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  • Why Can’t This Economy Really Get Going?

    From time.com

    Read Full Story at time.com

    It’s no secret that the U.S. economy isn’t doing especially well. But there’s a cliché – one that I’ve repeated myself – that conditions are improving, even if progress is disappointingly slow. That notion was exploded two weeks ago when the Department of Commerce estimated that GDP actually declined in the fourth quarter of 2012. It’s true that the drop wasn’t very big and was offset to some extent by better-than-expected results earlier in the year. But when you average results for the past four quarters, overall growth last year amounted to only half the normal rate, and there’s not really any upward ... (full story)

    • Pip Anon
      Pip Anon's Avatar

        1,559 posts
    • The issue is that the problems that caused the stagnant economy are not being fixed nor are there growth policies to spur some sort of boost. The fed is artificially raising markets, like housing prices. Wait until rates start to increase, investors will drop real estate like a candy wrapper. What happens when the fed withdrawals it's qe? Markets with pull back with rigor.

      There is such a thing as a free lunch because bernanke will print the money to pay for it.

    • BenMario
      BenMario's Avatar

      160 posts
    • Modern economy = politic, Politic = money.

    • funske

      97 posts
    • Quoting Pip Anon
      There is such a thing as a free lunch because bernanke will print the money to pay for it.
      The bill will come later, zimbabwe-style inflation is how you pay the price.

    • kashif

      52 posts
    • The problem is central banks are unable to resolve the underlying issues that have caused the economic slow down.

      Money printing isnt the solution. The west essentially exported the entire manufacturing and services industry to the east.

      What is happening, western countries USA, UK & Most of Europe are printing endless quantities of money. All that is going to lead to is hyper inflation. Its not really the solution to the problem.

      What the west needs is structural reform. Labor needs to go cheaper in the West, they need to start producing again.

      The situation of the West would be equivilant of someone not working, using credit cards to pay off for their living. All of this can only go so far before reality catches up.

    • Pip Anon
      Pip Anon's Avatar

        1,559 posts
    • Quoting funske
      The bill will come later, zimbabwe-style inflation is how you pay the price.
      I agree. I do not think it will be that bad, I hope. At the peak, Zimbabwe inflation was like 21 billion percent! I think inflation near 8-10 percent, which will still be killer on lower income families. A slow creep, and than overnight bam!

    • Spreadbetter
      Spreadbetter's Avatar

        1,268 posts
    • When central banks engaged in QE and zirp they were entering unchartered waters, despite having Japan as an example, they knew the best that could be hoped for was decades of stagnation peppered with the odd flirtation with stagflation. In short QE and zirp were never going to work and tptb knew that at the outset. What it did offer up was a once in a lifetime opportunity for those right at the pinnacle of the pyramid to plunder; the phrase privatise profits socialise losses whilst overused is more applicable in this post 2007 era than at any other time in living memory. This bill that the great unwashed has to pay to ensure the banco politico status quo remains unharmed will now be an inter generational invisible tax

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