Comments on: Imbalances, Schmalances http://baselinescenario.com/2009/10/07/imbalances-schmalances/ What happened to the global economy and what we can do about it Sun, 14 Mar 2010 17:12:30 +0000 http://wordpress.com/ hourly 1 By: Min http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-32250 Min Wed, 28 Oct 2009 15:42:02 +0000 http://baselinescenario.com/?p=5173#comment-32250 Ethanol from corn is wacko, because it takes almost as much energy to produce as you get out of it. It is really just another gov't subsidy. Solar is another matter. The main costs of solar are up front capital, not production. That is the kind of new industry that our gov't has a history of supporting to get off the ground. This recession provides an opportunity to put people to work building an infrastructure for solar powered electricity. Ethanol from corn is wacko, because it takes almost as much energy to produce as you get out of it. It is really just another gov’t subsidy.

Solar is another matter. The main costs of solar are up front capital, not production. That is the kind of new industry that our gov’t has a history of supporting to get off the ground. This recession provides an opportunity to put people to work building an infrastructure for solar powered electricity.

]]> By: geo8ge http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-32231 geo8ge Wed, 28 Oct 2009 14:04:45 +0000 http://baselinescenario.com/?p=5173#comment-32231 "we couldn’t get it where we needed it to go because it was being sucked up by the housing sector." The money was going to Iraqistan, housing was a side show. Alternative energy like ethanol and solar, plus all the other crazy schemes was another money waster. “we couldn’t get it where we needed it to go because it was being sucked up by the housing sector.”

The money was going to Iraqistan, housing was a side show.

Alternative energy like ethanol and solar, plus all the other crazy schemes was another money waster.

]]> By: Michael http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-32086 Michael Tue, 27 Oct 2009 07:47:51 +0000 http://baselinescenario.com/?p=5173#comment-32086 Seriously? Not everyone gets rich the same instant? Wow! And I always thought we didn't go through Great Depressions and giant economic shitstorms before we all got a car and a steak in Europe and the USA/Canada/Japan. Seriously? Not everyone gets rich the same instant? Wow!

And I always thought we didn’t go through Great Depressions and giant economic shitstorms before we all got a car and a steak in Europe and the USA/Canada/Japan.

]]> By: Dr. Frankie http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-29856 Dr. Frankie Thu, 08 Oct 2009 13:01:20 +0000 http://baselinescenario.com/?p=5173#comment-29856 Bingo! I would add that the banksters had powerful enablers, namely, the politicians in DC. Otherwise, how can one explain that NOTHING has been done yet in terms of financial reform coming from Washington? Because, like Senator Durbin so aptly put it: "Quite frankly, they own the place." Bingo!
I would add that the banksters had powerful enablers, namely, the politicians in DC.

Otherwise, how can one explain that NOTHING has been done yet in terms of financial reform coming from Washington?

Because, like Senator Durbin so aptly put it: “Quite frankly, they own the place.”

]]> By: Alfred NZ http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-29855 Alfred NZ Thu, 08 Oct 2009 09:45:40 +0000 http://baselinescenario.com/?p=5173#comment-29855 I was born in '87! haha good point though, before Reagan the US hadn't ran big current account imbalances since WWII! You could add 1929, which was, funnily enough, preceded by major global imbalances! (At least according to Hugh Hendry, see link below) http://www.scribd.com/doc/19291783/Eclectica-August-Commentary I was born in ‘87! haha good point though, before Reagan the US hadn’t ran big current account imbalances since WWII!

You could add 1929, which was, funnily enough, preceded by major global imbalances! (At least according to Hugh Hendry, see link below)
http://www.scribd.com/doc/19291783/Eclectica-August-Commentary

]]> By: Fed Up http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-29854 Fed Up Thu, 08 Oct 2009 06:59:24 +0000 http://baselinescenario.com/?p=5173#comment-29854 Does productivity growth produce price deflation? If so, should the fed attempt to prevent price deflation with debt? Does productivity growth produce price deflation?

If so, should the fed attempt to prevent price deflation with debt?

]]> By: Fed Up http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-29853 Fed Up Thu, 08 Oct 2009 06:54:44 +0000 http://baselinescenario.com/?p=5173#comment-29853 You might like this article: The voyage of a dollar http://www.theatlantic.com/doc/200801/fallows-chinese-dollars/3 Part of it: "At no point did an ordinary Chinese person decide to send so much money to America. In fact, at no point was most of this money at his or her disposal at all. These are in effect enforced savings, which are the result of the two huge and fundamental choices made by the central government." You might like this article:

The voyage of a dollar

http://www.theatlantic.com/doc/200801/fallows-chinese-dollars/3

Part of it:

“At no point did an ordinary Chinese person decide to send so much money to America. In fact, at no point was most of this money at his or her disposal at all. These are in effect enforced savings, which are the result of the two huge and fundamental choices made by the central government.”

]]> By: Yakkis http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-29843 Yakkis Thu, 08 Oct 2009 02:52:46 +0000 http://baselinescenario.com/?p=5173#comment-29843 Also, if you broaden it to Chinese nationals working abroad, most everything recent has been invented by the Chinese. Also, if you broaden it to Chinese nationals working abroad, most everything recent has been invented by the Chinese.

]]> By: Yakkis http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-29842 Yakkis Thu, 08 Oct 2009 02:49:39 +0000 http://baselinescenario.com/?p=5173#comment-29842 True, and they do pay them something like 10 cents an hour, sometimes. True, and they do pay them something like 10 cents an hour, sometimes.

]]> By: Yakkis http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-29841 Yakkis Thu, 08 Oct 2009 02:46:33 +0000 http://baselinescenario.com/?p=5173#comment-29841 http://en.wikipedia.org/wiki/List_of_Chinese_inventions Modern inventions include the first synthesis of bovine insulin, an important anti-malarial drug, certain vaccines, and high-yielding hybrid rice. A better question would be: what didn't the Chinese invent? http://en.wikipedia.org/wiki/List_of_Chinese_inventions Modern inventions include the first synthesis of bovine insulin, an important anti-malarial drug, certain vaccines, and high-yielding hybrid rice.
A better question would be: what didn’t the Chinese invent?

]]> By: Yakkis http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-29839 Yakkis Thu, 08 Oct 2009 02:25:37 +0000 http://baselinescenario.com/?p=5173#comment-29839 First, it's not the value of housing that increased it's the cost. Value if anything declined. Second, everything did end up costing more. There was inflation (note that the official statistics keeped redefining it so as to hide it). Housing was particularly wild because of the one two three punch of fraudulent originations, followed by government guarantees, followed by securitization and misrating of securities. First, it’s not the value of housing that increased it’s the cost. Value if anything declined.
Second, everything did end up costing more. There was inflation (note that the official statistics keeped redefining it so as to hide it). Housing was particularly wild because of the one two three punch of fraudulent originations, followed by government guarantees, followed by securitization and misrating of securities.

]]> By: bungalowbill http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-29837 bungalowbill Thu, 08 Oct 2009 02:22:25 +0000 http://baselinescenario.com/?p=5173#comment-29837 Come on! Americans do not use slave prison labor. They teach inmates manufacturing skills. Come on! Americans do not use slave prison labor. They teach inmates manufacturing skills.

]]> By: Yakkis http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-29836 Yakkis Thu, 08 Oct 2009 02:20:36 +0000 http://baselinescenario.com/?p=5173#comment-29836 The job market collapse is irrelevant because all the people who lost their jobs voted for politicians who deem them just so much cannon fodder for the international economy. Maybe next time they will think twice about electing their republicrat representative. Or not. The job market collapse is irrelevant because all the people who lost their jobs voted for politicians who deem them just so much cannon fodder for the international economy. Maybe next time they will think twice about electing their republicrat representative. Or not.

]]> By: Yakkis http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-29835 Yakkis Thu, 08 Oct 2009 02:09:12 +0000 http://baselinescenario.com/?p=5173#comment-29835 In addition to slave prison labor, there is conventional slavery. Slavery employed by American multinationals abroad. And human rights violations of migrant workers, workers in American companies abroad and their contractors and sub-contractors, and an overall push to hammer the working class as much as possible. It's a close race between the U.S. and China to see who can crack the whip hardest on their labor force. In addition to slave prison labor, there is conventional slavery. Slavery employed by American multinationals abroad.
And human rights violations of migrant workers, workers in American companies abroad and their contractors and sub-contractors, and an overall push to hammer the working class as much as possible.

It’s a close race between the U.S. and China to see who can crack the whip hardest on their labor force.

]]> By: Yakkis http://baselinescenario.com/2009/10/07/imbalances-schmalances/#comment-29834 Yakkis Thu, 08 Oct 2009 02:01:56 +0000 http://baselinescenario.com/?p=5173#comment-29834 Actually, Americans use slave prison labor too. Lots of it. Actually, Americans use slave prison labor too. Lots of it.

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