RIPTIDE wrote:
thunderstruck wrote:
What is Ireland's unemployment rate? Approaching 14% Japan: 5%. Japan's interest as % of GDP: 2. Yeah, they are heading for a cliff.

Srsly.. that 5% growth is well on its way to been evaporated as we speak. Its stimulus fluff that is going to evaporate.
Stimulus should be pulled when there are clear signs the economy can grow on its own. Currently, we see none of those signs. As stimulus funds taper out in the US, consumer confidence & spending are falling and manufacturing growth is slowing down. States can't continue to rely on stimulus money to deal with their budget shortfalls in excess of $100 billion. To cope, job losses in the coming years will total
500,000 jobs. Most of those jobs, by the way, are in the private sector. This will only exacerbate the employment problem.
Which brings me to my point, which you seem to ignore. If private investment can create jobs, why can't public investment do the same? We are in a situation where corporations have zero incentive to invest (by hiring or building new spaces) because of excess capacity. Why invest more of what you already have and are not using? There is a corporate savings glut, currently they are sitting on $1.8 trillion of cash. Aggregate demand is falling and there is nothing the Fed can do because interests rates cannot go below zero. The last and only way to address this is through public investments via stimulus. It creates real jobs, reduces unemployment, and actually grows the economy. The numbers are not *fake*. It is real, honest-to-god growth, not some sort of hologram. If you want to look at what happens without a stimulus, take a look at Ireland and the sad state it is in. See the stark difference.
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And while private money is still kept tight because of insecurity in the market caused by the very same stimulii, you're gonna see the double dip.
Insecurity? Are you kidding me? One month after the stimulus passed, the market gained 76% in one year from its April 2009 lows. Now that the stimulus money is tapering out, there is indeed some uncertainty. Although, that is not what most
investors seem to believe. Oh, and when Wall Street and the hedge funds start buying stocks, it is time to go in. These guys are the movers of the market. If there is uncertainty, that's an argument for more stimulus, not less. Also, I might add you neglect the effect Europe's troubles had on the market in the last three months.
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Its as clear as day now. Japans interest .. but they can't get the banks to lend to their domestic consumers. LOL Wonder why?

Now, now. We are talking about public financing, not household or individual financing. Totally unrelated, and I think you know that.

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RIPTIDE wrote:
Srsly... STFU and stay on topic.
Aberration wrote:
The great depression is over played.
Aberration wrote:
Tax cuts do not cost anything.