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Global Economy Bursting?

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Austin said:
It takes a lot of nerve to ask people you bail you out because you are not willing to make any sacrifacies to help yourself. If I were the Eu I would them to take a long hike east from the white cliffs of Dover.
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And that would unravel the entire European Union.

The irony is, as long as the economy was positive, no problem. Now that debt has to be rolled over, and the economy is running deficits, with no political will to raise taxes and cut spending, new debt is being piled on top creating the inevitable crush. Interest rates skyrocket as investors realize that they may be taking a loss of principal, if no bail out occurs.

The U.S. is getting a free ride. We are running a positive GDP growth and it is because we continue running up the debt with deficit spending. The difference is, our central bank buys our debt - a bail out - and keeps short term interest rates at zero. The justification is we need inflation.
 
Inflation

Randolph Kinney said:
The U.S. is getting a free ride. We are running a positive GDP growth and it is because we continue running up the debt with deficit spending. The difference is, our central bank buys our debt - a bail out - and keeps short term interest rates at zero. The justification is we need inflation.
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Inflation was touted as to get us out of the depression in 1933. Watch this propaganda film from MGM to see how inflation will save the economy. I especially like the evil mortgage guy who is mad because the farmer is able to pay his mortgage and he doesn't get to take the farm.
http://www.youtube.com/watch?v=JUvm9UgJBtg
 
VegasWayne said:
Inflation was touted as to get us out of the depression in 1933. Watch this propaganda film from MGM to see how inflation will save the economy. I especially like the evil mortgage guy who is mad because the farmer is able to pay his mortgage and he doesn't get to take the farm.
http://www.youtube.com/watch?v=JUvm9UgJBtg
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The money less valuable ... leads to the 3 lines converging; income, cost of living and money value.

Gee so simple .. but it never works that way. In the graph with money more valuable, the cost of living exceeds income. After inflation (money less valuable), the cost of living exceeds income although they show all lines converging.
 
I remember watching the movie “Patton” back in the 1970’s. It was about the life of General George Patton. I remember one scene in the movie that stuck in my mind. General Patton and General Bradley were standing on a battle field the day after a big encounter. The field was strewn with broken equipment and dead bodies. General Patton told General Bradley that the end was near and that the war would be over in a matter of days or weeks. General Bradley asked why. Patton replied because the Germans were using horse carts so their resources were obviously depleted.
I see the government shut down the same way. Why are Democrats so excited about a government shut down? It is because they are down to using horse carts to run the country and they know the end is near. The government shut down gives them an out because it will precipitate the final collapse and they can blame it all on the shut down and the Republicans who caused the shut down. It is a device called the straw man maneuver. You create a straw man, the shut down, then during the shutdown you make darn sure the financial collapse takes place on Q (no Q3) and blame the shut down for the collapse and claim it was caused by the Republicans for refusing to compromise.
I really don't see the point of it all because after all is said and done the two parties will both be descredited so who will care what the history books say or what the political class thinks. It will be a whole new ball game.
The Republican leadership is just as big government oriented as the Dems so in my view it kind of watching a fist fight between two guys you hate. You can just enjoy the fracas and hope they beat each other to death. I ain’t got no friends in that fight so let them have at it. Shut her down says I and let the games begin.
 
Austin said:
Kill the recovery my foot! That would have killed the Reagan boom. Guess what I did all day today? Planted corn. :shrug: I am thinking about planting a whole field of sweet corn and giving it away.

The country exists on life support and they are going to plug the plug this weekend.
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Can you elaborate on how they are going to plug it? Do you see a drop on the Markets?

By the way, I also loved Patton.
 
Silver hit $40 an once.

Gold, oil and silver prices are increasing in response to growing demand in China and India.
 
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