Current Economic Crisis

Discussion in 'General Discussion' started by cosine, Oct 31, 2009.

  1. cosine

    cosine Well-Known Member

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    I was just wondering what your opinions were on the current economic crisis. Many economists have suggested that it is slowly dwindling to it's end, but others have stated that the worst has yet to come. Prominent Keynesian economists have stated that the government's infusion of money into the economy has created new jobs, but others disagree by stating that it has only d------ued the US Dollar.

    What are your thoughts on this issue?

    Some info: http://unelected.org/2009/09/13/the-financ...980s-recession/
     
  2. Renagade

    Renagade Senior Member

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    There's a crisis? :huh:
     
  3. [.BC.] .Sacrifice

    [.BC.] .Sacrifice Banned from GR

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    It's a recession, nothing more. Jobs have been lost, /care. It's not that worse in my opinion. Crappy companies will go and better ones will come.
     
  4. Greasy Pete

    Greasy Pete Senior Member

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    I haven't noticed any problems.
     
  5. inverse

    inverse Banned from GR

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    Recession = Contraction of currency from the economy. Interest on the dollar goes down, jobs disappear, recession.

    Recession ends as soon as the Federal Reserve bank starts pumping currency back into the economy. It's as simple as that. The main reason that this recession hit home so hard was because of the huge amount of debt many people had acquired.
     
  6. cosine

    cosine Well-Known Member

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    The Federal Reserve doesn't have an infinite supply of money that they can just "pump" into the economy. They print Federal Reserve notes which are no longer backed by gold. If they "pump" those printed FRNs into the economy, there will be massive amounts of inflation. That's why many economists believe that there is a pending crisis.
     
  7. inverse

    inverse Banned from GR

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    Geez you're thick. All money in the US economy is printed by the Federal Reserve. It's a privately owned Corporation, which distributes all money at interest. There is no such thing as economic growth within itself, so the only way an economy really posts growth is when the market is saturated with currency. The more currency in the economy, the higher the debt to the Federal Reserve is. Eventually a contraction must be made to lower interest rates and curb inflation. This is called a Boom and Bust system. The main reason this recession has been so bad is because of previous governments easing recessions by having the Federal Reserve inject more funds into the economy to maintain jobs and growth.

    You clearly don't understand how a Fiat banking system works.
     
  8. cosine

    cosine Well-Known Member

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    There's no such thing as a fiat banking system. You mean fiat currency, I'm sure. Lowering interest rates does not curb inflation. Lower the federal funds rate only results in an increase in inflation. Raising interest rate, however, results in deflation. In the 1980s, Paul Volcker, the Chairman of the Fed, raised the federal funds rate to around 20% in order to curb inflation. The current federal funds rate is near 0%. A rate of 0% is what allowed for trillions of dollars to be created and injected into failing banks over the past year. A much larger market correction will have to be made in order to avoid an inflationary depression.
     
  9. k3vn24

    k3vn24 Member

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    it's good that the crisis is slowly going away but the amount of money we need compared to the amount we have is ridiculous
     
  10. Greasy Pete

    Greasy Pete Senior Member

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    I feel like i shouldn't believe nL inverse, because what he just said has been taught to me as incorrect.


    but i don't know how smart he really is.
     
  11. xlink

    xlink GR's Tech Enthusiast

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    IF WE DON'T PASS A MASSIVE BAILOUT FOR THE SUPER RICH, WE WILL HAVE 10% UNEMPLOYMENT AND THE STOP MARKET WILL DROP BELOW 10,000 POINTS.

    the head of the federal reserve said this was a lie. Also the money supply only doubled in these last few years, what you're saying is a lie, because it'sa lie.
     

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