The U.S. Economy Faces the Guillotine

The media and the Bush Administration keep talking about a possible coming recession, but the recession had already hit the USA last year. We are already in a recession due to the reckless lending practices of mortgage lenders, the greed of relaters that jacked up housing prices beyond the affordable in many parts of the USA. As well, as the devaluation US dollar, increasing gas prices, increasing prices on goods due to the low dollar, and an ill auto-industry that tried to keep selling SUVs after their popularity started dropping in 2002. Bush Jr should have realized that supply-side economics did not work under Reagan, and I'm sure that his father, Bush Sr, warned him about such too. However, Bush Jr did not listen. Thus, here we are with another Reagan-like recession.

Outsourcing is the main cause of this economic situation. American money is leaving our economy and being injected into other countries economies. It is common sense that deficits are caused because more money going out of the economy than is coming in . Our banks are increasingly financed by foreign entities. As a result we are in debt and cannot even bail ourselves out. American products cannot compete with imports because of cheap labor. We cannot change this.
SO, what we need to do is get the money FLOWING back into the American ECONOMY. We have to start selling our products especially our technological services to CHINA and INDIA, Saudi Arabia, United Emirates so we can get our money back into the U.S ECONOMY.

Who will emerge stronger after this Recession. THE ANSWER IS OBVIOUS, CHINA, SAUDI ARABIA, United Arab Emirates and the E.U. America will find itself in a situation where global governance will have to be shared with the countries above. Inotherwards, Arab money would be funneled through the IMF and WB to advance their agenda's. That means that these entities could threaten global governance and encourage capitalism without social justice. If we can fuel alternative energy programs which promote a massive expansion of our economy by creating millions of jobs we might be able to prevent a long term recession.

p.s.- many people will refuse to accept the accusations. all i can say is read the book "none dare call it conspiracy" (you can find at amazon). then ask yourself,.... how they could have known all of this 35 yrs +/- ago if it wasn't true!!!

This recession is being fabricated. Multinational corporations who are involved in this this stand to make 2 to 3 times as much money if the globe were not in a recession. You are just contributing to their fear-mongoring. This hype is economic terrorism, and you are purveyors of it.

Why don't you actually do some work and find out who is behind this? Let me give you a hint on where to start. Remember Enron, hyping their stock? Well this is exactly the reverse, and multinationals like Sallie Mae, Citi and other Big Names are only writing down because they do not want to pay any taxes.. Sure, there will be sacrifices, but those 'sacrifices' will be bought up by the bigger banks. Tell me, If Company 'A' is writing down 40 billion, and company 'B' is writing down 11.5 billion, how in the heck can company 'B' buy or merge with company 'A'?

Do the math, if they are losing as much as they say they are, 1 in 25 households would have their house foreclosed, or would be filing for bankruptcy. Do youselves and everyone else a favor and stop playing into their fear and games. get to the bottom of it, find out who to sue and who gets life in prision for terrorism, or better yet I would love to see them hanged for treason, publicly. These companies are trying to avoid paying taxes, and will collect one way or another on those 'write downs'.

There are real people out here who actually believe there is a recession and are falling into panic! Show some backbone and do your job and actually get to the bottom of this for once. Do what Journalists are supposed to do and expose the scandel, name names and let the heads roll. As far as I am concerned, you are a mouthpiece, adn have no business publishing anything. I do not have the contacts you guys do or I would do it myself, Im not a journalist, just a number cruncher. I've already done the math on all the write downs, it does not add up.

Dont like it? Prove me wrong. I gave you the tips on where to start now get to work.

This recession is being fabricated. Multinational corporations who are involved in this this stand to make 2 to 3 times as much money if the globe were not in a recession. You are just contributing to their fear-mongoring. This hype is economic terrorism, and you are purveyors of it.

Why don't you actually do some work and find out who is behind this? Let me give you a hint on where to start. Remember Enron, hyping their stock? Well this is exactly the reverse, and multinationals like Sallie Mae, Citi and other Big Names are only writing down because they do not want to pay any taxes.. Sure, there will be sacrifices, but those 'sacrifices' will be bought up by the bigger banks. Tell me, If Company 'A' is writing down 40 billion, and company 'B' is writing down 11.5 billion, how in the heck can company 'B' buy or merge with company 'A'?

Do the math, if they are losing as much as they say they are, 1 in 25 households would have their house foreclosed, or would be filing for bankruptcy. Do youselves and everyone else a favor and stop playing into their fear and games. get to the bottom of it, find out who to sue and who gets life in prision for terrorism, or better yet I would love to see them hanged for treason, publicly. These companies are trying to avoid paying taxes, and will collect one way or another on those 'write downs'.

There are real people out here who actually believe there is a recession and are falling into panic! Show some backbone and do your job and actually get to the bottom of this for once. Do what Journalists are supposed to do and expose the scandel, name names and let the heads roll. As far as I am concerned, you are a mouthpiece, adn have no business publishing anything. I do not have the contacts you guys do or I would do it myself, Im not a journalist, just a number cruncher. I've already done the math on all the write downs, it does not add up.

Dont like it? Prove me wrong. I gave you the tips on where to start now get to work.

It's been slumping for over 30 years.....the governement and big business has done a good job of hiding it.

THIS IS AMERICA! IF WE ALL GOT THE BALLS TO GET IT DONE WALA NO RESESSION OR DEPRESSION!
IF YOU DON'T LIKE IT LEAVE! AT LEAST IT'S AN IDEA AND NOT A CRAPPY INSULT OR BEST GUESS. THIS WILL WORK, FOR THE NEXT 15-25 YEARS. ALL WE HAVE TO DO IS COMMIT SIN AND INVEST INTO OUR OWN COUNTRY, INSTEAD OF REBUILDING OTHERS. LET THEM WATCH AND COPY THE WAY IT SHOULD BE!

Vietnam AND PRIOR TO
If we spent 2 Billion dollars-A DAY, 2 Billion dollars CAME BACK into the American economy-A DAY, and 100 MILLION recouped in taxes-A DAY

Iraq
We spend 2 Billion+ dollars-A DAY, 300,000$, COMES BACK to the American economy-A DAY, and 10,000- recouped in taxes-A DAY

Vietnam and Iraq are the same? Bring back the great American war machine, to American soil, use the gas tax, as it was told to us, why, its there, ie: the roads
Hey
WE JUST EMPLOYED 12 MILLION, REBUILDING EVERYTHING, WITH ALT ENERGY, MAKING FAR MORE INCOME THAN MIN WAGE!

DEMOCRATIC CORE- RUN THE COUNTRY, NOT RULE THE WORLD!

TO BAD IN IRAQ WE OUTSOURCE EVERYTHING, INCLUDING INTELLIGENCE, FOR ANOTHER BILLION-THIS, IS THE BIGGEST DIFFERENCE BETWEEN VIETNAM AND IRAQ, MR PRESIDENT, HIDING UNDER THE TABLE

MY MATH IS OFF! WE WOULD EMPLOY MORE LIKE 35 MILLION! REBUILDING FACTORIES, STAFFING THEM, BUILDING WIND FARMS, STAFFING THEM, REBUILDING ALL ROADS IN OUR COUNTRY, STAFFING THAT, AND RECOUPING 100 MILLION A DAY IN TAXES, EQUATES, COUNTING THE 2 BILLION SPENT INSIDE OUR BORDERS, A DAY! YA 35 MILLION EMPLOYED AT BETTER THAN MIN WAGE IS FAR CLOSER THAN JUST 12 MILLION EMPLOYED-SORRY FOLKS MY MATH WAS OFF

We've been in a recession for over 30 years. Our, government and big businesses have done a good at hiding that fact while they were getting their greedy hands on all the easy money and leaving a tab for "Joe Public" to pay later. Let the fat cats pay for it. Oh sure, they'll dangle our job over our heads or stress how we need to help the poor. The working middle class always gets ripped off...but we can at least honestly say that "we can stand on our own to feet nomatter what. I just feel sorry for the poor and good luck to the soon to be worthless fat cats when their money isn't worth squat. Luckily I invested in gold and euros......even the thai baht is doing well...especially when you could but them for nothing.

This 'recession' is fabricated. The 'entities' who are causing this stand to make 2 to 3 times money as much if the globe were not in a recession and they had to do it the old fasioned way - through working. You are playing directly into their fear mongoring. You are at the mercy of 'the' multinational corporation, this is contrived. This hype is economic terrorism, and you are purveyors of it.

It's been slumping for over 30 years.....the governement and big business has done a good job of hiding it.

Oh come on Jtalbott. We did not "ship all our jobs to Mexico." And, Bush did not "let all the Mexicans come over here." The Mexicans came here for higher paying jobs in comparison to what jobs are paying in Mexico - no one gave them a ticket. I live in Mexico and the Mexican peso is one of the few currencies that has not appreciated against the dollar. It still takes eleven pesos to buy one dollar - the same as a year ago and the same as three years ago. The Mexican economy is still struggling in relation to our economy - which is also struggling.

If anything, NAFTA kept the peso from declining further (to twelve or fifteen pesos to the dollar) although I am not sure the social costs caused by NAFTA to Mexico and the United States were worth it.

Look Its time for America to take care of our own house. Stop promoting free trade. See where it leads us. Free trade is an illusion coz it was US who propped up the world. Now the emerging markets are tied to export-based growth and they are concerned that US is protectionistic. So they start to buy into our icon foundations hoping that they can have leverage over us (which they are lying their ass off). Why care about them? Let them figure out how to deal with free trade. America can no longer afford to be as nice and as 'altruistic' as before..believe me these nations from Singapore to China to Middle East DO NOT LOVE the US. So why should the US have to act as it they still need us (or want us) to be the leader of the world??

The root of the perceived problem is lack of demand for goods and services. "Free money" is sending the wrong message to the consumer, store owners, and global markets. Yes, there was a short spike this week with the announcements of rebates, etc. But the deeper problem is over-reaction by the Federal Reserve. Lowering the interest rates in a knee jerk reaction is not strategic and only delays the inevitable pain any economy (going through a natural contraction) must endure.

Recessions are not all that bad; pretending, wishful thinking, and band-aids do not help in a recession that is occurring right now. The stock market for some unknown reason seems to be the health meter of the American economy. Maybe rebates should be spent on learning exactly what equities are and are not. Will rebates help the poor get a better job? Will rebates make the unemployed feel better? How about the average two parent working family that is bumping up to or in the AMT plan? How many of these checks will go for alcohol, cigarettes, guns, or gambling? Did anyone think of the unintended consequences of free money?

One way for demand to increase for goods and services is through fair and meaningful tax cuts. If one reviews the increases to State and Federal taxes, one would see a system of aggregate negative impact on growth opportunities for business and most importantly a forced retarding of consumer demand. Something has to give in a recession. Rebates may help the alcoholic for a week or two, a gambler for a day at the track, or a smoker for a few months, but at what cost? I don't want to sound all negative, because some of the rebates will go to good causes and help at least for a short term families that are really feeling the pinch. The answer however, is never in free money give-a-ways! It is a slap in the face of hard working folks that do save for tough times and are prepared to buy the necessities and forgo on the luxuries in order to avoid unnecessary debt.

Lastly, is this the beginning of a series of free money give-a-ways? Will young people begin to depend on the rebates as a source of regular income? What impact does this have on Social Security? Why now? Is there anyway to stop this rebate proposal from happening?
Something is intuitively wrong with free money give-a-ways (because there is a price to pay at some point). The public deserves to be better informed: the rebate remains a debate.

The root of the perceived problem is lack of demand for goods and services. "Free money" is sending the wrong message to the consumer, store owners, and global markets. Yes, there was a short spike this week with the announcements of rebates, etc. But the deeper problem is over-reaction by the Federal Reserve. Lowering the interest rates in a knee jerk reaction is not strategic and only delays the inevitable pain any economy (going through a natural contraction) must endure.

Recessions are not all that bad; pretending, wishful thinking, and band-aids do not help in a recession that is occurring right now. The stock market for some unknown reason seems to be the health meter of the American economy. Maybe rebates should be spent on learning exactly what equities are and are not. Will rebates help the poor get a better job? Will rebates make the unemployed feel better? How about the average two parent working family that is bumping up to or in the AMT plan? How many of these checks will go for alcohol, cigarettes, guns, or gambling? Did anyone think of the unintended consequences of free money?

One way for demand to increase for goods and services is through fair and meaningful tax cuts. If one reviews the increases to State and Federal taxes, one would see a system of aggregate negative impact on growth opportunities for business and most importantly a forced retarding of consumer demand. Something has to give in a recession. Rebates may help the alcoholic for a week or two, a gambler for a day at the track, or a smoker for a few months, but at what cost? I don't want to sound all negative, because some of the rebates will go to good causes and help at least for a short term families that are really feeling the pinch. The answer however, is never in free money give-a-ways! It is a slap in the face of hard working folks that do save for tough times and are prepared to buy the necessities and forgo on the luxuries in order to avoid unnecessary debt.

Lastly, is this the beginning of a series of free money give-a-ways? Will young people begin to depend on the rebates as a source of regular income? What impact does this have on Social Security? Why now? Is there anyway to stop this rebate proposal from happening?
Something is intuitively wrong with free money give-a-ways (because there is a price to pay at some point). The public deserves to be better informed: the rebate remains a debate.

why after we shipped all our jobs to mexico that bush lets all the mexicans come over here ? is it that the jobs didn't go to mexico ? mexico should be flying high , but still they come.

Look people, please, at least get the economics right. The reason the Canadian dollar his more valuable in relation to the US dollar is that there have been fewer Canadian dollars in the international market relative to the number of American dollars. It's just supply and demand. More important are the reasons for this glut of dollars. First, we continue to run big deficits in our trade with the rest of the world. How have we done this? Our trading partners (mainly China) have gladly bought up our debt and refused to allow their yuan to appreciate against the dollar - they are worried that if the dollar falls in value (which it is beginning to do) against the yuan, the United States will not be able to afford more Chinese plastic crap. Their economy gets hurt.

Second, the U.S. persists in considering itself the savior of the so called "free world." We have spent billions in dollars and killed God knows how many people in avenging itself for 19 lucky Saudies who managed to proof that you do not need highly trained pilots to crash planes into buildings. This is crazy. Even policemen go broke occasionally and we are broke in this arena.

Third, our energy needs require us to buy oil from other countries - mainly the Middle East - and, guess what? - they gladly take our dollars (for awhile anyway) and this also props up the dollar. If Euros were used to buy oil we would be in the pits and so would our dollar. (Guess who we also buy oil from? You guessed it! Canada. More dollars chasing fewer Canadian dollars means a rising value of the Canadian dollar.

It's not the lack of a Ron Paul or a need to adjust our TV and newspaper reporters and stations or the influence of any liberals or a communist plot. We just can no longer afford to do what we have been used to doing. We are like the British Enpire of old - we are financially unable to sustain purchases of plastic, oil, our soldiers abroad, etc. The dollar will continue to decline (as it should) and we will just have to do with less. Period.

P.S. Ron Paul would really mess things up! Doing away with the Fed and going back to the gold standard would be an economic disaster - you just cannot afford to base our economy on some commodity like gold. There is no automatic salvation. We just need to elect really smart leaders who will recognize economic reality and leaders who will not act like John Wayne.