Just how bad is the economy?

[zeon]

I have witnessed in all classes of life people living in a dog eat dog world snapping up bargins at asda or wanting to just stretch resources.. Of course the goverment encourage you to spend because they get more of your money in their pockets plus if the world is in a terrible way why cant they just print some more cash or wscrap the euro? im proud of our goverment who said No to euro otherwise we the united kingdom could be putting our heads between our legs and kissing our arse goodbye!"

[Inchante]

Let's not oversimplify matters. The money's there, but maybe we all need to start consuming more wisely and less frantically. That would not be sustainable if all 7 billion people on this planet consumed like the biggest consumer on this planet, the United States.

You say, "lets not over simplify matters", and then you oversimplify matters. Well, consumption is not the problem with the economy unless it is a lack of consumption. Indeed, your statement is rather anomalous, as the world economy is based on consumption (it makes me wonder where you got that idea). Consumption creates growth and prosperity. And so long as one limits the amount of debt one accrues, consumption is a positive thing. Most of the debt people are worried about is not a result of mass consumption. It is due to governments overspending on social programs, which is not what economists consider an aspect of consumerism.

On the other hand, when people place all their investment into a single product, and that product turns out to be over valued, it can cause major problems. Thus the housing market.

[princealbertofb]

What I'm saying is maybe the world economy shouldn't be based on consumption of goods and energy but also on services rendered...? I'm not over simplifying. I'm just saying maybe there is a change in consumption patterns that needs to come to the fore.

[Bowyn Aerrow]

Here's a Christmas Carol for you...I hope it makes you laugh instead of cry:

I love comedy - It brought tears to my eye, tears of laughter Thanks!

But I was kind of counting on free gifts from Satan - Oh I mean Santa

[fredv3b]

What I'm saying is maybe the world economy shouldn't be based on consumption of goods and energy but also on services rendered...? I'm not over simplifying. I'm just saying maybe there is a change in consumption patterns that needs to come to the fore.

All very well but many would loose their jobs in the process, and I doubt most of Africa world fare well in the services rendered category.

What we need is for people to go out on to the high street and start spending again.


Sent from my iPhone using Tapatalk

[Bowyn Aerrow]

All very well but many would loose their jobs in the process, and I doubt most of Africa world fare well in the services rendered category.

What we need is for people to go out on to the high street and start spending again.


Sent from my iPhone using Tapatalk

Yeah... Sure, lets see shall I sell my truck, my tools? that will give me money to spend willy nilly for a minute or two, then what?

Granted I do have a minor amount of money in savings - but that is for retirement, not for today.

[cloud999]

plus if the world is in a terrible way why cant they just print some more cash

Since 2009, the US Federal Reserve has printed over $2.8 trillion US dollars electronically. That's more money than the entire UK makes in one year. For every pound sterling you make, we're printing almost $2.

This has the positive effects of growing the US Stock Market, decreasing unemployment, and eliminating some US debt. This has the negative effect of reducing the US Dollar's value, decreasing the value of American savings, dramatically increasing the cost of basic goods in the US (food, utilities, and gasoline are far more expensive now than in 2008), and pissing off countries that hold US debt (primarily China).

In short, Obama has been printing money, it isn't working, and it's making it harder for poor Americans to afford basic necessities.

[Almac]

I was going to say something but my brain still hurts after debating with cloud999...!!!!

[zeon]

Since 2009, the US Federal Reserve has printed over $2.8 trillion US dollars electronically. That's more money than the entire UK makes in one year. For every pound sterling you make, we're printing almost $2.

This has the positive effects of growing the US Stock Market, decreasing unemployment, and eliminating some US debt. This has the negative effect of reducing the US Dollar's value, decreasing the value of American savings, dramatically increasing the cost of basic goods in the US (food, utilities, and gasoline are far more expensive now than in 2008), and pissing off countries that hold US debt (primarily China).

In short, Obama has been printing money, it isn't working, and it's making it harder for poor Americans to afford basic necessities.

I think the cost of living is now going to just keep on increasing and getting ever more expensive... Living in the UK is a very expensive life with our prices at all time high.... To get 1 Litre of petrol unldeaded for my car im charged £1.41 ($2.80 approx) and a weeks driving holds £60 almost.... On another note is there actually any country which isnt in debt?

[cloud999]

I think the cost of living is now going to just keep on increasing and getting ever more expensive... Living in the UK is a very expensive life with our prices at all time high.... To get 1 Litre of petrol unldeaded for my car im charged £1.41 ($2.80 approx) and a weeks driving holds £60 almost....

Welcome to the new normal.

On another note is there actually any country which isnt in debt?

Yeah. Russia, China, Australia, Iran, Brazil, most of Eastern Europe, Mexico, and most of South America all have very low debt loads.

The US, Canada, Japan, India, and most of Western Europe are in trouble.