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      01-30-2008, 08:43 PM   #25
AndrewAZ
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Quote:
Originally Posted by Bobby_Light View Post
Our economy is NOT fine. We are staying afloat by borrowing money from China and printing money out of thin air. The economy will collapse at sometime if these trends continue. The FED is obviously concerned as they have cut interest rates twice in a 9 day period which is RARE. Unfortunately, these are artificially low interest rates which is where our problem begins. You can only lower interest rates by increasing the money supply which leads to inflation and a further devaluing of the dollar. This cycle of borrowing money from Asia, artificially lowering interest rates, and printing money is cleary a backwards monetary policy. The Federal Reserve System is a joke; your money is being stolen as the dollar continues to weaken. All paper currencies are vunerable to collapse, and our dollar is no exception.
If we collapse then the entire world does.. We live in a world economy and it wont happen. The old China is buying our debt is a little overplayed, I would be more worried about Japan that owns 25 times more US debt than China. Ask yourself why other countries would buy our debt, its simple despite the up and downs in the long run we have always prevailed. Most experts cant tell you why the dollar has fallen instead they point to speculation. And again like I outlined a falling dollar is not a bad thing, it creates more jobs and promotes outside investment in our country which will eventually bring it back.

My point is all economies have ups and downs and in the long run everything is fine.. Heck our GDP growth is only slowing people it has not been negative for the past 7 years, no need to panic.. We still have around 5% unemployment which is the lowest it has been for a long time, and for economic types 5% is considered full employment.

I am and everyone else shouldn't be afraid to invest in the USA, As one news story put it is "recession contagious no but fear is." Like the falling dollar and rising oil price it all comes back to fear.
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