[Tortfeasor STi]

Originally Posted by IlliniSTi

Other countries dumping our debt would have significant impacts to our economy. It would further devalue our currency, adding to our current inflationary problems. In international trade, when we buy another country's goods, we buy it with dollars. That's so that they have to come back to us to use the dollars to buy our goods. In balanced trade, that works fine. But as we are all aware, the US runs a trade deficit. So since there aren't any goods to buy here, they have to either buy or debt or our assets. The only problem then comes in when protectionist policies come into play, like the Dubai Ports deal a year or two ago, which then makes our currency even more worthless. Eventually the problem gets so bad that we can't afford to buy anything, and we have a little or big) recession. Right now the current president and Fed are stoking us for a big recession, as opposed to moderating inflation and going through a small recession.

There is a lot more to the dollar's sinking value then the trade deficit. Remember that the trade deficit is measured in goods. Wallmart, a significant source of this trade deficit, is a U.S. company that manufactures abroad but reaps all the profits in the U.S. profits flowing from foreign investments are not measured in the trade deficit. All the trade deficit measures is manufacturing value, and obviously we don't do much manufacturing in the U.S.. The real cause for the Dollar's devaluation is the Subprime fiasco. Most other countries were heavily invested in the dollar to invest in our CDOs when they were making immense profits. They lost all their money when these started going belly up. The dollar started tanking as soon as our real estate markets started getting weak and the rest of the world started loosing money. This dropped demand for dollars, which devalued our currency. The funny thing is that now that our currency is devalued, the rest of the world is buying our debt with the full expectation of the dollar regaining its power as we work out of the Subprime issues. They are trying to arbitrage by buying when the price is low essentially. These new investments are actually going to help our currency.

Funnily enough, a side effect of the devaluation of our currency is that our manufacturing exports are picking up. Our aviation and shipping industries as well as our lumber and timber industries are picking up. Europe is so upset by the fact that Boeing is now cheaper then Airbus (despite all the tariffs they put on Boeing) that they are moving plants INTO the US in order to take advantage of our lower costs. China has known for quite a while that a devalued currency is a good thing. They have been systematically devaluing their currency in an effort to keep their cost advantage on labor and keep dollars and Euros flowing into their economies. The devalued dollar really only affects a few markets in foreign goods, but even there, our economy is so large they tend to reprice their goods in U.S. terms in order to keep their sales volumes high.

The end result of all of this is that the end is not near, we are doing just fine (ignoring subprime), and I wish Journalists would stop trying to interpret economic data they are clearly not qualified to make judgments on. The same people who failed out of freshman economics are now telling the people to panic over very technically complex economic indicators. They have no idea what they are talking about. This is not a jab at anyone in particular, it just seems that the papers are running around screaming the sky is falling like chicken little with no understanding of the actual complexities of the situation. Hell I don't fully get it. What I do know is that when people actually talk to the PHD economists that the PHDs are not nearly as concerned as the laymen.

[lackskill]

Originally Posted by Tortfeasor STi

it just seems that the papers are running around screaming the sky is falling like chicken little with no understanding of the actual complexities of the situation.

Isn't that the definition, mission statement, and requirement of a journalist? If there is no bad news they try to create bad news. Bad news is apparently good for business.

[S D M F]

Originally Posted by sujak

it's just to boost economy, their thinking.

give money to people, people will spend it thus boosting economy.

but didnt we do this before, and didnt it not really work?

it didnt work as well as planned because a lot of that money wasnt necessarily put back into the economy as purchases, rather debt payments...

its a good idea but when it is thought that all that money goes entirely to new purchases is when it supposedly "fails"

[Grunt]

Looks like the kickback has already been reduced to $600 for singles and $1200 for families. But the kicker is that these checks won't be going out until JUNE!!! Four months for a few hundred bucks. Gotta love the gubment.

[twigg107]

Originally Posted by Grunt

Looks like the kickback has already been reduced to $600 for singles and $1200 for families. But the kicker is that these checks won't be going out until JUNE!!! Four months for a few hundred bucks. Gotta love the gubment.

Its also $300 per kid you claim.... meaning I get $600 while my brother gets $2100..... Thats what I get for waiting on kids.

[STInk]

The budget deficit this year is projected to be $250B - not including this $100B re-distribution of wealth.
Last year the deficit was $160B.
Our total deficit is $9.7 trillion.
That comes out to $57k per employed American.


Bacon and eggs in France will now cost you $45.
An STI in the UK will cost you a little over $100k USD.
Canadian loonies are worth more than US dollars.
Inflation will probably reach 7% this year.

Do you still really think you're getting $600 for free?

[twigg107]

Whats funny is if every US citizen paid $30k at once, it would pay off the deficit. :/ That would never happen though.

[gormansscooby]

Originally Posted by twigg107

Whats funny is if every US citizen paid $30k at once, it would pay off the deficit. :/ That would never happen though.

That would do nothing though If the budget isn't fixed. It will just climb back up to that at an alarming rate.

[twigg107]

true.... I was just say.

[PBR600RR]

I'll take it... and spend it...

[RAS_STI]

Originally Posted by Szumita

bush said supposedly to help the economy, they are going to stroke a check to each person for $800. and $1600 for married couples.

well hell...if BUSH said it, then it has to be true.

remember these statements:

the war in iraq is over
Iraq having WMD

yeah...just a couple of small 'white' lies.

I wouldn't go buying your fuel pump and throttle body just yet.


this thread is making my huge balls climb up into my stomach. "words i hate for a thousand Alex" = sub prime / real estate collapse, Britney Spears, Nancy Grace's baby, our economy, inflation, housing market, recession. -ENOUGH ALREADY!

[///M Power]

I will believe it when I see it. Even if this comes through it will have a very small, if any, impact on the economy as a whole.....I dont even want to get started on Bush and his pathetic economic policy

[stiman1]

i'm pretty sure the bill was approved, but the amounts are $600 for single people, and $1200 for married couples.

It's good being married... on second thought maybe not, she'll want to spend it!!

[Grunt]

Listening to NPR yesterday and it was said that the bulk of the 2001 refund was spent primarily on clothes, health-related items, and food - in that order.

[gormansscooby]

Originally Posted by Grunt

Listening to NPR yesterday and it was said that the bulk of the 2001 refund was spent primarily on clothes, health-related items, and food - in that order.

Not surprising at all. I hate to say it theres usually a reason poor people stay poor. They don't know what to do with money when they get it. I saw some documentary on the lottery the other day showing the percentage of people that win it and spend it all to end up right back where they were. Wish i could find it. It was pretty interesting.