MikeJ-2009

It's sweet until you realize that China could already buy every square inch of America 3 times with what we owe them.

You might not understand this, but the reason for the inflation is because our government prints too much damn money. Then when the water looks rough, they print more money to send to people as a "stimulas".

China buys our T bills as an investment.
The fed prints more money (more inflation) and sends it to us
We buy goods made in china (everything is)
The taxpayers (us) must repay the T bills to the chinese plus interest

Who's getting fucked, and how will prices "come around"? lol.

JDMFantasy2K

right and printing money solves nothing, it's only a temporary fix because the effect of inflation will hurt most people.

yeah i meant to add that too, not to mention with the prime interest rate being WORTHLESS, who would want to make 2.25% on their investment in our country?

Dr.Boost

Who wants to take bets the economy WILL come back and the country WILL survive? :1 God damn CT's. :1
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Jorsher

Yeah, I told some people the stimulus package was a stupid ------- idea and they told me "it'll help the economy." They don't realise that the gov't has to get the money their paying us from somewhere. Either taxes (which we pay)or by printing it.

Either way, it's just decreasing the value.

Cray91

I am really not worried about all of this ----.

It is a make-beleive anyway. We never have money, just electronic numbers, and the economy is not a tangeable thing. :P

JDMFantasy2K

i can't imagine our government would just print money on a whim like that because if they did, it'd put us on an economic scale with jamaica. Little countries like that try to get out of debt by printing money and get more fucked. I'm sure the govt. understands this and does so anyway, but hopefully not on a huge scale. I was under the impression that the money for the stimulus plan was coming from tax money thats already collected, a sort of government piggy bank if you will.

Jorsher

I'm sure it's from taxes too, but either way when there's a debt, giving away money doesn't help. I'm not complaining because I need the money, just sucks to see the value of the dollar continue to fall. Either way they print/spend more money than they should, when there isn't technically money to be spending.

Would be nice if for once the gov't did something to reverse the deficit instead of increasing it.

Guy-Fast

You guys are all scared shitless. Great depression happened america became stronger were fine. Sub-prime fiscally retarded people caused the fuel. Once all the bull ---- loans are back the basis of peoples savings aka home ownership will be back to normal will just take a couple years.

JDMFantasy2K

right but put it into perpspective, how much has iraq cost us? Something like 4 trillion dollars? Seriously i think its some incomprehensible number, and the stimulus plan, even if it is a failure, i'm sure will still be a pimple on the *** of the debt of Iraq.

MikeJ-2009

The sub prime market happened because the government thought it wasn't fair that only people with jobs had houses. They make money easily available, irresponsible people shaft themselves, and instead of letting the market correct the government decides to try to bail them out (all the talk of freezing rates, etc..) The government creates the problems, and then tries to become Captain save a hoe by spending more money (taxing more).

We've become so reliant on our dollar being what international investors want that we let all the manufacturing and actual production go to other countries. Now that our dollar is worthless and the investment will stop (let alone the money we already owe), we'll be left with no dollar, and no manufacturing. We'll become professional consumers, and we'll produce nothing. The government is completely happy with this. They just gave a contract to France to build OUR MILITARY equipment, over the U.S. company who was bidding the job. They're fucken clowns.