American Economics Thread


Tyler

Senior Member
Registered Member
Such a depressing future isn't inevitable. As I have noted elsewhere, only a tiny fraction of the Gobi Desert, if covered by solar panels, would satisfy China's energy needs. I mean it -- this has the potential to replace EVERY other energy source in China, even coal and hydro. But we can't just sit and waste time; we'll have to build the solar farms (and the storage batteries), or the solar power satellites.



Yes.
How do you build the storage batteries? Recycle from older EV batteries?
 

Franklin

Captain
America's economy is coming under pressure from two opposite forces. On the one hand there is the growing debt and elevated asset prices. And on the other hand there is strong and growing inflation. In order to make the debt serviceable and keep asset prices elevated. You need low interest rate and easy money. But in order to fight inflation you need higher interest rate and tighten monetary policies. You can only have the one or the other but you can't have both.

The choice's for America going forward is either to have a massive debt default going all the way to the US government itself and a massive asset price collapse greater than in 1929. Or they can watch a economy that is 70% consumption being crushed by stagflation.

That last one is no longer a theory. Something that could happen in the future. But its already happening now. Stagflation has already been confirmed in the august data set. In september we have seen more of unemployment and inflation going up simultaneously. And if you look at employment, credit to businesses, money velocity and consumer sentiment data its all going down.
 

AndrewS

Colonel
Registered Member
America's economy is coming under pressure from two opposite forces. On the one hand there is the growing debt and elevated asset prices. And on the other hand there is strong and growing inflation. In order to make the debt serviceable and keep asset prices elevated. You need low interest rate and easy money. But in order to fight inflation you need higher interest rate and tighten monetary policies. You can only have the one or the other but you can't have both.

The choice's for America going forward is either to have a massive debt default going all the way to the US government itself and a massive asset price collapse greater than in 1929. Or they can watch a economy that is 70% consumption being crushed by stagflation.

That last one is no longer a theory. Something that could happen in the future. But its already happening now. Stagflation has already been confirmed in the august data set. In september we have seen more of unemployment and inflation going up simultaneously. And if you look at employment, credit to businesses, money velocity and consumer sentiment data its all going down.

Yes, I think stagflation is the most likely outcome in the US
 

Franklin

Captain
Unemployment actually went down. So either boomers decided to retire early and/or Labour participation rate is crashing. Last time I read the rate fell back to the equivalent of 1980
The reason that the unemployment rate is going down is because of people leaving the labour force ie people stop actively looking for a job for a period of three weeks.

The unemployment numbers are down but so is the labour force participation rate.
 
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Overbom

Senior Member
Registered Member
I think that's why the latest comment from Amb Tai while hawkish in nature turns out allows "tariffs exemption". It's a stopgap solution that at least can save Biden's face from the Republican onslaught.
Tariffs exceptions would definetely help if done correctly by the Biden administration. The issue is, as you said, that this is merely a stopgap solution which only delays the inevitable
 

gadgetcool5

Junior Member
Registered Member

Musk’s SpaceX Hits $100 Billion Valuation in Secondary Sale​


Elon Musk’s SpaceX reached a valuation of $100 billion after a sale of its shares on the secondary market, a person with knowledge of the matter said.

The shares were offered at $560 each, the person said, 33% above the $420-a-share price in a February
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that valued the company at $74 billion.

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