[wu_trax]

Originally Posted by Toccata & Fugue

In response to Wutrax

Well in the short term the world might be trouble as things adjust but its important to understand that much as they would like you to believe the global economy isn't dependent on a bunch of middle class yanks and in relatively short time the market would adjust. it seems like a very short sighted view of global economics. If these people have no momey then it is elswhere, if they do have money, but they aren't spending then it is invested so first of all its not like the momey has disappeared.

And you talk about my oversimplified view on economics...
Yes, the money is elsewhere, it's at the chinese central bank and not doing much really, besides beeing lended again to americans who then buy more chinese stuff.

Secondly if there is such a alrge quantity of US consumer capital, how come they are borrowing so much? That sounds firstly like a bubble to me and secondly it means that things were going fine before. So I am asking why you care and the answer seems to be that you imagine for some non-obvious reason that the world economy is dependent on the whims of the American consumer.

They are borrowing because money was cheap. My 'non-obvious reason' why this means trouble is that american consumers consume quite a large part of the global production. Every half-sane economist in the world knows that.

Teh social security system is an example, its not important where the money goes, simply to realise that that despite your faith in the power fo American consumer spending, far greater amounts of money are being squandered, which reveals to us what a paperbag the whole American economic model is.

As for making generalisations about rednecks, well I would like to see your evidence. As it happens Americans do seem to want healthcare:

http://www.usatoday.com/news/health/...lth-poll_x.htm

"By almost a 2-1 margin in this poll, 62% to 32%, Americans said they preferred a universal system that would provide coverage to everyone under a government program, as opposed to the current employer-based system."

whatever, i talked to some and they all seemed to be completly nuts, so i gave up. anyway, thats not the issue here.

But its interesting that you cry about the decline in consumer spending and say that's our problem but when you come to social security, that's their problem. Which is it? Its the same money right? I am not really sure what your objectives are from the US economy.

Is this really so hard to understand? Even if only the top-two-percent of the american population would consume that large part of the global production while the rest is close to starving to death, it would be the consumption of those two percent i would worry about. I wouldnt care about the problems of the other 98%. It's their problem, after all, they elected that nutjob in the first place.