[DAdams91982]

Bottom line IS... Dems control the purse strings right now... so why arent they cutting funding to the war? Do you really think a Dem president is going to change the economy that much? Hell, the federal government doesnt even control inflation, the non government entity federal reserve does.

So if anyone is to blame it is the reserve.

Adams

[DAdams91982]

Originally Posted by Soup Nazi

Pissed about gas prices? BUY OIL STOCKS!

I think good for the short term, but from what i have read, the pendulum can only go so far until it has to start swinging the other way.

So much for the theory of a war for oil.

Adams

[DougMan]

Originally Posted by DAdams91982

Bottom line IS... Dems control the purse strings right now... so why arent they cutting funding to the war? Do you really think a Dem president is going to change the economy that much? Hell, the federal government doesnt even control inflation, the non government entity federal reserve does.

So if anyone is to blame it is the reserve.

Adams

This conversation had very little to do with democrats versus republicans... The issue was government debt as related to currency value. I think the 9.4 trillion dollars in government debt would be a pretty serious factor affecting the inflation of the money supply. Bobo/Kramer/Soup Nazi seems to be arguing it is not very relevant. I have not had time to look into the M3 or other money supply measures to see if this is correct. If it is not then that is good, as that means the fed can just print off our debt and it will not matter, right?

The main part of the argument I do not totally buy is using past performance as an indicator for future results. I think factors such as the existence of a strong competing currency (the Euro), and the need for a whole list of factors needing to return to historical norms such as housing prices, savings levels and debt levels spell trouble for the US economy. No it is not as bad as the 70's yet, but as I stated before complacency is a bad way to set policy. Also the composition of the US economy has changed to include more financials, which judging by the last few months are much more susceptible to sudden collapse.

[Frank Costanza]

Originally Posted by DougMan

This conversation had very little to do with democrats versus republicans... The issue was government debt as related to currency value. I think the 9.4 trillion dollars in government debt would be a pretty serious factor affecting the inflation of the money supply. Bobo/Kramer/Soup Nazi seems to be arguing it is not very relevant. I have not had time to look into the M3 or other money supply measures to see if this is correct. If it is not then that is good, as that means the fed can just print off our debt and it will not matter, right?

The fed has already hinted at a halt in rate cuts....the decreasing of printing and actually stated more concerne in strengthening the dollar. Why? Because its its approaching its traidtional low leve in terms of the 25-30% fluctiation. Much of this is a responde to what Greenspn did in the 90's. It has little to do with any administration.

The main part of the argument I do not totally buy is using past performance as an indicator for future results. I think factors such as the existence of a strong competing currency (the Euro),

That's always been there. If its not the Euro it was the Pound...if not the Pound it was the Yen.

and the need for a whole list of factors needing to return to historical norms such as housing prices,

approaching that now....We've had a 41% increase in sales from this time last year and this area is basically one of the hardest hit. Why? Price.

savings levels and debt levels spell trouble for the US economy.

Not much we can do about personal spending but the credit crisis basically eliminated the majority of the problem. People simply overspent and you are seeing the result now and available credit is diminishing. I mean, I bought my house being self employed with no income verification. That's just ridiculous and these banks are paying for it now.

No it is not as bad as the 70's yet, but as I stated before complacency is a bad way to set policy.

Nobody is complacent but forcing policy in terms of a historical perspective usually makes matters worse...not better. The housing crisis is a result of forcing ideology (Community Reinvestment Act) on the banks....not the free market.

Also the composition of the US economy has changed to include more financials, which judging by the last few months are much more susceptible to sudden collapse.

More financials because its more a global market and people need to start thinking in terms of that, rather than a domestically dominated market. The time of the US being the single most dominant economic power is going to be over and its not because we are doing something wrong, its because countries with 1/3 the worlds population are now following an economic model we've had in position for a century. You now have MUCH more competition globally rather than limiting competition to domestic markets.