mammasan wrote:
    That is why we need to return to the Gold Reserve.


    yes sir!
    vote Ron Paul,he will get rid of the fed!!
    "In the beginning of a change the patriot is a scarce man, and brave, and hated and scorned. When his cause succeeds, the timid join him, for then it costs nothing to be a patriot". Mark Twain


    "I would rather die on my feet than to live on my knees."
    Emiliano Zapata
  • mammasanmammasan Posts: 5,656
    JamMastaE wrote:
    yes sir!
    vote Ron Paul,he will get rid of the fed!!

    I already plan to vote for him. Even registered Republican so I can vote in the primaries.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • mammasan wrote:
    ...America used to be the front runner in manufactoring, technology, etc... We have neglected this and allowed other countries to surpass us in these areas and it is hurting us. What was the last great boundry that we crossed. It was space exploration and that was over 40 years ago. Since then we have grown stagnent and believed that just because we where the strongest nation that we would remain on that pedal stool without having to work to stay there.

    I agree on principal, but the problem is that there probably won't be another boundary that "America" crosses. We aren't the front runner in manufacturing or technology anymore not because we are bad at it, but because it costs too much to do those things on a large scale here.

    Small companies here are creating and have created things like cars that run on renewable energy, the very thing that could be considered the next huge breakthrough... the problem is for them to grow and become huge in the marketplace, a lot of it would be outsourced to the global community.
    My whole life
    was like a picture
    of a sunny day
    “We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses.”
    ― Abraham Lincoln
  • Pacomc79Pacomc79 Posts: 9,404
    no, the reports of our demise are premature.

    If a few bad banks who make stupid lending decisions go under that's fantastic.

    Yes I know the economy slows because housing is not so inflated, but this is a good thing. People paying 700 bucks a month on a 300K mortgage because the structure is screwed is not. That bill eventually comes due.

    If you live within your means.. you're going to be ok. Just don't keep all your eggs in one basket.
    My Girlfriend said to me..."How many guitars do you need?" and I replied...."How many pairs of shoes do you need?" She got really quiet.
  • mammasanmammasan Posts: 5,656
    I agree on principal, but the problem is that there probably won't be another boundary that "America" crosses. We aren't the front runner in manufacturing or technology anymore not because we are bad at it, but because it costs too much to do those things on a large scale here.

    Small companies here are creating and have created things like cars that run on renewable energy, the very thing that could be considered the next huge breakthrough... the problem is for them to grow and become huge in the marketplace, a lot of it would be outsourced to the global community.

    That could be changed as well. By eliminating our current tax system and installing something along the line of the Fair Tax we could create and environment in this country suitable for manufactoring jobs to return.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • jlew24asujlew24asu Posts: 10,118
    mammasan wrote:
    That could be changed as well. By eliminating our current tax system and installing something along the line of the Fair Tax we could create and environment in this country suitable for manufactoring jobs to return.

    mammassan for president! :D
  • inmytreeinmytree Posts: 4,741
    JamMastaE wrote:
    the market is going to crash,the fed is keeping it afloat with money they print out of thin air with no gold backing making it worthless,that causes the inflation to soar and with America's manufacturing gone over seas we have no way to over come the inflation bubble that will eventually burst.period.

    oh yeah most of you probably don't know the federal reserve is a private bank and was set up to rob this country a long time ago.

    http://www.bigeye.com/griffin.htm

    you mention something I had a question about...which is the Fed is pumping money into the system...yesterday 17 billion

    http://uk.news.yahoo.com/afp/20070816/tts-markets-finance-us-bank-inject-3c8ed92_1.html

    and last week I think it was over 30 billion...

    http://www.reuters.com/article/businessNews/idUSN1045424320070810

    honestly, I don't understand this process of injecting money into the "system" and why it happens...

    it seems to be a shell game...which can't be good..right...?
  • mammasanmammasan Posts: 5,656
    jlew24asu wrote:
    mammassan for president! :D

    I couldn't do any worse than the sad string of Presidents we have had in recent times.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • jlew24asujlew24asu Posts: 10,118
    inmytree wrote:
    you mention something I had a question about...which is the Fed is pumping money into the system...yesterday 17 billion

    http://uk.news.yahoo.com/afp/20070816/tts-markets-finance-us-bank-inject-3c8ed92_1.html

    and last week I think it was over 30 billion...

    http://www.reuters.com/article/businessNews/idUSN1045424320070810

    honestly, I don't understand this process of injecting money into the "system" and why it happens...

    it seems to be a shell game...which can't be good..right...?

    I just posted in the other thread about this. the Federal Reserve added $19 billion in temporary funds to the banking system through the purchase of mortgage-backed securities to help meet demand for cash amid a rout in bonds backed by home loans to riskier borrowers.

    The Fed accepted only mortgage-backed debt as collateral for this morning’s weekend repurchase agreement. Losses in U.S. subprime mortgage investments have been rippling through global credit markets, driving interest rates higher and sinking share prices. The Fed also added $24 billion last week, the most since April, as demand for cash increased.

    this isnt exactly letting the markets act "freely" but it helps.

    look what happen this morning....

    http://money.cnn.com/2007/08/17/news/economy/fed_rates/index.htm?postversion=2007081710

    The Federal Reserve, reacting to concerns about the subprime lending crisis that's rocked financial markets in recent weeks, Friday cut its so-called discount rate half a percentage point, to 5.75 percent.

    The discount rate, the rate the Federal Reserve charges qualified lenders, mainly banks, for temporary loans, is largely symbolic. The central bank did not change its more closely watched federal funds rate, which affects credit cards, home equity lines of credit, car loans and other consumer loan rates. That rate remains at 5.25 percent.

    But one economist suggested that the Fed's discount rate cut has more than token significance. David Wyss, chief economist with Standard & Poor's, said the cut could help convince banks it was okay to keep lending to companies or consumers that actually are creditworthy.

    "This is an important move. It's not just a symbolic action. The Fed is telling banks that the discount window is open. Take what you need," Wyss said.
  • jlew24asujlew24asu Posts: 10,118
    mammasan wrote:
    I couldn't do any worse than the sad string of Presidents we have had in recent times.

    just do your worst. thats all we can ask. :)
  • mammasanmammasan Posts: 5,656
    jlew24asu wrote:
    just do your worst. thats all we can ask. :)

    Well now if someone can lend me about 50 million dollars to start up my campaign I'll be in business.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • gue_bariumgue_barium Posts: 5,515
    Can someone explain to me why any of this matters? It's all Chinese to me.

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  • jlew24asujlew24asu Posts: 10,118
    gue_barium wrote:
    Can someone explain to me why any of this matters? It's all Chinese to me.

    :eek: the strength/weakness of the american economy matters to most.
  • inmytreeinmytree Posts: 4,741
    jlew24asu wrote:
    I just posted in the other thread about this. the Federal Reserve added $19 billion in temporary funds to the banking system through the purchase of mortgage-backed securities to help meet demand for cash amid a rout in bonds backed by home loans to riskier borrowers.

    The Fed accepted only mortgage-backed debt as collateral for this morning’s weekend repurchase agreement. Losses in U.S. subprime mortgage investments have been rippling through global credit markets, driving interest rates higher and sinking share prices. The Fed also added $24 billion last week, the most since April, as demand for cash increased.

    this isnt exactly letting the markets act "freely" but it helps.

    look what happen this morning....

    http://money.cnn.com/2007/08/17/news/economy/fed_rates/index.htm?postversion=2007081710

    The Federal Reserve, reacting to concerns about the subprime lending crisis that's rocked financial markets in recent weeks, Friday cut its so-called discount rate half a percentage point, to 5.75 percent.

    The discount rate, the rate the Federal Reserve charges qualified lenders, mainly banks, for temporary loans, is largely symbolic. The central bank did not change its more closely watched federal funds rate, which affects credit cards, home equity lines of credit, car loans and other consumer loan rates. That rate remains at 5.25 percent.

    But one economist suggested that the Fed's discount rate cut has more than token significance. David Wyss, chief economist with Standard & Poor's, said the cut could help convince banks it was okay to keep lending to companies or consumers that actually are creditworthy.

    "This is an important move. It's not just a symbolic action. The Fed is telling banks that the discount window is open. Take what you need," Wyss said.

    correct me if I'm wrong...but this looks like the fed is manipulating the market rather than letting the "free market decide"....

    also, the fed is bailing out companies who fucked up...which, to me is not right...
  • gue_bariumgue_barium Posts: 5,515
    gue_barium wrote:
    Can someone explain to me why any of this matters? It's all Chinese to me.

    Anyone but Jlew.

    No offense little buddy.

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  • jlew24asujlew24asu Posts: 10,118
    inmytree wrote:
    correct me if I'm wrong...but this looks like the fed is manipulating the market rather than letting the "free market decide"....

    also, the fed is bailing out companies who fucked up...which, to me is not right...

    I agree. but they are manipulating the market in a good way so its hard to say stop.
  • jeffbrjeffbr Seattle Posts: 7,177
    gue_barium wrote:
    Anyone but Jlew.

    No offense little buddy.


    :eek: the strength/weakness of the american economy matters to most.
    "I'll use the magic word - let's just shut the fuck up, please." EV, 04/13/08
  • jlew24asujlew24asu Posts: 10,118
    gue_barium wrote:
    Anyone but Jlew.

    No offense little buddy.

    no one else is going to answer your dumb question.
  • mammasanmammasan Posts: 5,656
    gue_barium wrote:
    Can someone explain to me why any of this matters? It's all Chinese to me.

    It matters because if our economies slows down too much you start to see job loss. Bad economy less jobs - good economy more jobs.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • inmytreeinmytree Posts: 4,741
    jlew24asu wrote:
    I agree. but they are manipulating the market in a good way so its hard to say stop.

    so, when I'm I bit short at the end of the month, I should contact the fed and have them pump money into my account...?

    please note, I'm not being smart with you personally, I just think this manipulation of the market is bullshit...
  • jlew24asujlew24asu Posts: 10,118
    mammasan wrote:
    It matters because if our economies slows down too much you start to see job loss. Bad economy less jobs - good economy more jobs.

    here is the technical explanation

    http://en.wikipedia.org/wiki/Common_sense
  • jlew24asujlew24asu Posts: 10,118
    inmytree wrote:
    so, when I'm I bit short at the end of the month, I should contact the fed and have them pump money into my account...?

    please note, I'm not being smart with you personally, I just think this manipulation of the market is bullshit...

    I with ya on this. but we really have to keep in mind, they are helping.
  • LikeAnOceanLikeAnOcean Posts: 7,718
    mammasan wrote:
    Can you imagine the impact if we developed a corn based ethenol. It would break our dependency on foreign fuel, it would aid our farmers, and it would bring a much needed boost in foreign investments into our country. The dollar would climb back up to the top of the currency ladder.
    You do know that food prices would soar?.. Milk, beer, wine and soon many other foods will be rising because of corn based ethenol. BAD IDEA.

    I'd rather have cheap food and expensive oil over cheaper fuel and expensive food.
  • jlew24asujlew24asu Posts: 10,118
    You do know that food prices would soar?.. Milk and alcohol are already rising because of corn based ethenol. BAD IDEA.

    we will just have to produce more corn. which I think we are capable of?
  • mammasanmammasan Posts: 5,656
    You do know that food prices would soar?.. Milk and alcohol are already rising because of corn based ethenol. BAD IDEA.

    No I didn't know that, but food prices would soar if the Euro replaced the Dollar as the petro currency as well.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • gue_bariumgue_barium Posts: 5,515
    mammasan wrote:
    It matters because if our economies slows down too much you start to see job loss. Bad economy less jobs - good economy more jobs.

    Slows down? How do "economies" slow down? Why are more jobs good? Why are less jobs bad? Isn't just living a job? And aren't most jobs related to polluting the environment, anyway? Who are we working for in America? Where are we trying to get the economy to race to. Is there a finish line?
    Honest to goodness, I don't know what this all means.

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