So, how will spending our way out of recessions end?

[shangshang]

You all need to understand that America is fucked up beyond cure. As of right now, America is mainly living out its remaining days while waiting for Red China to take over. China doesn't have to do a damn thing excpet watch America slowly die via self-deterioration.

All you niggas are debating over a dead future.

 

[Narmer]

You all need to understand that America is fucked up beyond cure. As of right now, America is mainly living out its remaining days while waiting for Red China to take over. China doesn't have to do a damn thing excpet watch America slowly die via self-deterioration.

All you niggas are debating over a dead future.

The day China tries to take over America is the day China ceases to exist.

[RED DAWN]
Person A: ...600 Million Chinese.
Person B: Wait, I thought there were 1 Billion Chinese.
Person A: There were.
[/RED DAWN]

 

[Darwin333]

The results are already in; the dollar has hardened, we've seen half a million jobs gained in just the last few months, a 10% upward swing in GDP growth from low to high point since Q4 2008, stabilizing house prices, etc. Wages and jobs will lag as they always do, that isn't anything new. Hyperinflation will continue to be a red herring. The same people will continue to be wrong about the economy, not man up about it here, and then rear their heads again in another 5-10 years when we have another slowdown and/or recession.

Government deficit spending replacing real GDP isn't exactly something to be jumping for joy about nor is it a sign of improvement. Spending $500 a month on your credit card is not the same thing as getting a $500 a month raise, it actually has quite the opposite affect because the debt must be serviced (which we are doing with a different credit card right now)...

 

[Jhhnn]

Germany and USA are not even remotely comparable. They are a top exporter, #1 I think even ahead of China, we are a top importer. They save, we don't. They shut down scamsters in their markets, e.g. derivatives, etc. we welcome it. They have a highly educated workforce. We are idiots with massive drop out rates and with mainly foreigners staffing our science and engineering graduate programs. I could go on but he fact is Germany can afford to bail out their eastern brothers in 1989, could afford to take their DM hit when going Euro, can afford to bail out PIIGS and be no worse for the wear.

You're right about Germany- they were quite upset when China displaced them as the world's #1 exporter awhile back... They seem to be able to accomplish what America can't- a very strong manufacturing base with wages and benefits that many Americans would envy, all at the same time...

Maybe their capitalists are a tad less greedy and a bit more patriotic, too... Maybe they've found ways to not bleed jobs and capital... I really don't know how that's accomplished, but it's not done with taxcuts, bet on that...

 

[Budarow]

It seems like the world wide "debt game" is starting to end faster than anyone ever expected.

Aren't China and Japan the only super powers left with currency reserves? Seems like China has ~$2.5T and Japan ~$2T (minus their $1.5T in debt from the 80's/90's in shell banks)?