Is this crisis almost the end of the US?
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An economy based on easy borrowing and cunsumer consumption which is not a producer: Can it suffer such a shock as this? And how to get out of the chaos? Does this mean tighter lending, onshoring manufacturing, comsuming only home produced goods and massively weakening the dollar? People have been saying for decades the US is bankrupt. Is this the rekoning?
Morality is indistinguishable from social proscription
fat_boy wrote:
Does this mean tighter lending, onshoring manufacturing, comsuming only home produced good
I hope so - along with a cancellation of our commitment to NATO, ANZUS and the UN, reneging on the ridiculous amounts of foreign aid being poured into Africa and declaring illegal aliens as being uncovered by any American law.
fat_boy wrote:
massively weakening the dollar
Already happened. Thats why the US is selling so much more to Europe these days.
fat_boy wrote:
People have been saying for decades the US is bankrupt.
You aren't under the impression that France, England, Germany or Italy are in a different boat, are you? Most of the western democracies learned how to vote themselves into a funny-money economy at just about the same time. I can't escape the feeling that you are gleeful about the present economic crisis as if you think that somehow Europe will be able to stand if the US drops to her knees.
Jon Smith & Wesson: The original point and click interface
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In what way was the US a power house? I see little production, little exporting, with the only internationally attractive proposition being stocks. And this because there is so much dollar currency going abroad to buy oil. If the US imports less oil or if that oil gets sold in a different currency, then the out flow of dollars will virtually stop. At that stage whct would the US stock market be trading on? I think the US used to be a powerhouse, but it lost it in the 70s or 80s and since then its economy has been built on cheap borrowing. (Not unlike the UK in fact)
Morality is indistinguishable from social proscription
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An economy based on easy borrowing and cunsumer consumption which is not a producer: Can it suffer such a shock as this? And how to get out of the chaos? Does this mean tighter lending, onshoring manufacturing, comsuming only home produced goods and massively weakening the dollar? People have been saying for decades the US is bankrupt. Is this the rekoning?
Morality is indistinguishable from social proscription
fat_boy wrote:
An economy based on easy borrowing and cunsumer consumption which is not a producer: Can it suffer such a shock as this? And how to get out of the chaos? Does this mean tighter lending, onshoring manufacturing, comsuming only home produced goods and massively weakening the dollar? People have been saying for decades the US is bankrupt. Is this the rekoning?
Nah - the current probability of U.S. default is still less than a fraction of a percent. I'm not worried.
...that mortally intolerable truth; that all deep, earnest thinking is but the intrepid effort of the soul to keep the open independence of her sea; while the wildest winds of heaven and earth conspire to cast her on the treacherous, slavish shore.
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An economy based on easy borrowing and cunsumer consumption which is not a producer: Can it suffer such a shock as this? And how to get out of the chaos? Does this mean tighter lending, onshoring manufacturing, comsuming only home produced goods and massively weakening the dollar? People have been saying for decades the US is bankrupt. Is this the rekoning?
Morality is indistinguishable from social proscription
Is this something I should be worried about? :(
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Is this something I should be worried about? :(
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Is this something I should be worried about? :(
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Some people see it as quite serious since the US functions on easy borrowing. ( The UK too) Others less so.
Morality is indistinguishable from social proscription
Just hypothetically, what would happen in the worst case scenario?
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Only if you view tinfoil as the height of fashion. :rolleyes:
Today's lesson is brought to you by the word "niggardly". Remember kids, don't attribute to racism what can be explained by Scandinavian language roots. -- Robert Royall
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You know the expression "If America sneezes the world catches a cold". That what is happening in America as I write is something more than a sneeze.
I believe this is only going to affect countries that rely on easy borrowing to function. Like the UK. I do not feel that Europe for example will be anywhere as nerly badly affected as the US and UK. Therejust isnt that much bad debt in the European system. It just cant exist. The quesiton for me is how far the UK goes. Its already slid off against the Euro, used to be 1.50, now its 1.25. Will it go to parity? Dont forget the UK already had to bail out a bank (and inject 40million into the banking system) somehting that hasnt yet happened on the Continent.
Morality is indistinguishable from social proscription
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Is this something I should be worried about? :(
Not unless you work in finance and/or all your assets are tied up in financial sector stock. If you've got a pile of cash under the mattress along with a few gold bars you're all set. I'm worried about it because it's going to consume all my time probably into next year.
...that mortally intolerable truth; that all deep, earnest thinking is but the intrepid effort of the soul to keep the open independence of her sea; while the wildest winds of heaven and earth conspire to cast her on the treacherous, slavish shore.
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Just hypothetically, what would happen in the worst case scenario?
A return to bartering and horse drawn transport but seriously if you're not old enough for a credit card you won't be missing much :)
"The secret of happiness is freedom, and the secret of freedom, courage." Thucydides (B.C. 460-400)
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Is this something I should be worried about? :(
As a young teenager, your parents should be able to protect you from the worst of the present ravages. So hopefully by the time you turn adult the matter should be history. But learn from history. When you become an adult do ... Don't spend what you don't own. Don't buy on credit unless it is an affordable mortgage. Save what you can. Invest in a Pensions scheme for your old age (yep I know it is a very long way off but you need to think about it sooner rather than later).
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Arguably, the United States, and consequently, the "free" world, is in recession. There will be no easy answers. Should the United States take an insular view, the recession could last well after the next Presidential election in 2012. The glimmer of hope is that China might use some of its resources to help reduce the intensity of the recession by assuming the role that America did once own - namely the Financial & Economic powerhouse of this world. There's a thought - Communist China coming to the rescue of a Capitalist World !!!!
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Richard A. Abbott wrote:
There's a thought - Communist China coming to the rescue of a Capitalist World !!!!
Yes, that is a thought -- how's your Mandarin?
Jon Smith & Wesson: The original point and click interface
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As a young teenager, your parents should be able to protect you from the worst of the present ravages. So hopefully by the time you turn adult the matter should be history. But learn from history. When you become an adult do ... Don't spend what you don't own. Don't buy on credit unless it is an affordable mortgage. Save what you can. Invest in a Pensions scheme for your old age (yep I know it is a very long way off but you need to think about it sooner rather than later).
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Just hypothetically, what would happen in the worst case scenario?
Ravel H. Joyce wrote:
Just hypothetically, what would happen in the worst case scenario?
I become Benevolent Leader for Life of the entire world after I seize control of the Swiss banking system. I'm working on it now, oops, I mean don't worry about it.
...that mortally intolerable truth; that all deep, earnest thinking is but the intrepid effort of the soul to keep the open independence of her sea; while the wildest winds of heaven and earth conspire to cast her on the treacherous, slavish shore.
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Just hypothetically, what would happen in the worst case scenario?
The US wold go back to what it was in the first half of the 20th century. A weak dollar, isolationist in an ecconomic (and political sense) and consuming a lot less. They would also have to onshore their manufacturing and consume their own products. They can do this of course, and have been for a few years now, by printing a lot of dollar currency. (Un)fortunately it pushes up imports. Great for home producers, bad for the price of oil. This is one of the reasons the US has to get of oil or open up oil fields in Alaska and thr Arctic. IF it does this, it can let the dollar run to 4 or 5 to the euro, it will be exporting a lot of stuff to europe at that rate and unemployment will fall in the US as they get back to work producng and the economy overall be functioning well.
Morality is indistinguishable from social proscription
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The US wold go back to what it was in the first half of the 20th century. A weak dollar, isolationist in an ecconomic (and political sense) and consuming a lot less. They would also have to onshore their manufacturing and consume their own products. They can do this of course, and have been for a few years now, by printing a lot of dollar currency. (Un)fortunately it pushes up imports. Great for home producers, bad for the price of oil. This is one of the reasons the US has to get of oil or open up oil fields in Alaska and thr Arctic. IF it does this, it can let the dollar run to 4 or 5 to the euro, it will be exporting a lot of stuff to europe at that rate and unemployment will fall in the US as they get back to work producng and the economy overall be functioning well.
Morality is indistinguishable from social proscription
fat_boy wrote:
his is one of the reasons the US has to get of oil or open up oil fields in Alaska and thr Arctic. IF it does this, it can let the dollar run to 4 or 5 to the euro
Just what do you smoke and when do you find time to smoke it? Extracting the oil from ANWR won't tangibly affect the price of oil.
...that mortally intolerable truth; that all deep, earnest thinking is but the intrepid effort of the soul to keep the open independence of her sea; while the wildest winds of heaven and earth conspire to cast her on the treacherous, slavish shore.
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dan neely wrote:
Only if you view tinfoil as the height of fashion
I don't think Fat_Boy has ever forgiven the US for Gore's winning the Nobel prize.
Jon Smith & Wesson: The original point and click interface
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I believe this is only going to affect countries that rely on easy borrowing to function. Like the UK. I do not feel that Europe for example will be anywhere as nerly badly affected as the US and UK. Therejust isnt that much bad debt in the European system. It just cant exist. The quesiton for me is how far the UK goes. Its already slid off against the Euro, used to be 1.50, now its 1.25. Will it go to parity? Dont forget the UK already had to bail out a bank (and inject 40million into the banking system) somehting that hasnt yet happened on the Continent.
Morality is indistinguishable from social proscription