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Synesthetic
Ratings go in journal.



Registered: 12/11/08
Posts: 2,715
Loc: Tooele, UT
Last seen: 12 years, 9 months
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Re: Been reading about the economy [Re: memes]
#14026527 - 02/25/11 05:06 PM (13 years, 8 days ago) |
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Meams, it doesn't matter if the money is slowly or quickly poured in to the economy.
But I'm done arguing with you. Have fun when shit falls apart and you're caught with your pants down.
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Silversoul
Rhizome


Registered: 01/01/05
Posts: 23,576
Loc: The Barricades
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Re: Been reading about the economy [Re: Synesthetic]
#14026959 - 02/25/11 06:38 PM (13 years, 8 days ago) |
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Quote:
Synesthetic said: What I don't get is...why do corporations and governments keep borrowing more money in the hopes that they'll make enough to pay it back as well as pay off their old debts? In high school when the people came to talk about what NOT to do with your money (trying to curb the horrible shit that people do when they finally get in control of their own lives), they told us to NEVER, EVER borrow money to pay off your debts. 1/10 people, which is a fucking generous estimate, never get enough money to pay those loans back, and end up in worse shape because of it.
The problem is you're thinking of the government budget in terms of your personal expenses. A better comparison would be a business's expenses. Businesses take out loans all the time for when they need to expand. They can afford to take on theses loans because they'll invest that money in their business to ensure that they grow enough to pay off the loan. So too with government. A government can borrow money in a way that stimulates economic growth, which increases the tax base, which increases revenue, and therefore allows them to pay off the debt. It's worked before, and it can work again. If we simply allow the economy to collapse further and have deflation set in, that just makes the debt that much harder to pay off. It would probably be better if we could just create the money rather than borrowing it, but that's another conversation.
Quote:
And yet the whole fucking system relies on banks, corporations, and governments borrowing more and more money. The economy would grind to a halt and deflation would fuck everyone in the nation over if we actually managed to produce enough to pay off our debts, public and private. But if things keep going the way they are, INflation will skyrocket and THAT will fuck everyone over.
Inflation will only skyrocket if money gets spent on the wrong things, or if we keep doing deficit spending after the economy recovers, like Bush did over the past decade.
/awaits angry irrational libertarian response from Paultards
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Janamil


Registered: 08/01/09
Posts: 1,699
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Re: Been reading about the economy [Re: Silversoul]
#14027009 - 02/25/11 06:48 PM (13 years, 8 days ago) |
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There needs to be a guide of wtf should I buy with my free money so I have a home later?
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bryguy27007
Cosmonaut



Registered: 01/26/08
Posts: 10,525
Loc:
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Re: Been reading about the economy [Re: badchad]
#14027054 - 02/25/11 07:00 PM (13 years, 8 days ago) |
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Quote:
badchad said: You can be prepared, but try not to lose sleep over it.
That is really good advice. Wiccan turned me onto silver which turned me onto some stacking forums. I was reading those way too much where it's just a bunch of people talking about how soon the end of the world as we know it is coming, what are you going to do when SHTF, etc. It really got to me. I put my money into silver, gold, and a gun. I am still putting my money into silver and gold but I'm trying not to worry about it as much. I think the U.S. dollar will crash sometime in our lifetime, but I might as well enjoy life instead of worrying about it too much.
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civil twilight

Registered: 02/04/08
Posts: 512
Loc: Wisconsin
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Re: Been reading about the economy [Re: bryguy27007]
#14027181 - 02/25/11 07:28 PM (13 years, 8 days ago) |
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yup yup
-------------------- "You dropped your pocket..."
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