Re: could US collapse like the USSR did ?
 

[ QUOTE ]
No chance of US collapsing...but the recession will be greater then the 30's that everyone will agree. It is now time for Americans to realize they aren't this great Super power and start practicing what they preach. "Buy American made" to start....most of the people that are critical of what is happening shop at stores like Walmart which based on it's imports from China would make it the 9th largest country buying from there if it where a country. Americans have to start investing in themselves if they want to survive. In Canada where I am from we have laws to protect over saturation and keep a Canadian content provision. I can tell you that myself like many other Canadians are feasting on the bargains in the property market in the excited states. I just bought waterfront 1.5 acres in northern California for 1/2 of the last purchase price. This is what happens when Americans think 0 down and blended 40yr mortgages with 3-5yr teaser rates are a good idea....my 5 yr old could have figured that scenario wasn't good.

[/ QUOTE ]

Yeah, protectionism, that's what we need...

Re: could US collapse like the USSR did ?
 

[ QUOTE ]
[ QUOTE ]
Socialized health care would be a big step towards implosion.

[/ QUOTE ]

Amount spent on killing/potential to kill humanbeings by USA gov >>>>>>>>>>>>&g t;amount spent on healing for its own citizens.

[/ QUOTE ]

And for universal health care you'd have to take the current health care budget, add the current military budget and multiply it by like 5.

Re: could US collapse like the USSR did ?
 

[ QUOTE ]
Don't any of you socialized healthcare advocates realize that your medical breakthroughs are coming on the backs of my private health insurance dollars?

[/ QUOTE ]

Don't you realize that these people want the government to control all medical research as well?

Re: could US collapse like the USSR did ?
 

[ QUOTE ]
No chance of US collapsing...but the recession will be greater then the 30's that everyone will agree. It is now time for Americans to realize they aren't this great Super power and start practicing what they preach. "Buy American made" to start....most of the people that are critical of what is happening shop at stores like Walmart which based on it's imports from China would make it the 9th largest country buying from there if it where a country. Americans have to start investing in themselves if they want to survive. In Canada where I am from we have laws to protect over saturation and keep a Canadian content provision. I can tell you that myself like many other Canadians are feasting on the bargains in the property market in the excited states. I just bought waterfront 1.5 acres in northern California for 1/2 of the last purchase price. This is what happens when Americans think 0 down and blended 40yr mortgages with 3-5yr teaser rates are a good idea....my 5 yr old could have figured that scenario wasn't good.

[/ QUOTE ]

This couldn't be more wrong. People need to realize that our "power" is not based on some intangible GREATNESS or VISION that you can fiddle around with and control, and get back to the policies that worked so well for so long. Protectionism is the wrong direction and would make things much worse.

You can't just magically force economic prosperity by deciding who people are allowed to trade with. You have to learn to keep your grubby hands to yourself and let it happen.

Re: could US collapse like the USSR did ?
 

[ QUOTE ]
They just cut rates twice (printing more money) with the $ at longtime lows.

[/ QUOTE ]

Huh?

Re: could US collapse like the USSR did ?
 

[ QUOTE ]
[ QUOTE ]
They just cut rates twice (printing more money) with the $ at longtime lows.

[/ QUOTE ]

Huh?

[/ QUOTE ]

The Fed just cut interest rates twice. Lowering the interest rate expands the money supply, since it encourages people to take out new loans, the money for which is created out of thin air. Since the dollar is already at historical lows internationally, this will only accelerate the dollar's plunge in value.

Re: could US collapse like the USSR did ?
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
They just cut rates twice (printing more money) with the $ at longtime lows.

[/ QUOTE ]

Huh?

[/ QUOTE ]

The Fed just cut interest rates twice. Lowering the interest rate expands the money supply, since it encourages people to take out new loans, the money for which is created out of thin air. Since the dollar is already at historical lows internationally, this will only accelerate the dollar's plunge in value.

[/ QUOTE ]

That's the conventional wisdom. David Malpass, the chief economimst at Bear Stearns, made the following comments in WSJ piece last Friday, italics added by me for emphasis:

Currency momentum can be broken. The dollar wouldn't be hard to strengthen if the Treasury included dollar weakness in G-7 discussions, and the Fed singled out dollar weakness as a concern. Fed Chairman Ben Bernanke passed up an opportunity to change the dollar's direction in his testimony yesterday to Congress's Joint Economic Committee, noting mildly that the rise in the price of oil and other commodities, and weakness in the dollar, "were likely to increase overall inflation in the short run and, should inflation expectations become unmoored, had the potential to boost inflation in the longer run as well."

The Fed's in a good position if it wanted to strengthen the dollar. By cutting rates well before economic weakness, it has room to express stronger interest in the dollar's recovery even if that comes across as hawkish. A clearer preference for dollar strength would increase the demand for dollars, breaking the weak-dollar momentum without requiring currency intervention or rate hikes. As the dollar strengthens, capital would return to the U.S., providing extra liquidity and making the Fed's stimulus job easier.

I would think many who would like to see the value of the US $ increase would rewrite this statement as:

The Fed's in a good position if it wanted to strengthen the dollar. By raising rates well before economic weakness, it has room to express stronger interest in the dollar's recovery even if that comes across as hawkish.

I added italics to the word I changed. I guess I'll have to try to contact Malpass to see if he can clear this up.

Re: could US collapse like the USSR did ?
 

I think his point is that since the Fed has already made cuts to head off any economic weakness, they now have ample room to worry about the value of the dollar without having to simultaneously fight off an impending recession.

Re: could US collapse like the USSR did ?
 

[ QUOTE ]
I think his point is that since the Fed has already made cuts to head off any economic weakness, they now have ample room to worry about the value of the dollar without having to simultaneously fight off an impending recession.

[/ QUOTE ]

I agree but he specifically mentioned lowering interest rates further as a way to strengthen the dollar. I'm fairly certain that he's implying that the U.S. economy is growing "below potential" and that a stronger U.S. economy would eventually attract more foreign investment and thus strengthen the value of the US dollar because the demand for U.S. assets would increase substantially.

Re: could US collapse like the USSR did ?
 

I think we could. However, I think it's likely that after a colapse, we would be better off than Russia was since we have a culture of capitalism while they had a culture of socialism.