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      08-04-2011, 10:35 PM   #27
Echo M3

Drives: E90 M3
Join Date: Sep 2009
Location: NY

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Originally Posted by mact3333 View Post
Ding Ding Ding we have a winner...finally I am hearing some sensible talk!...Mr 11 feels we will grow like the 50's...I gave him 5 reasons why it wont happen but he doesnt see it.

3/4 of the growth in 2000's, until the crash, was people tapping their home equity ATM's...this cash register not available anymore...and without a new industry to promote true growth, we will be stagant and dependent on the Feds and the govt to artifically create growth for us, but this causes inflation, which in turn will cause an economic downturn in in a sense, we are allowing the "haves" to maintain their 401K's while letting the poor who cannot take the inflationary insult while on govt handouts while unemployed.
One thing I should make clear is that we need to be careful how much and how rapidly we attack inflation. Anti-inflationary measures in a weak economy/recession can easily result in a major depression; this is exactly what the Federal Reserve did after the run on the Banks in 1929, which helped catapult the country into the Great Depression.

What is really scary is that we have no more tools at our disposal to help stimulate the economy. Our debt is so astronomically high and our interest rates so low that there is very little, if anything, at disposal for the government to do.