US Economists Need to Reload the Gun. - FMVperformance.com : The site for all your Ford Mazda and Volvo needs
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post #1 of 11 (permalink) Old 05-25-2005, 02:03 PM Thread Starter
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US Economists Need to Reload the Gun.

Face it. Interest rates are going to rise sharply in the near future. The US Economy at peasant is sustaining itself but not growing. Interest rates are still at historic lows which means that money is cheep and, excuse me for saying, almost free. The low rates are the only thing keeping the economy at present from a total collapse not scene since the great depression.

If the US is hit by another recession right now the entire system will collapse.

The only way to do this is to industrialize and start producing goods that are made in the USA. This is difficult though because of world events the global economy that offers cheaper labor overseas in countries like China and India, which are presently the world growth leaders. Also to further compound the problem at hand, world industrial bearing production is presently at its absolute maximum. Steel prices are shooting trough the roof because very little new steal is being produced. Most of what is available on the market today is from re-melt facilities and not from foundries with the ability to produce from raw materials.

China.

The Chinese government has pegged their currency at an artificially deflated rate to the US dollar since 1996 and has refused to let it trade on a floating exchange. This is just amount to economic warfare against the US economy but yet the US government refuses to challenge them on the issue, causing the US economic system to hover at its current rate which is one recession away from total economic collapse.

The US economy needs t reload the gun, otherwise we will all feel the heat of the blast the next time the firing pin comes down.

Discuss amongst yourselves.
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post #2 of 11 (permalink) Old 05-25-2005, 02:08 PM
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US Economists Need to Reload the Gun.

US Manufacturing is dead for most things, and it should be. You simply can't produce things cheap enough in the US. In order to do that, you'd have to pay less and bring down the standard of living.

US manufacturing may live on with items that are produced largely by robot, though. Cars to some extent, microprocessors, etc.
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post #3 of 11 (permalink) Old 05-25-2005, 02:21 PM
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US Economists Need to Reload the Gun.

US economic growth is actually outpacing that of the rest of the industrialized world-- we're estimated to grow 3.6% this year, next to about 2.7.2-8 for the rest of the first world. Inflation is supposed to be around 2%.. that's 1.6% growth, not too shabby..

Enjoy your spahgetti, you're very rude.


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post #4 of 11 (permalink) Old 05-25-2005, 02:48 PM
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US Economists Need to Reload the Gun.

Something you didn't mention is WHY interest rates are down, and that is because other countries, primarily China, are buying US debt at a pretty fast pace. Because the Chinese pump so much money into the US economy (by purchasing bonds, etc) we can see low rates, they keep the dollar stronger, and we buy more of their goods, while their pegged currency stays strong on world markets but artificially so.

Unpegging the Yuan would cause some pretty big short-term problems in the US, especially if the Chinese sought to unload their dollars on the world market. But in the long run, it could only help American exports, reduce our trade deficits, and strengthen the dollar.

The next step is obviously to bring American manufacturing back, but I'm not sure how best to do that.

The other question begging to be asked is what is the proper value for the dollar, after the artificial strong dollar policies of the 90's proved to be more of a problem then a benefit...
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post #5 of 11 (permalink) Old 05-25-2005, 03:48 PM
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US Economists Need to Reload the Gun.

Well, US Debt/Deficit is the really big problem - the higher that goes, the more foreign countries end up owning in the US. That's OK for now, but eventually we'll hit a wall with that and run into HUGE problems.
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post #6 of 11 (permalink) Old 05-25-2005, 09:36 PM
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US Economists Need to Reload the Gun.

Yea i agree the with mazda zoom, with one exception. I dont think the national debt is a problem. :?


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post #7 of 11 (permalink) Old 05-25-2005, 10:17 PM
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US Economists Need to Reload the Gun.

And that is because...?
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post #8 of 11 (permalink) Old 05-25-2005, 11:23 PM
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US Economists Need to Reload the Gun.

Its not a really big threat cuz national debt is really gov. owning money to whoever bought bonds. At least thats one way that the govn. borrow money.
So its like we own money to ourself. yea cant really explain this clearly =( sorry.


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post #9 of 11 (permalink) Old 05-25-2005, 11:25 PM
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US Economists Need to Reload the Gun.

what a troll, chinese exchange issue is such a tiny factor in the us deficit, jebus, quit eating straight from rove's hand

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post #10 of 11 (permalink) Old 05-25-2005, 11:40 PM
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US Economists Need to Reload the Gun.

Quote:
Originally Posted by "phan95"
Its not a really big threat cuz national debt is really gov. owning money to whoever bought bonds. At least thats one way that the govn. borrow money.
So its like we own money to ourself. yea cant really explain this clearly =( sorry.
Except that increasingly, it's foreign governments and banks that own those bonds.
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