Why is the U.S economy so fucked up?

[Der Morgenstern]

Pessimism, a country you might be interested in looking at would be Germany since it meets the description your laid out. Unofficial unemployment rates of around 15-17%, but still economically sound.

 

[Pessimism]

Damn, have they been at that rate for a long time?

 

[Dak]

I didn't even make any statement saying suggesting that it was a good system or that it should be spread to the ends of the fucking earth.

Learn to read god dammit.

Maybe this will help:


It's quite obvious that every fucking country on the planet is locked into debt of some sort and yet they are still able to function. My question was ONLY asking how much an economy can take on (deadweight) and still be able to exist.

"be able to exist"/"able to function" is about as loose as the vag that aug pays for. This is where my contention to your statement/question is.

The current debt based monetary system inevitably crashes and resets, or forces other currencies to do so instead. That commercial exchange is able to take place despite ups and downs is does not mean that an economy is sound, and since money is debt, this makes everyone dead weight on the system to a degree.

Since the entire system is unsustainable, and non-producers are supported through non-commercial means which vary from sample to sample, it is rather pointless to argue how many non-producers a given economic sample could support before reaching any kind of negative economic thresholds.

 

[Der Morgenstern]

Damn, have they been at that rate for a long time?

Well, economically sound is a relative term, but the rate has been like that since the late 80s/early 90s.

 

[Pessimism]

Just... just stop. Stop.

I don't care which way you want to cut everything, and I really don't care about your statements regarding the damned nature of a system fueled by debt. I only wanted to know one thing, and that thing is to what extent an economy can exist given its unemployment rate (as in literally, how can a state support those who are not contributing to its continues existence).

So when I mention sustainability, I am literally talking about an economy that exists and can continue to exist given whatever means necessary. I am using a very general definition of the word.

California is an example of what I am asking, it has a massive debt, yet is still able to pull in massive amounts of money at a 12.4% unemployment rate. It as a state is able to exist given said deficiencies. Could it fall apart? Sure why not - problem is I don't really care about when/if it falls apart, I only care about how large a burden (i.e. non employed people) the state itself can carry. Even if it can only carry it for a finite period of time.

 

[Kara-Shehr]

For the love of God, somebody answer this man's question before he kills us all!! (I need an answer as well)

PRISMATIC AND TOM BRADY THIS MEANS YOU IF YOUR READING THIS THREAD GET YOUR MANGY ASSES IN HERE!!

 

[Jimmy... Dead.]

Taxes, Federal grants & help with unemployment compensation/extended benefits, unemployment insurance, welfare, paid work/training programs.

Senators lobbying for subsidization, What's so hard?

 

[Saparmurat_Niyazov]

Well, developing economies (like India and Brazil) have unemployment rates ranging from 20% - 40% (approximately; I didn't feel like pulling up the real numbers, rather I base those numbers on previous reading I have done) and their economies are relatively stable.

 

[Jimmy... Dead.]

For the love of God, somebody answer this man's question before he kills us all!! (I need an answer as well)

PRISMATIC AND TOM BRADY THIS MEANS YOU IF YOUR READING THIS THREAD GET YOUR MANGY ASSES IN HERE!!

...and if you really need an answer to such a broad question you could find researching via the net, here ya go...

Outsourcing, downsizing, technology/internet, Major Hedge fund managers/investors falsifying documents creating fraudulent information to major shareholders/players, U.S Car industry putting out an inferior product causing consumers to seek alternative, lack of faith in politicians/leadership, bank/mortgage due diligence,borrowers start defaulting, foreclosures,prices of property and stocks come down drastically and nobody buys them, Gross Domestic Production registers a continuous downward fall, military industrial complex,oil prices/unrest in the middle east, More taxes are en route to pay for health care, prices of essential commodities shoots up, No innovation etc, etc, etc...

Now go do some research.

 

[Kara-Shehr]

I was talking about pessimism's question. Btw ^ stuff I pretty much alreay knew about.....but whatever thanks, I guess. I was just curious to hear people's opinions and thoughts.

 

[Jimmy... Dead.]

right.

 

[zabu of nΩd]

Since I started reading A Case Against the Fed yesterday, let me try out an explanation for why the US economy is so fucked up:

All modern commercial banks routinely practice embezzlement. You deposit your money with them, and they either loan it to other people or use it to buy free shit without any intention of paying you back. This is the basis of "fractional-reserve banking", which first became institutionalised as a legal practice through the British courts in the early 1800s (Carr v Carr, Davaynes v Noble).

Because of this practice, it would be impossible for every person in the U.S. to withdraw all their money from the banking system at the same time. Whenever this does occur (a bank run) or the banks fear it may soon occur and begin calling in their loans or restricting credit, it becomes very difficult for the average person or business to take out loans, thus setting off a recession. Fractional-reserve banking is an integral part of the boom-bust cycle of modern economies.

Central banks such as the Federal Reserve were created to cartelize the banking business and print bailout money in order to keep the system-wide embezzlement afloat. This is also the reason inflation exists -- periodically printing new money serves the dual purpose of keeping the banks stocked with cash and redistributing wealth to the financial elite.

 

[Dak]

Whoa Whoa, now you're talking Dakryn crazy talk.

 

[zabu of nΩd]

The author of ACATF doesn't exactly strike me as a loose cannon Infowars editorialist.

 

[Saparmurat_Niyazov]

Yeah, that's basic economic knowledge. Alex Jones would somehow tie the Illuminati and aliens from the planet Nibiru into the whole thing.

 

[Der Morgenstern]

Since when are the Illuminati and the alians from Nibiru seperate groups?

 

[zabu of nΩd]

See how much more convincing conspiracy theories are when they're actually backed by logic Dak?

Yeah, that's basic economic knowledge.

I was really surprised at how much sense all that stuff made once I read the book. Like, I feel dumb for never having connected the dots between fractional-reserve banking and the boom-bust cycle before, but it really is that poorly understood in our society! There's hardly any discussion about it, and obviously it's not taught in schools -- we're just conditioned to write it off as one of those "mysterious wonders of economics" that's too complex for the average person to figure out.

 

[Saparmurat_Niyazov]

But it's not that complex, the banks just don't want you to know so they can keep ripping you off.

 

[Cythraul]

Never in my life did I think I would see the day when Virus Gravy would start sounding like a libertarian nutcase. This is a special day for me. I think I'll drink to that.

Didn't I say I was going to say something in response to the OP? ah, too lazy right now. Will contribute later.

 

[Jimmy... Dead.]

It's not half as bad as Pretentious Sphere.