Recession

[NorthCoastJetsFan]

No, the trade deficit is just one part of the national debt.

The trade deficit has absolutely nothing to do with the national debt.

Trade deficit is the difference of the value of goods imported and value of good exported.

National debt is the amount of money borrowed by the government to finance it's operations.

[Bugg]

The US gov't borrows 2 billion dollars a day to pay for it's trade deficit. But that has nothing to do with the national debt?

Our Chinese paymasters-who a. sell us all their junk consumer goods(mostly on credit) and b. finance our national debt (and set prime interest rates by their level of interest in such investments, which could get ugly if they decide they'd rather invest in Euro-based instruments) will let us all know about this some day soon. And as noted above, China is buying oil rights all over the place and they now own the Panama Canal as well as the shipping compnay that controls the port of Los Angeles.

Deficit financng makes sense in national emergency, or serious economic crisis. But Carter tried that in the late 1970s, and inflation and interest rates spiked simeltaneously.

The "trade deficits don't matter" school of economics dosen't seem to grasp that if good jobs flee to another country,we don't have consumers here to buy American goods, nor any American goods to speak of to sell to anyone, spare financial services, high tech industries and comglamerate commodities. I'm not a big fan of unions, but they aren't the whole reason our economy is fouled up.

[joebabyny]

The US gov't borrows 2 billion dollars a day to pay for it's trade deficit. But that has nothing to do with the national debt?

what you talkin' 'bout willis?

[Gainzo]

Our Chinese paymasters-who a. sell us all their junk consumer goods(mostly on credit) and b. finance our national debt (and set prime interest rates by their level of interest in such investments, which could get ugly if they decide they'd rather invest in Euro-based instruments) will let us all know about this some day soon. And as noted above, China is buying oil rights all over the place and they now own the Panama Canal as well as the shipping compnay that controls the port of Los Angeles.

Deficit financng makes sense in national emergency, or serious economic crisis. But Carter tried that in the late 1970s, and inflation and interest rates spiked simeltaneously.

The "trade deficits don't matter" school of economics dosen't seem to grasp that if good jobs flee to another country,we don't have consumers here to buy American goods, nor any American goods to speak of to sell to anyone, spare financial services, high tech industries and comglamerate commodities. I'm not a big fan of unions, but they aren't the whole reason our economy is fouled up.

I read an article in The Atlantic a few months ago about what you brought up. The Chinese could sink the US very easily as they hold a crap load of US currency. The Chinese are very concerned about the state of our economy.

[Cant Hackett]

No, the trade deficit is just one part of the national debt.

They are two separate things. They ARE each one part of the economic equation.

[Gainzo]

They are two separate things. They ARE each one part of the economic equation.

joebabyny has the luxury of being in a recession proof business so I don't blame him for disagreeing with the rest of us.

What are recession proof business'? Porn & booze.

[Cant Hackett]

Our Chinese paymasters-who a. sell us all their junk consumer goods(mostly on credit) and b. finance our national debt (and set prime interest rates by their level of interest in such investments, which could get ugly if they decide they'd rather invest in Euro-based instruments) will let us all know about this some day soon. And as noted above, China is buying oil rights all over the place and they now own the Panama Canal as well as the shipping compnay that controls the port of Los Angeles.

Deficit financng makes sense in national emergency, or serious economic crisis. But Carter tried that in the late 1970s, and inflation and interest rates spiked simeltaneously.

The "trade deficits don't matter" school of economics dosen't seem to grasp that if good jobs flee to another country,we don't have consumers here to buy American goods, nor any American goods to speak of to sell to anyone, spare financial services, high tech industries and comglamerate commodities. I'm not a big fan of unions, but they aren't the whole reason our economy is fouled up.

The bottom line is the US government is losing (lost) the ability to fix the economy on its own. If foreign investors pull out of the US markets, we are FxxK.

[Cant Hackett]

joebabyny has the luxury of being in a recession proof business so I don't blame him for disagreeing with the rest of us.

What are recession proof business'? Porn & booze.

Priorities

[Gainzo]

Priorities

When I graduated from College I should have turned down that software job and tried to get into the porn industry. Damn you Joe!!

[faba]

With the real estate market and the stock market both in the current state yes we are in the throes of a downturn in the economy. In my industry-financial services, including my own company, downsizing and rifs are happening and have been happening for awhile now.

[RSJ]

They are two separate things. They ARE each one part of the economic equation.

Nineteen percent of the country's annual budget is now being used to pay the interest on our national debt and much of this interest is being paid to foreign bond holders. Every year we ship boat loads of our wealth to countries all over the world to pay the foreign bond holders their interest! (Actually it is posted to their accounts electronically but it amounts to the same thing) We ship billions of our dollars (interest payments) annually, to Japan, China & Korea alone! This will continue forever and increase over time as our trade deficit continues to expand.

http://novan.com/economy.htm

[Jetlag]

Nineteen percent of the country's annual budget is now being used to pay the interest on our national debt and much of this interest is being paid to foreign bond holders. Every year we ship boat loads of our wealth to countries all over the world to pay the foreign bond holders their interest! (Actually it is posted to their accounts electronically but it amounts to the same thing) We ship billions of our dollars (interest payments) annually, to Japan, China & Korea alone! This will continue forever and increase over time as our trade deficit continues to expand.

This is why our vastly increasing debt is not a good thing. Essentially the lenders from these our countries have us by the balls. If our debt ever got way out of hand and they had a political squabble with us and decided it was time for us to pay up...UH OH! We would be in BIG SH*T.

[Gainzo]

Not for nothing but 35%-40% of my income is taken away. Federal tax, Medicare, Social Security, and State Tax take care of that.

It's been this way for a long time.

[Jetlag]

BTW our budget runs as an equation like this ( correct me if I'm wrong).

(Investment - Savings) + (Taxes - Government Spending) + (Exports - Imports) = 0 (or a balanced budget)

Therefore if Imports > Exports we would need to compensate with either higher taxes or investment to get a balanced budget. That of course is not the case. Seeing that are in a trade deficit and our Gov't spending will not be decreasing any time soon followed by a scared public who is now holding every penny they got.

[RSJ]

This is why our vastly increasing debt is not a good thing. Essentially the lenders from these our countries have us by the balls. If our debt ever got way out of hand and they had a political squabble with us and decided it was time for us to pay up...UH OH! We would be in BIG SH*T.

Typically we cringe when we hear how high the national debt has gotten and curse the drunken sailor-like spending habits of the government. When the government borrows money and then spends that money, it passes through many different people's hands in different sectors of the economy, thereby stimulating it. The national debt is a lower percentage of our GDP now than it was in the 1950s and 1960s, the return on our debt-how much we get in assets compared to what we spend-is very high right now, meaning the amount of spending we're doing is good. Finally, people get paranoid because more of our debt is held by foreigners...yet, these people have no reason to simply stop loaning to deliberately screw the US, because they're making a lot of money from loaning right now.

We measure debt compared to our GDP in the 40's our debt was 100% of our annual GDP and today it is 50%. Think of this debt as a reverse loan from a foreign gov't we pay it off over years to come as the dollar loses value.

[Gainzo]

BTW our budget runs as an equation like this ( correct me if I'm wrong).

(Investment - Savings) + (Taxes - Government Spending) + (Exports - Imports) = 0 (or a balanced budget)

Therefore if Imports > Exports we would need to compensate with either higher taxes or investment to get a balanced budget. That of course is not the case. Seeing that are in a trade deficit and our Gov't spending will not be decreasing any time soon followed by a scared public who is now holding every penny they got.

Government spends like crazy. I'm pumped that Senator from Alaska wants a bridge built to an Island that has 50 people on it.

http://www.heritage.org/Research/Budget/wm889.cfm

You can all tell me to go fark myself. I understand that. What I don't understand is why this great Country only has two Political Party's.

[Jetlag]

You can all tell me to go fark myself. I understand that. What I don't understand is why this great Country only has two Political Party's.

Ding ding ding! They all make me literally sick to my stomach. They're more concerned about the politics of politics then trying to improve our situation but that's a whole different story.

[Jetlag]

What's crazy is I'm taking this mid level Macro course right now (Econ 226) and I actually hate economics (I'm a math major) but I find that the info I'm learning from this course is the most applicable to the real world than almost everything I've taken. Other than of course Rock and Roll history.

[Gainzo]

What's crazy is I'm taking this mid level Macro course right now (Econ 226) and I actually hate economics (I'm a math major) but I find that the info I'm learning from this course is the most applicable to the real world than almost everything I've taken. Other than of course Rock and Roll history.

Econ sucks. I took those classes back in the day.

Why does this great Country have two political parties? Republicans or Democrats. I don't get it. The USA has a population of over 260 million people.

Australia has around 22 million people and New Zealand has around 4 or 5 million. Both of those places have 20 or 30 political parties.

[joebabyny]

I read an article in The Atlantic a few months ago about what you brought up. The Chinese could sink the US very easily as they hold a crap load of US currency. The Chinese are very concerned about the state of our economy.

it is the same deal with the Arabs due to the amount of investment they have in the us

[Gainzo]

it is the same deal with the Arabs due to the amount of investment they have in the us

Yep. Not good at all.

[ECURB]

I am selling cars becuase of this economy...

[Gainzo]

I am selling cars becuase of this economy...

Really? I don't believe it.

[joebabyny]

joebabyny has the luxury of being in a recession proof business so I don't blame him for disagreeing with the rest of us.

What are recession proof business'? Porn & booze.

gainzo it seems like you are having a little difficulty understanding my posts lately. I was disagreeing with the other poster who was confusing the debt with the trade deficit. Also I was one of the first to post here about how the recession is hurting my business. Everyone knows my side gig but I still pay the rent with a wholesale business in fashion/apparel. Between importing from china and selling to over 7000 small boutiques and mom-n-pops I know the severity of the situation better than anyone.

[afosomf]

Econ sucks. I took those classes back in the day.

Why does this great Country have two political parties? Republicans or Democrats. I don't get it. The USA has a population of over 260 million people.

Australia has around 22 million people and New Zealand has around 4 or 5 million. Both of those places have 20 or 30 political parties.

You want to know why?

The smartest people in the US are in the private sector where they make

oodles of coin. It is usually Rich legacy kids with egos run for office.

that is why we get crappy presidents

[joebabyny]

Yep. Not good at all.

it was actually a story a few days ago, about how the president received assurance and pledges from the Arabs to keep a sort of "chinese wall" between their investment objectives and their political ideals. I call bulls@@t

[RSJ]

I am selling cars becuase of this economy...

What were you doing before?

[ECURB]

What were you doing before?

Owned a small hobby shop.

[RSJ]

edit.

[RSJ]

Owned a small hobby shop.

That is a tough on. Those types of businesses are tough even in a good economy. You are always fighting recession and the big chains.

[jetscott]

Well I work in the foreclosure business in NJ...currently I am repossessing 10 homes a day and would be more if had more daylight...keep in mind I am one of about 15 companies... TROUBLE!!!!!!!!!

can you point me in the direction on how to grab one of those here in my area? i've been looking to buy for 2 years now

[jetscott]

Right because they don't have a union and politicians telling them they need to pay a guy in detroit $50 an hour to put a bumper on a car. Therefor they can compete for the latest technology while keeping their product prices down.

if it weren't for unions, you wouldn't have any of the benefits you sit back and enjoy, fact!

[RSJ]

if it weren't for unions, you wouldn't have any of the benefits you sit back and enjoy, fact!

My job is not union, nor has it ever been.

[RSJ]

gainzo it seems like you are having a little difficulty understanding my posts lately. I was disagreeing with the other poster who was confusing the debt with the trade deficit. Also I was one of the first to post here about how the recession is hurting my business. Everyone knows my side gig but I still pay the rent with a wholesale business in fashion/apparel. Between importing from china and selling to over 7000 small boutiques and mom-n-pops I know the severity of the situation better than anyone.

Joe they are very much related.

[jetscott]

My job is not union, nor has it ever been.

you don't understand what i'm saying. i'm not union anymore either. i was once. we all benefit from the fight that unions endure. your company doesn't want a union, so they see what the union gets for the people and they go along. the threat of a union always has to be there or they will take everything back they ever gave out, it's already happening thanks to reagan. unions will gain a lot of popularity again when people get some balls and decide to fight greedy corporate america. As far as debt goes. They can teach kids all they want about modern economics and such. Keep things simple. The less debt, the better. Anyone carrying huge debt, has no power or freedom. Ask warren buffet how far in debt he is. Sounds simplistic, and it is. But it's also reality.