Central banks shift reserves away from US

[Mini D]

Originally posted by Rolex
Hey Mini D:

I'm not in the doomsayers court, btw. I could be convinced to salt this place a little though if I had the tinfoil hat franchise. A consumption-led market if there ever was one.

I never said you were.  That was for thrawn.

And to your rhetorical question: do you really think that I don't know how?  

It wasn't a rhetorical question.  You still haven't answered it.

It was more of a cyclical issue though in 99 - the kind that normal diversification and redeployment of private investment is so good at remedying in the dynamic and resilient American economic gorilla. Government spending to the extent we see now certainly wasn't needed. One would have to search pretty hard to find an economist willing to say that the governments sound fiscal and monetary policies saved the nation from any economic calamity at the turn of the century.

Badger?

Alot of pretty words that say nothing.  Once again: what are the main 3 things a government can do to pull a country out of a recession (which is what we were in... no matter what the cause).  You can argue it would have recovered all on it's own all you want, but you can't dismiss the fact that when answering the not-a-rhetorical question I posed above the government's actions were appropriate responses given any nation's economic history of recovery from a recession.

Evidence in support is seen in the private sector going about its business fairly well despite some fuel cost and other pressures. The private sector has been doing its job. The jury is still out on this soft dollar experiment.

You wouldn't have guessed it in 2000-2001 when unemployment skyrocketed.  A more cautious aproach to building a buisness with low interest rates and favorable tax situations is bringing back jobs.  Some of that is because of lessons learned from the recession, some of it is because of actions taken after the recession.  You simply cannot dismiss one and highlight the other.

[lada]

Originally posted by airguard
who knows whats gonna happen, I am a loving Engineer not a Economist.

Ekk i trough you are en engeneer of economic

ummm .. ahh okk... how are you doing overthere dude ?

[lazs2]

I agree... we need to cut government spending and taxes.  We need to dump about half the government programs.

lazs

[Rolex]

1. Monetary policy - reduce rates.

2. Budgetary policy

   A) Temporary tax cuts to increase corporate investment

   B) Increase expenditures in the form of public investment

Those are the two things. Currency devaluation isn't on my list, if that's what you were hoping to hear.

In the end, looking forward from now does not look better than looking forward 5 years ago looked.

[Rude]

Originally posted by Thrawn
Americans are the second hardest working people in the world after the Australians.  The problem is that the work is overvalued in a global market, and less and less are in the manufacturing sector and more and more in the service, supply and government sectors.

Ya get what ya pay for.....sure, it's cheaper to pay someone in India to handle tech support for company A, however, you cannot understand a thing they say so they roll the call back to the USA. This is why many of the outsourced jobs are starting to return to US soil.

If your going to do it right.....

[Krusher]

Originally posted by Thrawn
The problem is that the work is overvalued in a global market, and less and less are in the manufacturing sector and more and more in the service, supply and government sectors.

So the heck with Kyoto, in a few years we wont have any smoke stack factories to mess up the ozone.

Hey btw I have had a change of heart.  I think we should sign the Kyoto agreement and do what most of the rest of the world is doing, ignore it.

[JB88]

is this relevant?

Budget Office Sees 2005 Deficit at $368 Billion
Tue Jan 25, 2005 09:23 AM ET

WASHINGTON (Reuters) - The U.S. budget deficit will reach $368 billion this year, the Congressional Budget Office said in new forecasts on Tuesday, a source familiar with the numbers said.

The number is worse than the CBO's previous $348 billion forecast for the 2005 fiscal year that began on Oct. 1. Due to a technical quirk, the latest number does not include billions of dollars in expected war costs and analysts said these must be added in to get a true picture of the red ink.


-------

recent request is 80 billion...

---------

how does this all play in?

[Toad]

Presented for your reading and commenting pleasure:

The Budget Outlook

The Congressional Budget Office (CBO) projects that under current policies, the federal deficit will total $477 billion in fiscal year 2004 and then decline to $362 billion in 2005 (see Table 1-1).

Although that 2004 deficit would be a record in nominal dollars, it would represent a smaller share of the economy--4.2 percent of gross domestic product (GDP)--than the deficits recorded in the mid-1980s and early 1990s (see Figure 1-1).

For the 10 years from 2005 through 2014, CBO projects that current policies would produce a cumulative deficit of $1.9 trillion, or 1.3 percent of total GDP over that period.

Now don't get me wrong. I realize it's worse than that estimate, the end is near, we are in the final days, the US is going down the tubes, it's all over, we are lost, disaster has befallen us, we'll all starve, etc., etc., etc..

[Rolex]

So act fast and you can have enough money to move to the country rated as the best place to live on earth: Ireland.

I'll give you 30 cents on the dollar for your houses today.

Don't delay; act now before all is lost.

Call 1-800-USA-ENDS, thats 1-800-USA-ENDS

Operators are standing by (somewhere in India)

[Toad]

I'll give 50 cents on the dollar! Call now!

1-800-DIS-ASTR  

We have genuine Mid-West US operators standing by... you'll be able to understand everything they say!

[JB88]

<----- dailing phone.

beep

beep bop bop

bip bip boop

beep beep bop bip.



................... ring.


--------------- ring.

[AKS\/\/ulfe]

Somehow I don't believe you Toad.

I called a tech line for some software that a company uses, and I needed to get some information changed. The guy I talked to introduced himself as Mike and he had an American accent.

When I got his e-mail address, it was MustaffaYous@companyname.com.

Those people in India are crafty and sheisty.

And, you are offering 50cents on the dollar, compared to Rolex's 30 cents. The only way you can undercut his pricing schematic is by outsourcing.

I will not be doing business with you. I say good day sir.
-SW

[JB88]

its sad because when i call service and repair for my dell i get "midwestern accented" indian folks.

ill say.  what was your name again.

they'll say something like "bob"

where are you?  

"calcutta"

oh.

makes me feel sort of yukky.

[Monk]

Originally posted by lada

97% whitch had sutch condition didnt get evet tourist Visa last year.

But yeah... you can simply bribe clerk at immigration office and no problems at all.

edit: you can expect just german retiree

What happened, you get denied?  Is that the reason you don't like the US.

[Mini D]

Originally posted by Rolex
1. Monetary policy - reduce rates.

2. Budgetary policy

   A) Temporary tax cuts to increase corporate investment

   B) Increase expenditures in the form of public investment

Those are the two things. Currency devaluation isn't on my list, if that's what you were hoping to hear.

In the end, looking forward from now does not look better than looking forward 5 years ago looked.

You got two of the 3.  To be honest... the third one pretty much wraps up the other two.  Go to war.  I'm quite suprised more people haven't glommed on to that simple correlation and played it for all it's worth.

But, if we look at A) and B) in the list you provided.... both of those would have the effect of devaluing the dollar.  Any time you pump money into the economy, you move the value of the dollar down.  It's an unfortunate side effect of two seemingly necessary actions.