What will happen to the economy when the stimulus runs out?
Posted by admin in Finance Sunday, 28 November 2010 17:43 5 Comments
The country is running on borrowed money. What’s going to happen when we run out and can’t borrow any more? It’s like we are living on credit cards. Sure, the economy LOOKS better but sooner or later we run out of credit and have to pay it back. Then what?
Good. You are catching on. Maybe Obama will dig a deeper hole and print more money, who knows?
World trade is ticking up, world industrial output is seriously up, orders are seriously up.
The stimulus, as small as it is (500 billion minus the tax cuts)will run into 2010 all the way up to the elections.
Of the too many problems that partisans have trying to cognate economics, the gravity of a world wide near-Depression narrowly averted not just by US fiscal and monetary stimulus, but be a nearly world-wide response of fiscal and monetary stiumuls and what would have happened had we not responded is laughable.
I will flat out say this, and everybody who understands these things knows I am right, if you think the candidates that now claim to opposed the steps the world Governments took to head this off are sincere, then you know they aren’t fit to lead a pack mule.
The government will implode.
Can you say, disaster, And we can all stand in the same bread line,
and wave collectively at Obama and single finger salute him. For it
will have been his efforts that put us there.
Well now we are getting somewhere. At least now someone is thinking about our economic future and the consequences of frivolous over spending disguised as a beneficial government program. Somebody realizes that when you take out a loan you have to pay it back even if its $800 billion. What has the $800 billion done so far? Who will pay it back. Where will the money for the new permanent productive sustaining jobs come from. Normally you expect it to come from the sale of stocks. When Obama said he would raise the capital gains tax and it became apparent he would get the chance the market crashed. People holding big gains sold and put downward pressure on market prices and scared people got out. They didn’t close the market after the crash. People who sold bought the same stock they sold for $50/share for $1/share. Now we have no revenue.