Obamaconomy!!!

People and governments have an awfully hard time of living within their means, don't they?

This one's going to be one horrible muthah' to deal with, though--guess we'll just have to default. We're trying pretty hard to avoid a deflationary death spiral, but it's just not going very well in the real world. Unfortunately, it's happening in super-slow motion so you have to have a pretty good attention span to see it coming. And, of course, they're obfuscating the reality in every way possible.

But... it's all there in the Z-1 if you've got enough accounting knowledge to read the thing. We're screwed, total debt is too high and the TRUE means of creating wealth (mining, manufacturing & agriculture) have fallen to too low of levels in this country to pull us out of the dive. Revaluations will be a real b!tch, but it's going to take awhile for that to become plainly obvious to even the dullest tool in the shed.

And there's absolutely nothing whatsoever that may be done about it... not in the long run, anyhow.
 
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Pidgey said:
People and governments have an awfully hard time of living within their means, don't they?

This one's going to be one horrible muthah' to deal with, though--guess we'll just have to default. We're trying pretty hard to avoid a deflationary death spiral, but it's just not going very well in the real world. Unfortunately, it's happening in super-slow motion so you have to have a pretty good attention span to see it coming. And, of course, they're obfuscating the reality in every way possible.

But... it's all there in the Z-1 if you've got enough accounting knowledge to read the thing. We're screwed, total debt is too high and the TRUE means of creating wealth (mining, manufacturing & agriculture) have fallen to too low of levels in this country to pull us out of the dive. Revaluations will be a real b!tch, but it's going to take awhile for that to become plainly obvious to even the dullest tool in the shed.

And there's absolutely nothing whatsoever that may be done about it... not in the long run, anyhow.
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Very good Mr. Pidgey.

Deflation is a good topic for discussion. It was one of the major problems during the Great Depression. Deflation was brought on by the outrageous government policies of both Hoover and FDR. We are following that same path today. Only today our economy is not nearly as strong as it was in the 30s. Debt levels today are so much higher in the public and private sector.

Consumers and businesses are NOT spending just as they did during the Great Depression. And, why? Because they fear BO's next move and the uncertainty BIG Government causes...same as during the Great Depression.

With the huge deficit spending by both Bush and BO, we are headed for default and devaluation. Which as you say, will be very detrimental for all Americans. Yet, it seems few are aware of what is coming.

The Z-1 clearly shows the contraction of spending by individuals and business. And the huge expansion of spending by government. The Feds are trying to keep the bubble inflated and of course their policies are most damaging.

From the master...
If you could spend vast amounts of other people's money just by saying a few magic words, wouldn't you be tempted to do it? Barack Obama has spent hundreds of billions of dollars of the taxpayers' money just by using the magic words "stimulus" and "jobs."

It doesn't matter politically that the stimulus is not actually stimulating and that the unemployment rate remains up near double-digit levels, despite all the spending and all the rhetoric about jobs. And of course nothing negative will ever matter to those who are part of the Obama cult, including many in the media.

But, for the rest of us, there is a lot to think about in the economic disaster that we are in.

Not only has all the runaway spending and rapid escalation of the deficit to record levels failed to make any real headway in reducing unemployment, all this money pumped into the economy has also failed to produce inflation. The latter is a good thing in itself but its implications are sobering.

How can you pour trillions of dollars into the economy and not even see the price level go up significantly? Economists have long known that it is not just the amount of money, but also the speed with which it circulates, that affects the price level.
http://townhall.com/columnists/ThomasSowell/2010/07/13/signs_of_the_times/page/full
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The government has tried to make up for about an 11% drop in GDP, which is pretty significant. The trouble is that we're not really talking about the source funds being fungible--it's just debt that's going to have to be issued and eventually taxed for. The bad thing about taxing it is that you take more money out of the hands of private individuals that they would have otherwise spent. A lot of people have this completely mythical idea that The Rich just pile real dollars away into secret vaults and that's just so far from the truth that it borders on the ridiculous. With 10% fractional reserve banking and with the banks' tendency to use SWEEP to reduce even that, reserves are pretty insignificant.

Personally, I've always maintained that we've ALWAYS had corruption, and nothing much has changed in that respect. What's it's really about is the cost of energy and the net per capita available energy--that's going down and nothing can stop it unless we come up with one heckuva' miracle VERY soon. I'm currently working on a way of presenting that which makes it easier to see for the mathematically-challenged.
 
Pidgey said:
The government has tried to make up for about an 11% drop in GDP, which is pretty significant. The trouble is that we're not really talking about the source funds being fungible--it's just debt that's going to have to be issued and eventually taxed for. The bad thing about taxing it is that you take more money out of the hands of private individuals that they would have otherwise spent. A lot of people have this completely mythical idea that The Rich just pile real dollars away into secret vaults and that's just so far from the truth that it borders on the ridiculous. With 10% fractional reserve banking and with the banks' tendency to use SWEEP to reduce even that, reserves are pretty insignificant.

Personally, I've always maintained that we've ALWAYS had corruption, and nothing much has changed in that respect. What's it's really about is the cost of energy and the net per capita available energy--that's going down and nothing can stop it unless we come up with one heckuva' miracle VERY soon. I'm currently working on a way of presenting that which makes it easier to see for the mathematically-challenged.
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Yes, but regarding corruption, in the past our government was not so big and powerful. So the corruption and incompetence was not so damaging. Now, with our huge government controlling trillions of dollars, the corruption and incompetence can really have an impact on all of us.

For example,the racist lady in the Ag Dept. She actually controlled a budget of over $1 BILLION dollars.
 
Well, the worst part is when (and this is cyclic) the financial sector gains too large of a proportion of the entire economy. That gets into too much "gaming of the system" and you get what we had in 1929 and again today. Eventually, they can't keep it propped up and major players take big chunks down with them. The smart "very old money" generally takes the opportunity to gain true ownership and then we restart again after the resultant wars cause enough loss of population to make some breathing space.

THIS time, though... we've got a real problem.
 
Obamanomics is why there is no recovery

How many more months must Americans endure near-double-digit unemployment, little or no new-job creation, economic stagnation, a topsy-turvy stock market, and sagging consumer confidence before Washington politicians concede the "summer of recovery" is mostly a mirage?

They've spent nearly $8 trillion since 2007, including nearly $2 trillion on economic stimulus programs and an equal amount for the Troubled Asset Relief Program and similar bailouts. They've effectively nationalized Fortune 500 corporations, taken over the health care sector, and set the regulatory stage for more bailouts and takeovers, but the needle is still stuck. Worse, recovery isn't likely for many months ahead because those same politicians are planning more of the same failing policies.

Consider that entrepreneurial small businesses are the job-creation machine of a free-enterprise economy. But these firms are about to get smacked with significant tax rate increases that will keep most of them struggling just to survive. President Obama, Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi will let the Bush tax cuts of 2001 and 2003 expire as scheduled Jan. 1, 2011. The current 33 percent tax rate on individuals will go to 36 percent, and the current 35 percent rate will increase to 39.5 percent. Those are individual rates, but the majority of small-business profits are taxed as income to individuals.

According to Internal Revenue Service data,30 million tax returns reporting small-business income were filed in 2008, showing net business profits of $631 billion. Americans for Tax Reform pointed out Friday that "large chunk of this net profit -$457 billion - faced taxation in households making more than $200,000 per year. A majority of small business profits will face a tax rate hike under the Obama-Pelosi-Reid plan." So, those millions of small-businesses will soon have even less money to invest in expanding existing product lines or services, as well as job-creating new ventures.

Read more at the Washington Examiner: http://www.washingtonexaminer.com/o...-recovery-471733-100652469.html#ixzz0wux2K4ds
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Its about to get a lot worse before it gets better. But, once BO is out of office and liberalism is dead, the shining city on the hill shall return.

And, liberalism will return to its proper place...in the sewer with the rodents and vermin.
 
Well... CR@P!!!

Looks like the bulk of the "deleveraging" that has been going on hasn't been due to folks being more responsible and actually paying off debt--the lion's share of them have actually been charging up their available credit up to the max and then taking bankruptcy involuntarily (credit literally cut off). Now that's the purest example of the "entitlement mentality" at work.

http://www.zerohedge.com/article/de...g-or-why-us-economy-will-end-not-whimper-bang
 
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Gipper said:
Its about to get a lot worse before it gets better. But, once BO is out of office and liberalism is dead, the shining city on the hill shall return.

And, liberalism will return to its proper place...in the sewer with the rodents and vermin.
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Don't ya' just hate it....when you can be sooooooooooooooooo wrong....in such a big way??????

The Teabaggers' Worst Nightmare.....

HERE!!

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