DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Obama the Genius: Cash for Clunkers Boosts Car sales, Housing, Stock Market

**XU8i6ysK** · 08-09-2009, 05:40 PM

If he really wants to improve the economy, he shuld improve on the infrastruture and not not consummable. The US economy will suffer in the long run,.

US's situation is different. There are few significant industries left. Thanks to all those fancy management fads, US is now dependent on consumption to grow the economy.

As a reserve currency country, they can afford to anyhow print money (not backed by gold) to buy all the nice things from China on loan.

In the absence of employment, cash handout is the other way to stimulate the consumption economy.

I just checked yesterday's Money Multiplier issued by St Louis branch of US Fed reserve. The figure is 0.967. Not even 1 unit. Money is being "destroyed"!!! This only happen in a Great Depression.

Green shoots?

08-09-2009, 05:40 PM	#10
XU8i6ysK Join Date Oct 2005 Posts 368 Senior Member	If he really wants to improve the economy, he shuld improve on the infrastruture and not not consummable. The US economy will suffer in the long run,. US's situation is different. There are few significant industries left. Thanks to all those fancy management fads, US is now dependent on consumption to grow the economy. As a reserve currency country, they can afford to anyhow print money (not backed by gold) to buy all the nice things from China on loan. In the absence of employment, cash handout is the other way to stimulate the consumption economy. I just checked yesterday's Money Multiplier issued by St Louis branch of US Fed reserve. The figure is 0.967. Not even 1 unit. Money is being "destroyed"!!! This only happen in a Great Depression. Green shoots?
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