someone explain this economy shit

[wu36ca 10+ year member]

Galactic you hit the nail on the head!!I hate it when all the Democrats say it is because of George Bushs failed economics. I will admit there were some things that GB could have done to help us out a little more, but he could have not stopped it.

The government has little impact on the economy //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif

 

[Rmsanger 10+ year member]

And so it begins... China's public attempts to control our fiscal/monetary policy. It's ironic as we've spent 4 years or so trying to pressure China to revalue their currency using the public media as a conduit. The problem is that we have little leverage or credibility on the issue.

Now China says, "I would like the United States to take concrete steps to reassure investors" and "China has pressed Washington to control its yawning budget deficit and prevent inflation that would erode the value of the dollar and China's holdings. The premier said Treasury values were a matter of the "national credibility" of the United States."

China wants US reassurance over dollar - Yahoo! News

Funny SNL skit summing up the irony of the China vs US relationship. SNL sometimes is pretty clever through their skits at making a point.

[video=hulu;pnTeL-M9moMUs4tx90eXLA]

 

[audioholic 5,000+ posts]

ok, supposedly we have a pretty shitty economy right now. my question is...how exaclty does it get this way?
i work on cars for a living and love it. of course ive noticed how slow it has gotten around the shop due to the "economy". what i dont understand is, how does it happen?

1) people are getting fired because companies are not profiting enough

2) people are not buying, because they are loosing jobs, so less profits for the companies

so my question is, if everything was ok 6 months (or whatever, this is just me talking here) how is it that all of a sudden people are simultaneously loosing their jobs and companies profits are dropping out of no where? when i compare my spending habbits from a while back...im spending the same amount of cash.

does my question make any sense? i dont know how else to explain it.

btw: no idiots please. im hoping flip or someone else makes a stop here to explain the shenanigans

I didnt read the whole thread, or even anything beyond the OP, but I'll answer. Basically, when the economy takes a nose dive, there is still the same amount of money in the world, but people are spending less, and hording more. You, me, and every other average Joe's spending habits dont affect it much (well, added together and given a very popular trend, they do) but large corporations affect is greatly. When the economy starts to recede, it drives companies and people to minimize spending, which creates a self-fulfilling prophecy. The big illusion about the stability of an economy is that its based on perception. If people think the economy is tanking, they spend less, save more, and the economy DOES tank. When its perceived that the economy is good, people (and companies) are more likely to spend money, which keeps employment rates high and drives the economy. Basically speaking, economic health is based on what people think will happen. What people think will happen affects their decision on spending, which directly affects the economy. To end this (global) economic down-turn, enough people (and companies) simply need to think the economy is stabilizing, which will increase their spending, and CREATE the economic up-turn. Its all quite silly when you look at it on this macro-scale. Like I said, self-fulfilling prophecy.

 

[Ignatowski 5,000+ posts]

your economy went bad for many reasons.......most of which ARE created by our govt......

 

[audioholic 5,000+ posts]

Dont get me started on politicians... they will be the downfall of our civilization as we know it. Too much power, too little oversight, too much trust in them. Greedy bastards.