The Future of the United States of America

[INF1NIT3 D00M]

I don't know and I don't care. It seems that all the adults I have grown up with have completely fucked me over. Thanks guys. Just leave me here with a bunch of FUCKING IDIOTS, a horrible economy, a crumbling reputation, and an unwinnable war overseas. Oh, and let's not forget the almost-fixed global warming I still have to deal with.
So Thanks.
To all the jerks who screwed up the country and dumped it on my generation. Thanks for letting us fix your fuck-ups.



It'll all work out in the end, but I'll probably end up moving to Britain before things here devolve to martial law and eating our own young.

 

[Rolling Thunder]

Dele? Did you read any of my posts on this? Interest rates ARE market-determined. The Fed simply sets the 'minimum base rate', i.e. the lowest rate at which money may be lent. It does not magically compell the banks to lend at that rate, any more than the speed limit being 70 MPH compells you to drive at 70MPH.

It was the financial sector's decision to lend the money out at bad rates to bad debtors. Not the Feds. The Fed's fault is in permitting it to occur, but that does not make your argument any more valid.

 

[Red Right Hand]

The American dream is what you make of it you fuck!

P.S. Assuming your Brittish, this is one of the reasons we rebelled, rose to power faster then you, and eventually took the World from you.

Ok i'm sorry for thinking that you were talking about the American Dream. I must have been confused by the blatant mention of the American Dream AND NOTHING ELSE, how silly of me.

P.S it's spelt British not Brittish.

 

[Red Right Hand]

Well... you're a tosser. See, its not nice to be insulted is it?

The thing I find most interesting about how the USA started is when the settlers stopped being British. I know some of the first ones, the people who left because of religious persecution, didn't consider themselves British, but I think many of the later ones did.
The British built up an infrastructure for the nation, and even chased out a few Indian tribes.

I think they decided to make a new country because it would be more profitable for them. Not becuase they were being treated badly, taxes are taxes. In those days they rose and fall with the wars and shit.

Wait a minute were you talking to me or the other guy,

 

[Horticulture]

Please tell me that Fed dropping the interest rates low (discount rate was even below 1% for a while) at 2001 was the right move when looking at real state markets. After dot.com bubble there were fears of large recession so Fed (and Bush) overplayed it and as we can see there, housing markets went wild and here we are on our current situation. This would have never happened had the interest rates been market determined.

There's more to the economy than real estate markets, and the overall U.S. economy was taking a beating back then. Real estate prices in a housing bubble are a poor basis for Fed policy-something the board recognized. Also, that graph appears to reflect British statistics...it's a British builder's association, anyway.

 

[Dele]

Dele? Did you read any of my posts on this? Interest rates ARE market-determined. The Fed simply sets the 'minimum base rate', i.e. the lowest rate at which money may be lent. It does not magically compell the banks to lend at that rate, any more than the speed limit being 70 MPH compells you to drive at 70MPH.

It was the financial sector's decision to lend the money out at bad rates to bad debtors. Not the Feds. The Fed's fault is in permitting it to occur, but that does not make your argument any more valid.

You are confusing discount interest rate with nominal interest rate.

There's more to the economy than real estate markets, and the overall U.S. economy was taking a beating back then. Real estate prices in a housing bubble are a poor basis for Fed policy-something the board recognized. Also, that graph appears to reflect British statistics...it's a British builder's association, anyway.

Argh it seems I pasted the wrong graph, but the basics are essentially the same, just 10x more worse. Real estate bubble is no different from stock market bubbles but unfortunately Fed cannot see everything that is happening in our economy and must resort to doing "what feels like a right thing to do". Their methods at figuring out inflation leave out many important things like food and energy which obviously causes problems. 'Recession' of 2001 was mild and did not even tranfer to real prices yet Fed managed to have historically low interest rates for three complete years. Too fast, too aggressive and too slow to react to changes.

 

[Acid Armageddon]

Will the presidents trillion dollar plan sew up the economic wound OR only be a temporary bandage? I'm hoping for the first, rather then the latter!

 

[TechNoFear]

Well, ladies and gentlemen, here it is. The most powerful nation in the world is now crumbling in economic ruin. Will it pull out of its slump and march on valiantly? Or will it collapse upon itself like the bloated politicians that have come to run it?


Your answers and/or opinions if you please!

The days of the US hegemony are drawing to a close, as happened to all empires in history. IMO the US is too far in debt to recover. http://www.brillig.com/debt_clock/


India and/or China are next in line.

India;
If India can leverage its service based economy into real job creation (comparative to manufacturing based). If not, India will not be able to afford the infrastructure it requires to make the leap to super power.

China;
If China can keep its growth rate under control. For each percentage point China?s GDP drops under 7% another 21 million (the population of Australia) become unemployed.

IMO China will stop lending the US money (so Americans can buy Chinese products). China will instead invest in infrastructure (to lower unemployment) and in its resource rich neighbors (to supply growth).