JimBowie1958
Old Fogey
- Sep 25, 2011
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17 Reasons Why Those Hoping For A Recession In 2012 Just Got Their Wish
Interesting list and fairly persuasive.
Interesting list and fairly persuasive.
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White House projects $1.2 trillion deficit, lower economic growth in 2012
By Erik Wasson - 07/27/12 02:00 PM ET
The White House budget office on Friday projected a $1.211-trillion deficit this year, down from the $1.327 trillion projected in February.
The mid-session review from the Office of Management and Budget (OMB) also projected lower economic growth in 2012 and 2013 than previously anticipated, and calls for $195 billion in economic stimulus to address an economy that "still faces significant headwinds."
While the $116 billion drop in the deficit could be used by both President Obama and congressional Republicans to argue they are making strides on the budget despite a poor economy, the predicted slow growth is more dismal news for the White House.
In fiscal year 2012, the White House downgraded its its projection to a 2.3 percent growth in gross domestic product compared to 2.7 percent when Obama released his budget in February. It lowered expectations in 2013 from 3 percent GDP growth to 2.7 percent.
The new projections incorporates economic data through June, so Friday's new 1.5 percent GDP growth advanced estimate for the second quarter of calendar 2012 is not included.
The revised deficit number total reflects both lower spending and lower revenue...
...But the update also increases the 2013 deficit from $901 billion to $991 billion.
"Todays dreary economic growth numbers coupled with an administration forecast that indicates next years deficit will mark a historic fifth year in a row of trillion dollar deficits underscores what the American people already know that the presidents economic plan isnt working," said Senate Minority Leader Mitch McConnell (R-Ky.).
...
Wow, that just made my day.
17 Reasons Why Those Hoping For A Recession In 2012 Just Got Their Wish
Interesting list and fairly persuasive.
Let me give you an example. If I could go out overnight and magically double the bank accounts of every single American, would we all be twice as wealthy?
No, because there would be twice as many dollars now chasing the same amount of goods and services. The price of those goods and services would soon rise dramatically to reflect this new reality.
If the money supply increased dramatically, producers easily could increase production to get the money.
If the money supply increased dramatically, producers easily could increase production to get the money.
a little Econ. 101 for you. They would not have to increase production to get the new money, all they would have to do is raise prices.
THe Fed could multiply the money supply 1000 times; do you think that would increase production 1000 times?
If the money supply increased dramatically, producers easily could increase production to get the money.
A little reality for you. Sure, they could just raise prices but other producers would be more than happy to offer the same product for less. That's the way competition works.
Don't be silly. The Fed never would make such a dramatic increase in the money supply.
You still have more money chasing the same amount of goods. It is not as if money is created and suddenly more products appear to be consumed. You completely ignore the reality of time.It just isn't so. Big increases in the money supply (doubling bank balances) only cause inflation when the economy is at or near full production. That means producers can't put anything more into the market so they raise their prices to absorb those extra dollars.
Nonsense.
This article isn't worth the effort of reading past the first few paragraphs. Here's an example:
Let me give you an example. If I could go out overnight and magically double the bank accounts of every single American, would we all be twice as wealthy?
No, because there would be twice as many dollars now chasing the same amount of goods and services. The price of those goods and services would soon rise dramatically to reflect this new reality.
It just isn't so. Big increases in the money supply (doubling bank balances) only cause inflation when the economy is at or near full production. That means producers can't put anything more into the market so they raise their prices to absorb those extra dollars.
We are not there now. In fact, we're in trouble because we have so much unused capacity. If the money supply increased dramatically, producers easily could increase production to get the money.
Forget about the article. It's nonsense.
17 Reasons Why Those Hoping For A Recession In 2012 Just Got Their Wish
Interesting list and fairly persuasive.
Nonsense.
This article isn't worth the effort of reading past the first few paragraphs. Here's an example:
Let me give you an example. If I could go out overnight and magically double the bank accounts of every single American, would we all be twice as wealthy?
No, because there would be twice as many dollars now chasing the same amount of goods and services. The price of those goods and services would soon rise dramatically to reflect this new reality.
It just isn't so. Big increases in the money supply (doubling bank balances) only cause inflation when the economy is at or near full production. That means producers can't put anything more into the market so they raise their prices to absorb those extra dollars.
We are not there now. In fact, we're in trouble because we have so much unused capacity. If the money supply increased dramatically, producers easily could increase production to get the money.
Forget about the article. It's nonsense.
Dear, inflation affects wages and raw Printing money does not create any wealth at all, none, nada zip!!!!!!! If it did all nations would be rich tomorrow!!!!
THe Fed could multiply the money supply 1000 times; do you think that would increase production 1000 times?
Don't be silly. The Fed never would make such a dramatic increase in the money supply.
why not, according to your theory the more you print the richer you get!! I suggest Econ 101 before to talk about Economics. Thanks
17 Reasons Why Those Hoping For A Recession In 2012 Just Got Their Wish
Interesting list and fairly persuasive.
If the money supply increased dramatically, producers easily could increase production to get the money.