who killed the economy?!?!
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jco1385
5,000+ posts
expert jcologist
JESUS HIMSELF INFACT KIILED THE ECONOMY //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif
i watched him do it. i tried telling him it was not a good idea, but he's jesus and reminded me of this fact so i had to let him continue.
i watched him do it. i tried telling him it was not a good idea, but he's jesus and reminded me of this fact so i had to let him continue.
mokedaddy
5,000+ posts
professional idiot
I never said you did. I was referring to richierich that blames bush and his administration for everything. Hell they even flew planes into the twin towers according to him. I do agree on big business though. It goes to show that everything must come to an end.
Greed. Fact is American's make too much money. The only way manufacturing will be brought back to the states is to revolutionize every country in the world.
Well, those that blame the government can do so until they are blue in the face. The government is not here to prevent economic problems, they are there to fix them as best they can. Bush (whom I voted for) and his oil connections really have hurt things, but the gas problems are just a spec in the whole picture as to what is really wrong with the economy.
mokedaddy
5,000+ posts
professional idiot
I agree with this 100%. And will add that gas is a worldwide problem, not just in the us. //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif
mokedaddy
5,000+ posts
professional idiot
Good luck. But at that, if its not India or China it will be Costa Rica or some other third world country.
Hahaha. Yeah. I mean, we could fix a lot of things if we just took some notes from the Japanese. They really know how to work things. IIRC, their exports are significantly lower than their imports, however they have the highest standard of living in the world. It all starts with work ethic and a little common sense.
They are also net savers. If we become net savers like they are....boy, will their economy go to shit.
For example, a decrease in real interest rates lowers the cost of borrowing; that leads businesses to increase investment spending, and it leads households to buy durable goods, such as autos and new homes.
In the short run, lower real interest rates in the U.S. also tend to reduce the foreign exchange value of the dollar, which lowers the prices of the U.S.-produced goods we sell abroad and raises the prices we pay for foreign-produced goods.This leads to higher aggregate spending on goods and services produced in the U.S.
The increase in aggregate demand for the economy's output through these different channels leads firms to raise production and employment, which in turn increases business spending on capital goods even further by making greater demands on existing factory capacity. It also boosts consumption further because of the income gains that result from the higher level of economic output.
you may have read them, but you didn't comprehend what I bolded; which shows the effects of their actions; so let's see - has the value of the dollar decreased, YES; Are we paying more for foreign produced goods, i.e. OIL, YES; and tell me what happens when CONSUMPTION is boosted; Prices rise. It also went on to talk about the affects it has on inflation; when is inflation at its highest, when the country is in a recession.
Now, let's see what triggered it - lowering the interest (target) rate; and who did that - oh yeah the Federal Government; and why did they do that again; to boost the economy and what is happening now to the economy??? Again, everything was good for the admin and Bush when things were on the up and they received all the praise and glory, but now when its on the downside it has to be someone else's fault - WRONG, praise me when I do something right and criticize me when I fvck up; it's not give me all the praise and then blame someone else when things get all fvcked up.
Sorry, I'm not a blue collar worker. I'm not blaming them for my problems; I have none. I have my health; my family, our home, our trucks, money in the bank and cash in my pocket and a great paying job. I'm simply calling attention to their failure's which all you want to do is continually sweep under the rug and act like it is ok, since it hasn't affected your bank account. But what you fail to grasp is that the impact on the portion of society that you don't care about, does in fact affect your life in one way or another.
So now you agree that Bush and his oil constituents has had some affect on things...
Yes they are there to prevent economic problems; they control both fiscal and monetary policy; the public does not. Yes, they are there to fix them as best they can as well; and what this administration has proven over the past 8 years is that they don't have any clue on how to "fix" anything. After 7 years of war and 7 years of Congress asking for an exit strategy, where are we? After 2 years of the downward spiralling of the housing market and its affects (and I will point out again that the FED GOV'T lowering the target/interest rate to influence that market directly impacted where we are today) where are we?
Actually the public has great influence. They can become net savers. They can "buy American"...(if you even can anymore). etc. For instance, if Americans started saving 40% of their income, they could cause all kinds of economic problems, as our system is based on people NOT being net savers.
The reason why the Fed left them too low too long is known as the time-consistancy problem, studied in depth by some Nobel prize winners. The problem is, you don't know it is too long until it is too late.
In the current situation, the question is how does the central bank balance the threat of inflation with an economic recovery. If you raise the rates, it lowers the threat of inflation and helps revalue the dollar; however, it does hurt those who rely on low borrowing rates to recover. That is the theory.
However, I would argue that the current borrowing rates do not reflect the low federal funds rate...they have become someone disconnected. This is mainly due to a liquidity squeeze rather than higher short term rates. Because of this disconnect, and the lower correlation between the federal funds rate and the current borrowing rates at the present time, it would be safe to raise the target to reduce the threat of inflation and help the dollar revalue. Once they rates resynchronize, we can go back to the traditional Taylor rules / constrained discretion mechanism under which we currently operate.
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