Burning Giraffe
Active member
- Joined
- May 9, 2009
- Messages
- 357
- Reaction score
- 121
- Location
- Burgaw, NC
- Gender
- Male
- Political Leaning
- Libertarian
The Democrats are about to experience unprecedented embarrassment, humiliation, and shame in the coming months, as the stock market and economy implode. The fact is, the United States government blew through over one trillion dollars in an irresponsible attempt to sustain state and federal bureaucratic growth. They bet that this recession was a joke, that the private sector would essentially recover on its own and that the government could simply cash in on the public panic. They were wrong; or, at least, it appears that way.
Paul Farrell, of MarketWatch, is predicting an imminent economic crash and the unnerving last gasps of the worlds capitalist engine. Frankly, I think this is all a mild overreaction to the coming disaster. I remain confidant that people from California to Berlin will overtake their governments and save themselves from one final attempt at global government and the solidification of centralized corporatist take over of the global economy.
Absolutely.
The most frightening reason for our economic woes has nothing to do with big corporations or big government, with Wall Street or the Federal Reserve. The real reason is our fault, our problem, our bad. As most students of economics know, the health or illness of any economy is most easily predicted by its productivity and the world is simply becoming less productive. We've borrowed and borrowed and invested like mad, but because we are not capitalizing on our investments and because we are not increasing productivity at nearly the same rate that we are borrowing money from each other, the worlds' population has created a staggeringly nasty bubble of debt.
The OECD(Organization for Economic Cooperation and Development) laid out in 2009, a serious reminder that has gone ignored by nearly every government in the industrialized world.
If this sparks any curiosity within you, I'd encourage you to click on the OECD link and read the rest of what they have to say and demonstrate.
The world is heading toward a crash. Yes, we can blame our governments, but in the end, this is our fault. We took ourselves out of the game and made others responsible for our finances. Now we are going to experience the nasty consequences of those lazy choices.
The Democrats that have been promising salvation and this President who promised us that his election would be the day that the world took a turn for the better, are going to flounder. Will their embarrassment be so severe that they refuse to go out peacefully? We shall see.
Paul Farrell, of MarketWatch, is predicting an imminent economic crash and the unnerving last gasps of the worlds capitalist engine. Frankly, I think this is all a mild overreaction to the coming disaster. I remain confidant that people from California to Berlin will overtake their governments and save themselves from one final attempt at global government and the solidification of centralized corporatist take over of the global economy.
Earlier economist Gary Shilling said price-to-earnings ratios are at a "nosebleed 22.5 level." The Dow was around 11,000. Money manager Jeremy Grantham recently said the market's overvalued 40%. That could mean a collapse to 6,600. Last week in Reuters' "Markets Could Be Derailed Again," George Soros echoed a "game over" warning with a "stark warning ... that the financial world is on the wrong track and that we may be hurtling towards an even bigger boom and bust than in the credit crisis."
Now Dow Theory's Richard Russell is warning the public of an imminent crash: "Sell ... get liquid ... by the end of this year they won't recognize the country."
A bigger meltdown than the credit crisis? Yes, Bush's team drove America into a ditch. But now Obama and his money men, Summers, Geithner, Bernanke, are digging the hole deeper. Soros says we have not learned "the lessons that markets are inherently unstable." As a result, "the success in bailing out the system on the previous occasion led to a super-bubble." Now "we are facing a yet larger bubble." Worse than 2008?
Absolutely.
The most frightening reason for our economic woes has nothing to do with big corporations or big government, with Wall Street or the Federal Reserve. The real reason is our fault, our problem, our bad. As most students of economics know, the health or illness of any economy is most easily predicted by its productivity and the world is simply becoming less productive. We've borrowed and borrowed and invested like mad, but because we are not capitalizing on our investments and because we are not increasing productivity at nearly the same rate that we are borrowing money from each other, the worlds' population has created a staggeringly nasty bubble of debt.
The OECD(Organization for Economic Cooperation and Development) laid out in 2009, a serious reminder that has gone ignored by nearly every government in the industrialized world.
Discussions about the current crisis often present events in a sequence, such as that the US sub-prime crisis in August 2007 triggered a major inter-bank credit crisis, which transformed itself into a general credit crisis, the latter having an impact on the real economy and overall business and consumer confidence. However, some commentators have made reference to other explanations, more linked to the evolution of economic fundamentals. Therefore it is interesting to investigate what was actually happening to some data concerning the real sector and especially productivity trends in the major OECD member economies before the 2008 financial crisis. An issue with productivity data, notably multi-factor productivity (MFP) which is a measure of technical progress, is that the data are available with some delay (typically 1-2 year lags). Nevertheless the statistics presented below make it clear that labour productivity growth was already slowing down well before the crisis. In particular, the Construction sector in the US, which in turn can be linked to the loose credit arrangements underpinning this sector, had displayed dismal and worsening productivity performances since 2002.
If this sparks any curiosity within you, I'd encourage you to click on the OECD link and read the rest of what they have to say and demonstrate.
The world is heading toward a crash. Yes, we can blame our governments, but in the end, this is our fault. We took ourselves out of the game and made others responsible for our finances. Now we are going to experience the nasty consequences of those lazy choices.
The Democrats that have been promising salvation and this President who promised us that his election would be the day that the world took a turn for the better, are going to flounder. Will their embarrassment be so severe that they refuse to go out peacefully? We shall see.