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Unread 3 Feb 2006, 19:23   #9
wu_trax
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Re: [economics]the state of the us-economy

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Originally Posted by Toccata & Fugue
Yes genius, but obviously at some stage you reach a point where ends don't meet any more. Also most people don't own their own home, so they don't benefit at all from the house price rise, except perhaps to watch their rent go up. I live in London, you do not want to be talking about other people's rediculous house prices.

In terms of the US trade deficit, I am not scared at all, why are you scared? What do you get care if the yanks **** up their economy. If I were you I'd be more worried about how the ECB is ****ing European growth.
Why I care about the yanks? Because when they are gone as consumers the whole world economy is going to be in a lot of trouble and I dont really see what the ECB or anyone else can do about it.
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It would be easy for the Federal government to divert more real money to its consumers and invest more in its production but it chooses instead to let it leak out of the country. The short terms problems of a consumer spending slowdown would be a restructuring of investment which would cause hardship for a lot of people. However in the long run perhaps the US government might consider turning the tap off corporate subsidy and putting a bit of money the way of its citizens.
It (Well, the Federal Reserve, not the US government) has been diverting lots of money to consumers in the last 10-15 years, that's what caused the whole problem in the first place.
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To be honst Wu trax you spend far too much of your time worrying about meaningless numbers, you sound like a speak-your-weight machine when it comes to economics. You should be focusing on people's quality of life. You talk about higher mortgages as if people are happy to keep on borrowing so they can fuel the consumer boom. People buy what they want but their wages have to rise as well. At the moment, as your article suggests, there is a slowdown and inflation is up so whatever the growth and investment statistics say are kind of unimportant if its just large corporations passing money around each other.
With low interest rates and rising house prices they actually are happy about their higher mortgages. Yes, their wages have to rise aswell, unfortunatly they don't, that's why the whole situation appears to be so unsustainable.
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You should know by now that 60% of capital flows are simply one corporation transfering money to itself in another country, so nothing has grown, but its counted as growth. Its nonsense, you need to grow up and start looking at economics properly.
What?

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Its the same with the Chinese owning Government bonds, you are talking as if American investors care whether its CHina gorwing or America growing, as long as the numbers are going up their happy.
So what? I dont care much about investors, my point is that at the moment I think neither will be growing when the US-consumers stop spending more money than they actually have.
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im not tolerant, i just dont care.
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