17 Reasons We Are Going Into 2nd Recession

Discussion in 'Economy' started by JimBowie1958, Jul 28, 2012.

  1. JimBowie1958
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    JimBowie1958 Old Fogey

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  2. Annie
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    Annie Diamond Member

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    Wow, that just made my day.
     
  3. Annie
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    Annie Diamond Member

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    As if reading that wasn't uplifting enough, my next read:

    Wonderful news. Not.

    White House projects $1.2 trillion deficit, lower economic growth in 2012 - The Hill's On The Money

     
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  4. JimBowie1958
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    JimBowie1958 Old Fogey

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    Annie, as I am sure you already know, reality is its own reward.
     
  5. Joe Steel
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    Joe Steel Class Warrior

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    Nonsense.

    This article isn't worth the effort of reading past the first few paragraphs. Here's an example:

    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.
     
    Last edited: Jul 28, 2012
  6. william the wie
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    william the wie Gold Member

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    The Euro-zone is in recession now and that will sink both the US and China. The idea that we are sinking now is fairly new but not surprising.
     
  7. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    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?
     
  8. Joe Steel
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    Joe Steel Class Warrior

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    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.
     
  9. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    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


    Dear, inflation affects wages and raw material and then prices. Costs go up by the amount of new money printed! If you don't raise prices your margins are cut to 0!! There are no free lunches!!! Repeat that 1000 times.

    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?


    why not, according to your theory the more you print the richer you get!! I suggest Econ 101 before to talk about Economics. Thanks
     
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  10. ShackledNation
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    ShackledNation Libertarian

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    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.
     

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