Deflationary Collapse...

[G27]

WARNING: Deflationary Collapse Dead Ahead - The Market Ticker

I've been watching this for some time and think he's right - I don't think this is an 'if' (theory) anymore, but rather a 'when' (fact). Sadly, it appears all efforts being made by those in power - regardless of party affiliation - are to help big business and their interests before it officially hits the fan.

Hard to argue with the numbers - we're on the very brink of insolvency, if we've not toppled over the edge already. I truly believe we're about to see a fundamental change in the world as we know it - it's going to be a very rough ride over the next few years. It might take 5-10 years to really feel the effect, but it's coming.

[oldogy]

No argument from me. I saw this mess coming and believe it will get much worse. Simple fact, you can not borrow or spend yourself out of debt. There will be an adjustment and it is going to hurt.

oldogy

[G27]

No argument from me. I saw this mess coming and believe it will get much worse. Simple fact, you can not borrow or spend yourself out of debt. There will be an adjustment and it is going to hurt.

Indeed, except the difference is this 'correction' will likely make anything we've ever expereinced as a country look mild in comparison. The numbers look very, very bad.

[Guest CrazyLincoln]

WARNING: Deflationary Collapse Dead Ahead - The Market Ticker

I've been watching this for some time and think he's right - I don't think this is an 'if' (theory) anymore, but rather a 'when' (fact). Sadly, it appears all efforts being made by those in power - regardless of party affiliation - are to help big business and their interests before it officially hits the fan.

Hard to argue with the numbers - we're on the very brink of insolvency, if we've not toppled over the edge already. I truly believe we're about to see a fundamental change in the world as we know it - it's going to be a very rough ride over the next few years. It might take 5-10 years to really feel the effect, but it's coming.

Having studied economics at length, I'll put in my $2000.00 (the value of $.02 after epic deflation).

While this has the glimmer of tinfoil hattery, it is not that far fetched. The consumer credit sources have corrected themselves after our recent economic fiasco, however, the largest borrower in the country, the US Government out shadows us all, and it appears they have no intention of stopping.

Keep in mind, deflation will make those with wealth much wealthier, and those without will struggle much more to acquire wealth.

Additionally, our current political climate is running under the princliple of kill the goose to get the golden egg. While providing more and more benefits for the employed (or would be employed) and less and less incentive for the employer. This forces out production, causing a trade deficit. This leads to less GDP, thus less tax revenue, thus more government borrowing. This eventually leads to national insolvency.

Essentially by engaging in class warfare, the Dems are actually expanding the gap between the rich and poor in the long run.

Want to save our economy? Regrettably we need to take a lesson from China. Their economy is booming. Why?

They imposed stiff tariffs on imports, thus making it more profitable to produce nationally than import. Additionally, they lowered export tariffs to make it not only profitable to produce nationally, but export as well. Finally, the lowered business taxes across the board to encourage businesses to produce.

We want to save our economy? We need one that produces. We need a climate to encourage production. Increased production leads to increased GDP, which leads to more jobs and more tax revenues. Additionally, companies will have more money to spend on wages and benefits and the like. We do not have to follow China in employee treatment, but we do need to follow their top end model, in a business sense anyway. Also, our government needs to stop spending in the red year after year.

Once upon a time, as a nation, we had a goose which laid golden eggs, but recently it seems we have beaten it when it does not produce. And I see Washington (both parties) taking the ax to the grinding wheel with a twinkle of greed in their eyes.

But what do I know, I've never spent as much as a day as a community organizer......

[Guest Muttling]

I was born in 1969, a magical year as spending goes.

It was the LAST time we had a balanced budget outside of the years of "he who shall not be named" and that president shut down the Federal government on a couple of occassions to FORCE Congress to send him a balanced budget.

It doesn't take a rocket scientist to realize that you can't spend more than you make for the vast majority of 40 years and avoid bankruptcy.

Unfortunately, the American voters are easily bought by the promise of new jobs and "No new taxes." They can't comprehend the concept of paying off their own credit cards, much less having a government that pays down the national debt.

Republicans and Democrats are equally to blame in the fiasco and it don't look pretty.