G20 - 1 Trillion Dollars
Discussion
mark_davies said:
Why is everyone moaning for ? if this money wouldnt hve been available you would all moan , now that it is vailable moaan, moan and moan some more.
At least everyone will have to spend their way out of the recession , which is the only thing to do .
There are in fact 3 ways out but never mind that. Lets look at your solution:At least everyone will have to spend their way out of the recession , which is the only thing to do .
"“Does stimulus work? Fortunately, this is one economic question that’s been answered pretty clearly in the last century.
“Yes, stimulus works.
“When governments have taken aggressive steps to soften an economic decline, they have succeeded. The Germans did it in the 1930s. Franklin D. Roosevelt did so more haltingly, and had more halting results. Even the limp Japanese recovery plan of the 1990s makes the case. Although dithering over a bank rescue kept Japan in a slump, government spending on roads and bridges made things better than they otherwise would have been.
“When Roosevelt stuck to a stimulus program, unemployment fell markedly, and the biggest stimulus of all – World War II – did the rest. It’s true that economic models say the economy shouldn’t work this way. When resources are sitting idle, businesses should find a way to use them profitably. But they often don’t.
“People become irrationally pessimistic during a downturn. They are driven by what Keynes called animal spirits. Only government can typically change the dynamic.”
Oh, what a dreary world it would be if it could be manipulated so easily! Got an economic slowdown? Let the government fix it by putting people to work! Missing those essential animal spirits? Don’t worry about it; government employees are always beasts. But wait a minute…what good does it do to put people to work doing things that people don’t really don’t want done? Or, to put it another way: if people are not willing to buy something with their own money…or invest in it…what makes it a good idea when the government does it? Sure, you can put people to work digging holes and filling them back in again. Or making a cannon to blow up buildings. Or, why not burn down Washington…so people can be put back to work rebuilding it?
C’mon…we know it’s not that simple. It’s not that easy…
The two countries that emerged most quickly from the Great Depression were Japan and Germany. Both did it by massive rearmament – preparing for war. People got jobs in tank factories (though not in Germany until it threw off the constraints of the Versailles Treaty) and steel mills. They put together bombs and machine guns. The factories filled with workers. The shops filled with customers. The bars filled with soldiers. Problem solved, right? But was the world a better place as a result? After having created its expensive military monsters, Japan and Germany had to do something with them. It was either go to war or go broke."
m3jappa said:
DAVEVO9 said:
quite incredible really, considering that its 100 dollar bills too.
A million seconds is 12 days. (scroll down)
A billion seconds is 31 years. (take a guess what's coming... now scroll down)
A trillion seconds is 31,688 years.
contango said:
The worrying thing is that with the media show and at least a +ve headline from the g20, many of the electorate may actually be impressed...
stocks were mostly up on one of the major accounting bodies relaxing mark to market guidelines, which means banks have more leeway when pricing some of their more spurious holdings
So things have started to bounce up.stocks were mostly up on one of the major accounting bodies relaxing mark to market guidelines, which means banks have more leeway when pricing some of their more spurious holdings
Why is this bad?
It seems China is bailing the world out here, as they are having to give the biggest chunk of money.
elster said:
contango said:
The worrying thing is that with the media show and at least a +ve headline from the g20, many of the electorate may actually be impressed...
stocks were mostly up on one of the major accounting bodies relaxing mark to market guidelines, which means banks have more leeway when pricing some of their more spurious holdings
So things have started to bounce up.stocks were mostly up on one of the major accounting bodies relaxing mark to market guidelines, which means banks have more leeway when pricing some of their more spurious holdings
Why is this bad?
It seems China is bailing the world out here, as they are having to give the biggest chunk of money.
If the printing presses are running overtime we get high inflation that comes with its own problems , if we simply borrow it from others they will expect it back at some point with interest. Who will pay? Add it to our already huge tax bill , or even better let compound interest multiply it and ask our children to pay for our mistakes.....
Jazzer77 said:
elster said:
contango said:
The worrying thing is that with the media show and at least a +ve headline from the g20, many of the electorate may actually be impressed...
stocks were mostly up on one of the major accounting bodies relaxing mark to market guidelines, which means banks have more leeway when pricing some of their more spurious holdings
So things have started to bounce up.stocks were mostly up on one of the major accounting bodies relaxing mark to market guidelines, which means banks have more leeway when pricing some of their more spurious holdings
Why is this bad?
It seems China is bailing the world out here, as they are having to give the biggest chunk of money.
If the printing presses are running overtime we get high inflation that comes with its own problems , if we simply borrow it from others they will expect it back at some point with interest. Who will pay? Add it to our already huge tax bill , or even better let compound interest multiply it and ask our children to pay for our mistakes.....
Surely it is just a case of adding a zero in a computer and it is done.
superlightr said:
£100000 was
£1000000 now
Phew Im rich.
Well if you had the ability to do that, and the currency was the same value. Then yes.£1000000 now
Phew Im rich.
Surely that is how money is created now. It is not as if there is actually as many £/$ etc in physical form than the computer says there is. It is after all an IOU really for a commodity, except now you can't trade it in for your commodity.
elster said:
It seems China is bailing the world out here, as they are having to give the biggest chunk of money.
Until capitalism moves on, which it already has.Although China is sitting on a huge dollar pile right now, its exports are losing pace as it loses out to other nations as they are cheaper to produce and ship.
Enter, Mexico at this point, which is actually exporting more and more stuff to the US at the expense of China for instance. So China, in effect has the same cash pile that the British Empire did 100 years ago. And look where that cash has gone now? Same thing will happen with China over time as their own people demand more things.
tinman0 said:
elster said:
It seems China is bailing the world out here, as they are having to give the biggest chunk of money.
Until capitalism moves on, which it already has.Although China is sitting on a huge dollar pile right now, its exports are losing pace as it loses out to other nations as they are cheaper to produce and ship.
Enter, Mexico at this point, which is actually exporting more and more stuff to the US at the expense of China for instance. So China, in effect has the same cash pile that the British Empire did 100 years ago. And look where that cash has gone now? Same thing will happen with China over time as their own people demand more things.
elster said:
contango said:
The worrying thing is that with the media show and at least a +ve headline from the g20, many of the electorate may actually be impressed...
stocks were mostly up on one of the major accounting bodies relaxing mark to market guidelines, which means banks have more leeway when pricing some of their more spurious holdings
So things have started to bounce up.stocks were mostly up on one of the major accounting bodies relaxing mark to market guidelines, which means banks have more leeway when pricing some of their more spurious holdings
Why is this bad?
It seems China is bailing the world out here, as they are having to give the biggest chunk of money.
tinman0 said:
elster said:
It seems China is bailing the world out here, as they are having to give the biggest chunk of money.
Until capitalism moves on, which it already has.Although China is sitting on a huge dollar pile right now, its exports are losing pace as it loses out to other nations as they are cheaper to produce and ship.
Enter, Mexico at this point, which is actually exporting more and more stuff to the US at the expense of China for instance. So China, in effect has the same cash pile that the British Empire did 100 years ago. And look where that cash has gone now? Same thing will happen with China over time as their own people demand more things.
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