American Economics Thread
- Thread starter Bernard
- Start date
No matter how universally English is used in the US today, it is probably just as universally as Latin was once used in Roman Empire. Of course, we all know who is speaking Latin today. In fact, language is such a trivial factor in determining empire disintegration that you even don't need to give it any consideration. Can same mother tongue prevent identical twins from feuding to death for controlling inheritance? If it can't, why do you assume Americans will not fight each other to death to escape US debt death trap when the American Empire is about to die? Just because you and your neighbors all speak English, so you will willingly take over their shares of US government debt as yours, won't you?
The US governance is modeled after Roman Empire. Its centralization is no better than Roman Empire.
As for Germany, are you sure the territory it controls now is as big as it controlled in 1919? And are you sure it is now not in a slow process of disintegration?
Stay on topic or you'll be getting warnings and bans.
US tariffs on China could cost US households up to $1,000 per year.
US tariffs on China could cost American households $1,000 per year, JPMorgan says
Excerpt:
"Boosted by historically low unemployment, households have continued to spend. Retail sales jumped in July by more than analysts anticipated. However, in early August to seven-month lows as the trade war intensified and the to offset tariff uncertainty."
"Corporate profits are already under pressure from the trade war.
JPMorgan lowered its estimate of 2020 S&P 500 profits to account for the September 1 tariffs. It warned profits would get worse if the tariffs scheduled for December 15 go ahead.
Home Depot () dimmed its sales guidance on Tuesday caused by the tariffs on China.
"The US consumer is facing the impact of tariffs. While trade discussions are fluid, consumer demand could be impacted," Carol Tome, Home Depot's chief financial officer, told analysts."
This increased cost for the US consumer should be viewed in another light.
Nearly 40% of Americans can't cover a surprise $400 expense
Excerpt:
"What that means on the ground: Even a thriving economy can leave people close to the edge. The Fed found that 27% of survey respondents would have to borrow money or sell something to cover a $400 emergency — 12% couldn't cover it at all. Other findings from the annual Fed report, which is based on a survey last fall of 11,000 people:
US tariffs on China could cost American households $1,000 per year, JPMorgan says
Excerpt:
"Boosted by historically low unemployment, households have continued to spend. Retail sales jumped in July by more than analysts anticipated. However, in early August to seven-month lows as the trade war intensified and the to offset tariff uncertainty."
"Corporate profits are already under pressure from the trade war.
JPMorgan lowered its estimate of 2020 S&P 500 profits to account for the September 1 tariffs. It warned profits would get worse if the tariffs scheduled for December 15 go ahead.
Home Depot () dimmed its sales guidance on Tuesday caused by the tariffs on China.
"The US consumer is facing the impact of tariffs. While trade discussions are fluid, consumer demand could be impacted," Carol Tome, Home Depot's chief financial officer, told analysts."
This increased cost for the US consumer should be viewed in another light.
Nearly 40% of Americans can't cover a surprise $400 expense
Excerpt:
"What that means on the ground: Even a thriving economy can leave people close to the edge. The Fed found that 27% of survey respondents would have to borrow money or sell something to cover a $400 emergency — 12% couldn't cover it at all. Other findings from the annual Fed report, which is based on a survey last fall of 11,000 people:
- 17% of U.S. adults are unable to pay all of their bills in full every month.
- 25% of Americans skipped necessary medical care in 2018 because they couldn't afford the cost.
- 30% of families must cope with income that that varies from month to month.
- 25% of adults who are still in the labor force have no retirement savings or pension.
- 30% of people either can't pay their bills or are one modest financial emergency from serious trouble. "
i have a very medium pay job in italy (1500 euros a month in a troubled south european country) and istill have about 20000 euros in my bank account, i think that medium americans are desperate to find money, literally. I also have free or very low bill medicare.
Strong consumer spending is a poor and lagging indicator pointing to a recession. So no. Strong consumer spending does not save you from a recession, nor it is an indicator that you are not heading into one.
A Strong U.S. Consumer Is a Lagging Indicator
Spending is always strong and unemployment low at the onset of a recession.
Quote:
"Even though consumer spending accounts for about two-thirds of the economy, it was a poor predictor of the last two recessions, which occurred from March to November 2001, and from December 2007 to June 2009. A slowdown in spending coincided with the start of the first recession and lagged behind in the second."
A Strong U.S. Consumer Is a Lagging Indicator
Spending is always strong and unemployment low at the onset of a recession.
Quote:
"Even though consumer spending accounts for about two-thirds of the economy, it was a poor predictor of the last two recessions, which occurred from March to November 2001, and from December 2007 to June 2009. A slowdown in spending coincided with the start of the first recession and lagged behind in the second."
He said the U.S. should always be paying the lowest rate and complained that the “naivete” of Chairman Jerome Powell and the Fed means that this was a “once in a lifetime opportunity that we are missing because of ‘Boneheads.’”
A Fed spokeswoman declined to comment on the tweets.
Trump tweeted below
The USA should always be paying the the lowest rate. No Inflation! It is only the naïveté of Jay Powell and the Federal Reserve that doesn’t allow us to do what other countries are already doing. A once in a lifetime opportunity that we are missing because of “Boneheads.”
The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term. We have the great currency, power, and balance sheet.....
I'm speechless, talk about economic ignorance. The Fed should set zero = 0 or less as in - 1%.
My god! Come borrow from me, and for every $100 you borrowed FROM ME and I'll give you your money back plus an extra dollar!!!! Lol.
I have heard of EFFECTIVE negative rate, but never REAL negative rate! That's a first! No wonder he thinks China is paying for the tariffs!
A Fed spokeswoman declined to comment on the tweets.
Trump tweeted below
The USA should always be paying the the lowest rate. No Inflation! It is only the naïveté of Jay Powell and the Federal Reserve that doesn’t allow us to do what other countries are already doing. A once in a lifetime opportunity that we are missing because of “Boneheads.”
The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term. We have the great currency, power, and balance sheet.....
I'm speechless, talk about economic ignorance. The Fed should set zero = 0 or less as in - 1%.
My god! Come borrow from me, and for every $100 you borrowed FROM ME and I'll give you your money back plus an extra dollar!!!! Lol.
I have heard of EFFECTIVE negative rate, but never REAL negative rate! That's a first! No wonder he thinks China is paying for the tariffs!
Negative rates are coming to the US, at least one former Fed chairman has said so.
Do you folks remember Alan Greenspan's ridiculous claim that the US can always print money without penalty?
What impacts negative rates could have to the US economically, militarily and politically?
How safe your dollar-based assets, such as your savings, your house, your wage, your everything financially, in a negative rates environment?
Which countries are likely to have negative rates and which countries will unlikely to have them in next ten to twenty years?
Alan Greenspan says it’s ‘only a matter of time’ before negative rates spread to the US
Do you folks remember Alan Greenspan's ridiculous claim that the US can always print money without penalty?
What impacts negative rates could have to the US economically, militarily and politically?
How safe your dollar-based assets, such as your savings, your house, your wage, your everything financially, in a negative rates environment?
Which countries are likely to have negative rates and which countries will unlikely to have them in next ten to twenty years?
Alan Greenspan says it’s ‘only a matter of time’ before negative rates spread to the US
