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American Economics Thread
- Thread starter Bernard
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@SleepyStudent Bro I heard the same prophecy in 2011 here in the Philippine, the end result is the highest income disparity between the rich and the poor and the growth of oligarchy. With the use of monetary policy to induced economic growth, interest rate increase is antithesis and may prove fatal. Bro I may not be an economist, but from my little knowledge of economics the best way is to devalue the dollar and export your way out of the crisis.
American technology, employment, growth & financial markets are absolutely booming
That is not going to work. If you devalue the currency you wil spur domestic inflation and asset price appreciation even more. You will discourage capital investments and savings. And increase the inequality. Risking social unrest in the process. In the short run you may increase export volumes but in the long run you will rundown the economy even further as capital is misallocated at a even greater scale. The only solution is to delevarge the debt. Which means allowing asset prices to fall and allowing zombie companies to fail. You have to clean out the bad debts. You have to raise interest rate to encourage savings that in turn helps to increase productive investments.@SleepyStudent Bro I heard the same prophecy in 2011 here in the Philippine, the end result is the highest income disparity between the rich and the poor and the growth of oligarchy. With the use of monetary policy to induced economic growth, interest rate increase is antithesis and may prove fatal. Bro I may not be an economist, but from my little knowledge of economics the best way is to devalue the dollar and export your way out of the crisis.
@Franklin thanks bro I learned a lot, so the only answer is to take the bitter pill and swallow it? will that crush the US economy?That is not going to work. If you devalue the currency you wil spur domestic inflation and asset price appreciation even more. You will discourage capital investments and savings. And increase the inequality. Risking social unrest in the process. In the short run you may increase export volumes but in the long run you will rundown the economy even further as capital is misallocated at a even greater scale. The only solution is to delevarge the debt. Which means allowing asset prices to fall and allowing zombie companies to fail. You have to clean out the bad debts. You have to raise interest rate to encourage savings that in turn helps to increase productive investments.
American technology, employment, growth & financial markets are absolutely booming
oh, the slap comes a bit too quick for you man.
US retail sales dropped 1.1% in July M/M, Dow Jones estimated 0.3% drop. the reason is simple: the stimulus is running out. 70% of US GDP is consumption, i think you know how to annualize, right?
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US retail sales were up 13.3% from July 2020. It's a 9.6% CAGR even from July 2019. Even faster than Chinaoh, the slap comes a bit too quick for you man.
US retail sales dropped 1.1% in July M/M, Dow Jones estimated 0.3% drop. the reason is simple: the stimulus is running out. 70% of US GDP is consumption, i think you know how to annualize, right?
wow, that's impressive. did you take into account of inflation, running at 5.4% in July?US retail sales were up 13.3% from July 2020. It's a 9.6% CAGR even from July 2019. Even faster than China
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