17 Reasons We Are Going Into 2nd Recession

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

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.


"Today’s dreary economic growth numbers coupled with an administration forecast that indicates next year’s deficit will mark a historic fifth year in a row of trillion dollar deficits underscores what the American people already know — that the president’s economic plan isn’t working," said Senate Minority Leader Mitch McConnell (R-Ky.).

...
 

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.
 
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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.
 
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 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.

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.

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.
 
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

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.


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?


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
 
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.
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.
 
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.

You're wrong. We've already experienced inflation because of the additional money supply the Fed has put out there over the past five years.
 

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.

Your response is entirely based ona Keynesian view of the economy, and there are other theories that fully support what is asserted in the original article.

Given the absolute failure of Keynesianism to fix anything for the past 40 years, or for those who subsdcribe to Keynesianism to actually folllow cyclical expenditures I see no reason to assume the Keynesian view is correct.

And even if it were, this would cause demand-pull inflation as businesses raised their prices in conjunction with what people spent, and people tend to spend till their budgets are maxed out, being good consumers, so since they would have twice the amount of money to spend on the same number of goods it wouldnt take long for the prices to double.

Why would a manufacturer raise production when the number of unit sales are not going up but only the price people were willing to pay went up?
 
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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?

You are likely asking a Keynesianist to step outside of the ivory-tower theory that they live in and engage in independent thought and creative imagination.

You will FAIL miserably.

Just thought you should know, lol.
 
Given that we've done almost nothing about the initial reasons for this economy downturn, it hardly ought to surprise any of us that our economy is still basically fibrilating.
 
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

And I suggest a better grasp on reality before you posit any more ridiculous situations as a basis for public policy. Geometric increases in the money supply aren't a reasonable assumption even in Econ 101 where your education apparently stopped.
 
One thing I would like to point out even though I voted against the commie crook from Chicago is that the major malfunctions of the past four years have not been Obama's. Replacing Obama with Romeny will probably be a step or two to the left on economic policy. Although not quite Pelosi in male form Romney talks free market but avoids acting that way.

So vote early, vote often, vote libertarian.
 
How come these right wingers only use "wacko" extreme far right sites as their ONLY source of "knowledge"????
 
If the money supply increased dramatically, producers easily could increase production to get the money.

too stupid!! with lots of free money manufacturers can always increase production!! When you inflate the currency you dont have to produce more, you just raise prices. There is no free lunch!!


Imagine the pure stupidity in thinking the government merely can print money to increase our standard of living! To bad you wern't around 2000 years ago to tell the world!!
 

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