The Economic Trainwreck now in progress

[Taras]

Yes, I said stimulus, but not the kind you're thinking of. Freak.

So $800 for individual US taxpayers and $1600 for couples is supposed to get people shopping again. Why is that so important? Well because the entire US economy is predicated on people spending money on shiny plastic junk at Wal-Mart. Not manufacturing, not labor, not any semblence of productivity. Once people couldn't sell overpriced houses to each other, the gears began to freeze. And the fundamental problems are still present. There is nothing that can be done to fix a bubble (aka a misallocation of capital) except to let it pop. In prolonging it, it is only more dangerous in the end.

And where do we get bubbles? From the Fed and central bankers literally making money/credit out of thin air. It is completely unnecessary and only serves to ultimately transfer wealth from the middle class to the wealthy. The stimulus plan and rate cuts will do nothing more than further increase inflation, devalue the US Dollar, make things more expensive and get a whole lot of heretofore comfortable people angry. And this will not only affect the US, but since it is 40% of the world economy every developed nation will share the pain. Nobody knows at this point to what degree, but it is certain and it is happening before your eyes. The other certainty is the same criminal elite element that caused the misery-to-be will also have their own contrived "plan" to fix it. And people will be begging for it.

Until next time...

 

[2cb2ct7]

Whoa, not something I expected to find on a gaming news site... But you raise some good points (I have just finished reading "The Shock Doctrine" by Naomi Klein). It is reaffirming to read the thoughts of an American that understands how their economy works and how it essentially runs the world...

 

[Taras]

Whoa, not something I expected to find on a gaming news site... But you raise some good points (I have just finished reading "The Shock Doctrine" by Naomi Klein). It is reaffirming to read the thoughts of an American that understands how their economy works and how it essentially runs the world...

Thanks. I've considered economics sort of my niche and people should understand what is happening and why. I don't claim to be the sole authority, but encourage people to investigate for themselves. Just as with your book recommendation which I will check into - thx.

I think, particularly with my country (and younger generations everywhere), people have been so insulated from the hard realities of life and that the impending fall will be unprecedented in its reach. And look at what markets did today. Asian and European Indices down as much as 7% over US recession fears. I've never seen dips like that before.

Cheers!

 

[FAST6191]

I may sound harsh but I do hope for a fairly big recession as I am of the opinion now it is almost necessary to get rid of the chaff of the world:
Too many companies have been acting cavalier of late (forgoing standards (a major gripe of mine*) it would almost be too easy to waggle the finger at Microsoft and Sony so I will not, outsourcing anything that moves (sure for some things it works but I see places whose entire business is customer service going for the cheapest nastiest option (we all have our customer service stories)), going for the quickest cash flow rather than something decent/sustainable) and governments going for untold levels of bureaucracy/plain stupid laws as well as lacklustre (at best) education (I could give a list but I want to sleep soon).

*several thousand years ago people needed a way to communicate: we get language: see all the problems now with several thousand in existence (admittedly any "solution" is far from clear cut), machines started to have great difficulty being repaired: your bolt is now the same as mine (see the current issues with metric and imperial or perhaps closer to home for the readers here torx and triwing screw heads), planes fall out of the sky (WW2): maybe we should not have used any old bit of metal to build it (we now have broadly accepted grades/descriptions of metal).

Before you ask I am presently unemployed with not too much prospect of a decent job (engineering (as in manufacture) is my thing and the US is not the only place to have forgone production/industry in favour of pushing paper with what little there is encumbered by obtuse health and safety and dangerously mismanaged patent/copyright: is it any wonder now China has opened up for business it is having a whale of a time, again closer to home how many patent battles have occurred when a small company registers a very vague patent and then sues for all it is worth in the computer games world).
I would love to and eagerly await the day I leave this country but it seems I need somewhat legit cash* to pull it off aka one of those catch22 things.

Guess it is time to learn to push paper.

*the skills present in places like this could easily net some serious cash (I have seen it done) but try to explain it.

 

[Taras]

I may sound harsh but I do hope for a fairly big recession as I am of the opinion now it is almost necessary to get rid of the chaff of the world:

I'd say your exactly right in that and your other points. In fact recessions are supposed to wash out the garbage, but it is politically unfeasable to allow anything like that to happen. So in the US, I don't believe we've had one at least since the Bush I era. And in artificially goosing the markets, business and government have really screwed working class Americans. And I think the same goes for most countries central banks lately.

As far as work in a recessionary/depressionary environment, at least you're thinking ahead. That's a leg up on most people that are getting blindsided by this. Hopefully something comes up for you.