Topic: Economics Discussion (Read 1179 times)

This is simply because most of those printed money were used to buy those houses left at banks when lots of people defaulted. Now banks successfully dumped all those houses to FED and receive huge amount of cash, but they dare not to spend it (that will cause severe inflation), so they save them back into FED and receive a small interest for it to spend, that small interest does not make any sense to jump start the economy

So the whole QE is to save the banks, only when banks are feeling good again, they will spend a little bit more, just a little bit more to not trigger inflation (have trillions at hand but only spend millions). Let's see how long before people all understand this

I generally agree with Mike Maloney, but don't forget that he sells precious metals (at http://goldsilver.com/). So there's an obvious conflict of interests when he talks about inflation and other monetary issues.

American "Value Adding Entrepreneurs" just may be forced to abandon the USA forever, "IF" Collectivism survives.

Thankfully, this is neither a problem nor even of any importance.

It will be great fun to watch the US Economy operate with ZERO Private Sector revenue, and TOTAL Public Sector revenue!

Americans will accept any and all alternatives to our despised, disgusting, Anti-American, Collectivist Liberalism!

Never doubt that!

Thankfully, my teenaged grand kids and their friends are more passionately "Anti-Liberal" cancer, and are more Individualist driven than am I! I will take great pleasure in handing them control of my various foreign operations! They are "each" wise enough to never start any American business until we return to our Constitution!!!!

DUH!!! I believe this is why so many thousands of former American Employers UNA$$ED the USA with a driven passion!Anyone with a two digit IQ must wonder how any drooling fool actually believed a single Entrepreneur "MIGHT" consider business as usual "IF" a FIEND Government ever inflicted any added costs against them!

The element MOST amazing to me has been watching the Liberals erase the "American Will to succeed," in less than a single decade! Just consider the huge number of able bodied Americans on Disability combined with those on Welfare programs, whose job skills are so obsolete they will NEVER again have a job.

Let me help you.  The "will to succeed" is born of freedom. The liberal statists have substituted dependency on government for individual freedom.  We are no longer FREE to succeed. Just try to start a free enterprise in this country today. Without some sort of government intervention or guarantee, (affirmative action?) it is damn near impossible, and in any event, not worth the trouble, because government is going to step in, tell you "you didn't build that" and take it.

The most wonderful economic element is that there is NO FREE lunch! Those who receive 'handouts' become far to weak to survive on their own, and are therefore cast aside by their culture.

Still, while these Fiends hold political power they do erode our Middle Class by driving our Employers to other nations and they have done this with focused passion. This forced Middle Class Individuals whose jobs have been erased to consume their kids' education savings, and their own Retirement plans as they fought to survive.

http://www.zerohedge.com/news/2014-08-27/another-keynesian-myth-refuted-cold-winters-do-not-shrink-economy
In February, the Federal Reserve made a cursory observation that the unusually severe winter was partly to blame for the stagnant pace of the US economy. The news media, ranging from liberal to conservative, all highlighted the Fed’s report and provided their respective “spin” on how the weather damages the economy. But soon enough, focus turned back to the brutally cold temperatures and not winter’s economic impact.

Recently, however, the Commerce Department reported that the US economy actually contracted 2.9 percent in the first quarter of 2014. This was the Department’s third attempt at revising its figures, with previous reports estimating first 0.1 percent growth and then a 1.0 percent contraction. While this little statistical “revision” was inconvenient, it was quickly followed (in true Orwellian fashion) by a slew of reports confirming that the economy has already rebounded and the second quarter will be even better than previously anticipated. (According to an advanced estimate released last week by the Bureau of Economic Analysis, GDP increased 4.0 percent in the second quarter and the first quarter’s numbers were revised yet again.)

Naturally, the “blame the weather” campaign popped up again. In fact, Gus Faucher, Vice President and Senior Macroeconomist with PNC in Pittsburgh, estimates that over half of the contractioncan be blamed on the severe winter weather. Well, this certainly begs the question, “Can weather actually cause the economy to contract?”

Weather obviously affects the economy. However, the claim that weather can actually drag down the economy is dubious at best. While severe winter weather may slow construction, idle auto sales, and reduce ice cream consumption, the economy never goes into hibernation. Instead, economic activity simply shifts.

A great analogy is household consumption spending. Each month, the average household allocates a certain amount of disposable income to entertainment. How this money is spent — at restaurants, traveling, shopping malls, or the theater — is irrelevant. The point is that people tend to budget a relatively fixed amount of income toward leisurely pursuits. If a new restaurant opens to rave reviews or a blockbuster movie debuts, a young couple does not drastically increase their monthly budget to accommodate the new entertainment options. Instead, consumption spending may shift from the mall or the theater to dinner and a movie. Similarly, a family that is planning a big vacation or a day at the ballpark either budgets additional savings throughout the year or scales back other expenses. To assume that new retail options magically increase spending is flawed economics.

Likewise, severe winters merely shift economic activity. While it’s true that companies may postpone construction projects and consumers will spend less time outside, the economy does not grind to a halt.

Instead, companies often use the post-holiday lull to complete annual inventory, update quality control initiatives, or install new technology. Further, while some retailers like ice cream vendors, department stores, and restaurants may see sales slump, others will inevitably see sales increase because consumers tend to stay indoors, dine at home, stock up on emergency supplies, and watch more television. In more real terms, Ben & Jerry’s and Baskin-Robbins may suffer, but Amazon, Netflix, and the local grocery store might see sales spike. This cyclical effect is natural.

There are spillover effects, as well.More movie downloads boosts the telecommunications industry. Trips to the grocery store and internet purchases mean more deliveries, which means work for the shipping giants (even after accounting for weather delays). What’s more, the economy is so interconnected that an increase in cold weather deliveries inevitably means additional strain on trucks and equipment. This, in turn, may help hardware stores, mechanics, and parts distributors. Not to mention that severe winter weather inevitably leads to increased spending on utilities, snow removal, and industrial equipment, like plows, snow blowers, and chainsaws. These spillover effects go on and on.

In addition, every winter there is always an uptick in travel as people escape the bitter cold, which raises revenues for the airline and tourism industries. Meanwhile, some travel destinations actually embrace winter’s cold. In fact, this past season, most ski resorts in the United States opened earlier and had their best season in years. (Predictably, this summer’s unseasonably cool temperatures are being blamed for dismal attendance at pools and resorts across the country.)

Finally, economic growth and consumption spending are not intrinsically connected. Purchasing power does not evaporate just because spending may slow during the cold winter months. Instead, saving increases investment opportunities and may boost the bottom line for companies like Wells Fargo, Edward Jones, and E*TRADE. This may, in turn, boost the stock market and possibly even the share price of Unilever and Dunkin' Brands (the corporate parents of Ben & Jerry’s and Baskin-Robbins) even when consumers are craving hot chocolate over ice cream treats.

While weather may affect the economy, the recent contraction has little to do with winter’s bitter cold; the US economy is far too diverse and complex. Instead, we are witnessing the ongoing effects of failed monetary and fiscal policies. As the Wickersham Commission noted years ago, “These laws [of economics] cannot be destroyed by governments, but often in the course of human history governments have been destroyed by them.”

None of the dollars that are printed (or that are in existence) are backed by anything but the United State's economy and the fact that the dollar is a world reserve currency. You are correct to say that some of the money being printed is making it's way into the stock market, but not all of it. Some small portion of the money is being lent out via additional loans being make, however the vast majority of it is being kept as excess reserves as banks really have nothing to do with this extra printed money.

Because normal people need it to survive.

When you have necessities, let it be real ones(food shelter etc) or created ones, and the only thing that can satisfy them is paper, might be hard think about alternatives.

"Paper is poverty it is the ghost of money,and not money itself".
What this thing points,If paper is a ghost why do people love it so?

And all are same only different user and people post them same thing only different package.

So this is only one more topic to discussion.

Too many videos like these saying same thing. And lots of people taking credit on the prediction of collapse.

If they were so convinced the collapsed to be true, they would have make a ton of money shorting the market and don't need to keep making sales pitch to sell gold/silver.

Product demand is very low, so ANY increase appears larger than it really impacts our Economy.

This has the effect of flatlining our Economy with NO significant trend.

Our remaining Middle Class will bear the majority of the Economic pain and anguish as their families slide into abject poverty for the rest of their lives. The Greed driven, despised and disgusting Collectivist Liberal Fiends will be eager to point their claws at Bush, Conservatives, George Washington, etc. with ZERO validating logic. These Gutter dwelling Liberal ghouls can NOT and will NEVER present any logic for their "Robin Hood" positions, however, they will passionately call any of their growing number of Enemies, Us-uns, all manner of names.

The truly great thing is that these loathed Fiends are 'SELF DEFEATING!" The reason is simple, and that is found in Maslow's Hierarchy of NEEDS! Humans constantly SEEK success and Liberalism equals Epic Failure, all gutter name calling aside...!

Why Isn’t Monetary Pumping Helping the Economy?
http://mises.org/daily/6853/Why-Isnt-Monetary-Pumping-Helping-the-Economy
Any policy, which artificially boosts demand, leads to consumption that is not backed up by a previous production of wealth. For instance, monetary pumping that is supposedly aimed at lifting the economy in fact generates activities that cannot support themselves. This means that their existence is only possible by diverting real wealth from wealth generators.

Printing presses set in motion an exchange of nothing for something. Note that a monetary pumping sets a platform for various non-productive or bubble activities — instead of wealth being used to fund the expansion of a wealth generating infrastructure, the monetary pumping channels wealth toward wealth squandering activities.

This means that monetary pumping leads to the squandering of real wealth. Similarly a policy of artificially lowering interest rates in order to boost demand in fact provides support for various non-productive activities that in a free market environment would never emerge.

We suggest that the longer central banks worldwide persist with their loose monetary policies the greater the risk of severely damaging the wealth-generating process is. This in turn raises the likelihood of a prolonged stagnation.

All this however, can be reversed by shrinking the size of the government and by the closure of all the loopholes of the monetary expansion. Obviously a tighter fiscal and monetary stance is going to hurt various non-productive activities.

I really enjoyed that! Just think, our government printed $85 Billion "UN-BACKED" dollars each and every month of 'ghost money,' and all the drooling FOOLS saw the stock market rise as the result, except they didn't understand the game played on them.

Nobody is building huge housing developments because there are few customers. More businesses are closing their American doors than are opening new ones.

American Corporations and Individuals hold over Three Trillion dollars in cash "INSIDE" the USA and a similar amount in other nations and different currency.

Gonna post this promotional video. If you want to hear the entire thing it only requires an e-mail address. In the short time it has, it brings up some good points.
https://www.youtube.com/watch?v=vAFtlgJNMCo