Discuss the current economic situation of the U.S. I might be going out on a limb here, but I was wondering what are your opinions about the current economic crisis in the U.S.? As most people know. The U.S. is or is close to being in a recession. What are your thoughts? Possible solutions? Mistakes to be corrected? Thought I'd start a nice economic discussion on here, since I have a new found interest in the field
Hundreds, thousands or millions of jobs will be loss which leading to a downfall in the work force. < big trouble !! America recession may affect some countries such as Australia as the Stock market may drop...this is called globalisation.
Here in New York... Wall Street is not doing so well. Stock Markets are decreasing. Soon, there will be a increase unemployment for people. Our Economy is dropping as each day passes.
This is like a catch 22 situation because the feds are decreasing interest rates to stimulate the market. But with no one to lend money because of the credit crisis and lower interest rates, no money can be invested in the economy, leading to even lower interest rates blah blah blah... I think if the government is willing to insure to the banks that they will pay if there are any defaults, then the banks would be more willing to lend, lessening the blow... do you think so..!?
economy = sucks and too much pressure to find a job = mental breakdowns, all in all, life as we speak, will be good again once economy gets better, i heard somewhere that economy was slowly rising, but then again, depends on what part of the country you live in
interest rates in Australia are super high, our economy is like falling apart slowly.... gay reserve bank of au -.-
US economy go down = lowered imports = bad for canada (export based country) = bad for me as well they suck
a lot of the international markets are hurting because a lot of currency is tied to the US dollar the more the us dollar weakens the lower the stocks will go the smaller our buying power is. The hong kong stock exchange is a good example of that....when bad news hits america you see the stock market there drop like rocks...at the rate we are going i think we are going to hit a recession soon
The way it works in globalisation is that the banking systems manipulate the market's rapid rise and rapid downfall. When it goes rapidly up, they make money and when it goes rapidly down they also make money. The most powerful economic countries always come tops in absorbing money and asset from weaker countries during a rapid down fall. When in a market crash in a country it is always the rich countries which are able to raise the money to buy up assets around the world when the prices are at their lowest. And when the prices bounce up again through the hard work of the people in those countries then the power countries make the capital gain. So if the markets crash in Australia or Canada, the more powerful countries or rich companies and business people are able to buy assets and foreign currencies cheaply. Of course the markets in US will decline as well but the US is always the economic engine of the world so they are always the ones will the reserve and the resource to start buying even in poor global economy. This is how the third world countries became poorer and poorer with the massive loans from western banks. This method is similar to the feudal system that had existed in the middle ages. Whenever there was a poor harvest or bad weather the landlords were able to buy up the land cheaply from the farmers. This was how the landlords became to own all the land. Likewise in a modern world and in a poor economic situation the banks are able to take the houses and land from the people who are the modern peasants. The banks are the modern landlords and of anywhere in the world they are most numerous in US and in western Europe. So when there is a crash the banks will always be the ones who gain much more assets at home and abroad. So it always pays for top banks to engineer mistake in the economy because they always gain in the long term. One such example is to lend money to people who cannot afford it. This is similar to a landlord lending money to a farmer with land. When the going is good the bank makes money with interests, when the going is bad the bank still makes money as the bank can seize the land and then rent it out. Gradually and when in the final end game , when the banks and the rich people own all the land as freeholders then the people can only be lease holders. In this scenario the leaseholders are the same as the peasants in the old days when they hired land from landlords to farm. Worse still they were the workers of the landlord's land. So the banking systems and the rich people always from time to time engineer economic decline. The decline is what they call economic adjustment to correct the rapid rise, so call bubble. They make money on the rapid growth. As US moves in a recession then it offers huge opportunities for the US business people to buy up the assets abroad at their lowest prices. This cyclic method of ups and down is extremely good at creaming off the hard work made by people. Let me give you a simple example: suppose that you worked hard for 20 years and you decided to build a hotel as investment, then because loans are easy to come by from the banks you put down 50% and borrow 50%. On the up side you make money and the bank makes money, so everyone is happy. When there is a rapid decline in economy the customers do not come to stay in your hotel, so you cannot service the 50% loan from the bank. The bank takes the hotel from you and you end up with nothing from all your hard work! These declines in economy will not affect the strongest of the banks. The state banking system and the government will always back the core banks. So with this example hotel that came "free" the banks will now lease it to someone else to do the hard work so the banks now earns interests as before but also rental from the lease.... and this is really how it works with the banking systems and mega business people in international globalisation and this is how they gradually own more and more assets.
A big down turn like in the early 1990s will reduce imports by all the western countries substantially. As the home market in China is weak and more than 90% of the goods are exported to all over the world then the job employment will fall rapidly in China. This will happen:- However I am not sure how it would really affect China as China is not a true "free" market as in the capitalist world. The communist government does have powers that most countries would not have. I wondered what would happen to the people who borrowed money to buy those expensive properties in Shanghai, Beijing, Shenzhen.....etc. if the experts to the west were to be down by 30%!
Eh, what goes up, must come down sometime. Economies are cyclical and will always bounce back, whether by government intervention or just pure market forces. Money can be made whether the economy is a boom or bust. Selling short during a downturn of the market is smarter than buying a stock now and selling it later because it continued to drop in price per share.
well....the worth of the dollar is going to decrease another 20-30% at this rate..if the fed keeps cutting rates. inflation has already skyrocket.
well do to the over demand in lower prices which are the set prices gathered by the corporations with GDP in line with factories and lowered wages and high turnover with exported domestic imported goods given the hierarchy of national businesses and entrepreneurs factor in the production, distribution, and consumption of goods and services where other general mathematical and quantitative methods are also often used for rigorous analysis of the economy having no theory of demand and supply is an organizing principle to explain prices and quantities of goods sold and changes thereof in a market economy furthermore, undermining the constraints of scared resource in which the market equilibrium is at unemployment rate does not conclude the efficiency of the global market. Therefore, I find it quite challenging for economists to raise the US's economy..
Thanks for the informative post. I think I understood most of what you said... My knowledge of economics is unfortunately not that extensive. So what do you think the first step would be to get the U.S. economy back to where it was? Lol that's was kind of hard to follow ecko ><
