Economic depression

[rainman]

While not professing to be a zen master

Don't tell anyone but I'm not a real Zen master, I just play one on TV.

Your post is spot on, honest-to-dawg truth.

[rainman]

What ended the last Great Depression?

Why, Lord Keynes and socialism, to be sure.

Or Roosevelt and Neww Deal Socialism, if you were on that side of the ditch

Or Mr Savage and Socialism, here in Godzone

See a common thread there?

So Socialism causes world wars?

p/t

[Ixion]

So Socialism causes world wars?

p/t

That's Communism. Socialism is social justice through ballots. Communism is social justice through bullets.

[slimjim]

Well its gona get worse forsure....yup

[Coyote]

So long as I'm getting sex I'm fine.

[puddytat]

The Bible & other conspiracy theories have been talking about this for ever...its the self fulfilling prophecy thing. Somewhere around 2012 they reckon,that the end will be nigh so ....
Im with Coyote on this one.

[Hinny]

Time to get that antidepressant prescription refilled!

Just eat cashews.

[alanzs]

Just eat cashews.

+1 with what coyote said...

[Shadows]

So long as I'm getting sex I'm fine.

Im with Coyote on this one.

Leave it out guys, I'm trying to eat here!

[Winston001]

What ended the last Great Depression?

Why, Lord Keynes and socialism, to be sure.

Or Roosevelt and Neww Deal Socialism, if you were on that side of the ditch

Or Mr Savage and Socialism, here in Godzone

See a common thread there?

Yes. Keynesian economics, which is exactly what the US government are implementing. I'm not sure they are going about it the right way but its complex.

If governments - as happened in 1929, simply stood back and let peoples savings and business investments go down the toilet - well, harsh at it seems, that is efficent and allows for a redistribution of land/buildings/equipment etc. Unhappily it also means jobless millions while this massive shakedown takes place.

However governments no longer do that. Instead they pump money into the economy to keep it running on the basis that continued economic security will in the long run save peoples lives and repay the government investment.

The debate is how much or how little money should be pumped - and where. In the end, inflation takes care of it. $700 trillion is incomprehensible but in 50 years, who will care.

[karla]

However governments no longer do that. Instead they pump money into the economy to keep it running on the basis that continued economic security will in the long run save peoples lives and repay the government investment.

Must be a bit unsettling knowing that over 50% of the population now own guns ... hungry angry people do not a friendly society make.

[Bullitt]

The bailout in itself I cant see causing too many problems. The concern for me is how the US government is going to finance it...its not like they were swimming with money in the first place so I see this bringing forward the inevitable serious consequences for the US economy and subsequently the rest of the world which would have occured anyway but awhile later down the track.

[Winston001]

The bailout in itself I cant see causing too many problems. The concern for me is how the US government is going to finance it...its not like they were swimming with money in the first place so I see this bringing forward the inevitable serious consequences for the US economy and subsequently the rest of the world which would have occured anyway but awhile later down the track.

1. Taxation

2. Selling assets - not sure what but the US government probably owns a lot of wealth

3. Print money. NB - the Weimar Republic, and more recently Mr Mugabe tried this.....

I'd imagine that US businesses and private investors will be selling their holdings around the world to pay down debt at home.

Against that, Japanese, Arab, and Chinese investors who have been awash in cash - which they invested in the US - will be selling out thus putting more down pressure on asset values in the US. Also the $US has been dropping in value for the same reason - foreigners getting out.

Quite why the same foreigners see the EU as the new bastion of capitalism is beyond me. The EU is a vastly complex bureaucratic amalgam of nations with inbuilt inefficencies. Nothing wrong with it except it lacks the vigor of open markets, and in that sense, Asia looks to be the future of economic power.

The one overlooked area is South America which also has vibrant rising economies.

We live in interesting times.....

[Hinny]

The US can print money more easily than almost any other country as the have this magic chequebook.
The fact that all oil trades are in US dollars.
The overcame that little glitch when Iraq decided payment should be in Euros. Fixed that little problem.

[MisterD]

Why the credit crisis is the fault of meddling government regulation, rather than "capitalist greed":

Open letter