Comments on: Payback Time

By: Praedor Atrebates

Praedor Atrebates — Mon, 30 Mar 2009 12:34:52 +0000

The fantasy of “decoupling” was just that, a fantasy (from the US standpoint at least). It fails to take into account something bloody obvious: for a poorly developed nation like China, there is practically only one direction it CAN go and that is up. Same for India and most of the rest of the SE Asia basin – and it has been fed by exporting to the US and saving LOTS of the money.

China has LOTS of room to “grow” (develop) using their huge savings while the US and W. Europe are all developed out. All we can do is rearrange the bricks and roads via LOANS while China and India are building them fresh and new, using the latest available technologies (in many cases), with direct cash payments. Thus, OUR societies are crumbling and look dank and grey compared to China’s, which is flash and new.

And more with decoupling: China is hurting but not anywhere near what the West is simply because while they built up a LOT of wealth on our backs (massive exports to the US) the US, on the other hand, has ONLY been importing AND borrowing to fire up of all the rest of the world. The US goes down and that automatically means all countries that were exporting to the US as a major basis of “growth” are screwed, unless they are like China with HUGE cash reserves of cash that can be spent down developing their own countries.

India is similarly situated.

By: Gipfel-Woche • Börsennotizbuch

Gipfel-Woche • Börsennotizbuch — Mon, 30 Mar 2009 11:06:30 +0000

[...] Obama will von den Europäern mehr, diese denken aber, sie hätten genug getan (?) — Payback Time. [...]

By: florian

florian — Sun, 29 Mar 2009 18:09:58 +0000

im from germany, and even though theres probably a lot of things u can criticize about the german reactions to the crisis, i certainly dont like the way many comments r doing so. cause a) germany did put a big bailout plan in action, n the ones that say its too small, like the FDP (liberal parties), r the ones that were defending deregulation all along, which we see where it got us now; and b) many of the people in charge for US-solution strategies, r part of the problem, cause they benefited from the system that collapsed now for far too long, n now r trying to rescue as much of it as they can.

now the question is: r those people (parties) to be trusted? or shouldnt we rather act more responsibly, do what we think is absolutely unavoidable, but nothing more? spending, spending and spending more and more money doesnt always help, i think thats a lesson we should have learned by now.

By: Petros

Petros — Sun, 29 Mar 2009 04:36:34 +0000

adios amigos, here’s a reality check for YOU, this is a blog and you’re yelling at a guy named dwight from cleveland…relax, have a valium or a beer, the sun will rise tomorrow, earth will still spin, all is good…breath man, breath…

By: dwight from cleveland

dwight from cleveland — Sun, 29 Mar 2009 03:24:03 +0000

I get it, and I am fine with it. The whole thing could collapse for all I care. I can grow the food I need, build the house I want, and barter for the cloths I need.

I really wish you hadn’t bought them in the first place. It only increased the demand and made the prices inflate to irrational levels. You see, your “loaning” that stuff only helped the first class passengers and did nothing to help those of us who were actually keeping the thing aloft. I not only “GET IT” but completely understand how healthy the economy will be once it happens.

By: adios amigos

adios amigos — Sun, 29 Mar 2009 02:11:51 +0000

Anas,
Good for Germany! Deficit spending by ANY government is simply generational theft, plain and simple. NO government should EVER spend any more than 25% of GDP….never. What, exactly do governments produce anyway? Wars, etc. And we’re going to borrow our childrens financial future for that? Huh? I believe we ALL need to examine exactly how effective ALL of our governments are globally. Have they outlived their usefulness in their current form? Perhaps. Corruption in government? RAMPANT. The problem, or call it a challenge, is that they no longer fear us. The only thing they may fear is probably an armed uprising by the majority of “the ruled”. That may happen someday, and perhaps soon. If the Americans were smart (they clearly are not, complete idiots) they would march on Washington en masse. But they’re too stupid and pathetic to do that. Losers.

By: Anastasius

Anastasius — Sat, 28 Mar 2009 22:41:42 +0000

There’s also a political side to it. Every financial and budget discussion in Germany in the last decade has been absolutely dominated by the Maastricht criteria on debt.

Lowering our debt and balancing the budget has been the one and only term in which finance is being discussed to the point where just about every politically interested German can tell you our current deficit and it took massive contortions to get our first stimulus package through.

Trying to sell stimulus spending to Germans is a surefire way to lose the election this year.

By: adios amigos

adios amigos — Sat, 28 Mar 2009 22:08:25 +0000

Brad,
Yes! You “get it”. Next time you feel the need to go out and purchase a new Chia Pet…..DON’T. Send my pension fund the money instead. We bought your toxic debt portfolios, and now my retirement savings are gone. Also, call your Congressman. Tell him to NOT borrow any more money to build yet another aircraft carrier, so you can borrow more money to take that carrier out for a drive and KILL more civilians that did NOTHING to America. Can you take care of that for us Brad? The other 95% of the global population that don’t live in the U.S. would REALLY appreciate that. Thanks again for bankrupting us with your bullshit securities. Good job America.

By: adios amigos

adios amigos — Sat, 28 Mar 2009 21:49:29 +0000

Ted,
Defaulting to the WWII history again? Tell me, were YOU there? That was 65 YEARS ago. What have you done lately? Yes, two generations ago, America was a very respectable country. Thats over. What has the current generation done, besides live their lives on borrowed money that now can’t be repaid, and you have now engineered the largest financial fraud in the history of man? I would suggest that you all stop borrowing dollars that you KNOW you can NEVER repay, and start living within your means. PS: congratulations, you have successfully engineered the biggest Ponzi scheme in the history of man, and it’s called your economy. You build a house for $200,000 dollars. Suddenly it’s appreciating by 20% per year…..just “because”. Here’s a reality check for you: your homes and assets cannot appreciate at 20% annually if your economy is actually flat, or growing at 3-4%. THATS NOT REALITY. Thanks again for selling us (outside the US) all of your BS toxic mortgages…..our pension funds have now collapsed. WE WILL NEVER TRUST YOU AGAIN…..NEVER.

By: thedailybite

thedailybite — Sat, 28 Mar 2009 21:24:52 +0000

Ah, but we do have a social safety net here – middle aged unemployed living in tent cities are taking elderly homeless into their tents. Saw that on NBC news last night.

When the BLS is engineered by Congress into understating CPI, then the Fed can understate inflation. And Social Security is pulled off its feet like Alice was by the Red Queen.

http://www.shadowstats.com/article/special-comment

By: Ted K

Ted K — Sat, 28 Mar 2009 17:12:31 +0000

This is the way Europe HAS contributed, IS contributing, and WILL always contribute. America pulled France’s rear out of the frying pan after World War 2 (not to mention pulling Germany’s economy out of ruins) and our “thank you” has been cultural snobbery ever since. And by the way if we make the HUGE MISTAKE of creating a “new international currency” which country is going to support that currency and prop it up when it has problems (AND IT WILL HAVE PROBLEMS)??? China?? France??? The odds on that are about the same as Rwanda and Darfur being self-reliant in 10 years.

By: Celo

Celo — Sat, 28 Mar 2009 14:29:06 +0000

Found many of the comments interesting….

Unfortunately we have already lost the ability to lead; many of our solutions lack any merit and are based mostly upon political considerations.

There is also a high probability that the bulk of the funds provided will have little effect other than to greatly increase our debts.

Why would any country besides the U.K. (in worse shape than most) want to follow our lead?

We keep demanding but where are they following..financially, politically or militarily?

We need to realize that for the most part we are on our own……and stop asking others to bail us out.

We caused most of the problems and now have to come through this as best we can; perhaps to be a better nation for it afterwards….

China and Europe need to look to their own to find solutions to get through this.

We are not all in the same boat so let’s stop baling….

By: aarc

aarc — Sat, 28 Mar 2009 09:23:18 +0000

I don’t know, but look at the DAX monthly chart at least 10 years. It is so much stronger and healthier than Dow Jones and the SnP to the present. History of their economy is reflected on their stock market charts.

Is’nt it the stock market the barometer of a nation’s economic health?

Now, look at China Shanghai Index. It has been in rally mode since OCT 2008 while the US, Germany, France and England have been digging lower and lower toward an undefined abyss specially the Dow Jones.

India, Hongkong, Taiwan, Korea, and even the Philippines are following the lead by China since Oct 2008 by not going down lower.

Japan Nikkei succeeded in not making a lower low and is now in a holding pattern.

It feels like the decoupling theory have just blasted off the launchpad.

Houston…………….

or rather…. CHINA, WE HAVE A SUCCESFUL LIFT-OFF. Decoupling now in progress!

America WAKE UP!

By: Billy Jones

Billy Jones — Sat, 28 Mar 2009 06:43:01 +0000

brad,,,,other countries have not liked us for a while. can you blame them? some of these us companies blame labor unions and such. but they are quick to buy up other companies to expand. when this happens usually fails and have to dump for little or nothing…ohhh but the synergies involved with the new purchase. why don’t they take that money and take care of thier existing employees. i’m telling ya,,,the past 30 years has killed us. we have some serious work to do. please no more cowboy hardball.

By: Brad Hicks

Brad Hicks — Sat, 28 Mar 2009 05:32:52 +0000

OK, it’s official: I have now once and for all had it up to bleeping HERE with every country in the world depending on the US middle and working class to be the purchaser of last resort. Us importing all of their excess manufacturing capacity while our wages are going down and down and down is just flatly not sustainable. It’s not good for us, and it’s not good for them. If that’s the attitude they’re going to cling to, then forget free trade: there is no point in importing goods from countries that insist on only exporting, whether those countries are European or Asian. Maybe if we weren’t their dumping ground for goods their economy can’t absorb, they wouldn’t have ended up being our dumping ground for fraudulent investment schemes.