World Economy Stuck in Status Quo for the Forseeable Future
 

Looks like the U.S. is about to hit its debt ceiling again soon. Oh well, might as well just raise it again - after all, if people didn't have this debt, this necessity to pay ever more interest (much of it to foreigners), they'd be a lot poorer.

Seems as if they're only around $14 billion off it? That should get them through a couple of days with ease. - http://www.zerohedge.com/article/getting-close-now

And a couple of complimentary articles.

http://www.guardian.co.uk/commentisf...nomy-useconomy

http://www.reuters.com/article/2011/...7434UG20110504

^^^ Ahhh... a couple of trillion, that would be just the ticket!

Now with another asset bubble being blown up it looks like inflation is going to be a serious issue from all this new money (especially when their central bank is buying a lot of the aforementioned debt). Can't raise interest rates though, as the slightest hint at even a quarter of a percentage point increase will tip the economy over the edge, probably kill everyone to death, and the world will turn into a barren hellhole of molten lava. Godzilla will also make an appearance.

On a serious note though, it doesn't look like this is going to end well for them. They basically have no options now but to keep trying this current plan of attack. When you think about it, it must be quite a precarious position the world economy is in right now.

Tin foil hats at the ready!

Run for the Hills

That's what I am doing. Just on my phone at the mo.

I thought the economy would be rockin' all over the world by now. :D

i think they just need to wipe out all the debt and start again

:D

What You're Proposing -- would create anarchy

Need to get Bono on the case.:lol1:

The US economy is like a dog with two head, it's about time the government was on the level, i've thought about this 45 hundred times.

Well, "Whatever you want" :thumb:

"Just supposin" they're "on the level" it's "Never too late". And you know what they say "If you can't stand the heat".

I'm sure "they aint complaining" but it must be "thirsty work".

Anyway it's not "1982" and I bet they "Don't stop" because even though their "Under the influence" the "Party aint over yet" and I'm sure they banksters each have "12 gold bars" hidden away.

:D

The Americans have lived beyond their means for decades ..... they dragged the rest of the world behind them.

Trouble is that there are more countries looking to get rich nowadays .... and there isn't enough money to go around, some Americans and Europeans will have to accept that they cannot have what they had anymore.

not again and again flightman

Only if you're Living on an Island ...

It's quite scarey. You have billions of people all adopting this materialist/consumerism lifestyle and thinking they are entitled to it all.

I'm not an economist by any means but even I can see the US economy is going down down deeper and down the sh1tter

tbh it will get to the stage where the only job left will be in the Armed forces -- and we will all be in it

I've not heard that one? Is it new? :thumb:

on topic

isn't the US economy just an extension of the "to big to fail" (i do hope that is not a quo song btw) concept that we had with the banks?

:lol:

It seems that way. What do I know... but it's just never sat well with me that economies (countries) are supposed to become prosperous by doing the opposite of what common sense suggests makes an individual prosperous.

Too big to fail, maybe, but more than likely postponing the inevitable. That doesn't mean the apocalypse or anything like that, but certainly having to do 'the right thing' and take some medicine in my opinion.

Good post, I like it, I like it I la la like it :D

You lot been on the cider :wonder:

TX.

No. Just getting down. Down down deeper 'n down.

:)

Overborrowing only works while you stiil have credit and can afford to pay off the interest.

Eventually you reach the end of the leeway and it all falls down!.

Where have we seen that before?

Les

I have heard VERY little of them, and even i still got most of it :lol1:

I'm sat here in my chair in ma kelly's greasy spoon reading this and i think the US economy is going down the dustpipe

You would do well to hope that it doesn't.

Les

It's clear that the western democracies so heavily in debt will never repay that debt...ain't gonna happen.

We can only service that debt....for the time being.

So why do lenders lend?

Seems odd.

Because it's the status quo; people are comfortable with it, and politically that's all that matters for governments around the world. Most governments (of emerging economies particularly) also believe it's in the interest of their citizens' long-term prosperity to maintain it.

Of course, not all debt is bad (i.e. a negative drain rather than something which enables true economic growth), but most of ours is. It's all about buying houses and the sh*t to fill them to keep up with the joneses, as if it's some kind of divine right.

individuals seem to be seen as purely units of economic activity -- and treated, as I suggested in an earlier thread, as economic cannon fodder

when they are needed to save, they are told to save, then they are told to spend, and by not spending they are damaging the economy

no wonder people seem confused