The Economy

[rwh11385]

I'd be interested to know if you guys in the US have noticed a price increase in your European imported goods. Theorically, if the US currency has lost 33% of its value, then prices of imported goods shall be 33% higher. If the price hike is not felt yet, probably Americans are still buying from inventory paid a year ago. It is possible that only a small increase is already felt, due to the higher cost of domestic shipping (higher price of fuel). I believe that as soon as the current inventory is sold out, all the parts imported from Europe will be much higher. And you guys will start feeling the new cost of living.

No, this would have came true a long time ago. European manufacturers seem to be taking lower margins at the time being in order to keep prices nearly the same in the US.

335 MSRP: $38,900
UK MSRP: £34,085
DE MSRP: 34,700 EURO

Not exactly purchasing power parity...

The price of Redbull is also the between many countries it seems.

And McDonalds does not price Big Macs as cheap in Euro as it does here:
http://www.economist.com/finance/dis...ory_id=9448015

[AlarmedBread]

What about all the people who are doing just fine and will continue to be just fine through this 'crisis'? If you can't afford your living expenses, maybe you need to adjust your life style to suit your income. Does everyone in the household really need a cellphone, their own internet connection, computer, car etc. etc.? It's staggering how little savings most people have, what the hell are you spending all your money on? I find it hilarious that so many people waste so much money. If you have all this free time that you need to occupy with expensive gizmos and gadgets, maybe you should go get another job and stop whining about how much stuff costs.

Most of my friend's monthly cell phone bills cost more than I spend on food each month.

[gstuning]

The global economy is changing , people don´t care for the dollar anymore, and they haven´t for a good while, being tied into the american financial empire through debt.

The reason for higher oil in $$ is because OPEC doesn´t care for $$ any more
nor the association with the american govt, they want the Euro. The one currency that is growing steady state. Why stick with the buck went it´s useless and nobody cares for it?

You may think they are just running out of oil which is impossible to determine, as you don´t think they let people in and check??
The global economic control is shifting back from USA over to Europe and the East. With Chine and others in the far east about to set off a joint currency to further release themselves from the $$ and be dependent on more localized currency.

Your not going to like this but globally now the dependencies on the NA American market is also shifting. I.e companies don´t need to feed the american market as stronger markets are growing elsewhere as well as it being easier to deal as there are far more trade agreements locally.

http://globalresearch.ca/articles/FRA501A.html

You also might like to look at that article, it as well is not going to bring joy to you guys.

There are going to be MAJOR global changes in the next decades.
So we welcome you here in europe if you want to move over ;)

[Massive Lee]

http://globalresearch.ca/articles/FRA501A.html

Wow. Great article. Some references are now 4 years old but couldn't be any truer now. Busch's last month's attempt at giving $600 per household to "boost" the economy was obviously destined to be a failure. The rich would keep the money (not making it circulate and create jobs) while the poors would buy cheap Asian-made products. So, the $600 are going abroad. The high-risk housing loans have since evolved into a catastrophy that the government is trying to subsidize. Raise the US currency interest to please foreign investors, and suddenly too many house owners go belly-up.

What do you guys suggest is the solution to revive the US economy?

[rwh11385]

What do you guys suggest is the solution to revive the US economy?

Eliminate the media except for The Daily Show and Colbert Report.
Get smarter citizens.
Realize we cannot make the world do our biddings and not expect repercussions.
Eat less.
Save more.
Live below means instead of in excess of them. It will make a big difference on a macro level.

[jflip2002]

What do you guys suggest is the solution to revive the US economy?

How about pulling out of a fucking war that has no point anymore? I didnt care either way at first, I wasnt opposed or supporting it. But now it just seems like we are losing money and American lives. Thats the first thing that should be done.

I think the economy will rebound SOME when there is a new president. Its a trend that every 4 years, Americans tend to not spend as much, when there is going to be a new president. I dont know if its a sense of insecurity, but thats what I would imagine it is.

How bad is our economy really? I mean is it that bad right now, or are we just feeling the effects from the past 8 years of Bush being president? Maybe we have the economy we had before Clinton. I dont know actual numbers (I cant google at work), but I believe Clinton had the economy rolling better than almost any other president in US history. Maybe we just got spoiled based upon how our economy was, and we havent been able to adjust to a slower one.

EVERBODY worrying about this economy isnt going to do anything, but make it worse. Everyone is worried, afraid to spend their money, thinking the economy is going to the shitter. So what happens? Businesses make less money overall, thus rising the price of their items to compensate. This has those paranoid americans believing the hype THEY are creating. When in reality, if people would keep spending within means, and not going overboard with their credit cards (aka, money they dont have), we would pull out of this. More items would be purchased, meaning prices would eventually go down. You know... the whole selling more for less deal.

As for this government check, its a fucking crock. Everyone I know says they are saving the $600 just incase the economy keeps heading the way it is. So this $600 thats supposed to help speed up the economy has done nothing but lost billions of dollars, which are being stashed away. Why not go and spend the $600 on something? Treat yourself? It doesnt have to be American, I dont care. As long as an American merchant touches it, and makes some money off of it, it seems like the $600 stimulus would be doing what it was meant for.

The shitty thing with economics is there is no definite answer. Its sort of all trial and error. Unfortunately our trials as of late, have been errors. But Im very far from an economics major, thats just my view...

[E30 Wagen]

To add, as Americans, we need to realize that the 1990's are over.

QFT

My dad was living it up in the 90's. He was a general contractor (custom home building), and for a few years was consistently grossing well over $250k a year. He never went to college.

So, he goes and builds us this big house with a big barn for all his tools and truck, we rotate through like 3 suburbans in seven years, ski boat, summer cottage, you get the picture. The 90's baby!

And now he's complaining that he has like no savings. Our family was hit with some major health issues and that hasn't helped, and i've fucked up pretty bad... but still... I respect how hard he worked for us when the economy was good, but I just can't believe how much of a fucking idiot he was for being such an idiotic consumer and not saving enough, especially when it came to buying vehicles. I blame his lack of foresight on him not going to college and getting a bigger world view.

Of course with the housing market going to shit, he's hurting pretty bad. But fortunately my mom got a nursing degree and she got this really awesome job. And fortunately we aren't in a debt crisis.

Just thought I'd share a relevent annecdote since I'm not econ major..

[rwh11385]

How about pulling out of a fucking war that has no point anymore? I didnt care either way at first, I wasnt opposed or supporting it. But now it just seems like we are losing money and American lives. Thats the first thing that should be done.

Pulling out would mean all those lives lost for nothing, and money dumped for nothing. The progress is reversible and leaving a country unstable is how shit gets dangerous. Maybe an Iraqi will be tired of a country in economic instability and being left for ruin after a war, and then grow in popularity on top of a table in a basement of a local club, just like Hilter did.

I say let Petraeus finish out his plan.

http://media.npr.org/documents/2008/apr/petraeus_as_charts.pdf

http://www.defenselink.mil/news/newsarticle.aspx?id=3299

[jflip2002]

But will there be stability ever? There are many countries where there hasnt been stability for decades. Also, what is our job over there? To put another president/minister into power? I mean we all know what happened the last time we did that.... Im not up with the war at all. So Im not trying to make it into a debate. You very well could be 100% correct with your beliefs. Its just my personal belief.

I do think though that if we are just there because we've already been there for long, and we've already lost so many lives, its the wrong reason. Its like a gambler not stopping at the black jack table, after hes lost his months rent. Just because in his mind he thinks hes already lost so far, it HAS to turn around. Thats kind of the sense that I get from your comments. Again, thats just my uneducated view on this.

[rwh11385]

Look at that information. We're helping to develop the Iraqi security force so they can take care of themselves and deaths are down.

More importantly, think about the views of the United States if we don't finish what we started. We came in under questionable pretenses uninvited, fucked shit up, and then just want to pull out and wash our hands? Negative on that being a good idea. Americans need to get their heads straight about what they want to magically happen and what is the proper course that should be done.

If we establish order of their own and gradually withdraw our forces as is prudent, not desired by people who have no idea what is going on, then we should be in good shape. We can show that at least we stuck it out and help the nation instead of just being scared they could have had WMD and invaded. If we have a positive impact overall, then the world should be more accepting of our action in the end.

[nando]

As for this government check, its a fucking crock. Everyone I know says they are saving the $600 just incase the economy keeps heading the way it is. So this $600 thats supposed to help speed up the economy has done nothing but lost billions of dollars, which are being stashed away. Why not go and spend the $600 on something? Treat yourself? It doesnt have to be American, I dont care. As long as an American merchant touches it, and makes some money off of it, it seems like the $600 stimulus would be doing what it was meant for.

actually, saving it is the best thing people could do - especially with our abysmal savings rate here. I mean, do you think we'd be this fucked if people saved more than 1% a year?

Also - if you want to increase inflation, the best way to do it is to print money. That is basically what the government is doing - if everyone is suddenly $600 richer, did anyone gain? no, because the value of the dollar just went down proportionately - there isn't an infinite amount of stuff to buy, but now there are more dollars chasing after limited resources.

I don't think anyone has said it, you know - the big bad scary word "SF". I haven't herd what the latest growth numbers are, but if the economy is shrinking printing a bunch of money is the worst thing the government could do.

[jflip2002]

Also - if you want to increase inflation, the best way to do it is to print money. That is basically what the government is doing - if everyone is suddenly $600 richer, did anyone gain? no, because the value of the dollar just went down proportionately - there isn't an infinite amount of stuff to buy, but now there are more dollars chasing after limited resources.

That makes perfect sense. But the $600 are going to be paid back on 2009's returns, for the year of 2008. They wont be able to collect all the money back, but they'll try. Thats why it wasnt necessarily a "rebate", rather a "stimulus". What you said makes perfect sense. Being that the best thing to do is NOT spend the money.... meaning the stimulus was still a crock of shit. I knew it was a crock, but just for the wrong reason

[z31maniac]

What I got in the mail said it was not going to be considered taxable income next year like a normal return.

I don't think anyone has said it, you know - the big bad scary word "SF". I haven't herd what the latest growth numbers are, but if the economy is shrinking printing a bunch of money is the worst thing the government could do.

How many here know what Stagflation is without googling it though.

[DCColegrove]

Hmmm, This thread has taken on a life that by far surpassed my expectations.

The answers are to be found in history and sociology.

The question is "Qui Bono" (who benefits). Think about this, there are good reasons to devalue currency...just not good for the average Joe.

[gstuning]

It seems nobody has read the report I posted yet.
Otherswise none of the current responses would have been posted.

People need to grasp the bigger picture. It´s not about the oil, the people or the money,
The world is heading into a WWWIII where global finance is the weapon of choice.

Here it comes in capital letters so you can be sure to see it.
YOUR DOLLAR IS LOOSING VALUE BECAUSE YOUR GOVERMENT HAS CREATED A LOOP OF CONTROL WHICH HAS NOW SPIRALED OUT OF THEIR CONTROL, WHAT ONCE WAS THE BIGGEST GLOBAL FINANCIAL EMPIRE IS RUNNING FAR BEHIND THE LEADERS NOW,
IF YOU DON´T KNOW WHO THAT IS IT´S UNITED STATES OF AMERICA THE FIX ISN´T COMING ANY TIME SOON AND MIGHT NOT EVEN COME AT ALL.

Instead of the cold war and nuclear "piece" , global debt "piece" is settling in, nobody want´s to start selling their USA bonds just yet, as it will be them to will turn on the wave of countries selling the USA bonds and further killing the dollar.

Don´t you guys understand it, the future of your and the global economy is absolutely not in your hands. It would be a setback cutting america out of the circuit but europe and east asia would bounce back as the markets there are getting stronger, if nobody wants to deal in dollars or sell to america........................................... ......

The american goverment is loosing it´s grips on it´s own future, it´s going to be in the hands of other countries.

Here is something your not going to like either.
European countries as well as the rest of the world could cut off everything to america, money, resources, oil, food supplies and so on, and the bad part is that financially it wouldn´t even hurt them all that bad.

If you where selling to two people and one pays 25% higher why would you even bother selling to the other guy?????????'

It´s bad, it´s real bad.
I personally don´t like the way things are headed.