America: The Bankrupt empire?

[Dapper]

5% inflation is ruinous. The Fed is supposed to intervene and do something whenever the inflation rate approaches 2%.

Respectfully submitted,
Steve

What is your point? It is an example, plus keef has reiterated he won't acknowledge actual inflation rates. So I split the difference between actual inflation and keef's world inflation rates.

 

[Dotini]

What is your point? It is an example, plus keef has reiterated he won't acknowledge actual inflation rates. So I split the difference between actual inflation and keef's world inflation rates.

One important point that should be made is that savers, retirees on fixed incomes and investors in traditional, conservative and fixed rate instruments are being skinned alive in the current 0% short term interest rate scheme imposed by the Fed. Real inflation in the cost of food, fuel, water, housing and various essential services is hurting real people, with no fix in sight.

Respectfully,
Steve

 

[Dapper]

Real inflation in the cost of food, fuel, water, housing and various essential services is hurting real people, with no fix in sight.

Respectfully,
Steve

All these numbers relate to the average family-
Food cost are down 18%! Food is not a part of this conversation.
I'll break down fuel. $1 of gas around 30-40 years ago would drive a person 10 miles, now $1 drives them 8.5 miles. That is a nearly negligible difference considering how much longer cars last and the amount of public transportation available.

Housing cost are up 76%, insurance is up 74%. Taxes are up 25%.

 

[MikeTheHockeyFan]

The guy who thinks spending is the root of a healthy economy is telling me how to run it? Welcome to Keynesian Failure 101.

I didn't say a word about government spending. No giant public works projects or that stuff.

I'm talking about the fact that if austerity measures hit the middle and lower classes hard, they are not buying things. If consumer demand is heavily depressed, than how exactly is the economy going to recover beyond NX?

 

[Tornado]

You are so ignorant, meaning you have no idea what you are talking about. People spend less on candy bars now than in years past. Didn't you watch the video, kid?

You are wrong. What you believe and what you said are wrong.

I don't even need to watch the video to understand that when less people are buying frivolous goods, the total amount spent on them will go down regardless of if the price goes up (and that the price going up will make people buy even less of them). That isn't even basic economics. It is simply common sense.

 

[Dapper]

I don't even need to watch the video to understand that when less people are buying frivolous goods, the total amount spent on them will go down regardless of if the price goes up (and that the price going up will make people buy even less of them). That isn't even basic economics. It is simply common sense.

Obviously you do. Spending less (percent of income) is not the same as less people buying.
And you are just making up your own scenario. People aren't buying less of anything, the amount of real dollars spent on goods has gone up, CEO's have increasing income in real dollars, and prices are rising at the same rate as always.

 

[Grand Prix]

As the OP suggests, the US is a de facto empire, with military bases and "client states" all over the world. Also, as suggested, the US is many trillions in debt with no clear or easy way to get back into the black.

The old-fashioned way that empires used to deal with this problem was to rape, pillage, and burn. In other words, the empire was financed by successful military campaigns against various tribes or nations that posed threats and had resources such as women, gold, oil, timber, land, water or other valuable resources from which the empire could prosper.

The trouble with the US is, although we have been almost continually at war since 1945, there have been no clear victories and several costly setbacks, and have not served the righteous purpose (for an empire) of enriching the central treasury and securing a one-way inflow of lesser nations' resources.

Accordingly, it seems clear and obvious that it is well past time for the US to either ditch being an empire, or "get with the program" and start winning our wars for a change. We need to win these wars in order to restore a permanent source of tribute and put the empire back on a healthy footing.

Assuming we want to continue as an empire, I suggest we mount an immediate campaign against an easy, nearby mug with lots of cash and valuable resources. This is none other than Canada. Easily securing Canadian gold, oil, uranium, rare-earth minerals, timber, water, fisheries and agriculture for the higher use and aggrandizement of the empire should be a no-brainer, even for our PTSD damaged trigger-pullers and their eggheaded generals like Patraeus.

All we need now is an aggressive, visionary leader like Newt, Mitt, or Rick with a big, hairy sack who will go out and lead the charge.

Facetiously submitted,
Steve

I wonder if they've ever thought of that before... Oh wait.


I think you've been watching Canadian Bacon.

 

[cooltool777]

This is sortof crazy and may sound stupid but if the Reserve stops making money and the government burns money it could bring inflation down because there would be less money in the world I don't know but it makes sense to me. What's your take on this?

 

[Keef]

A nickel candy bar turns into a dollar explained.

Are you suggesting that I don't know what inflation is? "Back in his day" your average Baby Boomer was just as ignorant of economics as they are now, which is part of the reason we're in this situation. They've been voting for 40 years. I've been voting for 4. I haven't had enough time to **** this country up yet.

 

[Dotini]

I wonder if they've ever thought of that before... Oh wait.


I think you've been watching Canadian Bacon.

No, I've been channeling Ben Franklin!

Respectfully,
Steve

 

[Biggles]

Keefe I've been voting for 4. I haven't had enough time to **** this country up yet.

You're obviously hard at work at it though. 👍

 

[LMSCorvetteGT2]

That GPD number is different than pretty much every other number I found anywhere else. Lew Rockwell is just as good a source as the Heritage Foundation, both of which are different (and higher) than the government figure. This just goes to show that nobody actually knows the answer, that's how complicated it is.

True, sadly.

You're obviously hard at work at it though. 👍

Why is he? I mean the same people who voted Bush are just as much at fault as those who voted Obama.

 

[Keef]

I've voted in one Presidential election so far, and it was for libertarians in both the primary and general elections. I intend to keep voting for libertarian principles, no matter what party they happen to come from.

 

[Dapper]

Are you suggesting that I don't know what inflation is?

You suggested it.

My dad goes on and on about how a Hershey bar used to cost $.05. Now it costs over a dollar. Explain that to me please.

Or are you asking me to explain how or why your dad doesn't understand exponential growth models?