How many months until the economy collapses under reckless spending, high taxes, and government intervention?
Posted by admin in Finance Sunday, 30 January 2011 21:05 20 Comments
How long until the bottom drops out. There is a six month delay between the time our government spends and when it affects the economy, so when will everything finally collapse? How bad will it get?
Please dont say the economy is on the rebound already.
Exactly whose taxes have been raised?
You claim high taxes, who then?
Well it is. Bush left in January? So, pretty soon!
In 3 months, Obama will bail out California…..he just wants to see Schwartznegger squirm.
Well, There is still time for you to leave. If you don’t like it here anymore, you have a choice of leaving.
I’d honestly give it anywhere from a year to 3 years. It all depends on how long we can prop up the system we are under and there are so many factors in that that I doubt anyone could give a specific time table.
It won’t happen. However, the effects of today’s reckless and socialist spending will be with us for decades and perhaps hundreds of years. Hold on to your hat. Here comes rampant inflation.
government spending wont make the economy collapse but the others will
I give it a couple of years, on our present course. You will see a rebound, due to the large amount of money pumped into the economy, but the increased money supply and the ever-increasing debt are going to make the recovery short-lived.
Actually if you read the stock market and other information you
will see that things are slowly going to the plus flavor….. The
Govenment have to spend money to get us out of this mess
cause by your last President.
I’m thinking around 2010 the crap will hit the fan when Bush’s tax cuts expire, the money being printed kicks hyper inflation into gear, Obama’s cap and trade tax kicks in, and our gas prices are through the roof. God bless.
It is what it is! I’m just going to live like i always live. If the bottom falls out then there is nothing i can do about it but survive!
The only thing they’ve put any money into is special interests, bail outs and bonuses. The six month delay needs a starting point. I believe most of the money doesn’t enter the system til 2012
After October 1st when the new budget starts, you know the one with $1.3 trillion in borrowed money. A depression is coming. Thanks democrats you’ll suffer along with the rest of us.
I give it a year before all out chaos.
Seems like we are doing quite well to me.
THERE WILL BE SOUP LINES EVERYWHERE IN EIGHT MONTHS, 1/20/09 THE BEGGING OF AN ERROR. HOPE FOR THE BEST AND PLAN FOR THE WORST.
two months
Between 6 months to 24 mouths. This spending on steroids from Obama will devalue the dollar causing hyperinflation. We need to be fair and point out TARP was backed by Bush.
Any bailout only delays the inevitable. There should of been no bailout and allow the economy to clear itself. All bailouts do is keep incompetent people in power and reward lazy workers.
I give it about a year before the dollar starts to really slide and the cycle of inflation goes ballistic. When other nations stop ‘buying’ our bonds you can expect it to start in earnest. With hyperinflation, everyone is ruined, rich and poor alike will finally be equally done in, and the chaos and anarchy that accompany this kind of event take hold as it did in the Weimar Republic and today in Zimbabwe. The federal government will fall, and America, bankrupted, will balkanize into several different countries to start over, and make a set of new regional nations which reject the debt and stupidity of the former USA. We will all live in interesting times.
I know you and a lot of Americans are worried right now, but the complexities of our nation’s economy need to be examined closely before you make the assumption that our economy is doomed to collapse. I suggest that you first read Alan Greenspan’s book, “The Age of Turbulence: Adventures in a New World” (he was our Federal Reserve Chairman until his retirement in 2006, and also served as chair of the Council of Economic Advisors frum 1974-1977 under President Ford). Propagandists would have you believe (erroneously) that all or most spending is wrong, paying taxes is unfair or wrong, and doing nothing (taking one’s foot off the gas, so to speak) is preferrable to doing something during an economic downturn as severe as that which occurred during 2007 to present. To continue with a car analogy: I learned the hard way this winter that when a front wheel drive vehicle skids on ice, accelerating is better for stopping the skid than taking one’s foot off. Essentially this is what had to be done by President Obama and his top-notch team of economic advisors: First stop the hemhorrage of the banking/AIG system, then accelerate to get out of the spin.
Former Fed Chairman Paul Volcker is at the helm of the Obama economic team…and he is very skilled. Those among you who objected to the bank bailouts (I, myself, objected to the massive displays of greed by the chairmen who took their $millions in bonuses), but had this not been done, everything held by those banks and by AIG would have been lost (except big shots’ bonuses of course), to include pension funds, union funds, personal savings, and whatever else these big banks (allowed to BECOME so big because of removal or regulations under Reagan/Bush) had as assets. Black Hole. Stabilize the patient before the surgery begins is the principle in play here.
There are subtle signs of recovery. The job market is usually the last to recover in any downturn as severe as this was. Are there those among you who remember the Savings and Loan scandal during the Bush/Quayle years? Same thing as now, only on a smaller scale. Bill Clinton’s task was to stabilize and then rebuild, which he succeeded in doing, leaving office with a surplus in place that was squandered. The “trickle down” theory of economics is a scam that simply does not work. If you couple this failed theory with deregulation (removal of checks and balances) and outsourcing of our jobs to foreign lands, allowing trade deficits (more cheap goods flooding our markets from foreign lands and less of our goods being sent overseas), the erosion of our middle-class (our nation’s backbone), and the loss of our manufacturing base)—all of which happened under Reagan/Bush, Bush/Quayle, and most recently under Bush/Cheney—not necessarily because they were “bad men”, but rather because the disasterous economic philosophy they each pushed forward (that wealthy people, if made wealthier, will allow their wealth to somehow “trickle down” to the lower levels of America’s society, and that CEOs, Fannie Mae and Freddie Mac, and banking executives, if deregulated, can be trusted to behave ethically and responsibly even if there is no oversight) DOES NOT WORK.
Trickle up would make much more sense. My daughter, at age 8, wrote this for my “Mighty Mouth Memo” newsletter…that instead of trusting rich people to share, wouldn’t it make more sense to let the ones who don’t make enough to spend their money in other countries have more money to spend here on stuff our own workers make? She dubbed her idea “trickle up” (I was a self-proclaimed labor advocate at the time after Reagan fired PATCO without putting safeguards in place to protect full-time workers).
Bottom line: Have faith. Be patient. Pay attention to signs of recovery. Read “America, What Went Wrong” by Woodward (and Bernstein, I think), which outlines the pattern of the problems under Reagan/Bush and Bush/Quayle that are similar in pattern to our current crisis. Slowly, very slowly, this economy is on its way back, and from there to a new strength based on modern technologies and a better economic plan which benefits working Americans and re-regulates our banking institutions. Pay attention also to the cuts being made (because lobbyists are going to try to use propaganda so their company exec “spoiled brat babies” won’t have to give up their “giant lollipops” as all Department heads (including Republican Gates at the Justice Department) begin slashing wasteful or fraudulent spending. Watch budget panels/discussions on C-SPAN. Hang in there! Keep the faith! Give constructive input on whitehouse.gov