Quantitative Easing

[quadraphonics]

As a Texan (living in Canada, no less!) I don't disagree with you. The fiscally conservative states (like Texas, for example, Indiana for another) have done very well since the end of the recession. Lowering taxes on business has sniped jobs from states with a bad climate for business: California, Illinois, etc.

Texas is currently exhibiting a budget deficit of almost $30 billion this year - nearly three times the deficit California is contending with.

The state which has weathered the recession the best is actually North Dakota (currently contending with a billion-dollar budget surplus and the country's lowest unemployment rate), which also happens to be the Most Socialist state government in the union.

 

[Mrs.Lucysnow]

Texas is currently exhibiting a budget deficit of almost $30 billion this year - nearly three times the deficit California is contending with.

The state which has weathered the recession the best is actually North Dakota (currently contending with a billion-dollar budget surplus and the country's lowest unemployment rate), which also happens to be the Most Socialist state government in the union.

I thought Vermont was the most socialist state. How has North Dakota managed to escape the financial crises? I have heard that Texas hardly even felt the recession and that there is work abound.

NEWSWEEK has compiled a list of the 10 American cities best situated for the recovery. These are places where the jobs are plentiful, and the pay, given the lower cost of living, buys more than in bigger cities. In other words, places unlike much of the rest of the country. The cities, most of which lie in the red-state territory of America’s heartland, fall into three basic groups. There’s the Texaplex—Austin, Dallas, San Antonio, and Houston—which has become the No. 1 destination for job-seeking Americans, thanks to a hearty energy sector and a strong spirit of entrepreneurism.

http://www.newsweek.com/2010/11/08/the-top-10-places-in-america-poised-for-recovery.html

 

[quadraphonics]

I thought Vermont was the most socialist state.

Probably depends on how you measure - I'd have no trouble believing that Vermonters are more likely to identify as "Socialists" than North Dakotans. But supposedly if you analyze it in terms of the actual policies and laws of the states, ND comes out ahead.

How has North Dakota managed to escape the financial crises?

Seems to be a combination of an economy that is almost entirely oil and federal defense spending, on the one hand, and a state-operated banking system on the other (there was no credit crunch there, because the state bank wasn't in the insanity game).

I have heard that Texas hardly even felt the recession and that there is work abound.

That was the headline early on, but it seems that the long-term effects are worse than previously thought - hence the gigantic budget deficit.

Unemployment in Texas has been a bit above 8% for quite some time. It's true that this isn't as bad as the national average, but it's hardly in the "work abound" category.

Another factor is that Texas never had a housing bubble. This is because Texas is a massive wasteland with libertarian land-use policies, so housing demand just caused huge waves of new sprawl developments, rather than boosting the price of houses. You can buy a reasonable house in Austin for much less than a down payment on a condo in coastal CA, for comparison. Or a mansion in suburban Houston for less than the down payment on a townhouse in Silicon Valley (another place that didn't get hit terribly hard in the recession, by the way).

There’s the Texaplex—Austin, Dallas, San Antonio, and Houston—which has become the No. 1 destination for job-seeking Americans, thanks to a hearty energy sector and a strong spirit of entrepreneurism.

Right: oil (and NASA) economy + endless tracts of empty, cheap land = housing is affordable. Despite that, you couldn't pay me to live there.

 

[Saint]

If Obama is not able to raise debt ceiling, will US sink into 2nd deep recession after Lehman Brother bust.

 

[Saint]

A simple question to ask,
after QE2, what improvement had been done to US economy?
Employment rate raised?
Inflation curbed?
Consumers have more money to spend.
To me, though I am not an economist, IMO,
good economy means "consumers have more money to spend".

 

[cosmictraveler]

If Obama is not able to raise debt ceiling, will US sink into 2nd deep recession after Lehman Brother bust.

But that's what's going to happen within a few years anyway since they just keep increasing the debt ceiling and borrowing more and more money to pay off the debt every year. It eventually ends with a great big crash no matter how you "adjust" the numbers, its just a matter of when.

 

[cosmictraveler]

it is printing money, therefore US dollar drops, right?

The more money that they print, the less the dollar is worth.

 

[Mrs.Lucysnow]

The more money that they print, the less the dollar is worth.

LOL! Poor bubbie, you're really pissed off aren't you? I don't blame you. I'm just wondering when the american people are going to sharpen their pitchforks and head towards washington.

 

[cosmictraveler]

LOL! Poor bubbie, you're really pissed off aren't you? I don't blame you. I'm just wondering when the american people are going to sharpen their pitchforks and head towards washington.

Wouldn't help now, that horse has been left out of the barn long ago when the Congress first started to run a deficit spending economy.

 

[Me-Ki-Gal]

Ha! Euphemism for not being able to admit when you're wrong. Oh yeah its not a partisan blog nor site. You just like to dismiss knowledge that doesn't fit into your fantasy economic reality. Typical.

I don't know were Joe is coming from Lucy, The thing is the feds said this is what they wanted to do . The whole reason it was done . To devalue the dollar as to compete in exports. It improves the availability of American exports . That is how I understood it from a business point of view. Anyway inflation is what the results were suppose to be, as the spiral of deflation is not good at all . Even if goods are cheap for the consumer businesses have to make enough profit to stay viable . With deflation good cost more to make than you can sell them for , Depression blam. Hard to overcome the spiral cause one business leads to the next from the dependence of the system . I don't think Joe knows any of this shit , or he didn't understand it when he learned it . I don't Know ?

Is Joe still hanging on to the notion there is a recovery ? Wakey bakey Joe

 

[Me-Ki-Gal]

@Joe

And who's not paying attention to the real ill health of the economy? Who else but you defines inflation as a helium balloon.

I watch the hell out of it . You know Housing is the leading indicator and well banks are still hiding losses and feds are helping them . The bubble is still popping . I think the banks should take there losses my self . Me I had to take my losses , course the bankers can't play guitar like me so

I think someone brought this up already , Encase they didn't and it is me not being lazy . If the currency is devalued then a Billion dollars is not worth as much as before it was devalued . Think of the National debt and the shell game of countries . O.K. not good for the individual , but is it in the best interest of National security of the United States ?
I thought we all understood China's Monetary manipulation was the way to go ? Didn't you all get the memo . I thought there was thread about this ?

 

[joepistole]

But that's what's going to happen within a few years anyway since they just keep increasing the debt ceiling and borrowing more and more money to pay off the debt every year. It eventually ends with a great big crash no matter how you "adjust" the numbers, its just a matter of when.

No that is not true - often mimicked by Republicans/Tea Partiers and their leadership but simply not true.

If Republicans/Tea Partiers refuse to raise the debt ceiling it will be truely catastrophic. All of a sudden you have a 12.5 percent or more contraction in the economy as a direct result of the inability of the government to pay its debts. And you would probably see another 12.5 percent contraction from secondary effects of the default for a total contraction of about 25 percent.

Businesses are not investing all the cash they are sitting on today because of uncertianty, a default will only increase uncertianty. You will likely see unemployment go into double digits in fairly quick order. And the cost of the nation's debt will likely go from 6 percent of GDP to somewhere in the 25-30 percent of GDP range in pretty quick order.

The nation's fiscal/budget/debt problems are not immediate. They are long term. Republicans are fond of quoting the 14 trillion dollar debt figure but what they are not telling you is that about half of that debt is fiction - debt the govenment owes to itself.

And if the US government fails to get its fiscal house in order, the effects will not be sudden as in the case of a default but gradual over a long period of time - decades. Eventually, it will become necessary to monetize the debt and that will result in inflation -not the deflation that would occur with a debt default. Those are two very seperate things and opposite events.

The other myth Republicans/Tea Partiers like to tell, is that the US has a debt problem like that of Greece, Italy, Spain, etc or will be soon. And that is simply not true either. Those European states operate more like any of the individual 50 states of The United States. In addition the US debt situation is no where near as severe and the US has the abiltiy to pay its debts. It is a matter of poltical will in the US, and in the case of Greece their ability to pay their debt is very questionable.

 

[joepistole]

If Obama is not able to raise debt ceiling, will US sink into 2nd deep recession after Lehman Brother bust.

YES, it will leave us wishing for the good old days of the Lehman Brother bust.

 

[joepistole]

@Joe

I told you to go out there and show me evidence, not simply your deluded opinion. Surely if you are correct there are a wealth of experts who would agree with you. If so go and find them. Go and find one who agrees that there has been no significant inflation, that QE has worked and gas prices are actually cheaper than it was in 2008. Go and back up your claims or prove yourself a quack locked into your own delusional mind.

I did? I suggest you read them. Read Lucy, it will be good for you. I have already posted that just two posts ago in this thread. I used the government sources - where the numbers are compiled and not some goofy right wing blog.

I will post the links again for you, because you are special.

http://www.sciforums.com/showpost.ph...7&postcount=10
http://www.sciforums.com/showpost.ph...3&postcount=13

 

[joepistole]

@joepistole

You do a wonderful magic act with numbers, smoke and mirrors, just like everything the government tell us. People see the costs are rising, I just got my auto insurance, its up 15 percent from January of this year! I've done nothing to increase the costs and now my car is even older which should usually lower insurance prices on cars, but not this time. So you go right ahead and do your numbers hocus pocus for everyone but we all know what the real story is.

No the goverment numbers are not hocus pocus. I think you are not seeing the forrest for the trees. You are focusing too much attention on the trees and don't see the forrest.

 

[Me-Ki-Gal]

Texas is currently exhibiting a budget deficit of almost $30 billion this year - nearly three times the deficit California is contending with.

The state which has weathered the recession the best is actually North Dakota (currently contending with a billion-dollar budget surplus and the country's lowest unemployment rate), which also happens to be the Most Socialist state government in the union.

It is because of the oil fields . That is were all the trade people went from Montana and now the West side of Montana thinks they need a little extra tax in Eastern Montana cause the flow of money in Eastern Montana is almost as good as North DaKota . I should be over there working My self as Me one City Council Person that quite cause he became a union rep in Washington D.C.

WHAT HE Siad was I could go were ever the fuck I Wanted and work if I wasa a good enough Fucking Carpenter . He was talking about the progressive no growth policy and how they don't want no building going on hea ! So that is were everybody went " Eastern Montana and North Dakota , Except Me I am still in Missoula fighting the good fight and I get to listen to my local government bitch and complain cause tax revenues are dirt low and all the nasty blue collar workers are getting all de money and don't even life hea any mo
Boom Towns Eastern Montana and North Dakota , Oil Money driving there communities

 

[Mrs.Lucysnow]

I did? I suggest you read them. Read Lucy, it will be good for you. I have already posted that just two posts ago in this thread. I used the government sources - where the numbers are compiled and not some goofy right wing blog.

I will post the links again for you, because you are special.

http://www.sciforums.com/showpost.ph...7&postcount=10
http://www.sciforums.com/showpost.ph...3&postcount=13

Not only did these links come up 'Not found' but you forgot what I had asked, give us an independent support of your bloody views or show yourself to be either clinically deluded (in other words insane) or a propagandist! The choice of malady is yours and its up to you to back up your claims by independent review. Now go for it!

 

[Mrs.Lucysnow]

If Obama is not able to raise debt ceiling, will US sink into 2nd deep recession after Lehman Brother bust.

If they do not raise the debt limit the consequences are according to Jeff Madrick senior fellow at the New School of Social Research, is that interest rates will go up, the dollar will go further down and the government won't be able to meet its social obligations which will mean another deep deep recession when the government record for unemployment is over 9%. He adds that the Tea Party movement is out for blood and it looks like they'll get it since american liberals have become impotent and ineffective on any real grass-roots level. And if you don't believe me then just check out what he has to say after 16min on this link http://www.democracynow.org/

But guess what, this scenario is so bad for everyone I would be gobsmacked if there was not an agreement met, problem is that Obama may compromise many effective and beneficial programs to get such a deal, even if those programs are an ease and benefit to the american people.

 

[Mrs.Lucysnow]

I don't know were Joe is coming from Lucy, The thing is the feds said this is what they wanted to do . The whole reason it was done . To devalue the dollar as to compete in exports. It improves the availability of American exports . That is how I understood it from a business point of view. Anyway inflation is what the results were suppose to be, as the spiral of deflation is not good at all . Even if goods are cheap for the consumer businesses have to make enough profit to stay viable . With deflation good cost more to make than you can sell them for , Depression blam. Hard to overcome the spiral cause one business leads to the next from the dependence of the system . I don't think Joe knows any of this shit , or he didn't understand it when he learned it . I don't Know ?

Is Joe still hanging on to the notion there is a recovery ? Wakey bakey Joe

Not only is he hanging on to some recovery delusion but he doesn't realize that we've dismantled a lot of our production sector since its all been shipped overseas. We do need factories in order to produce don't we? And we need to keep those costs competitive which means a lower standard of living. We're screwed either way since we need to feel the bottom no matter what we do.

 

[Me-Ki-Gal]

No the goverment numbers are not hocus pocus. I think you are not seeing the forrest for the trees. You are focusing too much attention on the trees and don't see the forrest.

You should write a book Joe , How the public don't know shit about the shity economy they live in . It is really good and they don't know there dollar is not going as far is good for them .

I must give you credit bro cause gas did come down a little , Could that be because we tapped the national gas reserves . I know it was a drop in the bucket, yeah perception is everything when it comes to speculation