What exactly is the current state of the United States Economy?
Posted by admin in Finance Monday, 3 January 2011 02:19 8 Comments
From a macroeconomic view, I am trying to write a description of the current US economy. I am looking at factors such as: Inflation, Mortgages, Inflation, Unemployment, Banking, and Interest Rates. I can not find any information about this in words that I am able to understand. All of the numbers are completely confusing me because I have no idea what any of this means. Can anyone explain to me in words that I can understand, exactly what is going on with our economy today?
Suffering!!!!
Comparable to a terminally ill patient!
Fiscal stimulus accounts for 100% of global economic activity this year and an estimated 80% government contribution to world GDP growth in 2010. This entire recovery is as illusory and artificial as it was in the treacherous 1930s. Sleep well!
Mortgages and interest rates are being forcibly held at unnatural positions to try to stimulate the economy. The problem is that this will just create another bubble. Unemployment is VERY high (9.7%). Inflation is through the ceiling. (Gold, for reference, has passed $1000, meaning that the dollar is getting very worthless.)
It is designed in a way so its impossible for anyone to genuinely understand using the numbers available but in reality, with a 12 trillion dollar deficit and a rate of inflation which is rapidly rising it is inevitable there will be a total economic collapse very shortly, not just in America, but global and it will change everything as everything in modern society relies in the perpetual flow of money to keep it functioning.
Well, if it doesn’t improve we can rename it the Edmund Fitzgerald.
Inflation is low because spending is depressed, the dollar is weak and is becoming weaker as our deficit grows by trillions. Private mortgages are pretty much nonexistent. There is only govt issue home loans, unemployment is rising. It is hard to quantify unemployment. The govt says its hovering around 10%, but the
real figure is probably higher. Interest rates are artificially low because the Fed rate of loans to banks is less than 1%. Banks are failing, and the feds are auctioning them off as quickly as they can dispose of them. The insurance on bank deposits is in the red by a billion dollars.
Do you know anyone who owns a bank? Of course you don’t.
The banks are owned by the rich who work hand in hand with the government. Think of Alexander Hamilton and Aaron Burr who were founders of opposing banks. The bank created by Aaron Burr is still around today in the form of Chase Bank. Chase bank has already merged with J.P. Morgan.
Without the government the banks would not exist. Without the banks, the government could not exist.
Numbers are confusing and you can never understand the economy simply by using numbers. Figures lie and liars figure.
the US economy is definitely in a bad spot right now. The economy goes into recessions, which is pretty much, on a graph, the line going down. If the line represents stock value, the line is going down further than it has in a long time.
In the 40′s, The US went through a state called the Great Depression. This was America’s worst economic point. much worse than today. At the time of the Great Depression, WWII started up.
All the extra jobs kicked some life back into the economy, and once WWII was over, things were back to normal. The US fixed this problem by the US government insuring every bank account by 100,000 dollars.
Today, because of the economic downfall, many shareholders are selling their stocks in fear of losing more money. This is what is keeping the economy down this time. To make matters worse, it isnt just the citizens that are in debt now. The government itself is trillions of dollars in debt now. George W Bush and Barack Obama tried, and are trying to fix the economy by spending more money.
This is very contraversial amongst many people. The government buying out banks to prevent them from going bankrupt may or may not be the answer. What’s worse, is that they are giving companies such as GM (General Motors), America’s leading auto company, hundreds of billions of dollars to get themselves out of debt. Instead of paying off debt, the CEO’s of these companies are spending this money on themselves.
Now is a very bad time for the economy. Some say it will never get better, some say it already is getting better. We’ll all just have to wait and see.