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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Joe NYC who wrote (456816)	2/16/2009 9:19:49 AM
From: combjelly	Read Replies (2) \| Respond to of 1576329

"A happy coincidence is that we are in the middle of a deflation." Which is why no one is worried about it. At least for the short term. Depending on how long major deficit spending continues, it could be a long term problem. Including devaluing the currency. "The problem with this priming of the economy is 2-fold:" Granted, we aren't in the best possible position. But we have few choices. They are going to have to start nationalizing banks soon, although they will no doubt call it something else. And that will throw things into turmoil. "I think the way to stimulate the US economy is by encouraging domestic production and discouraging consumption of imported goods." That is a long term solution. The only way to do that in the short would be through tariffs and protectionism. And that would only make the problem worse. That is a good goal, but first we need to get there from here.

To: Joe NYC who wrote (456816)	2/16/2009 1:18:02 PM
From: tejek	1 Recommendation Read Replies (2) \| Respond to of 1576329

So we are mainly stimulating economy of China, while adding on debt on backs of the US taxpayers. China is self stimulating. Its exports have crashed 20% YOY. China's growth rate has plummeted and some think its in negative territory. Unlike the US, China is fortunate in that its sitting on a huge pile of cash reserves. I think the way to stimulate the US economy is by encouraging domestic production and discouraging consumption of imported goods. Shifting taxation from production to consumption (joining the rest of the world) would be a step in the right direction. Borrowing from abroad in order to buy more imports is not. Doing as you suggest......becoming protectionist would encourage other countries to do the same. We still have industries that export to other nations. We would only hurt ourselves in the long run.