Posted on 12/19/2009 12:24:10 PM PST by GVnana
Higher prices are good. LOL!
We are about to hand over one sixth of our economy to the government. And the paleos are quibbling about whether a tariff raises prices, and what sort of a tax it represents.
The expansion since 2000 has been in China when their favored trade status was made permanent. Fear not, the job sucking sound still hasn’t been heard in Washington. Unemployment will continue.
Listen, we can dispute the underlying causes of our last economic expansion for a long, long time. Denying our last economic expansion even exists “because China” makes no sense whatsoever.
As for "pain", methinks the last year counts, and the savings rate increased enough to cut the trade deficit in half in the course of it.
Second, we just had some collapse, enough to cut the trade deficit in half through increases in the savings rate etc.
Third, entirely agree we can't afford additional middle class entitlements, nor the ones we already have, and the Dems are peddling as fast as they can in the opposite direction from any kind of solution. While blaming the last productive people in the country etc.
As for accountable, I hold the American people responsible for most of it, the Dems too, to be sure. Bush proposed social security reform that would have saved trillions, it died in 3 months in a Republican controlled congress. Obama proposed new entitlements costing trillions, and they pass even with 60% public opposition. Clearly the political system is stacked to spend.
But the people voted for these clowns; pretending it is all the fault of the crew in Washington is pretending. Financial irresponsibility, political blame games, etc - are entirely general, at this time.
We can readily adjust to all of this, but we should not be passing new trillion dollar spending items, we should be repealing ones already on the books, or modifying their terms to save those amounts gradually.
Or welfare/healthcare deadbeats?
Are you saying, for example, that no one in the United States could build a loom?
quite certain i didn’t say rates are higher but that they could be sooner than expected.
Are you saying, for example, that no one in the United States could build a loom?
I am saying that most of the capital equipment is gone, that it takes much time to make it, it takes people who can design, build and run the equipment, and that there is far less that there had been in our parents day. Tool and die makers are rare these days, guys who can run the machinces that make the machines are rare. Can we build a loom, yes, but can we build them effiecntly and in needed amounts? Probably not. We have lost and continue to lose our capital.
I wish I could remember the name of the book I read about this recently. fascinating subject.
It was pretty-much a yes-or-no question.
Not really. There is a big difference between building one loom, which is a research endeavor, and the manufacturing of looms which is a capital endeavor.
yes to the former, no to the latter.
Your absurd underestimation of American ingenuity is noted.
Your absurd underestimation of American ingenuity is noted.
You know, twenty years ago I would have agreed with you. But I dont see that anymore. I dont see a widespread ability to improvise and work hard, needed to innovate, manufacture and produce. Are there people? Yes, are there enough? I dont think so.
You need to get out more.
You need to get out more.
Perhaps I do. I just do not see it. I see a thin layer of doers and producers and a thick layer of nonproducing people and predators.
With the exception of oil,i can tell you i’ve not been in the commodity inflation crowd.
My own belief is we will continue to need to sell more debt to a pool of less willing buyers. This country,again my belief,will continue to see stubbornly high unemployment and the corollary extension of social programs which will of course feed our need for capital.
Businesses for the most part,having fired many workers are finding they can get along just fine without them due to productivity gains. The uncertainty of their future liabilities due to this administrations programs will further diminish their appetite for new help.
This pool of unemployed is massive and no matter how they play with the numbers,discouraged workers my butt,the reality is no administration is going to allow millions to be living in tents.
Rates don't rise due to economic weakness or high productivity, but due to their opposites. Eventually short rates will go higher because lower than zero does not happen. Americans will save to finance their own capital investment - the horror, the horror.
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