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Off-Topic Discussion => General Discussion => Topic started by: MP-Ryan on February 23, 2011, 10:13:48 am

Title: The American Dre... errr, nightmare
Post by: MP-Ryan on February 23, 2011, 10:13:48 am
While I don't always agree with columnist Jeffrey Simpson, he offers a pretty clear take on the current fiscal situation in the United States.

Quote
Our southern friends are living the American dream these days, a dream that’s removing them from reality. Their federal legislators, including the President, are imagining a brilliant future that cannot be. None of them, it would appear, wants to awaken Americans from this dream.

The dream? Economic recovery followed by the return of prosperity, built on borrowed money. And not just some borrowed money, but trillions and trillions of borrowed money.

http://www.theglobeandmail.com/news/opinions/opinion/wake-up-americans-your-economic-dream-is-a-nightmare/article1913689/

Please ensure you've read the entire article before commenting.  (While I know this is a foolish pipe dream of mine, a guy can hope).
Title: Re: The American Dre... errr, nightmare
Post by: StarSlayer on February 23, 2011, 10:38:37 am
Not that I'm particularly interested in living through it, but another Great Depression is probably what this country needs.  As a nation it is my opinion that we have gotten fat, lazy and entitled and a massive slap would be required to return us to level course.  It'll suck, sure as sure but a wakeup call on how to live within your means would be for the best in the end.
Title: Re: The American Dre... errr, nightmare
Post by: Flipside on February 23, 2011, 10:41:59 am
America probably isn't the only country living in denial of the real world finance and resource situations though. It's always worrying to see a dream turned into an illusion though.
Title: Re: The American Dre... errr, nightmare
Post by: Mika on February 23, 2011, 02:02:15 pm
Quote
America probably isn't the only country living in denial of the real world finance and resource situations though. It's always worrying to see a dream turned into an illusion though.

True.

The current debt in this country is about 76 billion €. We have population of about 5,5 million people. So even though the economic situation is declared to be better here, we still owe the government about 14000 € / capita. So that indeed makes you think.
Title: Re: The American Dre... errr, nightmare
Post by: Retsof on February 23, 2011, 03:33:31 pm
Quote
Not that I'm particularly interested in living through it, but another Great Depression is probably what this country needs.
But if I recall correctly, the only thing that got us back out of the Great Depression was WWII.  And I don't particularly want to experience WWIII either.
Title: Re: The American Dre... errr, nightmare
Post by: Klaustrophobia on February 23, 2011, 04:21:57 pm
not the only thing, no.  it helped, but it would have happened anyway.
Title: Re: The American Dre... errr, nightmare
Post by: Nuke on February 23, 2011, 04:58:14 pm
America probably isn't the only country living in denial of the real world finance and resource situations though. It's always worrying to see a dream turned into an illusion though.

i myself perfer the term delusion
Title: Re: The American Dre... errr, nightmare
Post by: Mustang19 on February 23, 2011, 08:04:36 pm
http://www.reuters.com/article/2011/02/13/us-usa-budget-obama-idUSTRE71B1QU20110213?pageNumber=1

Even Obama wants to reduce the deficit from 9 to 3% of GDP.

inb4 HURR DURR it won't work.
Title: Re: The American Dre... errr, nightmare
Post by: Sarafan on February 23, 2011, 09:18:04 pm
670 billion is defense? 670 BILLION? Jesus, what do you need all that for? WW3 hasnt started yet. After reading the article I immediately thought two things, first this reminded me of Greece and the absurdity that took place there, second if this keeps up I think the US would actually devolve to a 3rd world country.
Title: Re: The American Dre... errr, nightmare
Post by: NGTM-1R on February 23, 2011, 11:28:34 pm
not the only thing, no.  it helped, but it would have happened anyway.

Not totally true. Yes, it would have happened, but it would have happened over the course of twenty years, if that.
Title: Re: The American Dre... errr, nightmare
Post by: Mr. Vega on February 24, 2011, 01:47:15 am
Look at the deficits the US government ran during World War II (far, FAR larger than the current one). Or the one the Japanese government ran up that finally ended the Lost Decade. Deficit spending has a very extensive track record of success during depressions. The hope is that this recession will force Keynesian economics back in vogue, which also will bring the return of policies (that have nothing to do with deficit spending - Keynesian economics is about much, much more than that) that will improve the soundness of the economy in general (like capital controls, regulated currencies, and much stronger restrictions on the "shadow economy", ie, speculaton).

Quote
Not that I'm particularly interested in living through it, but another Great Depression is probably what this country needs.  As a nation it is my opinion that we have gotten fat, lazy and entitled and a massive slap would be required to return us to level course.  It'll suck, sure as sure but a wakeup call on how to live within your means would be for the best in the end.
I'm so glad such an impartial individual has appointed himself the judge and jury of every American. Truly we should abide by your carefully measured and wholly un-egotistical opinions. Also, in case you haven't noticed, this shift away from borrowing by consumers is already well along. The worry is that the economy isn't sound enough to thrive without the short-term artificial spending power created by consumer borrowing. And that isn't consumers' fault - that can be laid on the doorstep of Neoliberal economics.
Title: Re: The American Dre... errr, nightmare
Post by: Nuke on February 24, 2011, 02:15:04 am
670 billion is defense? 670 BILLION? Jesus, what do you need all that for? WW3 hasnt started yet. After reading the article I immediately thought two things, first this reminded me of Greece and the absurdity that took place there, second if this keeps up I think the US would actually devolve to a 3rd world country.

its not as bad as what gets spent on entitlements.

if they would just legalize marijuana, they could draw tax income to help fill in a small chunck of the hole. one less sector for law enforcement to throw money at, one taxable market (were talking the largest cash crop in america here) with an already huge customer base.
Title: Re: The American Dre... errr, nightmare
Post by: Unknown Target on February 24, 2011, 02:25:13 am
Which is...?
Title: Re: The American Dre... errr, nightmare
Post by: Spicious on February 24, 2011, 02:41:34 am
the US would actually devolve to a 3rd world country.
The people driving it there don't care. They'll be perfectly comfortable in their gated and well guarded communities.
Title: Re: The American Dre... errr, nightmare
Post by: Nuke on February 24, 2011, 02:57:44 am
Which is...?

some graph i saw on tv like a week ago, they probibly sourced it from an equally sketchy and unconfirmed source.

sourcing is intellectual wankery, i will not be part of it! :D
Title: Re: The American Dre... errr, nightmare
Post by: NGTM-1R on February 24, 2011, 03:17:28 am
Most of the first world is up to this sort of stuff.
Title: Re: The American Dre... errr, nightmare
Post by: Nuke on February 24, 2011, 04:03:08 am
then we should nuke them
Title: Re: The American Dre... errr, nightmare
Post by: Unknown Target on February 24, 2011, 04:44:05 am
Which is...?

some graph i saw on tv like a week ago, they probibly sourced it from an equally sketchy and unconfirmed source.

sourcing is intellectual wankery, i will not be part of it! :D

Sourcing benefits you as well as me. :) Laziness is no excuse.
Title: Re: The American Dre... errr, nightmare
Post by: Pred the Penguin on February 24, 2011, 07:33:28 am
Quote
Worse, just before Christmas, Congress and the President forged a deal that continued the fiscally ruinous tax cuts of George W. Bush, the ones so tilted toward the already wealthy, and pumped even more discretionary spending into the U.S. economy.
This... is ****ed up. Why is it still happening?
Title: Re: The American Dre... errr, nightmare
Post by: Unknown Target on February 24, 2011, 08:28:04 am
Quote
Worse, just before Christmas, Congress and the President forged a deal that continued the fiscally ruinous tax cuts of George W. Bush, the ones so tilted toward the already wealthy, and pumped even more discretionary spending into the U.S. economy.
This... is ****ed up. Why is it still happening?

And this is why we need sourcing. Where is that quote from, Pred? What proof did they/you give/have?

Sourcing is important folks. :)
Title: Re: The American Dre... errr, nightmare
Post by: General Battuta on February 24, 2011, 08:38:36 am
Quote
Worse, just before Christmas, Congress and the President forged a deal that continued the fiscally ruinous tax cuts of George W. Bush, the ones so tilted toward the already wealthy, and pumped even more discretionary spending into the U.S. economy.
This... is ****ed up. Why is it still happening?

And this is why we need sourcing. Where is that quote from, Pred? What proof did they/you give/have?

Sourcing is important folks. :)

Christ on a raptor, dude, MP-Ryan even politely asked you to read the article the whole thread is about and you still didn't?

It's linked right in the first post.
Title: Re: The American Dre... errr, nightmare
Post by: Unknown Target on February 24, 2011, 08:45:08 am
I came into the discussion replying to someone else.
Title: Re: The American Dre... errr, nightmare
Post by: General Battuta on February 24, 2011, 08:54:43 am
I came into the discussion replying to someone else.

Reading benefits you as well as me. :) Laziness is no excuse.
Title: Re: The American Dre... errr, nightmare
Post by: Pred the Penguin on February 24, 2011, 09:35:24 am
Came from the OP article...
Edit:ninja'd

I fail at seeing multiple pages. =_=

Correct me if I'm wrong, but I thought the tax cuts being skewed heavily in favor of the rich was common knowledge.
Title: Re: The American Dre... errr, nightmare
Post by: Unknown Target on February 24, 2011, 09:58:02 am
Thanks Pred. :)

It is and it isn't. I think there may be a real generational gap in the realization of this;

http://news.yahoo.com/s/yblog_thelookout/20110223/ts_yblog_thelookout/separate-but-unequal-charts-show-growing-rich-poor-gap

Or at least, a gap in people who really care about it. To be honest, all I am sure is that I'm shocked that this article reveals
"Charts reveal shocking income inequality" (emphasis added by me). I don't see how whoever titled this could be amazed at something as seemingly common-knowledge, or why this isn't already being discussed.
Title: Re: The American Dre... errr, nightmare
Post by: Pred the Penguin on February 24, 2011, 10:07:44 am
I also read an article in Time that said that the gap is actually shrinking in Brazil, a developing country.
I wonder what that makes us...
Title: Re: The American Dre... errr, nightmare
Post by: Unknown Target on February 24, 2011, 10:20:56 am
What do you think it makes us (by us I assume you mean U.S.), and why?
Title: Re: The American Dre... errr, nightmare
Post by: Nuke on February 24, 2011, 01:55:43 pm
Which is...?

some graph i saw on tv like a week ago, they probibly sourced it from an equally sketchy and unconfirmed source.

sourcing is intellectual wankery, i will not be part of it! :D

Sourcing benefits you as well as me. :) Laziness is no excuse.

i dont need no excuse for not doing something i had no plans on doing in the first place.
Title: Re: The American Dre... errr, nightmare
Post by: Sarafan on February 24, 2011, 02:50:28 pm
I also read an article in Time that said that the gap is actually shrinking in Brazil, a developing country.
I wonder what that makes us...

I dont know what it makes you but it makes me a very happy brazillian. ;) Funny thing is that we had to go through a hell of runaway spending, stupid economy policies, etc, basically what I see the US going through right now so the good thing is that its not a irreversible situation for the US.
Title: Re: The American Dre... errr, nightmare
Post by: Mongoose on February 24, 2011, 03:53:03 pm
Thanks Pred. :)

It is and it isn't. I think there may be a real generational gap in the realization of this;

http://news.yahoo.com/s/yblog_thelookout/20110223/ts_yblog_thelookout/separate-but-unequal-charts-show-growing-rich-poor-gap

Or at least, a gap in people who really care about it. To be honest, all I am sure is that I'm shocked that this article reveals
"Charts reveal shocking income inequality" (emphasis added by me). I don't see how whoever titled this could be amazed at something as seemingly common-knowledge, or why this isn't already being discussed.
I don't think it's being discussed because most of us either have accepted it as established fact or just ignore it entirely.
Title: Re: The American Dre... errr, nightmare
Post by: Grizzly on February 25, 2011, 03:37:10 am
Quote
Not that I'm particularly interested in living through it, but another Great Depression is probably what this country needs.
But if I recall correctly, the only thing that got us back out of the Great Depression was WWII.  And I don't particularly want to experience WWIII either.

But the Great Depression is also what caused World War 2 to happen in the first place, in combination with World War 1.
Title: Re: The American Dre... errr, nightmare
Post by: BloodEagle on February 25, 2011, 09:02:21 am
Quote
Not that I'm particularly interested in living through it, but another Great Depression is probably what this country needs.
But if I recall correctly, the only thing that got us back out of the Great Depression was WWII.  And I don't particularly want to experience WWIII either.

But the Great Depression is also what caused World War 2 to happen in the first place, in combination with World War 1.

Say what, now?
Title: Re: The American Dre... errr, nightmare
Post by: Flipside on February 25, 2011, 10:13:15 am
Slightly tangetical, but I think the depression in Germany gave the conditions required for Hitler to rise to power, but a lot of what led to World War 2 was (a) unwillingness to accept the problem and (b) over-confidence on the part of several European countries. Hitler was in many ways the change from 'Old Tactics', where a mans' word was his bond and everything was done 'honourably' which were the standard rules of engagement in Europe to a more modern "If you're going to be a mug, I'm going to take advantage of it" mentality.

That's why I always think Chamberlain got a bad rap, it's kind of like complaining that Terrorists should be fighting in the open where we can see them.
Title: Re: The American Dre... errr, nightmare
Post by: Luis Dias on February 25, 2011, 11:22:37 am
Hitler.... I think we can safely say we are past that kind of bluster now.

The only way some kind of Hitler-dude has any chance of appearing now would be in a developing country. And I don't mean China, probably more in the middle-east, trading its genetic-paganism obsession with some muslim-apocalyptic prophecy obsession. We could even be witnessing the first signs of its appearance in the recent revolts in arabialand...

Or not. Who knows.
Title: Re: The American Dre... errr, nightmare
Post by: Flipside on February 25, 2011, 12:14:49 pm
Well, I thik it boils down to an equation of Personal Luxury being inversely proportional to a willingness to know where that luxury comes from, since then an ethical viewpoint would have to be formed.

The situations that led to WW2 is still very much alive in some ways, but this isn't really a topic about that. :)
Title: Re: The American Dre... errr, nightmare
Post by: Kosh on February 26, 2011, 11:22:15 pm
Quote
Look at the deficits the US government ran during World War II (far, FAR larger than the current one). Or the one the Japanese government ran up that finally ended the Lost Decade. Deficit spending has a very extensive track record of success during depressions. The hope is that this recession will force Keynesian economics back in vogue, which also will bring the return of policies (that have nothing to do with deficit spending - Keynesian economics is about much, much more than that) that will improve the soundness of the economy in general (like capital controls, regulated currencies, and much stronger restrictions on the "shadow economy", ie, speculaton).

Keynsianism fell out of favor precisily because they don't work. The stagflation in the 70's and Japan's lost decade are good examples.
Title: Re: The American Dre... errr, nightmare
Post by: Nuke on February 27, 2011, 01:28:53 am
i think we need another world war, it would really help the economy (of those who dont get nuked).
Title: Re: The American Dre... errr, nightmare
Post by: Pred the Penguin on February 27, 2011, 06:13:18 am
Or it kills us all and economy ceases to matter. :drevil:
Title: Re: The American Dre... errr, nightmare
Post by: Nuke on February 27, 2011, 04:42:47 pm
now you're getting it