what will be the ramifications of a recession in america to the rest of the world?

mattrock

New member
Originally posted by Elly3438
Mattrock - well, if the president has nothing to do with the economy, then why is Bush giving money back to the people, AGAIN, when the country obviously can\'t afford it and it didn\'t do anything the first time. If the president just goes with the flow of things, then why have economic stimulus plans? I think the government can do stupid things to mess things up even more, and of course with a republican in office, the idea is to print print and print money, and get into more and more debt.... and eventually, the country will implode on itself and come crashing down.
And as for the ANWAR, leave it alone! Damn, do humans have to destroy EVERY part of the world for their greedy consumption and gas guzzling SUVs? Screw that, leave at least a few places in the world untainted by dirty human hands....
:D

This just goes to support my point in so perfect a way that it would be amusing if not so distressing.

First of all, you didn\'t finish reading my post. I\'m not supporting Bush, just saying that he\'s not responsible for the current economic condition. I\'m saying that political rhetoric makes it look that way. And by political rhetoric, of course I mean the drivel that the news media and the opponents of any high level elected official feed to people who eat it up so readily when it fits their personal agenda. So allow me a moment to correct the rampant inaccuracies in your talking points.

1. Bush isn\'t giving money back to the people, the economic stimulus plan is a bipartisan effort that is just as heavily championed by Nancy Polosi (whom I\'m sure you have a much higher opinion of) as it is by Bush.

2. Saying that it didn\'t do anything the first time is partly accurate (which further goes to the credit of my point and the discredit of your assertion to the contrary) but hard to answer. I agree with this because what was given back was on such a small scale. The little rebate checks some got did not do much more than give us back some of the money that we paid in taxes before (which I certainly don\'t think is a bad thing because I\'ll guarantee you that I can use it more responsibly than can the government, be it democratic or republican. One more thing on this: the reason the country can\'t afford it has much less to do with taxation than it does with inappropriate government spending. Bush did a bad job with spending...so did virtually every president before him democratic and republican alike. The president isn\'t the problem, the government is.

3. the president doesn\'t just go with the flow of things (and if you\'d have read my entire post you would have seen me say this already). He can create policy that will help to prolong a good market and expedite a bad one...but he can\'t make policy that will eliminate either. If the greatest dem president that ever there was remained in office for eternity we would still have market cycles. We\'d still have recessions and expansions. That\'s reality and you won\'t get it in political rhetoric. Btw, this answers the question of \"why\" with the new economic stimulus plan: it is a bipartisan effort to delay the coming recession. And it will probably do just that: delay it...not stop it.

4. \"and of course with a republican in office, the idea is to print print and print money, and get into more and more debt.... and eventually, the country will implode on itself and come crashing down.\"

My answer: lol - I\'m not a republican (though I am conservative) but I\'d advise you to do your homework a little more thoroughly before making statements like this one. Generalizing to that extent really hurts credibility. Your homework assignment starts with FDR. Let us know what you learn.

5. and finally, ANWAR: dirty human hands? I have never understood the ultra left wing self-loathing thing so I\'m not sure how to answer this. This is the best I can do: :wow:

Now understand that I say all of this tongue in cheek and mainly to point out the ultra political influences in your arguments. IMHO (or who am I kidding, it\'s not so humble lol) these arguments are made from an emotional standpoint, meaning they are based on how you feel. As I mentioned in an earlier post emotion and logic don\'t play well together. Politics is emotion and economics is logic. That\'s why guys like Warren Buffet and Greenspan don\'t run for president and why folks like Obama turn down Wall Street jobs for political aspirations.

Hope I wasn\'t too harsh or offensive, it\'s just that I get so tired of hearing all the rhetoric and talking points from both sides. Some issues require us to put our hearts on the back burner in favor of our heads. :beer:

Edit: Voted and commented on your eldar. Beautiful work. Good to know we can disagree on the politics of economy and yet still agree on good taste in minis! :D :beer:
 

MPJ

New member
I just can\'t wait for a return to the Gold Standard. All this recession talk and massive debt of the US may end in a return to backing currencies with real value not GDP. I miss the Gold Standard.

Just another random thought slightly on-topic but only just barely thrown in by me.
 
Originally posted by MPJ
I just can\'t wait for a return to the Gold Standard. All this recession talk and massive debt of the US may end in a return to backing currencies with real value not GDP. I miss the Gold Standard.

Just another random thought slightly on-topic but only just barely thrown in by me.

I was going to ask how old you were to remember the gold standard..it was pretty much dropped world wide by 1970 and in many places in the world decades before that.. I mean Im almost 43..I certainly dont remember it..

There will never be a gold standard again nore will it be the only form of currancy.. if the world goes to hell..we will all be trading in commodities like food, oil and weapons..
 

MPJ

New member
(Hi Matty, it has been a while).

Technically I don\'t remember the Gold Standard as I was born in 1971. But I was an Economics major in university and long for the \'good \'ol days\'.

There is actually some serious scuttlebutt about a possible return to the Gold Standard or some other commodity to back currencies. Primary reason the topic is out there is the massive debt of the US and the fact that there is very little stopping the US from printing massive amounts of currency. Were the US to print massive amounts of currency to pay their way out countries like China which holds much of this debt would be \'screwed\' so to speak. Now the US is not the only country in this situation, many industrialized countries are but the US is in the top spot.

Likely it will take a world wide recession/depression to trigger such a change but it is quite possible to see this change in the next few decades.

As for the Canadian markets we too are getting bounced around of late some of which is linked to the US economy but in the end this sort of thing is completely normal. I for one am enjoying the increased purchasing power of my Canadian dollar and have been ordering more from the US even though I know it\'s really hurting our export industries I still can\'t help capitalizing in my own way on the sagging greenback.
 

Thunderhawker

New member
In response to vike\'s observations about the economy and one man\'s effect on it, there was only one man who could single-handedly alter both U.S. and world economies, and he recently retired. Alan Greenspan.
 

Infidel Castro

New member
On the OP (god, I sound like Shadzar :D) I couldn\'t care a monkeys. I does my job, I gets paid. I work for an utility company. Why should I even care?
 

supervike

Super Moderator
Well, good Reverend, you should care for the simple matter of economics.

If the currency continues to depreciate in value, your salary is essentially given a cut, without you really seeing it.

If it costs more to buy a loaf of bread, pay your bills, etc. but you aren\'t given an appropriate COLA (cost of living adjustment) you are really working for less.

NOW...if you lived in a bubble in your country, and America\'s economics didn\'t really matter, I\'d agree you shouldn\'t care.

And that is the crux of the whole thread....what the ramifications of an american recession will eventually have on the rest of the planet.
 

Dragonsreach

Super Moderator
Staff member
Originally posted by supervike
If it costs more to buy a loaf of bread, pay your bills, etc. but you aren\'t given an appropriate COLA (cost of living adjustment) you are really working for less.
In a \"blanket statement\" that has been happenning inthe UK for several Years now. Cost of living rises have been higher than Wage increases which the current Prime Minister is demanding be limited to 2% or lower.

Petrol is our primary cost \"Bitching\" at the moment. Averaging between 102.9 -105.9 pence per litre. 1 litre = 0.22 gallons, therefore roughly $9.42 a gallon.
Most of which is TAX.
 
Originally posted by Dragonsreach
Originally posted by supervike
If it costs more to buy a loaf of bread, pay your bills, etc. but you aren\'t given an appropriate COLA (cost of living adjustment) you are really working for less.
In a \"blanket statement\" that has been happenning inthe UK for several Years now. Cost of living rises have been higher than Wage increases which the current Prime Minister is demanding be limited to 2% or lower.

Petrol is our primary cost \"Bitching\" at the moment. Averaging between 102.9 -105.9 pence per litre. 1 litre = 0.22 gallons, therefore roughly $9.42 a gallon.
Most of which is TAX.

But hey you got that wonderful National Health Care system.. they had to pay for it somehow.. Im sort of joking with that statement but people in this country bitch now about $3.29 a gallon.. yet they want a Democratic president and congress so bad right now who dangel things like nationalized health care as a reward..that they fail to realize it has to be paid for some how and well an increased tax and gas will be one way.
 

Dragonsreach

Super Moderator
Staff member
Originally posted by Dragon Forge Design
But hey you got that wonderful National Health Care system.. they had to pay for it somehow.. Im sort of joking with that statement .....
No, I understand how the National Health Service is in principle a great idea and service and to be honest in most cases it is.
However there are failures not only within the system but massive disparities of available treatment between locations within the UK. (Certain Cancer Treatment drugs can be available in one NHS region and in the bordering region not be available, due to cost.)
Govt\'s force targets on reducing \"Waiting Lists\", which on paper look to have fallen, but for normal referrals, what has happened is that the appointment is rescheduled when it looks as if the waiting list is getting too long on non-urgent cases, which forces the statsistics to go back to zero in those cases. (Know that from personal experience).

Tim (freakinacage) will probably confirm one of the issues (as will my friend Paul) in that Friday & Saturday night in larger hospital emergency admissions (E.R) are dealing with increasingly large numbers of injuries caused by Alcohol abuse and violence. As you will understand, ER nurses, Doctors and the Policing that has to go with them is straining resources in an already \'taxed\' environment. (And having been rushed into an ER on a Saturday night it can be a hectic scary place)

Hang on, I\'m starting to get into a UK based political debate here.......Sorry.
 
No I follow you quiet closely DR and thats my fear for this country if they install it. Sure there will be people who will get access to health care they didnt have.. but what Im afraid of is the people who truely need it still wont get it. Add to that non life threatening issues like the surgery I had two weeks ago to remove torn cartilage from my knee..Im sure under a nationalized health care the 2 weeks it took me to schedual surgery and have it removed would turn into months and months of waiting.
 

Infidel Castro

New member
Originally posted by supervike
Well, good Reverend, you should care for the simple matter of economics.

If the currency continues to depreciate in value, your salary is essentially given a cut, without you really seeing it.

If it costs more to buy a loaf of bread, pay your bills, etc. but you aren\'t given an appropriate COLA (cost of living adjustment) you are really working for less.

NOW...if you lived in a bubble in your country, and America\'s economics didn\'t really matter, I\'d agree you shouldn\'t care.

And that is the crux of the whole thread....what the ramifications of an american recession will eventually have on the rest of the planet.

Aye, but as a small part of this \'rest of the world\' I still couldn\'t care less if I tried! Personally speaking, I don\'t wake up fretting about the state of American industry or American interest rates as I see life in a straightforward way. Like I said, I go to work, I do my job. I get paid. I get a COLA every year and also I\'m getting a nice increase (nice for me anyway, but hardly massive by anyone else\'s standards lol). I was on topic when I gave my original answer, only I was very much talking about me alone. Life is simple, so why complicate it? Get up, go to work, come home, have my tea, read, watch a bit of telly, play some sport, maybe have a pint, watch some rugby, get paid on the 20th, pay the bills, spend some dough, buy the Big Issue, listen to some music...if I find find my finances stretched, I cut my cloth accordingly. So, to answer the question, what affect will it have? For me, none that can\'t be absorbed like anything else I have to deal with financially each year.

Anyway, China is the future :D

I see your point though Vike. I\'m talking about my own microcosm. It\'s a foetid, rank little world I live in lol
 

MPJ

New member
Gotta chime in on the healthcare bit... Canada has national health care, I\'ve lived here most of my life except for two years in Texas so I\'ve experienced \'both\' systems. In a heartbeat I\'ll take the US system over our health care. At least with private health care I know I can get the services I need more or less when I need them, can\'t say that about here to be sure.
 

Elly3438

Member
no no no, mattrock, my post came off as I was a lefty extremist, but let me clarify...
I dislike most politicians, right or left wing. Bushy is just a disgrace and a fool... and you are right, people do feel emotion and vote off of that. That is how he got in office and stayed in there for 8 years... people say \"hey he looks like a friendly guy I could see myself sittin down and havin a beer with him!\" Stupid reasoning for voting for someone, like the whole Obama messiah crap going on now. (don\'t get me started on him...)
As for the economy, I just don\'t see how a massive debt in the government can\'t effect the economy in some way. Maybe you can spell that out for me. Also, if the federal reserve keeps slashing interest rates and printing money, I don\'t see how that doesn\'t effect it either. I agree with you that the government spends too much, but, you have to remember, the president is solely responsible for picking his advisors and cabinet members, who can then work with various organizations within the government...
Dems can spend just as much money as Repubs, but I disagree, it seems a lot do raise taxes, not cut them down or give rebates. But I agree with you that both parties spend money foolishly, I\'d be retarded if I thought Dems were made of gold and could never do wrong.
You assume too much in your post about me, inferring that I am some lefty extremist. There is no self loathing here my friend, I love life and I greatly respect a decent human being. But most are despicable and live like robots. Completely unaware and slaves to things like reaction, and their minds are polluted with television and other misc things that clog their brains. Most people aren\'t even aware that their brains are a racing mess, and they can\'t even make one genuine choice in their lives. That\'s why there will be drilling in the ANWAR. People have no respect for the Earth. This planet is one in a million, good luck finding another... yet humans just want to suck her dry, until there is nothing left. Greedy and overconsuming, humans are programmed with the instinct of self preservation, which is funny because most humans don\'t even know who they are!
I agree with you on a lot of stuff, though you came on the attack (I know my post looks like I was a left wing nutjob! lol) I\'d vote for a guy who could get the country out of debt and looks fugly as hell before I\'d vote for an idiot who looks like Brad Pitt... and I\'ll even say that I\'d vote for McCain (depending on who he picks for his running mate) if that no experience hack Obama wins the Dem nomination... (crap I don\'t even know if I\'d vote for Hillary! The Dems coulda found someone a bit better...)
Anyways, thanks for the comment on the mini, looking forward to seeing more of yours also my friend! :D
 

Elly3438

Member
I agree MPJ, I like my private healthcare, and I think both Hillary and Obama\'s plans are just a waste of money. The only thing that may need looking into is the actual business of health, and the prescription companies as well as the insurance companies. Try going to an American hospital, you will be run through so many pointless tests, and doctors will come on in, look at your chart and then charge you $500 (and sometimes, doctors just come on in without even checking to see if they are on your plan, then bill you the money!) and you will never see them again. Things like that have to stop~
 

mattrock

New member
Originally posted by Elly3438
no no no, mattrock, my post came off as I was a lefty extremist, but let me clarify...
I dislike most politicians, right or left wing. Bushy is just a disgrace and a fool... and you are right, people do feel emotion and vote off of that. That is how he got in office and stayed in there for 8 years... people say \"hey he looks like a friendly guy I could see myself sittin down and havin a beer with him!\" Stupid reasoning for voting for someone, like the whole Obama messiah crap going on now. (don\'t get me started on him...)
As for the economy, I just don\'t see how a massive debt in the government can\'t effect the economy in some way. Maybe you can spell that out for me. Also, if the federal reserve keeps slashing interest rates and printing money, I don\'t see how that doesn\'t effect it either. I agree with you that the government spends too much, but, you have to remember, the president is solely responsible for picking his advisors and cabinet members, who can then work with various organizations within the government...
Dems can spend just as much money as Repubs, but I disagree, it seems a lot do raise taxes, not cut them down or give rebates. But I agree with you that both parties spend money foolishly, I\'d be retarded if I thought Dems were made of gold and could never do wrong.
You assume too much in your post about me, inferring that I am some lefty extremist. There is no self loathing here my friend, I love life and I greatly respect a decent human being. But most are despicable and live like robots. Completely unaware and slaves to things like reaction, and their minds are polluted with television and other misc things that clog their brains. Most people aren\'t even aware that their brains are a racing mess, and they can\'t even make one genuine choice in their lives. That\'s why there will be drilling in the ANWAR. People have no respect for the Earth. This planet is one in a million, good luck finding another... yet humans just want to suck her dry, until there is nothing left. Greedy and overconsuming, humans are programmed with the instinct of self preservation, which is funny because most humans don\'t even know who they are!
I agree with you on a lot of stuff, though you came on the attack (I know my post looks like I was a left wing nutjob! lol) I\'d vote for a guy who could get the country out of debt and looks fugly as hell before I\'d vote for an idiot who looks like Brad Pitt... and I\'ll even say that I\'d vote for McCain (depending on who he picks for his running mate) if that no experience hack Obama wins the Dem nomination... (crap I don\'t even know if I\'d vote for Hillary! The Dems coulda found someone a bit better...)
Anyways, thanks for the comment on the mini, looking forward to seeing more of yours also my friend! :D

I apologize elly, I admit I misjudged your direction. Since you referenced them several times, I\'m sure you can see why I am irritated by ultra lefties. (or for that matter ultra righties). Actually most of what you said in this post I agree with. I will say that I voted for Bush in both terms because he seemed the lesser of evils. I am really unhappy with his performance particularly on things like border security and spending, but I still think that Kerry would have been worse. In the current election...I think I\'m in the same boat. As it stands now I\'ll probably have to vote for McCain even though I\'d prefer someone better. Obama and Hillary are both one step this side of socialist and I don\'t think this is Nader\'s year.lol

I wish that Obama had some decent policies because as a politician, he\'s a pro. Going back to my emotion versus logic thing, he can even affect me emotionally and I don\'t like a single thing the guy is about. I\'d love to vote for someone that I enjoy listening to, but I think his policies (chief among them nationalized health care) are awful. Clinton on the other hand. :possessed:

We\'ll have to agree to disagree about ANWAR but I do not think they\'ll end up drilling it...at least for a very long time. It\'s just to unpopular of an idea. It\'s not that I don\'t have respect for the Earth, it\'s just that I don\'t see drilling ANWAR as causing any major damage to that ecosystem and the size of the reserves in ANWAR give us the time and potential to develop alternatives while not having to depend so heavily on overseas production.

Btw...you hit the nail on the head with the Obama messiah thing. Check out the cover of Texas Monthly if you haven\'t seen it already...it\'s quite interesting.

One last thing: I do think that the deficit and national debt affect the economy and I do think that tax and fiscal policy have an effect as well. It\'s just that I think that the effect is to intensify or abbreviate normal market cycles. What I\'m saying is that if we managed to make perfect policy in all financial areas, we\'d have prolonged bull markets but we\'d still have the occasional bear. It\'s just the nature of a free economy. The one thing I can say for Bush\'s administration is that it was during his administration that we began and lived out the longest running bull market in recent history in this last five years. Whether his policies precipitated that or not is up to interpretation, but so many people just wanna skip over that because so much of the rest of what he\'s done has been so unpopular. I\'m not supporting the guy...just gotta admit I find it odd that billy has a few up years and a bubble and gets credited with the economic upswing (which if you look at the numbers wasn\'t even that great) while Bush has the longest running bull in history coming off of the bubble AND 9/11 and somehow gets credited with a bad economy when even NOW unemployment is at optimal levels. Just seems a bit inequitable (did I just make that word up?)

Anyway, I apologize for pinning you as a lefty extremist. I\'ll admit that until I took a look at your profile I was seeing pictures in my mind of some kind of hideous cross between Michael Moore and Randi Rhodes. lol

I hope you\'ll forgive my misinterpretation.
 

supervike

Super Moderator
Originally posted by reverend
Aye, but as a small part of this \'rest of the world\' I still couldn\'t care less if I tried! Personally speaking, I don\'t wake up fretting about the state of American industry or American interest rates as I see life in a straightforward way. Like I said, I go to work, I do my job. I get paid. I get a COLA every year and also I\'m getting a nice increase (nice for me anyway, but hardly massive by anyone else\'s standards lol). I was on topic when I gave my original answer, only I was very much talking about me alone. Life is simple, so why complicate it? Get up, go to work, come home, have my tea, read, watch a bit of telly, play some sport, maybe have a pint, watch some rugby, get paid on the 20th, pay the bills, spend some dough, buy the Big Issue, listen to some music...if I find find my finances stretched, I cut my cloth accordingly. So, to answer the question, what affect will it have? For me, none that can\'t be absorbed like anything else I have to deal with financially each year.

Anyway, China is the future :D

I see your point though Vike. I\'m talking about my own microcosm. It\'s a foetid, rank little world I live in lol



As often, your frankness is your strength. And, I have to say I agree with you. You have a remarkably clear vision of what is truly important.

I don\'t wake up worrying about economics either. As long as I have a job, and my bills are taken care of, I\'m just a pretty boring simpleton.

But, it\'s fun to pretend like I understand these heavier topics, an participating in them makes me feel smrt. It\'s just a mental exercise, much like when my wife asks my opinion on what color blouse she looks good in.





:beer:
 

squidders

Active member
I go to work, get paid, go about my business... I work for a French investment management company and couldn\'t give a fart about the US economy...

Until it had a rather large knock on effect in the rest of the world and as a result, the company I work for. So, to stay on top of things, they aren\'t renewing many of the contract staff and that includes me on the 31st of this month.

So while I still don\'t give a toss, this is one example of how something like this has a far reaching impact on someone who has nothing directly to do with the american economy.

It\'s important to note though that while it\'s never asked about the reverse, europe and asia has a similar economic power over the Americas.
 

mattrock

New member
Originally posted by squidders
I go to work, get paid, go about my business... I work for a French investment management company and couldn\'t give a fart about the US economy...

Until it had a rather large knock on effect in the rest of the world and as a result, the company I work for. So, to stay on top of things, they aren\'t renewing many of the contract staff and that includes me on the 31st of this month.

So while I still don\'t give a toss, this is one example of how something like this has a far reaching impact on someone who has nothing directly to do with the american economy.

It\'s important to note though that while it\'s never asked about the reverse, europe and asia has a similar economic power over the Americas.

sorry to hear about your job loss squid. I went through that a few years back. It\'s a tough break but usually ends up better than it was in the end.
 
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