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To: Kaslin

What these fools don’t percieve is that Americans are “paid” to take care of trouble in the world.

By that I mean the standard of living we enjoyed from WWII until the early ‘70’s had a lot to do with 5-6% interest rates. Those come from other governments, busnesses , and individuals investing in America. They do so when they perceive stability, reliability and effective use of power and leadership to contain and resolve the “hot spots” of the world. When we walked out of Vietnam in 1975 -3 years later we could’nt buy gasoline and in five years we had 20% interest rates. It took all of RR’s presidency, with its resolution of the Cold War, ultimately, to get the world re-invested in the USA and get our interest rates down. They plummeted after 911 when GWB showed the world we were serious about dealing with the Islamic threat.

These fools walk on Iraq—we’ll be looking at 25% interest rates in 3 years...and 10.00 gallon gas-which is what Europe already pays. But then again, I’ve always held out that the Democrats can only find opportunity in their fellow American’s misery.


12 posted on 07/20/2007 5:55:50 AM PDT by mo
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To: mo

Your grasp of economics is a bit shaky.

Don’t you think that 20% interest rates had every frigging foreign bank and citizen with 5 cents to spare to invest in this country ? Additionally, European and Japanese interest rates were quite high as well, for the same reason as ours - in the early 1970s the central bankers turned on the money spigot and pumped out money like they were putting out a fire.

No, those 20% interest rates were to shake inflation and liquidity out of our market. It only took 2 years of Reagan’s first term to fix the problem.


21 posted on 07/20/2007 8:59:59 AM PDT by cinives (On some planets what I do is considered normal.)
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