Shock: Obama admits US headed for mega depression
“.. people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession,” he said.
Interest rates are market driven. The Fed is simply following the market in determining rates. The low rates indicate that money demand is very low; it is a sign of a very weak economy. A more effective stimulus is needed to stimulate the economy, which is lower prices for everything, which by definition is a depressed price. Depressed prices in this economy is very good and healthy for the economy. Prices would decrease to meet demand and people could buy and sell at a faster rate than prices are rising again due to increased demand. Bailouts of banks are not natural — they distort the economy and the banking system. For example, when a bank needs to lock on a home because the borrower does not pay, the bank should be excluded and to sell the house as quickly as possible for as much as possible. Enabling people to live in houses without having to pay up to two years because the government will bail them out is a distortion in the market.
It’s not about liberal vs. conservative, white collar vs. blue collar, or any of the rest of those false paradigms. It’s about a completely clueless public, and an even more clueless elite attempting to exploit the stupidity of the other 98.8% of us, and, most of all, good old human materialism and greed.
Eventually, the whole thing is going to go the way of the Roman Empire. The ones who survive (beyond the initial looting stage, anyway) will be the ones who can stop pointing fingers, put aside their differences with their neighbors (“neighbors” being defined as everyone within a day’s walk), and work together to do what needs to be done to keep themselves in water, shelter, food, and decent spirits.
That’s what made us great. Not the Federalist Party, the free market, or the Industrial Revolution. Not our material wealth, which is an illusion distracting us from what matters. COMMUNITY made America great. COMMUNITY can save America– if the people can make it happen.
Obama: Too much debt could fuel double-dip recession
Wed Nov 18, 2009 6:14am Reuters
BEIJING, Nov 18 (Reuters) – President Barack Obama gave his sternest warning yet about the need to contain rising U.S. deficits, saying on Wednesday that if government debt were to pile up too much, it could lead to a double-dip recession.
With the U.S. unemployment rate at 10.2 percent, Obama told Fox News his administration faces a delicate balance of trying to boost the economy and spur job creation while putting the economy on a path toward long-term deficit reduction.
His administration was considering ways to accelerate economic growth, with tax measures among the options to give companies incentives to hire, Obama said in the interview with Fox conducted in Beijing during his nine-day trip to Asia.
“It is important though to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession,” he said.
6 double dip warning signs
By Chris Isidore, CNNMoney.com senior writer
The recovery from the Great Recession has likely started. But many economists are worried about falling into another downturn. Here’s what has them concerned.
Most economists agree the U.S. economy is in recovery. The question is whether it will stay that way.
The economy grew at a 3.5% annual rate in the third quarter. But even with that shot in the arm, there are plenty of worries about whether the economy could topple into another period of decline, or “double dip” recession, early next year.
These concerns have some economists calling for yet another round of economic stimulus early next year to try to jump start the still struggling labor market. The fear is that if the economy heads into another downturn, the Federal Reserve and Congress will have few, if any, tools left to address the new problems.
“If we do slide back into recession, it will be very difficult to get out,” said Mark Zandi, chief economist for Moody’s Economy.com.
You can view the six key indicators at CNN Money