Keynesian Economics Evidently saved the world from economic meltdown

Discussion in 'Economy' started by Red Dawn, Jun 15, 2009.

  1. Red Dawn
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    Red Dawn Senior Member

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    It was only 6 months ago that we were looking into the abyss of global economic meltdown. Hopefully the light is at the end of the tunnel




    G-8 Considers Rolling Back Stimulus Efforts Amid Signs that Economic Collapse Is Averted

    June 15 (Bloomberg) -- Group of Eight finance ministers began drawing up contingency plans for rolling back budget deficits and bank bailouts as the economy shows signs of recovery and investors start worrying about inflation.

    The G-8 ministers delivered their most upbeat outlook since the collapse of Lehman Brothers Holdings Inc. in September amid mounting evidence that the deepest global recession in six decades is moderating.

    Officials meeting in Lecce, Italy, over the weekend said it’s prudent to consider what exit strategies to deploy once global growth is secured and asked the International Monetary Fund to examine how to do so without reigniting the two-year crisis. At the same time, they said it’s premature to rein back more than $2 trillion in stimulus packages.

    Policy makers trod a fine line in the knowledge that withdrawing stimulus measures too soon could choke the recovery before it starts, and allowing them to last too long might push up borrowing costs. They are also trying to reassure markets after the yield on the 10-year U.S. Treasury note rose last week to the highest since October.
    There are “signs of stabilization,” though “the situation remains uncertain” as climbing unemployment and volatile commodity prices present obstacles, the ministers said in their statement.

    G-8 Plans to Reverse Stimulus as Rebound Signs Grow (Update1) - Bloomberg.com
     
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  2. Oddball
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    Oddball BANNED Supporting Member

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    Yeah....The arsonists were the right people to call to put out the fire. :rolleyes:
     
  3. Shogun
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    Shogun Free: Mudholes Stomped

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    what was it you always cry about non sequiters?


    :rofl:


    Funny, the guy smelling of gasoline whose eyebrows are singed was the first person to cry foul.

    :thup:
     
  4. PubliusInfinitum
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    PubliusInfinitum BANNED

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    ROFLMNAO... Of course the simple fact is that not one cent of the spending to which this idiot speaks can be attributed to a single positive economic devalopment...

    Had the US not spent one cent to save a single thing, the 'poisoned assetts' would have long since been discounted to pennies on the dollar and bought up by those who would have reaped the benefit of such... with the US and global economy having long since returned to sustainable growth...

    All that has happened is TRILLIONS of dollars have been printed, devaluing the Dollar even further, and set the planet up for the unavoidable wave of stagflation...

    It is hilarious to me how the left is so quick to take credit for a recovery in an economy which is still in free fall... of course, this is all part and parcel of the left's attempt to create the perception of a recovery where none exists... just as they did when the US economy enjoyed 4% unemployment and they were shouting "THE WORST ECONOMY SINCE THE GREAT DEPRESSION..."

    But such is the nature of evil... it's sole function is deceit.
     
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    Last edited: Jun 15, 2009
  5. Baruch Menachem
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    Baruch Menachem '

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    I think they have realized that it is counterproductive, and the thing everyone was afraid of has happened already.

    Unemployment is still going up like crazy, even after all the money that was thrown at GM and Chrysler, they still went bankrupt, TARP may be destroying Banck of America, as the rescue of Merrill seems more toxic all the time.

    And while the rest of the world is may be doing better, the US is not. I am one of the unemployed, and the number of jobs out there is shrinking as the pool of seekers bleeds wider and wider.
     
  6. Sinatra
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    Sinatra Senior Member

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    Well, by using the Unites States as an example - we have spent very little of the stimulus package yet - (what actual stimulus was there) and yet the economy appears to be stabalizing a bit - though unempoyment continues to rise.

    So what Keneysian spending has actually taken place - very little.

    What we have had is strong government intervention / power grab.

    So we will have a test of whether or not centralized power will win out over what is left of a self-sustaining economy.

    That has less to do with Keynes and far more to do with Hitler, Mussolini, or Stalin...
     
  7. Baruch Menachem
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    Baruch Menachem '

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    that is a constant line every time since 1988. People who lived through it know better.

    And for my personal experience, there is no level of economic horror that was worse than the years 1978-1981. Huge levels of unemployment, double digit inflation, fecklessness and hubris and disaster everywhere. And by the way, it was all Nixon's fault anyway. We seem to be heading back into the Carter levels of disaster and dishonesty
     
  8. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    Keynesian economics saved the world from the Keynesian created meltdown? That doesn't make any sense.
     
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  9. Sinatra
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    Sinatra Senior Member

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    Agreed - the time period you reference was worse - far worse - than what the nation has recently experienced.

    Each era wishes to romanticize how bad it is, and in doing so, loses historical context.

    This country was at the brink - truly at the brink, of a deep economic depression by the late 1970's. The machinery was grinding to a slow but consistent halt.

    The fact we managed to pull out of that remains a remarkable period in American economic history.

    This current recession remains rather shallow - compounded by the housing downturn, but overall, shallow - albeit prolonged.

    America is a whiney, over emotional, land of wimps.
     
  10. PubliusInfinitum
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    PubliusInfinitum BANNED

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    Yeah Nixon did implement a ton of left-think as federal policy... but such never gets resolved by electing more egregious leftists... which is what has happened here.

    The Housing Bubble/Bust was a direct result of leftist manipulation of the Mortgage industry; particularly their demand that long-standing actuarial lending policies be set aside to accommodate their means to exert power in the name of "FAIRNESS"... whereupon they come to the rescue to implement MORE OF THE SAME, only on exponentially greater levels; ALL IN HOPES OF REALIZING A DIFFERENT RESULT!

    Which is, of course, the working definition of INSANITY.
     
    Last edited: Jun 15, 2009

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