Where is the US economy headed?

I wish them well.

I'm in agreement with you on that $700 billion. All of us and our children will be saddled with all this debt which will eventually become inflationary.

We must remember, however, that all the spending is not debt; they are loans that will be paid back to the treasury with interest. Many of the big banks have already paid back the loans, and many are ready to pay back those loans in the near future.

The stimulus plan is not all negative; a good portion of it will probably minimize and/or reduce the economic crisis to some degree. Extension of unemployment benefits and food stamps is necessary to provide people with some means to shelter and feed themselves - including their children.
I don't see this as a bad thing.

Where I differ with Obama is the expansion of other social programs at a time when tax revenues are dropping, and the primary goal of the administration should be to stop the bleeding of jobs and increase job opportunities.

If they come up with a good universal health care system that actually ends up covering everybody while reducing cost will be the number one achievement of this administration. Our country already spends 30% more per capita on health care than all the countries that provides universal health care, and costs in the US continues to rise at untenable rates every year. More companies are dropping health care or are increasing the employee's share for benefits. Those losing jobs are also losing their health insurance benefits. This cannot continue. Whatever compromise that must be made (by all) will be the most difficult issues to be faced by those planning this program.

cicerone imposter wrote:

I'm in agreement with you on that $700 billion. All of us and our children will be saddled with all this debt which will eventually become inflationary.

Without a doubt it will be inflationary, very inflationary.

So-called core producer prices, which exclude food and energy costs, fell 0.1 percent, indicating broad pressure on prices because of lower demand across the economy.

Cyclo, It's not odd; all the other signs of inflation are not there. Payroll and pay increases are dropping, and most people don't have any cash to splurge. Banks are watching too closely who they give loans to. I applied for a Capital One credit card this week, and they refused me. My FICO score is over 800, and we have no debt!

They're really getting stupid with who they give credit to.
It's probably because they know they won't earn any interest on our account.

The reason I applied for the Capital One credit card is very simple; they don't charge the extra fees like all the other credit cards when you use it in foreign countries to get cash from an ATM or make purchases.

Go figure.

Smart? How? So, they give credit to the worst offenders? LOL

Hasn't become inflationary yet, which is odd, seeing as everyone knows the liabilities are out there and inflation should be shooting upwards according to you fellows -

Quote:

So-called core producer prices, which exclude food and energy costs, fell 0.1 percent, indicating broad pressure on prices because of lower demand across the economy.

Can't we wait until inflation is above zero to start complaining about it?

Cycloptichorn

Cycloptichorn wrote:

Hasn't become inflationary yet, which is odd, seeing as everyone knows the liabilities are out there and inflation should be shooting upwards according to you fellows -

Quote:

So-called core producer prices, which exclude food and energy costs, fell 0.1 percent, indicating broad pressure on prices because of lower demand across the economy.

Can't we wait until inflation is above zero to start complaining about it?

Cycloptichorn

Are you suggesting that no significant inflation is likely???? The facts concerning the huge increase in the money supply already done very clearly tell us otherwise. The market for long-term treasury bills has already required a higher interest rate, and government borrowing is going to increase very fast in the coming year.

Are you suggesting that no significant inflation is likely????

But he said "until after the economy starts to recover". What will happen to the value of V at that point? At a guess, I mean.