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<blockquote data-quote="wkmac" data-source="post: 684172" data-attributes="member: 2189"><p>Before you strike up the band you should be cautiously optimistic at best although IMO historical realism might prove even that is way overblown . The "Cash for Clunkers" program spiked car sales so to speak but then once the program ended, <a href="http://www.boston.com/business/articles/2009/09/19/car_showrooms_quiet_after_clunkers_clamor_ends/" target="_blank"><span style="color: red">reality set back in</span></a> and the marketplace found it's natural balance again post unnatural intervention. What happens elsewhere once the gov't spicot is turned off in other sectors too? What happens when the pressures of monetary policy force interest rates up or else the dollar as a global reserve currency collapses or what happens when the dollar falls off that loafty perch for good? What happens when all this borrowed money finally does enter the actual marketplace with the resulting pressures of extreme inflation coupled with a dead employment market all bare full tilt? When happens in compound when the Fed. to fight inflation jacks up interest rates like the Fed did late 70' to mid 80's?</p><p></p><p>"Bye! Bye! Miss American Pie, Drove my Toyota to the levy and I watched you Die!</p><p>Them Republicrats did nothing but lie, singing all the while we'll be fine!</p><p>All the while we'll be fine!"</p><p></p><p>Maybe short term you might find reason to celebrate but once the liquor runs out, folks sober up, I'm afraid the hangover the next morning will make the after effects of 1929' look more like a picnic. Also remember this, as a result of WW2, all major means of productive capacity in Europe and Asia were all but destroyed leaving America sitting alone to dominate into the 1970's when both regions had emerged from re-tooling. (AV8, there's your temp. cliff saver from FDR madness or otherwise your observation is correct, still correct just not as obvious to see as it now is) Because the rest of the world so to speak either had no productive capacity or were 2nd or 3rd world players anyway, even with a <a href="http://www.infoplease.com/ipa/A0001519.html" target="_blank"><span style="color: red">falling value fiat currency</span> </a>that we have/had, our monetary unit was strong enough to emerge on top. Both the lack of productive global capacity and the stronger of all fiat currencies is not the case we find ourselves today which could stave off the edge of the cliff if it were.</p><p></p><p>As much as many want to blame O-Bomb-A for all of this, his crime is just that he is piling on an already critical mass situation and now word comes down it's getting worse:</p><p></p><p></p><p></p><p>I think those chickens someone suggested were coming home to roost is completely wrong. Those aren't chickens, they vultures and buzzards prepared to do what they do best.</p><p></p><p></p><p><img src="http://i81.photobucket.com/albums/j240/Gumsandals/GreatSealBuzzards.jpg" alt="" class="fr-fic fr-dii fr-draggable " style="" /></p></blockquote><p></p>
[QUOTE="wkmac, post: 684172, member: 2189"] Before you strike up the band you should be cautiously optimistic at best although IMO historical realism might prove even that is way overblown . The "Cash for Clunkers" program spiked car sales so to speak but then once the program ended, [URL='http://www.boston.com/business/articles/2009/09/19/car_showrooms_quiet_after_clunkers_clamor_ends/'][COLOR=red]reality set back in[/COLOR][/URL] and the marketplace found it's natural balance again post unnatural intervention. What happens elsewhere once the gov't spicot is turned off in other sectors too? What happens when the pressures of monetary policy force interest rates up or else the dollar as a global reserve currency collapses or what happens when the dollar falls off that loafty perch for good? What happens when all this borrowed money finally does enter the actual marketplace with the resulting pressures of extreme inflation coupled with a dead employment market all bare full tilt? When happens in compound when the Fed. to fight inflation jacks up interest rates like the Fed did late 70' to mid 80's? "Bye! Bye! Miss American Pie, Drove my Toyota to the levy and I watched you Die! Them Republicrats did nothing but lie, singing all the while we'll be fine! All the while we'll be fine!" Maybe short term you might find reason to celebrate but once the liquor runs out, folks sober up, I'm afraid the hangover the next morning will make the after effects of 1929' look more like a picnic. Also remember this, as a result of WW2, all major means of productive capacity in Europe and Asia were all but destroyed leaving America sitting alone to dominate into the 1970's when both regions had emerged from re-tooling. (AV8, there's your temp. cliff saver from FDR madness or otherwise your observation is correct, still correct just not as obvious to see as it now is) Because the rest of the world so to speak either had no productive capacity or were 2nd or 3rd world players anyway, even with a [URL='http://www.infoplease.com/ipa/A0001519.html'][COLOR=red]falling value fiat currency[/COLOR] [/URL]that we have/had, our monetary unit was strong enough to emerge on top. Both the lack of productive global capacity and the stronger of all fiat currencies is not the case we find ourselves today which could stave off the edge of the cliff if it were. As much as many want to blame O-Bomb-A for all of this, his crime is just that he is piling on an already critical mass situation and now word comes down it's getting worse: I think those chickens someone suggested were coming home to roost is completely wrong. Those aren't chickens, they vultures and buzzards prepared to do what they do best. [IMG]http://i81.photobucket.com/albums/j240/Gumsandals/GreatSealBuzzards.jpg[/IMG] [/QUOTE]
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