Great Depression of 2016

[rufus]

Dennis, sadly, sometimes those comments tell more about the mindset and intelligence of the nation. It worries me.

As for the Arabs, they have no qualms about talking out of both sides of their mouths. They are very skillful at it.

They should have used their day in the sun to educated and train their population. Instead, they all got degrees in religious philosophy. The manual work of the nation is being done by imported laborers. What is going to happen when that oil revenue is not that great? Currently, ninety two per cent of the government's income comes from the oil and gas industry. I can't see them mopping floors and washing dishes.

Sometimes, reality bites.

 

[rufus]

http://www.usatoday.com/story/money...oyment-rate-is-still-far-from-normal/4411359/

If you fail to meet the goal, just redefined the goal. The economy will never recover as long as we have an anti business administration and a hostile bureaucracy. We have taxed and regulated ourselves out of business. What now?

 

[hemet dennis]

http://www.usatoday.com/story/money...oyment-rate-is-still-far-from-normal/4411359/

If you fail to meet the goal, just redefined the goal. The economy will never recover as long as we have an anti business administration and a hostile bureaucracy. We have taxed and regulated ourselves out of business. What now?

Well in my eyes I don't see a problem with a slow recovery. Every time we have had a recession we did extreme measures to have a recovery, that has just quickened the pace to the next recession. So given a slow recovery maybe we wont see another recession so soon.

 

[rufus]

Hopefully you are right Dennis. If they would stop fiddling with the money supply and let the market set the interest rate, that would hurry things along.

My proposal:

1 Stop fiddling with the money supply and let the market do its thing.
2 Eliminate the double taxation of corporate earnings. They are taxed as corporate income when earned and then taxed again as income when the investor receives the dividend.
3 Interest on savings accounts and bonds should be tax free.
4 Return to tariffs to support the government. We need to move away from the income tax so that the nation can rebuild its capital base. This will also put our people back to work when foreign goods become more expensive than domestic products.
5 Take a long hard look at "entitlements" like food stamps and unemployment. They need to be restricted to the very needy and not be a regular source of income.
6 Amend the Affordable Care Act or eliminated it.
7 No more pointless wars. No more foreign aid.

People won't like it, but it will work.

 

[Dwkuska]

SNIPIT
My proposal:

7 No more foreign aid.

People won't like it, but it will work.

Unfortunately suspending or halting all together foreign aid would be a death sentance not only to the US but to just about the whole planet. Sadly the world economy is now interdependant upon each other. In many cases we are giving foreign aid to countries in exchange that they buy a certain amount of product from us be it food, textiles, or military applications. I know looking at the amount we give to other nations may seem like hand outs. But in many cases foreign aid what stabalizes the world economy.

The US is now completely incapable of holding its own economy together. Consumers dictate prices they are willing to pay and sadly most of the goods we use/consume every day are only "affordable" because we have them built in third world countries that we subsidize with govt. foreign aid. Their is a laundry list of countries both past and present of countries who thought calmping down the borders and only worryinag about themselves failed horribly. Most notably N. Korea, and Japan Pre 1942

 

[rufus]

Sad to say, but you are correct, but we can no longer afford to be the big dog. Let China fill the void. They are pretty much doing so now. They own so much of our industry and real estate now, it is scary.

 

[newfoundland]

I heard on the news last week that a Chinese trade deligation were coming over to my home county to discuss their interest in purchasing our famous Lincolnshire red beef, with local farmers. This is the way forward. We must sell them our prime products whether they be prestige motors like Rolls Royce, rare fine Scotch whiskey, artisan cheeses, and of course our prime cattle.

They cannot compete with these products because they have never manufactured to the high end market. In the case of food and drink, only certain climates and conditions are suitable for growing and rearing specific foods. You cannot grow true English strawberries in California, and the most flavourful and exquisite tasting raspberries only grow in Scotland. The US must have many products that they can market vigourously in China. Whilst I would agree that the UK has an obvious advantage both buying and selling in China, due to Hong Kong being a crown colony until recent years, it is a free market place and we should all jump on the badnwagon.

 

[rufus]

The Chinese have a habit of buying industry and real estate in other countries. They bought farm land in Brazil and Argentina. Now the question is to where will that produce be shipped? They bought Smithfield Ham, so will that product go to China? We very well could find ourselves unwelcome guest in our own country.

They hold so much of the US currency, and they are buying hard assets before the dollar loses its value.

 

[Dwkuska]

SNIP
They hold so much of the US currency, and they are buying hard assets before the dollar loses its value.

Well then they are too late lol!!! The USD is already starting to destabalize as is the Euro and even the Chinese are fighting with slowed GDP and a currency that simply cant be artificially inflated any longer.

 

[rufus]

It appears that the long term goal of China is to be the banker to the world. The renminbi would replace the dollar as the reserve currency. That is why they are buying so much gold. It would be backed by precious metals.

Once oil is priced in renminbi, the dollar and the euro will lose value rapidly. To pay for imports we would have to purchase renminbi on the open market.

We would see an inflation of prices without a corresponding rise in wages. That means a rapidly falling standard of living. The government's reaction would be to print more money because that is how they would have to pay the nation's debts. And that will lead to hyper inflation. When one gets paid, they would have to spend the money right a way, because tomorrow it will be worth a lot less.

The dollar would be a ruined currency.

Then, no matter how much money they drop into those EBT and other welfare programs, those people would not be able to buy anything. And, those people will not do without or be denied what they think they have coming to them. And now, we know why the government is buying all of those bullets.

It would be a good time to be living in the wilds of Canada.