Traditionally that was true, but it won't work this time because the manufacturing base has been moved offshore. There are no jobs left at home. Globalization IS what is killing the USA.

If they wanted to bring jobs back home, they'd stop printing money, and immediately erect tariffs on imports from American companies. That would force American companies to bring jobs back home because it would no longer be so lucrative to use slave labor in foreign countries.

Also, in regards to dropping the value of dollar through "quantitative easing/printing money." That doesn't work because all the other countries around the World just devalue their currencies in unison to keep their imports cheap. It only results in a global "race to the bottom."

That's not quite right. Bernanke WANTS the QE to create inflation because there are signs of deflation. You know, prices go down so people wait to buy, which in turn means less money changing hands and then you have deflation. Deflation is far more difficult to stop than inflation.
If you pump out lots of money and keep the interest rate low you create inflation. And since money becomes worth less due to the inflation, people will spend it. Thus, you kickstart the economy. When the economy starts to go wild you "simply" increase interest rates again and you stabilize the economy.
Or so the theory goes :)

So why hasnt the economy kicked started after the 5 trillion we've spent and why are every day items inflating in price?

i am in canada and once the dollar started to drop most american companies around here that had outsourced labor here pulled out and relocated in places in the south mostly.

canada maintained a weak dollar policy to bring jobs here for years and now it looks like the US is doing the same.

You laugh at my joke and then neg rep me!!

WTF!!


:1orglaugh


Last time I make you laugh.

:1orglaugh

If I knew that I wouldn't be sitting here posting on GFY now, would I?

What are these signs? I've heard this rant before but nobody can ever come up with anything. On the face of it all, it looks like there's an absence of inflation, CREATED by Bernanke and his QE, as well as the stimulus bullshit. Deflation is better for our current economy than inflation. And you're following the same fundamental flaw that Keynesians follow, which is demand side economics. You guys apparently think that consumer spending is what fuels the economy, which wouldn't be accurate. They've tried QE once already, as well as stimulus plans, and nobody's spending.

..because all that money that "Helicopter Ben" is dumping is not landing on main street, but in the front yards of the "Too Big To Fail" banks.

Liquidity injections and bail outs to Wall Street, banking, and transnational conglomerates is not going to kick start the economy. It's only floating the stock market at unreasonable levels, inflating a treasury bubble, and pushing commodity prices higher. That's why we are now seeing price inflation in consumer goods and food stuffs, but strong deflation in home prices, and wages.

I wouldn't say the only reason commodity prices are higher is because of the QE. I think people genuinely believe our economy is fucked (and they're right), and they want to protect their purchasing power through precious metals. The Stock Market isn't up because of QE either, it's because companies have figured out how to create unreasonably low earnings projections and when they beat those earnings, their buyers multiply exponentially.

I am in Canada too, and I know what you are saying, but as I said, it's not the same game for the Americans. The US operates the global reserve currency. When you run the global reserve currency, you can't just decide to have a "weak dollar policy." You'll just end up destroying confidence, and ultimately end up no longer running the global reserve currency.

Yes, the smart money is already positioned in, or is now in flight to precious metals and commodities for just that reason.