[–] greycloud 1 point -1 points 0 points (+0|-1) ago
it will stay like this until china's wage force demands the same wage as our wage force for the same work. right now china's rigged economy means that a free market pushes production into china. there are 2 major solutions to this, neither of which are popular. 1) use the same currency that china uses and consolidate china and the US into one super state that follows the same labor rules and labor prices, making both countries very similar to each other economically (china wins in this deal still because population). 2) kill the free market and drastically increase taxes on imported goods, this destroys our trade relations with other countries and puts them at risk of being absorbed by china).
"it will stay like this until china's wage force demands the same wage as our wage force for the same work. "
Well said. And that is why they are totally screwed. Reality is a bitch! They missed to right mix for the last decade. And now they are falling before they can create that necessary middle class consumer base. Unrest to follow.
[–] brother_tempus [S] 0 points 6 points 6 points (+6|-0) ago
we have had enough bubble from the Fed .. e do not need anymore
besides we cannot afford it as the $18 trillion debt casn attest
the failure of QE1, QE2, Operation Twist, QE3, Cash for Clunkers, and the Stimulus Bill which added $8 trillion in debt with n results disproves your opinion
making the poor more poor and rewarding the banks to continue blowing up the equities bubble is not the correct path
make the poor and those fixed income 6% more poor is criminal
no basic econ 101 is that supply and demand will correct any imbalances in the economy, especially those created by government. Government delaying the necessary correct as advocated by Yellen will fix nothing and make the inevitable correction even more severe and prolonged ... we see this now with all the stimulus the government has doled out now in our 15th year of this depression
created by the Fed ... i am hedged so i have no worries
[–] novictim ago (edited ago)
"QE1, QE2, Operation Twist, QE3," = Monetary policy as does ZIRP
The Keynesian policy I am talking about is the fiscal spending side I suggested. That is a huge difference. Your concern about spending = deficit is interesting only in terms of people not being able to identify reality from ideology. Cutting spending can just as easily raise debt as spending more. Debt must be defined against GDP/Tax receipts.
It is so DULL to have to do Econ 101 for you here. Really!
There is s time and place for budget cuts and austerity and it usually occurs when you should be raising tax rates. You guys need to free yourselves from the family budget model/cartoon model of macroeconomics. None of this is rocket science. If you can grow a garden then you can understand when fiscal stimulus policy is appropriate.
BTW: I'm protected as well. Good for you for seeing to your own interests. We need a lot more of that.