How to stop Recession & advice to Mr Bernake'''

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bomber

New Member
SteelBird said:
First of all, he had a wrong spelling, or I could have googled to find out what "Bernanke" means. Secondly, I'm from the other side of the ocean, and not so interested in US politics. Finally, this guy doesn't always show up on foreign (outside the US) media. If his did show up on the news, it always come to me in Chinese or Khmer language. :coffee:
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Dear Friend,
US politics is very important for today because of US is one of the most powerful state ,US is #1 not only in military and economy,but also in media,technology,etc.
So, I would like to sent my little idea to solve the world crisis or great depression via our forum.
Now,Many friends are discussing & sharing their opinions on this topic.
I,m really appreciate on all discussion all are support to get the solution of Recession problem.
If recession could not solve properly in time,many problems will appear according to my 1st post.
thanks
:)
 
P

pla101prc

Senior Member
bomber said:
Dear Friend,
US politics is very important for today because of US is one of the most powerful state ,US is #1 not only in military and economy,but also in media,technology,etc.
So, I would like to sent my little idea to solve the world crisis or great depression via our forum.
Now,Many friends are discussing & sharing their opinions on this topic.
I,m really appreciate on all discussion all are support to get the solution of Recession problem.
If recession could not solve properly in time,many problems will appear according to my 1st post.
thanks
:)
Click to expand...

you cant solve a recession, the recession occured cuz there was a structural problem in the US economy. until you address that issue this type of "unusual recession" is gonna come back.
in other words, if politics in washington doesnt wake the %^&* up then the US is screwed
 
B

bomber

New Member
crobato said:
If currencies are allowed to float, the world would pick up the Renminbi as standard and drop the US dollar like a hot potato.

In other words, it's really the last thing you want.

Please note, what artificially jacks up the US dollar and keeps the Renminbi artificially low is the Chinese banking system buying up US debt. You want a free floating system, the Chinese has to stop buying US debt.
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Yes,I agree with you 60%on YMB floating system may be according to policy of PRC have to stop buying US Debt or Bills.
Now,PRC don,t want to depend on US bills so PRC buying essentials materials and loan $$$$$to his partners LDC countries,also buying metals & gold.
So,Gold demands is very high and record high in2009.
In Nixon Era, Nixon stopped the Bratonwood system or 35US $ equal one ounce of Gold.I think that US trade deficit is too high and Nixon solved the problem.
Now,real valued currency will be base on Gold or Platinum,etc.
Really,I don,t think so....CZ of u know??????
 
A

Ambivalent

Junior Member
crobato said:
If currencies are allowed to float, the world would pick up the Renminbi as standard and drop the US dollar like a hot potato.

In other words, it's really the last thing you want.

Please note, what artificially jacks up the US dollar and keeps the Renminbi artificially low is the Chinese banking system buying up US debt. You want a free floating system, the Chinese has to stop buying US debt.
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It is, as I said, a two way dance. The US wants customers for it's debt, and China very much wants to keep the terms of trade strongly in it's favor, thus they artificially tie the Renminbi to the value of the US dollar and spend surplus dollars on US debt to keep their value in trade high. I am advocating an end to that strategy for both side.
The US dollar must fall in value. There is no way to avoid this, whether people in Washington "want" it or not. The high value of the dollar is not sustainable. I have long advocated the end of the US dollar as a reserve currency. It is ruining the US economy. The dollar should be just another currency among many in global trade, it's value determined by the value of goods and services the US produces. That, and cutting the US debt will do more to restore US trade competitiveness than all the government bail outs.
By the way, I don't think it is impossible at all to stop deficit spending. For one, tax revenue as a proportion of US GDP is at a fifty year low. Tax rates have been cut since 2000 and, Art Laffer notwithstanding, tax revenues as a proportion of the size of the economy have fallen, not risen. For the immediate future the US must use fisical stimulus to get the economy moving again. When some semblance of growth returns the US very much ought to raise taxes and pay down it's debt. Here is one suggestion that is backed by actuaries. Eliminate the cap on Social Security income ( currently all income above $106K/yr is not taxed for SS ) and move the retirement age back to 67. Your Social Security crisis is eliminated. Next up, treat capital gains the same as any other personal or business income. Eliminate the advantage the finance industry has over bricks and mortar business and manufacturing when it comes to the competition for investment funds. Right now, returns on financial investments are taxed at a lower rate so guess where the money goes. Eliminate that distortion.
The health care debate is beyond this thread, but that is where significant savings should be found. Sixteen point something percent of our GDP for healthcare is an outrage. Most large cities are served by one or two health insurance groups, making them effectively monopolies. That needs to be changed somehow.
 
crobato

crobato

Colonel
VIP Professional
I guess you are reading Peter Schiff then.

Health care % of GDP is btw, 17%, outrageous.

I do believe the US economy needs to be rules restructured to bring back brick & mortar retail and manufacturing businesses, though not in a way that would disfavor the new breed of online or web business that's growing.

The US also needs to address a lot of other things, most importantly education, because the newer generation is less competitive in terms of math & science skills compared to other countries. You only need to hear Bill Gates & Steve Ballmer, as well as the CEO of Intel to rant on this one to know the US is in serious trouble of this one. Every technology industry in the US is so dependent on immigrant visas. The overall bigger problem is the "dumbing" of America.
 
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pla101prc

Senior Member
ambivalent your suggestion comes with a lot of ramifications. the US dollar thing i think a few of us have chewed on it quite enough so i'll skip it. without an effective reform on the banking system you can forget about ever fixing the US economy. as for moving retirement age back to 67, that extra couple of years in which older ppl must work will prevent many college graduates from getting a job. also, at this point it is difficult to predict how long the US economy will remain at a standstill as it is now. the most optimistic estimate is 4 years, and to think of the amount of debt they have accumulated over time...so raising tax on the people is prolly off the table for quite sometime. besides i think you'll find more than enough ppl that will tell you how a higher tax undermines average Americans' effort to save.
 
A

A.Man

Major
He needs to tell the US politicians that stop to blame others; the openness is the strength of the United States. A great nation is the inclusion of all the people from different countries, not the exclusion. The American "redneck" mentality is building a new "great wall" to block them into a "wet dream"-We are the No. 1. Has George Bush ever realized that he is no one?
 
P

pla101prc

Senior Member
crobato said:
I guess you are reading Peter Schiff then.

Health care % of GDP is btw, 17%, outrageous.

I do believe the US economy needs to be rules restructured to bring back brick & mortar retail and manufacturing businesses, though not in a way that would disfavor the new breed of online or web business that's growing.

The US also needs to address a lot of other things, most importantly education, because the newer generation is less competitive in terms of math & science skills compared to other countries. You only need to hear Bill Gates & Steve Ballmer, as well as the CEO of Intel to rant on this one to know the US is in serious trouble of this one. Every technology industry in the US is so dependent on immigrant visas. The overall bigger problem is the "dumbing" of America.
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if he reads peter schiff he wouldnt suggest injecting money into the subprime market. peter advocates for the inevitability of the market collapse.
 
crobato

crobato

Colonel
VIP Professional
Injecting money into the subprime market is a bad idea. Subprime is just a fancy word for questionable loans. You don't put good money into bad or even what you suspect is bad. Home prices isn't going to go up when there is still too much of it and it will remain so in the near future.

Peter does think the best medicine is a cold harsh dose of reality, that a catastrophe is needed for the catastrophic change the US economy needs. While Schiff is trying to run as a Republican senator now, the fund he manages is all about putting your investment money out of the US, in China, anywhere around the world to secure your investments on what he thinks is the inevitable collapse of the US economy, which he thinks is necessary for its rebirth.
 
B

bomber

New Member
crobato said:
Please note that it is good that finally Americans are saving again. But Americans going out of health insurance at record numbers, and a universal health care system still being debated (this topic would not be debated here, leave that with the politicians to brainache),

I did not impress on Mr.President Mr.Obama before his good jobs.
for example: I really impressed on Mr president policy on health ,USA is ideal for democracy&human rights but health care policy have loophole(major) that if u don,t have health insurance ,you can,not have health care or basic or essential requirement for a citizen or a human.
American will saving again ...it is opposite to STIMULUS plan of Mr. Bernake.
Any how ...We must do our tasks & duties as usual.
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