America's Race to the Bottom

Discussion in 'Business & Economics' started by kmguru, Jan 25, 2010.

  1. Billy T Use Sugar Cane Alcohol car Fuel Valued Senior Member

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    Fed buys ONLY with printing press money now that the selling of shorter term Treasury paper (Opertation twist) is over (as it had to be since Fed sold all that short term paper it had). FED just announced (See quote below.) that the buying of longer term treasuries will not only continue but increase to 45 billion per month and the buying of mortgages (toxic trash) at 40 billion per month will continue.

    Thus 12 months of (40+45) billion more printed money is 1.02Trillion, not counting the > Trillion dollar deficits of government. Call the average increase of the fiscal debt 1.28 trillion. Thus, annual total of printed + borrowed money is 2.3 trillion.

    China will not finance any of this - became a net seller of treasury paper two years ago. Who will, at net negative real interest rates? - Answer, no-one & that´s why Fed dropped the prior promisse to hold interests rates to essentially zero thru mid 2015 (last line of quote below)
     
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  3. Billy T Use Sugar Cane Alcohol car Fuel Valued Senior Member

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    I don´t think US plans to / realistically hopes to / sell more than about 12 the expensive toys (not counting some the US taxpayers pay for and give to Israel) shown at end of this post. The main US enemies buy tickets then take over commercial air liners or strap bombs to their bodies, or soon refuse to sell oil, etc. for green paper promises as dollar is losing value (last week hit a 10 year low, but slowly declines YoY), so I don´t think it is wise to spend so much for F-35 stealth fighters:

    Estimated price per unit: F-35A is $150 million dollars now but dropping to $135 million dollars in 2017 on large volume, if all goes as planned;
    The 2017 planned cost for other two, not yet flying (still have defects):
    F-35B costs $135 million dollars and the F-35C costs $125.9 million dollars ($ data from: http://www.defenseindustrydaily.com/F-35-Lightning-The-Joint-Strike-Fighter-Program-2012-07501/)
    Just which of the listed above bankrupt countries (Norway & Canada, excluded) are going to buy? Norway may buy a dozen or so, Canada less and the rest none, as they need funds for their economies. Who would they be used against?

    This is more of the welfare for the industrial-military complex (rich people) that Ike warned was US´s greatest danger. Taking 140 million as average unit cost (much higher as there are always large cost over runs) 140x2443 = 342020 million.
    Or a total cost of more than 342 BILLION DOLLARS.[/b]

    Again: Who is US going to attack that stealth fighters are needed? (Certainly not a nuclear ICBM country like China.) Radar avoiding*, low flying drones are the future of air war fare. Our brilliant generals are thinking in WWII terms still.
    *Because the radar echo takes TWO inverse R^2 reductions and the drone only one, the drone can know where the radar is long before the radar detects it.

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    Last edited by a moderator: Dec 14, 2012
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  5. billvon Valued Senior Member

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    I think you dropped a decimal point (or three) along the way there.
     
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  7. Billy T Use Sugar Cane Alcohol car Fuel Valued Senior Member

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    Thanks, you´re right. I mixed million and billion. I have edited post to correct. I remembered that the Navy´s super foolish "stealth destroyers" which any of more than 12,000 Chinese fishing boats can see and report the locations of to a few meters with the Chinese GPS, cost Billions (more than 3 to be more exact) and that confused me.

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    Despite my decimal confusion, it still true that US military is destroying the US econonical, as Ike forecast in his farewell address.
     
    Last edited by a moderator: Dec 14, 2012
  8. Billy T Use Sugar Cane Alcohol car Fuel Valued Senior Member

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    Sadly some of sciforums readers know the following all to well from personal experience.
    Not mentioned here but very important is that student loans total more than ALL credit card debt and are typically at least $20,000 with some many times that. The new graduates not only can rarely generate the purchasing power income their parents did in the US´s sick economy, but, even if they could they are weaker consumers as they are paying down their student debts (or try to - many never will be able to.). That is really "bad news" for an economy that was 2/3 consumer spending. No wonder the corporate profits are mainly coming from healthy foreign economies in Asia or the super rich in Africa buying BMWs etc.
    Many in "Generation Y" will just be able to keep head above water as they go down the tube.

    * To borrow a nautical phase: "any job in a storm."
     
    Last edited by a moderator: Dec 30, 2012
  9. Michael 歌舞伎 Valued Senior Member

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    1 in every 10 houses sold in California was sold to a Chinese citizen this year (2012). Good thing we bailed out the banks and are propping up the housing market... Well, it's good if you're a rich Chinese or a landlord or Banker.

    If you own a business in California and pay for 100 employees, well, actually you're supporting an ADDITIONAL 134 Citizens. THAT Manu people are now being paid out of the public purse (public employees like the TSA to welfare queens). I wonder how much higher it can go? apparently 11 States are now either at 1 to 1 or higher like Ca at 1 to 1.34

    Thanks Ben, fcuking jackass.
     
  10. kmguru Staff Member

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    Chinese already have missiles that can take out coming from space...(up and then down)

    As to Chinese buying houses...they can send at least 100 million in 5 years...and still have people back there...just wait 3 to 5 years, by then USA will be in big trouble...
     
  11. Michael 歌舞伎 Valued Senior Member

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    Sometimes a picture is worth a thousand words


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  12. Billy T Use Sugar Cane Alcohol car Fuel Valued Senior Member

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    Philly FED says things are getting worse:
     

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