Posted on 05/13/2006 12:52:27 AM PDT by wotan
Anyone who says to me, "Hey pal, here's a commonsense solution to a highly complex problem..." I immediately check to see if I still have my wallet.
As a per cent of GDP, the US probably has the lowest deficit of any member of the G8. The US also has the highest real growth rate of any member of the G8, with the possible exception of Russia. France and Germany are growing at one per cent of less, and Italy is flat or negative. I don't know Japan's growth rate off hand, but Japan has had a contracting economy for the last 15 years, despite massive government spending.
The run on the US dollar is being caused by something other than the economic fundamentals.
I agree that complex problems cannot be narrowed down to a sound bite or catch phrase
It all depends if you already agree with his viewpoint oon any given subject.
Amazing how something we normally avoid like the plague is suddenly a benefit to be longed for.. Seems like the world gets turned upside down when things are in the crapper. It's like being in a sinking boat, noting that the water level rose faster in the last 10 minutes and hearing someone say 'that's good.. it'll be over sooner..'
That is simply not true.
If the US stopped using foreign oil the world markets for oil would drop dramatically. There would be a glut of oil dropping prices accordingly.
So we would be stuck with our high price domestic alternatives while the rest of the world would be competing against us with cheap energy. Not a smart move...
The situation is more complicated.
The energy issue isn't about replacing 100% of our oil consumption with other energy forms. It's about replacing enough to reduce the pricing leverage of the producing countries.
If that is the goal, replacing it with domestic oil production is better - and less expensive.
It's a system in constant flux. You don't want the boat sinking, but you don't want it riding too high in the water, either.
So, when things start turning bad there will always be some folks out there who point out the good points (which don't outweight the bad) and when things get going in the right direction others will point out the bad points (which don't outweigh the good).
Right, and then there are those who will say anything to try and shore up the base..
Americans have gotten very good at sniffing the air.
..and more vocal about what they smell in it.. lol
I'd be really curious to know who is unloading their dollars. I suspect it's more than a few of the hedge funds.
The level of unrest out here in flyover just keeps climbing. My interest is what it's going to do to that dynamic. I talk to 300 people a day. People are complaining that they can't afford to drive to work. People are buying gas with Silver coins from their coin collections. And it reminds me of what Patton said of the German offensive when he saw the wooden hand pulled carts on the battlefields in Europe.. People are tapped out. Average people. They're being squeezed for every drop and already under immense pressure.
These politicians keep mucking around, they're going to have a bigger mess on their hands than what I've predicted.
What did Patton say? I don't know the quote.
NYC is somewhat booming. Of course that can turn on a dime.
Wasn't thinking of the specific quote, it was more noting that the war was essentially over. The Germans couldn't afford the fuel to pull supplies with their regular transports and their tanks were running out of fuel on the battlefield. I've sold a lot of silver coins in the past several months that people used as cash rather than collectable. For all the talking up of the economy, this one's an indicator for collectors - making them happy for their coin collections. When the economy is in the crapper, the old coins come out in spades.
Kennedy halves, silver quarters, halves and dimes, parts of proof sets, indian head cents here and there, tons of wheats..
I'll add that to my list of anecdotal economic indicators. In the city I use empty store fronts.
I wandered into an uber-hipster boutique several days ago and watched a 16 or 15 year old buy $700 worth of over-priced t-shirts without blinking an eye -- or pausing in conversation with her friend as she handed over the credit card.
Obviously, you understand Economics.
Tax Cuts, etc., booned the money flows. If, money flows are not balanced, this is what brings on inflation. The Feds are doing the exact right thing!
Months ago Mr. Bernanke had said the goal was to minimize inflation and to MOVE exports. This is exactly what is going on now.
P.S. I read this morning that Zimbabwe is suffering HYPERinflation. Later on in the article, Mugabe was quoted as blaming bad conditions coupled with blaming the US for the bad conditions. That article (Mugabe specifically blaming the US for the HyperInflation) can is no longer be located by me. It disappeared. The others which remain are much "tamer".
Fed Chairman Bernanke is doing the EXACT right thing. And he said he was going to be doing this months ago. And the reason for doing this is to head-OFF inflation.
Current data suggests also that this move to slow down the dollar is the right one also in that the US can take this so-called beating; and must. It is time to move EXPORTS. And as the dollar dips, it makes it much more affordable for countries to want to purchase US-made goods.
The smart money understands this, and then moves its dollars to where those dollars will maximize a profit.
Exactly.
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