Letters to the Editor
-
futhark's Voo Doo Economics
futhark stated: "In the 1990's the world was awash in petroleum, the biggest single source of wealth in our modern society. Of course, most of this wealth was squandered."
This made me think about who will, once again, benefit from an all out oil war. When China, Asia and other not-so-futuristic fully industrialized countries will benefit from being first in line to obtain a barrel of this dwindling oil reserve. I gather the military indutrial complex will be fully stocked and ready to go. Only, they will take everyone to hell with them.
-
Rebate stupidity
Is any of this going to have more than a one-month impact on the economy? I spent my first rebate check on one household appliance a week after I received it and poof, it was gone. Not that I mind an unexpected windfall, but the subprime/foreclosure mess, which is at the heart of our current economic troubles, isn't going to be solved by giving people less than one month's mortgage payment.
-
Recessions happen
Why is everyone so surprised by this current recession? Recessions are cyclical. The market was due for a correction.
But there are other factors, which I suspect are making what would be a normal slump more dramatic: China and other countries own our asses in the form of ownership of our debt plus our enormous trade deficit; Americans are up to their ears in debt, much of it financed by home equity, which is rapidly vanishing as the real estate market tanks; Costs of staple items (food, energy and -- yes -- health care) are all rising, in some cases far outpacing inflation.
None of these exacerbating factors will be alleviated in any significant way with a check in the mail sent out in a panic when the market swoons 300 points.
-
Bread and Circuses
Doesn't this remind of the old Roman Empire tradition of bread and circuses to distract the population from the overt rape and pillage perpetrated by the elite?
Last time the bread (tax refund advance) was followed by the circus of war in Afghanistan and Iraq (there is ample evidence that both of these wars were planned well in advance of 9/11).
This time...will the circus tent be pitched in Iran?
Regardless, don't be fooled. The economy is behaving in a predictable way. The US oligarchy is ramping up the pace of wealth accumulation because they know they have to get it while they can.
It's not even really a matter of a "US" oligarchy; the global capitalist elites overlap and compete as necessary for ever-dwindling resources. They don't have any loyalty to a particular nation or currency; patriotism, like religion, is an opiate for the masses.
It has obviously been decided that the United States has served its purpose. Now that the super-rich own the rest of us lock-stock-and-barrel, they will take the game elsewhere.
With natural resource extraction peaking, they are jockeying for position as Lords of the Manor in the coming return to feudalism. Those of the formerly First-World middle and lower classes who survive can look forward to serfdom and debt-slavery and a drastically reduced standard of living.
-
increase the supply...
...and you draw down the demand. Meaning that when you flood the monetary system with notes, the value of each note goes down. bostonMA has it right. Increasing the money supply feeds inflation and drives down everyone's purchasing power.
-
Can someone please explain
how exactly does introducing consumer spending into the economy bolster our national economy? I've worked in retail, and essentially every time of the week except Friday night, Saturday, and a few days around Christmas, every single store is overstaffed. It's not like stores will be giving people more hours to handle this surge of folks with $300 in their hands. Likewise, EVERYTHING in the US is oversupplied--as witnessed by the shopper's maxim that you can get everything on sale if you just wait a little while or change shopping venues. Would retail stores really beef up demand and spur production or would shoppers just buy a slightly different product because the one they wanted was sold out (in the extremely rare case that that ever happens). This whole "kick in the pants" rationale seems to make more sense in theory to me than in actuality. Moreso, what sort of consumer spending is the best type for "fueling" the economy? Retail? Services? Does paying my credit card bill count? I can now spend what I would have on interest somewhere else right??
-
Apropos of nothing, but Ben's got a rather nice nerve ganglion cyst on that wrist he's waving around in the photo.
What, his government cough*socialized medicine*cough health plan doesn't cover something like that?
I suggest he drop Greenspan's book on it. That should take care of it.
-
What else did we learn in 2001?
That "Shopping" isn't an answer.
It's been said more than once: we need a New Deal.
Here's a possible solution: A huge government infusion of funds into infrastructure, manufacturing, and alternative energy. Roads, rails, windmills and solar panels. Bring back textiles.
And I've said this before, but it's time for some protectionism. If the Gap wants to sell 30 million v-neck henley sweaters in the US, then they have to make 10% here, using American labor, american textiles, and american factories. And it's time Americans start paying real prices for their goods. Yes, it'll be a brutal correction to the consumer goods market, but unless we start ripping that band-aid off now, it's just going to get worse. We'll continue to undervalue the price of goods and services at the expense of labor and wages, and we'll continue to need short term "handouts" from the feds instead of a real working solution that increase our wage rate, increase our government's ability to provide infrastructure, and increase our standard of living.
Yes, the handout "stimulus" package will give a short term steroid boost the economy. But a long-term, healthy, well performing economy is much more preferable.
-
party like it's 1929
It's a good thing all these speculative mega condo high-rises have been built over the last few years. We're going to need their roofs.
-
Hmmm.
Another study pored over credit card data. According to the Congressional Budget Office analysis, "[It] concluded that households with lower credit card limits, those with credit card balances near the limit, and those that used their cards intensively increased credit card spending much more than other households in the nine months after receiving their rebates."
And ratcheting up higher-risk debt is good for the economy how?