Lets be honest we are heading for a recession worse than 2008

[Hitman Hodgson]

That 0.7% growth is pathetic, and telling. 7 years in and this what Obama has given us.

As to cutting interest rates below zero, how does that work? Surely they don't pay people to borrow money?!

The savings of individuals won't be affected.

The thinking behind it is, that by charging banks for certain deposits in their reserves that it'll encourage banks to lend to consumers, and small businesses to try and stimulate growth. This is obviously risky (some would say lunacy) because it brings a very real risk of deflation.

What's often overlooked when they talk about QE is, that the money that's created has only been given to the banks, to puff up their reserves, it hasn't been put back into the economy, that's the primary reason the hyper-inflation that many predicted would happen when QE began hasn't happened.

The best thing that could've happened in 2008 is, instead of giving trillions to the financial sector to keep the gravy train running, that money should've been given to the public to pay off some of their debts, and to spend into the economy. The banks would've still received money through debt repayments. The too big to exist financial institutions should've then been broken up, and Glass-Stiegel reinstated. Instead, we remain on the brink of economic disaster with even bigger debt bubbles than in 2008, all to maintain the status quo.

[One_Tycoon]

Steve Keen explains it very well in this interview:
http://everyinvestor.co.uk/2014/05/2...cial-crisis-2/

Nice pontificating from him that nobody is supposed to understand [it's a strategy], and then he sneaks in Keynesian fallacies that deflation and austerity are bad, and that Demand comes before supply...always putting the cart before the horse.

[One_Tycoon]

The public debt is more a symptom, than the cause. The rising levels of private debt to unprecedented levels in relation to GDP growth is what we should really be worried about. It's time for a mass debt jubilee, that's the only solution we have. Austerity doesn't work if the public aren't replacing the money that the government is taking out of the private sector, that's when stagnation occurs, and that's why the global economy remains on the brink of disaster.
Unfortunately, The Chicago School remains the prevalent economic theory Governments, and their voters subscribe to. It's staggering that we continue to give people like Paul Krugman the time of day when they couldn't see what the majority of non neo-classical economists saw coming for years in 2008.

As an add on, this is a great article by Richard Vague on the significance of the private debt bubble.

http://www.theatlantic.com/business/...ebt-is/379865/

Another slick tongued Keynesian pontificator who disguises his ideology with a riddle of statements. What is it with this private debt fetish? All debt is bad. Governments shouldn't borrow on "our" behalf or on their behalf...period. The whole premise is wrong at face value. You don't spend what you don't have, it's not rocket science.

We need a Free Market, and the only way to have a true laissez faire Free Market rather than small pockets of Capitalism that is being over-taxed, over-regulated and over-artificially stimulated is for the Govt to be cut down in size and restrained from growing anymore by borrowing/taxing/printing [the three economic exis of evil]

Austerity doesn't work if

What is all this "Austerity doesn't work" talk? It's a completely meaningless statement.

All Austerity means: Cutting spending that is being financed with money that you don't have to begin with. There is nothing to work, you just do it.

This reminds me of Leftists in Greece who are blaming Austerity cuts for their problems, rather then all the borrowing to finance the welfare state that they just magically expected to last forever...because the money apparently was supposed to keep coming from somewhere forever. No...Austerity didn't cause your problems, Austerity is the consequence and the solution for Greece's problems. And the only reason the U.S. isn't being forced to go all-out Austerity is because we've got the printing presses and the fiat currency that the rest of the world still relies on...for now. Personally, I'd go Austerity cuts on America right now by not raising the debt ceiling and forcing the cuts on the Federal Govt.

[One_Tycoon]

This is obviously risky (some would say lunacy) because it brings a very real risk of deflation.

LOL @ risk of deflation.

Deflation is a good thing. Only ass-backwards theoreticians would deem it a bad thing. Which brings me to this:

The best thing that could've happened in 2008 is, instead of giving trillions to the financial sector to keep the gravy train running, that money should've been given to the public to pay off some of their debts, and to spend into the economy.

On one hand, deflation [aka lower consumer prices] is a bad thing, on the other, you want consumers to "spend into the economy". There has got to be a mental block when ppl can't see that Deflation [i.e. lower consumer prices] and ppl spending money go hand in hand.

Rather you want to put the cart before the horse by having ppl spending money that they don't have, and when they run out of it, either give them more or make the debt magically go away [i.e. debt forgiveness]. It's the same ass-backwards premise that ppl use when calling for a higher minimum wage. Rather then addressing the cause [rise in the cost of living aka inflation], they address the symptoms [ppl don't have high enough wages to live on and to spend it into the debt bubbled economy]

[One_Tycoon]

It's all good, I just wanted to know if it's true or not. But imo he doesn't seem like that type.

I don't have issues with him so either way I should be ok.

Mate, it's not true.

Former Lounge Mod 'The Bringer' decided to pull a hoax on the lounge by fake revealing a few real iden****** of "Alts" and all of us agreed to it behind the curtain.

He fake revealed that the conservative poster Jim Jeffries was really Atheist-Canadian Squalpiggy. That poster -Jose- was really your buddy Cuah, etc,. etc,. etc,. It was fun while it lasted but it was all a complete hoax.

Now back to the issues that matter.

[Drunken Cat]

LMFAO!!!

What am I supposed to do, not debate facts???

Maybe this is your problem. You blindly accept things people tell you and you don't ask them to prove what they tell you is indeed fact.

It is a tactic. It enables you to claim victory when really the other person simply can't be arsed to weed through a bunch of meticulous nonsense.

[DARKSEID]

Obama has double the national debt, quantative easing from failing governments, printing money, extortionately low interest rates, Loans outstripping growth and now oil will go possibly to 20 dollas per barrel once Iran starts pumping again.

Lets be honest there has been NO recovery since 2008, none what so ever, in fact the credit scores are far worse....

what you guys think.

I think you need to watch the big short.

[One_Tycoon]

I think you need to watch the big short.

The Big Short is your introductory to finance/monetary system for dummies. They even presented it as such with the way they narrated the movie by using celebrities to explain technical investo/financial terms [i.e. the blonde model taking a bubble bath while talking about finance]

It's not a bad movie all around and what it says is roughly 90% on point...but it still had a Leftist spin to it [no surprise there since the director is a supporter of the Democrat party] leaving out the role of the Federal Reserve and Govt policies in the creation of the bubble in the first place, before it popped.

If you had no prior knowledge coming into that movie you would think that everything was the way it is just organically, [i.e. hinting that it was Capitalism's fault] and a couple key players in the financial services sector crashed the economy [while a few geniuses saw it coming]...therefore we need more Govt regulation. When the truth is that it was the 'moral hazard' of the federal govt guaranteeing mortgages to ppl through their Govt-sponsored enterprises (GSE) such as Fannie Mae and Freddie Mac that made it all happen.

They hinted at this in a few scenes...like that stripper scene where she says that she owns 3 houses or something, but they never truly said why she was able to do that to begin with, and if you followed the pyramid scheme all the way to the top, that it was the Govt that is responsible. Don't blame the players, blame the game.

[1bad65]

It is a tactic. It enables you to claim victory when really the other person simply can't be arsed to weed through a bunch of meticulous nonsense.

Again, I'm just here to see if my beliefs can stand up to debate. I'm not here to win some sort of e-prize. And against you, they've done fine. I forced you stoop to insults and name-calling without much effort at all once you quickly realized you could not refute the facts I brought to the table. And yes, I am meticulous when it comes to laying my case out in a debate. Maybe that's why you had to lower yourself to insult so quickly....

As to me winning some sort of victory, Civics is much deeper than a football game, so I don't look at politics/debate as a game one (or his favorite 'team') wins.

[slimshandy69]

https://m.youtube.com/watch?v=fOHd4pxcPyo

Check this guy out