Whats happening to US Economy? - Not Good!

[Chinese-Dragon]

Break away states - yep I can see it now

1- New Yorkrain
2- Californistan
3- United Redneck Country
4- Kentucky friend chicken state
5- Land of Tornadoe

I don't think America will break up.

Whatever they are doing with the idea of "patriotism"... it seems to be working.

It's no longer the days of the American Civil war. They have now got far more unity, than the Soviet Union ever had. (In the USSR, only 50% self-identified as Russians).

The USA is stronger than most people think. Don't underestimate them.

 

[Safriz]

I don't think America will break up.

Whatever they are doing with the idea of "patriotism"... it seems to be working.

It's no longer the days of the American Civil war. They have now got far more unity, than the Soviet Union ever had (40% Russians).

The USA is stronger than we think. Don't underestimate them.

a hungry man is an angry man....

as people get poorer they get angrier...unless its a dictator sat on their heads.

 

[Ajaxpaul]

And every few years someone always predict that 'this' year is when America will collapse. The last time we supposed to collapse was mid-2010.

Dont worry, other countries will pump money into US, so that Americans consume more and in turn buy more goods from these countries...China and India cannot afford to lose US consumption.

 

[gambit]

in between 2 to 3 % approx...why?

As income increases, so can the absolute figure of any expenditure without an increase in percentage of the budget. So it is wrong to criticize the US defense budget as absolute dollar figure when that figure does not dramatically rise like in WW II. But of course, drama is exactly what the critics need.

 

[Ajaxpaul]

As income increases, so can the absolute figure of any expenditure without an increase in percentage of the budget. So it is wrong to criticize the US defense budget as absolute dollar figure when that figure does not dramatically rise like in WW II. But of course, drama is exactly what the critics need.

Then why so much deficit? that means what US spends is more than what US earns, or is there any secret budget for the military? If US is pumping more money into R&D, then clearly the output is much less to sustain such burning of cash.

Will this not affect the stock market, which in turn affect the valuation of the listed companies??

 

[gambit]

Then why so much deficit? that means what US spends is more than what US earns, or is there any secret budget for the military? If US is pumping more money into R&D, then clearly the output is much less to sustain such burning of cash.

Will this not affect the stock market, which in turn affect the valuation of the listed companies??

The deficit cannot be attributed to defense spending ALONE, which is usually the deceptive criticism. In the budgeting process, if there is deficit spending, then EVERYTHING that demand a cut of the budget contribute to the deficit, and everything mean exactly just that, from Defense to Agriculture to Social Security to Medicare and so on...A deficit is an expenditure problem, not an income problem. Remove the government's ability to borrow and there will be no deficit problem.

 

[Safriz]

Then why so much deficit? that means what US spends is more than what US earns, or is there any secret budget for the military? If US is pumping more money into R&D, then clearly the output is much less to sustain such burning of cash.

Will this not affect the stock market, which in turn affect the valuation of the listed companies??

the spending was real..the income was mostly "predicted"..the predictions went wrong.

 

[Ajaxpaul]

The deficit cannot be attributed to defense spending ALONE, which is usually the deceptive criticism. In the budgeting process, if there is deficit spending, then EVERYTHING that demand a cut of the budget contribute to the deficit, and everything mean exactly just that, from Defense to Agriculture to Social Security to Medicare and so on...A deficit is an expenditure problem, not an income problem. Remove the government's ability to borrow and there will be no deficit problem.

I was not talking about military alone..I know Americans invest heavily into science, medicines, engg etc.

The govt has to borrow money from banks to sustain economy ( possible shocks also ). When the banks see deficit, they lose confidence to lend.

 

[gambit]

I was not talking about military alone..I know Americans invest heavily into science, medicines, engg etc.

The govt has to borrow money from banks to sustain economy ( possible shocks also ). When the banks see deficit, they lose confidence to lend.

I was not talking about YOU. I was referring to others more deceptive when talking about US. If you are head of household then you understand the budgeting process much more than when you were single and had no real responsibilities. Managing a country's budget is very much like managing a family's competing and often contradictory demands.

 

[lem34]

And every few years someone always predict that 'this' year is when America will collapse. The last time we supposed to collapse was mid-2010.

Yea but this time you are printing money. every country that has ever done has ended up with hyperinflation and gone bust. Its a tried and trusted method even the nazis in germany tried it.

 

[Mo12]

Please all these anti-USA threads are false and ego-boosting.

They said India wont be able to contain the growth and will collapse, now these people are saying USA will collapse.

 

[gambit]

Yea but this time you are printing money. every country that has ever done has ended up with hyperinflation and gone but. Its a tried and trusted method even the nazis in germany tried it.

That is unrelated to the budgeting process. It is a legitimate criticism but has nothing to do with the government's desire to borrow and spend compare to spending within the taxable income. The deception am talking about here is to simply zero in on the defense expenditure as if to say that we sacrifice investments in human and other resources. Of course, even if we spend just one dollar on defense, the critics would say we should have spend 99 cents of that dollar on other areas. That was why I asked for India's defense budget to force people to take a more honest look at their criticism of US and our defense budget. But intellectual honesty is difficult for many to exercise.

 

[Safriz]

but the bottom line is that US ecomomy is shrinking fast...there has to be a reason

 

[53fd]

And every few years someone always predict that 'this' year is when America will collapse. The last time we supposed to collapse was mid-2010.

Depends what you mean by collapse:

U.S. Is Bankrupt and We Don

Last month, the International Monetary Fund released its annual review of U.S. economic policy. Its summary contained these bland words about U.S. fiscal policy: “Directors welcomed the authorities’ commitment to fiscal stabilization, but noted that a larger than budgeted adjustment would be required to stabilize debt-to-GDP.”

Section 6 of the July 2010 Selected Issues Paper says: “The U.S. fiscal gap associated with today’s federal fiscal policy is huge for plausible discount rates.” It adds that “closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP.”

In many ways, the collapse has already taken place.

 

[Juice]

a hungry man is an angry man....

as people get poorer they get angrier...unless its a dictator sat on their heads.

Hungry? Lol! We are not Pakistan, It only means we can only afford 2 lcd TV's.

(click your heels 3 times and wish us away, it's all you can do. The frustration becomes more obvious every day)