7 reasons U.S. needs a Good Depression now

Quote from Rickshaw Man:

We need a true recover not a debt driven recovery sponsored by the central bank. Were did all the money go, who made off with all the loot. Make no mistake this nation is being looted.
More...

Just out of curiosity, what do you consider a "true recovery"?
 
Quote from Kassz007:

Why would this happen?
More...

If the level of aggregate demand falls. Through fear of recession.
 
Quote from morganist:

If the level of aggregate demand falls. Through fear of recession.
More...

A lot becomes clear when one realizes that even a Moderator on this site is in paranoid crisis mode and has forgotten how to analyze rationally.

The idea that the US is in a DEPRESSION is ridiculous. However, I do note that the US invaded Iraq when most of the world knew it was both a bad idea and morally bankrupt. The US also elected George W. Bush twice. This is what scares all of us about the US, your nation is dominated by media drumming up crisis and bad news, and an eroding education system that is obviously underpinning the slow collapse of an economic empire.

The solutions to the US problems ( and they ARE mostly US problems, not World problems as so many Americans falsely believe ) are quite obvious. This current aging baby boomer generation has to stop their greed and self righteousness and pay their own freight. That means higher taxes, particularily for the rich ( individuals and corporations ). And your government has to stop spending money on useless projects like Wars that are unnecessary.

You have an economy that funnels the economic efforts of the majority to your richest 1%. So it should come as no surprise that when the bailouts occurred that a good portion of the money went straight to the pockets of the 1% ( eg CEOs and executives of major corporations, including the failed ones ).

Stop blaming Obama, its the system you all believe in, where the "survival of the fittest" is in play, but the "fittest" bend the rules to rig the game these days.
 
Quote from Nine_Ender:

A lot becomes clear when one realizes that even a Moderator on this site is in paranoid crisis mode and has forgotten how to analyze rationally.

The idea that the US is in a DEPRESSION is ridiculous. However, I do note that the US invaded Iraq when most of the world knew it was both a bad idea and morally bankrupt. The US also elected George W. Bush twice. This is what scares all of us about the US, your nation is dominated by media drumming up crisis and bad news, and an eroding education system that is obviously underpinning the slow collapse of an economic empire.

The solutions to the US problems ( and they ARE mostly US problems, not World problems as so many Americans falsely believe ) are quite obvious. This current aging baby boomer generation has to stop their greed and self righteousness and pay their own freight. That means higher taxes, particularily for the rich ( individuals and corporations ). And your government has to stop spending money on useless projects like Wars that are unnecessary.

You have an economy that funnels the economic efforts of the majority to your richest 1%. So it should come as no surprise that when the bailouts occurred that a good portion of the money went straight to the pockets of the 1% ( eg CEOs and executives of major corporations, including the failed ones ).

Stop blaming Obama, its the system you all believe in, where the "survival of the fittest" is in play, but the "fittest" bend the rules to rig the game these days.
More...

"even a Moderator..." :D

you do know that Mods have to deal with a lot of garbage and periodically snap due to job stress. That's why we get a new Mod once in a while.

you do make a really good point about US.
 
Quote from shortie:

"even a Moderator..." :D

you do know that Mods have to deal with a lot of garbage and periodically snap due to job stress. That's why we get a new Mod once in a while.

you do make a really good point about US.
More...

The Canadian economy is doing well, moderate but real job growth, and no housing crisis at all. We benefit somewhat from growing emerging markets ( this isn't going to stop for years ).
Our historically high taxes have moderated somewhat.

The one potential thorn in our future is the US economy.

I think we all know that with success that people can get narcissistic and stop listening to other people. This may be for short periods of time or much longer. I feel that as a country the US has taken on this persona, we can all see it if we take a detached point of view.

We are all hoping that Americans can change their country for the better. With George W. Bush at the helm, there was no hope at all, hopefully he's the end of an era that won't be revisited.
 
Quote from Nine_Ender:

"... We are all hoping that Americans can change their country for the better. With George W. Bush at the helm, there was no hope at all, hopefully he's the end of an era that won't be revisited.
More...

Yes, America has been unfortunately lately. We had that terrible president Bush.. then elected 10 TIMES WORSE DICKHEAD ODUMBO.. who offered us "hope and change" to correct the bad things Bush did.. unfortunately it was all a scam.

History will show Odumbo among America's worst presidents ever.... though it's hard to imagine anyone who can "out-bad" Woodrow Wilson.

:mad: :mad:
 
Quote from Nine_Ender:

The Canadian economy is doing well, moderate but real job growth, and no housing crisis at all. We benefit somewhat from growing emerging markets ( this isn't going to stop for years ).
Our historically high taxes have moderated somewhat.

The one potential thorn in our future is the US economy.

I think we all know that with success that people can get narcissistic and stop listening to other people. This may be for short periods of time or much longer. I feel that as a country the US has taken on this persona, we can all see it if we take a detached point of view.

We are all hoping that Americans can change their country for the better. With George W. Bush at the helm, there was no hope at all, hopefully he's the end of an era that won't be revisited.
More...


I am very sorry to report that the current leadership of the USA is foul and incompetent. Inertia is a hard nut to crack, and US is running toward Rome status. All you got is hope, as there is no sign yet that the lights have been turned back on in DC. Outside of Wall st. and the financial sector, the US is very capable of taking care of business. Unfortunately, those two entities (gov.t lackeys and financial sector tyrants) just mentioned are a great millstone around the country's neck. Stop blaming the average hardworking American. The core problem is corrupt, banana republic national leadership.
 
Quote from achilles28:

Simplistic, indeed. You seem to think that Depressions are merely "choices" people make, as if on a whim, could be cast-off for endless prosperity.

If that were true, history wouldn't be littered with hundreds of examples of Depressions in the past 300 years alone.

Depressions are the natural result of over-consumption, mal-investment, and excessive leverage. When the bow breaks, and money ceases to be plentiful, the pyramid of debt collapses upon itself and people who invested in real property or securities at excessively high bubble prices, lose their shirt. Or are tied to an asset with a true value 1/3rd it's purchase price at wages that barely appreciate. And the lenders of precious capital get hosed even more. It's capital destruction. What needs to happen is mass bankruptcy. Of individuals, corporations and lenders. Then the system can reset, and new growth can be made on solid ground. This process takes around 18 months, but progress cannot be made without it. Why? Because excessive prices and indebtedness is a huge impediment to growth. People with money won't invest or risk capital in conditions where everyone is barely solvent. And lenders and individuals on the razors edge have most of their income tied up servicing bad debts from the last bubble. This is why in order to get the growth conditions you want, the Government must let the economy collapse and bankrupts go under. Right now, we're stuck in limbo where, as I said above, even solvent institutions and individuals who do have capital won't loan it or invest in real business - real goods-producing, life-enhancing enterprise - because general conditions are terrible and terribly risky. To arrive at Greener pastures, the market and real estate must crash. This is a function of how markets operate via money supply and future earning expectations. However, we have a much more serious problem on the radar and that's a sovereign debt default. We're no longer talking localized recessions where capital destruction is relatively small and manageable. But tens of trillions in pent up global excesses and inflated wages (thanks to decades of wasteful Government spending and deficits) that needs to go belly up. Most Western economies are held up by this spending, which, shortly, will end. So the "reset" period will make Greece look like Disney Land. More like Argentina. This painful purging, if left unmolested by authorities, is relatively quick. No more than 18 months. But that won't happen. We live in Democracies where the idiots vote in idiots to "save them" at any cost. And they usually do, and it looks like the '08 never-ending story or Japan.

You know, whenever the market makes a nice run up, amateurs (like you) crawl out of the woodwork and make every argument under the sun as to why all-time highs are around the corner, why every bear is a delusional killjoy and why bad numbers are really just mass hysteria. You are the sheep to the slaughter. You're driving without headlights. You ought to figure out how all this "economic stuff" fits together before you go shooting off at the hip as to why everyone but yourself is deluded fool who doesn't recognize "your genius". Things operate for a reason. Evidently, reasons you don't understand.
More...

An intelligent analysis. The more government tries to pretend they can fix this, the worse it will get. Our US government debt is a minor problem that can be easily resolved, but that's not our biggest problem. When the economy finally turns around, a lot of it is going to correct itself as long as we don't start a few more wars and do more tax cuts. I'm much more worried about the overleveraged banks. If they put the wrong bet down on Portugal, Spain, Greece, etc. and the bailouts stop, the whole banking system could collapse. Then what--another government bailout? Give more free money to the banks at zero% interest? If AIG, GS, BAC and C were put into receivership in 2008, as they should have been because they were insolvent, we'd be on our way to a real recovery. This is just delaying, hoping the problems will magically disappear.
 
The world is a competitive place. The US is productive, not everyone personally, but as a whole. If it is not competitiveness, then it is entrenchment. If we really crashed the economy to save it, it would be like tripping in a marathon. There are plenty of other runners happy to step on us to get ahead. I don't buy an 18 months turn around from collapsing Rome to hayday America by a purge.
 
You must log in or register to reply here.
Back
Top