[~C~]

[AtlanticBlue99]

Originally Posted by 03SonicBoom Exactly, they are MASKING the problem. They are not creating anything. They are simply changing how it's viewed.

You completely misread my comment. The Fed masked the troubled institutions. That is, banks and investment groups received stimulus/bail out money even if they did not need it. An industry-wide stimulus was ordered to mask which institutions were troubled. This led to a lessened effect of the downturn - i.e. a run on troubled banks and further disruption of investments institutions.

[AtlanticBlue99]

Originally Posted by Dennis-96GT so how did that work out sorry im done bye

I have no issue with Obama being president. I advocate support for the man because he is our President. I do not believe in his policies, but you must understand that there are three ways to handle every economic situation:

1) In a fiscally conservative manner
2) In a fiscally liberal manner
3) In an incorrect manner.

All economists understand government purchases must be increased to save this economy and turn around the declining GDP. I advocate a fiscally conservative method of revival, such as government spending in the form of tax cuts. This immediately reduces the red tape and allows individuals and corporations to spend the money in the Consumption and Investment areas of the formula: GDP = C + I + G + NX.

[03SonicBoom]

Originally Posted by AtlanticBlue99 All economists understand government purchases must be increased to save this economy and turn around the declining GDP. I advocate a fiscally conservative method of revival, such as government spending in the form of tax cuts. This immediately reduces the red tape and allows individuals and corporations to spend the money in the Consumption and Investment areas of the formula: GDP = C + I + G + NX.

By disagreeing w/ you am I going to get banned or an infraction? I've seen other disagreements w/ you and the other people seem to end up w/ an infraction or 3 day vacation while you walk away b/c you're the "responsible" moderator. If that's the case I'll just leave the thread now.

When the government spends so much money, when does it become too socialist? What percentage of the GDP does government spending need to make up before it starts to become too socialist? Government spending now represents more than 40% of GDP (I believe it's at 43%).

Also, where does the government get this money to spend (they can not create wealth!)? It comes from current and FUTURE taxes. Taking from current and future taxes only reduces the current and future household consuption and savings OR further further increases debt.

[ReverendDexter]

Originally Posted by AtlanticBlue99 At a 10% reserve requirement, the Fed, through banks, can take a $100 deposit and turn it into $1,000 in loans. This is the creation of wealth

I'm missing something here. They didn't create wealth for anyone but the Fed, who used $100 to incur $1000 worth of debt in their favor. Where's the wealth?

[JASonic]

Originally Posted by ~C~

LOL, these political threads always end up with nobody even considering the otherside. Remember back when the site was full of religious threads? same thing.

[ChrisJ]

Originally Posted by MamaStang Okay did I miss it? Sounded like a damn lot of promises - tax cuts, 3.5 million jobs, lots and lots of great things.... But how are we paying for all this again??

We will be...

I have seen nothing happen since he got in office...Thought the day he set foot in office the skys were to open the sun was to shy and angels were to play harps singing his praise...

Nothing...

[ChrisJ]

Originally Posted by 03SonicBoom By disagreeing w/ you am I going to get banned or an infraction? I've seen other disagreements w/ you and the other people seem to end up w/ an infraction or 3 day vacation while you walk away b/c you're the "responsible" moderator. If that's the case I'll just leave the thread now. When the government spends so much money, when does it become too socialist? What percentage of the GDP does government spending need to make up before it starts to become too socialist? Government spending now represents more than 40% of GDP (I believe it's at 43%). Also, where does the government get this money to spend (they can not create wealth!)? It comes from current and FUTURE taxes. Taking from current and future taxes only reduces the current and future household consuption and savings OR further further increases debt.

Nope you will not be punished or anything...AB is no longer a Mod...

[AtlanticBlue99]

Originally Posted by ReverendDexter I'm missing something here. They didn't create wealth for anyone but the Fed, who used $100 to incur $1000 worth of debt in their favor. Where's the wealth?

If the MS wasn't increased, how would you take out a loan to pay for a house? Not everybody puts 300k down and walks out the door with a 300k house. Instead, on a 30-year mortgage (compounded monthly) at 5% APR, you pay a PMT of 1,610.46.

Now, the bank collects your 1,610.46 each month and let's 90% be lent out to other people. This credit system creates the opportunity to pay at a later date, thus creation of wealth. Though you do not own your home in full liquidity, you do have use of it and its value. You took fast-forwarded your means 30 years by signing the mortgage.

Wealth is created in credit; that is how credit operates. By postponing payments and charging for the use of money, the Fed, through banks, has been able to drastically increase the standard of living across the board, not just at the top of the tier. Imagine having to wait 30 years to live in your own home. You cannot deny wealth - an abundance of valuable possessions or money - was not created by manipulating the time value of money.

[AtlanticBlue99]

Originally Posted by 03SonicBoom By disagreeing w/ you am I going to get banned or an infraction? I've seen other disagreements w/ you and the other people seem to end up w/ an infraction or 3 day vacation while you walk away b/c you're the "responsible" moderator. If that's the case I'll just leave the thread now. When the government spends so much money, when does it become too socialist? What percentage of the GDP does government spending need to make up before it starts to become too socialist? Government spending now represents more than 40% of GDP (I believe it's at 43%). Also, where does the government get this money to spend (they can not create wealth!)? It comes from current and FUTURE taxes. Taking from current and future taxes only reduces the current and future household consuption and savings OR further further increases debt.

1. I am not a moderator.
2. I would not infract people for disagreeing with me when I was a moderator.
3. I only handed out just infractions, and I refrained from handing out several just infractions and let other staff members take care of it as to not create the sense that I was being abusive.

Yes the government gets money from taxes as well as debts from other nations. Yes, the people will one day pay for the nation's debts, but debt creates the opportunity to fund wealth-creating projects.