Government Spending May Lead US into a Double dip Recession

[Apocalypse]

Government Spending May Lead US into a Double dip Recession
Published: 7/23/2009 12:17:45 PM
By: Anna Fedec, contact@tradingeconomics.com

Government spending is rising day-by-day. The list includes: $787bn spent for the fiscal stimulus, at least $600bn for the TARP funding, unlimited resources for bank takeovers, loans to the financial institutions, and so on. But on the wake of declining tax revenues, how are those programs being financed? And more importantly, who is paying for it?


Indeed, its common sense among many politicians that during difficult times, economies need to be boosted either by fiscal or by monetary policy. For instance, the US government is using fiscal stimulus to revive consumer demand, stimulate investments and stop employment decline. And the Federal Reserve is lowering interest rates, purchasing treasuries and mortgage-backed securities to ensure credit availability. The problem is that in many cases countries don’t have enough resources to provide fiscal stimulus. So many of them uses so called debt monetarization. In fact, one of the best ways to finance spending is to issue bonds and sell them to investors. However, treasuries may go back to country balance sheet as the Fed prints extra money and buys bonds back in the open market operations. Yet, the increase in money supply typically leads to higher inflation because there is more money available in the system for the same quantity of goods. And with rising consumer prices everyone loses purchasing power because our savings are worth less as we need to pay more for the same products. To make things even worst, the next step in this vicious-circle is generally higher interest rates as lenders demand an higher compensation for the lost value of their money.


In sum, conducting fiscal and monetary stimulus has short-term benefits but also long-term costs because the credit availability boosted by open market operations is likely to end at the same level where the operation was initiated. So, after an initial boost where investors become more confident, living conditions get suddenly worst. Consumers spend less, production is further cut and unemployment rate start rising even further.


http://www.tradingeconomics.com/Articles/Article.aspx?title=Government%20Spending%20May%20L ead%20US%20into%20a%20Double%20dip%20Recession


Good thing Obama saved the economy!

[Rockntractor]

Prosperity for us could be a long way off. As long as we have liberal democrats making all of our decisions we will not have a true recovery. Even if the Republicans regain control they are becoming increasingly liberal and may not desire to turn back all of the deadly programs Obama is installing.

[Troll]

Even if the Republicans regain control they are becoming increasingly liberal and may not desire to turn back all of the deadly programs Obama is installing.

Bingo. Even with the financial trouble we're in, I can count on one hand the number of Republicans who are talking about cutting spending. Oh, they may be 'opposed' to cap and trade and socialized healthcare, but that's not cutting spending - that's opposing new spending.

I'll be amazed if the Republican party is still politically solvent by 2020. By that point, it will probably be like choosing between Chavez and Mao. If socialized medicine and cap and trade become realities, I think the Republicans are forever sunk. Can you imagine? The Democrats will just have to say "don't vote for Palin, she wants to make you pay for your healthcare!"

http://pressthebuttons.typepad.com/photos/uncategorized/gameover.gif

[satanica]

. If socialized medicine and cap and trade become realities, I think the Republicans are forever sunk

This is true.

We have seen this in other G-7 nations. Whehn one party opposes the government health care plan and it passes anyway ...The party gets destroyed for decased.

The people end up seeing for themselves how it works and they remember who opposed it.

This is why the GOP is fighting it as much as they can, it could finish off the GOP.

I agree, it will sink the GOP for decades.

[Rockntractor]

This is true.

We have seen this in other G-7 nations. Whehn one party opposes the government health care plan and it passes anyway ...The party gets destroyed for decased.

The people end up seeing for themselves how it works and they remember who opposed it.

This is why the GOP is fighting it as much as they can, it could finish off the GOP.

I agree, it will sink the GOP for decades.

If a troll lies on a forum and there is nobody there to hear him does he make a sound?

[satanica]

If a troll lies on a forum and there is nobody there to hear him does he make a sound?

I would post links and sources, but you guys hate facts. and are afraid to answer a question.

[Zafod]

This is true.

We have seen this in other G-7 nations. Whehn one party opposes the government health care plan and it passes anyway ...The party gets destroyed for decased.

The people end up seeing for themselves how it works and they remember who opposed it.

This is why the GOP is fighting it as much as they can, it could finish off the GOP.

I agree, it will sink the GOP for decades.

Get off your unemployed lazy ass and go find a fucking job you bum.

[Zafod]

I would post links and sources, but you guys hate facts. and are afraid to answer a question.

doesnt it bother you that you are a sponge and your poor wife has to bring home the bacon?

[Rockntractor]

doesnt it bother you that you are a sponge and your poor wife has to bring home the bacon?

I think she has to furnish her own sausage too!

[satanica]

You guys want a good laugh ?

Look at the posts 'recent posts' from Zafod.

It is 100% FACT that he ONLY posts on the CU to insult me...he is obsessed with me, you will notice page after page of insults ...

No debate

No friendly talk with other conservatives

Nothing but insults at me. I am flattered that he would obsess on me and spend so much of his time on little old me.

The link that tells the story, page after page of a guy who needs therapy.

http://www.conservativeunderground.c...earchid=235073

[Rockntractor]

You guys want a good laugh ?

Look at the posts 'recent posts' from Zafod.

It is 100% FACT that he ONLY posts on the CU to insult me...he is obsessed with me, you will notice page after page of insults ...

No debate

No friendly talk with other conservatives

Nothing but insults at me. I am flattered that he would obsess on me and spend so much of his time on little old me.

The link that tells the story, page after page of a guy who needs therapy.

http://www.conservativeunderground.c...earchid=235073

So was it the late bed wetting that made you feel inadequate!

[Zafod]

You guys want a good laugh ?

Look at the posts 'recent posts' from Zafod.

It is 100% FACT that he ONLY posts on the CU to insult me...he is obsessed with me, you will notice page after page of insults ...

No debate

No friendly talk with other conservatives

Nothing but insults at me. I am flattered that he would obsess on me and spend so much of his time on little old me.

The link that tells the story, page after page of a guy who needs therapy.

http://www.conservativeunderground.c...earchid=235073


again I feel sorry for your wife. She must be tired of being the sole bread winner. I mean come on dude, the least you could do is get a part time job or somthing ..... but you are a pathetic unemplyed bum by choice.

[satanica]

I have income of my own thank you very much.

http://www.conservativeunderground.c...earchid=235073

[lacarnut]

This is true.

We have seen this in other G-7 nations. Whehn one party opposes the government health care plan and it passes anyway ...The party gets destroyed for decased.

The people end up seeing for themselves how it works and they remember who opposed it.

This is why the GOP is fighting it as much as they can, it could finish off the GOP.

I agree, it will sink the GOP for decades.

I could give 2 shits what it will do to the GOP; my concern is what it will do to the country. The facts are that the government will eventually run all the private companies out of business and then we will all be on a government (single payer) option. Unlike Canada, this will be the only system allowed (no private or supplemental for seniors).

Everyone that is on Medicare will go into the public option system where they have to go before a bureaucrat that will council them on life and death alternative care every 5 years. This is designed to save over 500 billion dollars. In other words, the government is going to tell you that there will be a cost analysis divided by the number of years of the average life span in order to see if you meet their computations of receiving care. If not, you will be deemed not worthy of getting treatment. So if you get dementia, heart trouble, cancer, etc late in life, this bureaucrat will compute whether the government thinks that this is not cost effective and you will be told to take a pill, go home and die.

If this bill passes, I guarantee you that you will curse Obama till the day you die when one of your parents or someone in your family or you wind up under this monstrosity of a health care bill. You might not think so now but it will happen when it hits close to home and becomes up close and personal.

[Rockntractor]

I have income of my own thank you very much.

http://www.conservativeunderground.c...earchid=235073

Sure you do just like a tick or a flea or a tape worm!

[Zafod]

I have income of my own thank you very much.

http://www.conservativeunderground.c...earchid=235073

yeah unemployment is not real income. You are a pathetic sponge.

[satanica]

The facts are that the government will eventually run all the private companies out of business

Yep, ALL PRIVATE COMPANIES will be gone. This is why the magic negro has to be stopped.

[Zafod]

Sure you do just like a tick or a flea or a tape worm!

bingo

[Zafod]

Yep, ALL PRIVATE COMPANIES will be gone. This is why the magic negro has to be stopped.

and you need to get a job...

[satanica]

yeah unemployment is not real income. You are a pathetic sponge.

I have two products on the market.

And have a rather large bank account.

[Rockntractor]

I have two products on the market.

And have a rather large bank account.

Name them!

[Zafod]

I have two products on the market.

And have a rather large bank account.

you are a private buisness owner and you are collecting unemployment while you have "products" that bring in money?

Sounds like you are working the system.....just like a sponge....

[lacarnut]

Yep, ALL PRIVATE COMPANIES will be gone. This is why the magic negro has to be stopped.

You are an idiot. Even if you do have a product to sell, I doubt that you have the management, financial and the people skills to be sucessfull. You will fail miserably, loser.

[Zafod]

You are an idiot. Even if you do have a product to sell, I doubt that you have the management, financial and the people skills to be sucessfull. You will fail miserably, loser.

he is a lair, that or a crook.
I would hope he is not mis-reporting his income to the DES so he can get a unemployment check.....

[lacarnut]

Name them!

It's a secret or it could be that he needs to quit gobbling down those stupid pills.

[MrsSmith]

I have two products on the market.

And have a rather large bank account.

Well, it's a good thing you're in agreement with the higher taxes you'll have to pay, and with losing control of your private company. I'm sure you're president will be very happy with you.

[lacarnut]

Well, it's a good thing you're in agreement with the higher taxes you'll have to pay, and with losing control of your private company. I'm sure you're president will be very happy with you.

What a joke this POS is. He does not have a pot to piss in and a window to throw it out of.

Like Zaf says, he needs to get off his lazy ass and go find a job. His wife is going to kick his ass to the curb.

[satanica]

Satanica's rants

--------------------------------------------------------------------------------

Quote:
Originally Posted by Apocalypse
Observations of the President’s 1st 100 Days:


1. Offended the Queen of England

Where did she say she was offended ? ...here is a link. http://www.guardian.co.uk/music/2009...nts-queen-ipod

3. Praised the Marxist Daniel Ortega

Really ? ..where ? ..here is Obamas comment... http://www.foxnews.com/politics/2009...atribe/100days


4. Kissed Hugo Chavez on the cheek

WTF ...WHERE ...surely there is a pic that you can post ? ...another lie. they ONLY shook hands.



5. Endorsed the Socialist Evo Morales of Bolivia

Nope. He neevr ENDORSED him ...he congratulated him. http://www.foxnews.com/wires/2009Jan...iviaUS,00.html


7. Gave away billions to AIG, also without pre-conditions

LIE....The bonuses hapened UNDER BUSH http://en.wikipedia.org/wiki/Aig . ...in fact, Obama spoke out against them ..

""This is a corporation that finds itself in financial distress due to recklessness and greed. Under these circumstances, it's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. I mean, how do they justify this outrage to the taxpayers who are keeping the company afloat?"


10. Doubled our national debt

Oh please, are you sure he doubled 11 trillion already ?


11. Announced a termination of the space defense system the day after the North Koreans launched an ICBM.

LIE ... Missile defense spending will be over 9 billion in 2010 http://www.defenselink.mil/comptroll...ns_Systems.pdf


12. Despite the urgings of his own CIA director and the prior 42 CIA directors, released information on intelligence gathering. Announced major restrictions on interrogation techniques used on enemy combatant prisoners.

WRONG ...There were not 42 ...not even half that. https://www.cia.gov/news-information...contracts.html

13. Accepted without public comment the fact that five of his cabinet members cheated on their taxes and two other appointees withdrew after they couldn’t take the heat.

Jeeeesh, more lies. Obama was on TV saying "he screwed up" http://firstread.msnbc.msn.com/archi...3/1779622.aspx


The rest of the bullet points ARE LIES.

Perhaps you noticed I posted links again ....and the OP didn't post ONE LINK FOR ALL THOSE CLAIMS

Imagine makeing the claim that ALL THESE POINTS ARE CORRECT ? ...Jeeeesh, some people.

[Zafod]

Satanica's rants

--------------------------------------------------------------------------------

Quote:
Originally Posted by Apocalypse
Observations of the President’s 1st 100 Days:


1. Offended the Queen of England

Where did she say she was offended ? ...here is a link. http://www.guardian.co.uk/music/2009...nts-queen-ipod

3. Praised the Marxist Daniel Ortega

Really ? ..where ? ..here is Obamas comment... http://www.foxnews.com/politics/2009...atribe/100days


4. Kissed Hugo Chavez on the cheek

WTF ...WHERE ...surely there is a pic that you can post ? ...another lie. they ONLY shook hands.



5. Endorsed the Socialist Evo Morales of Bolivia

Nope. He neevr ENDORSED him ...he congratulated him. http://www.foxnews.com/wires/2009Jan...iviaUS,00.html


7. Gave away billions to AIG, also without pre-conditions

LIE....The bonuses hapened UNDER BUSH http://en.wikipedia.org/wiki/Aig . ...in fact, Obama spoke out against them ..

""This is a corporation that finds itself in financial distress due to recklessness and greed. Under these circumstances, it's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. I mean, how do they justify this outrage to the taxpayers who are keeping the company afloat?"


10. Doubled our national debt

Oh please, are you sure he doubled 11 trillion already ?


11. Announced a termination of the space defense system the day after the North Koreans launched an ICBM.

LIE ... Missile defense spending will be over 9 billion in 2010 http://www.defenselink.mil/comptroll...ns_Systems.pdf


12. Despite the urgings of his own CIA director and the prior 42 CIA directors, released information on intelligence gathering. Announced major restrictions on interrogation techniques used on enemy combatant prisoners.

WRONG ...There were not 42 ...not even half that. https://www.cia.gov/news-information...contracts.html

13. Accepted without public comment the fact that five of his cabinet members cheated on their taxes and two other appointees withdrew after they couldn’t take the heat.

Jeeeesh, more lies. Obama was on TV saying "he screwed up" http://firstread.msnbc.msn.com/archi...3/1779622.aspx


The rest of the bullet points ARE LIES.

Perhaps you noticed I posted links again ....and the OP didn't post ONE LINK FOR ALL THOSE CLAIMS

Imagine makeing the claim that ALL THESE POINTS ARE CORRECT ? ...Jeeeesh, some people.

iron some clothes for your homes bread winner for tomorrow.

[Rockntractor]

Satanica's rants

--------------------------------------------------------------------------------

Quote:
Originally Posted by Apocalypse
Observations of the President’s 1st 100 Days:


1. Offended the Queen of England

Where did she say she was offended ? ...here is a link. http://www.guardian.co.uk/music/2009...nts-queen-ipod

3. Praised the Marxist Daniel Ortega

Really ? ..where ? ..here is Obamas comment... http://www.foxnews.com/politics/2009...atribe/100days


4. Kissed Hugo Chavez on the cheek

WTF ...WHERE ...surely there is a pic that you can post ? ...another lie. they ONLY shook hands.



5. Endorsed the Socialist Evo Morales of Bolivia

Nope. He neevr ENDORSED him ...he congratulated him. http://www.foxnews.com/wires/2009Jan...iviaUS,00.html


7. Gave away billions to AIG, also without pre-conditions

LIE....The bonuses hapened UNDER BUSH http://en.wikipedia.org/wiki/Aig . ...in fact, Obama spoke out against them ..

""This is a corporation that finds itself in financial distress due to recklessness and greed. Under these circumstances, it's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. I mean, how do they justify this outrage to the taxpayers who are keeping the company afloat?"


10. Doubled our national debt

Oh please, are you sure he doubled 11 trillion already ?


11. Announced a termination of the space defense system the day after the North Koreans launched an ICBM.

LIE ... Missile defense spending will be over 9 billion in 2010 http://www.defenselink.mil/comptroll...ns_Systems.pdf


12. Despite the urgings of his own CIA director and the prior 42 CIA directors, released information on intelligence gathering. Announced major restrictions on interrogation techniques used on enemy combatant prisoners.

WRONG ...There were not 42 ...not even half that. https://www.cia.gov/news-information...contracts.html

13. Accepted without public comment the fact that five of his cabinet members cheated on their taxes and two other appointees withdrew after they couldn’t take the heat.

Jeeeesh, more lies. Obama was on TV saying "he screwed up" http://firstread.msnbc.msn.com/archi...3/1779622.aspx


The rest of the bullet points ARE LIES.

Perhaps you noticed I posted links again ....and the OP didn't post ONE LINK FOR ALL THOSE CLAIMS

Imagine makeing the claim that ALL THESE POINTS ARE CORRECT ? ...Jeeeesh, some people.

Dang! not you again! I just finished my shower and I don't want to get dirty again. Run along!

[Rockntractor]

Satanica's rants

--------------------------------------------------------------------------------

Quote:
Originally Posted by Apocalypse
Observations of the President’s 1st 100 Days:


1. Offended the Queen of England

Where did she say she was offended ? ...here is a link. http://www.guardian.co.uk/music/2009...nts-queen-ipod

3. Praised the Marxist Daniel Ortega

Really ? ..where ? ..here is Obamas comment... http://www.foxnews.com/politics/2009...atribe/100days


4. Kissed Hugo Chavez on the cheek

WTF ...WHERE ...surely there is a pic that you can post ? ...another lie. they ONLY shook hands.



5. Endorsed the Socialist Evo Morales of Bolivia

Nope. He neevr ENDORSED him ...he congratulated him. http://www.foxnews.com/wires/2009Jan...iviaUS,00.html


7. Gave away billions to AIG, also without pre-conditions

LIE....The bonuses hapened UNDER BUSH http://en.wikipedia.org/wiki/Aig . ...in fact, Obama spoke out against them ..

""This is a corporation that finds itself in financial distress due to recklessness and greed. Under these circumstances, it's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. I mean, how do they justify this outrage to the taxpayers who are keeping the company afloat?"


10. Doubled our national debt

Oh please, are you sure he doubled 11 trillion already ?


11. Announced a termination of the space defense system the day after the North Koreans launched an ICBM.

LIE ... Missile defense spending will be over 9 billion in 2010 http://www.defenselink.mil/comptroll...ns_Systems.pdf


12. Despite the urgings of his own CIA director and the prior 42 CIA directors, released information on intelligence gathering. Announced major restrictions on interrogation techniques used on enemy combatant prisoners.

WRONG ...There were not 42 ...not even half that. https://www.cia.gov/news-information...contracts.html

13. Accepted without public comment the fact that five of his cabinet members cheated on their taxes and two other appointees withdrew after they couldn’t take the heat.

Jeeeesh, more lies. Obama was on TV saying "he screwed up" http://firstread.msnbc.msn.com/archi...3/1779622.aspx


The rest of the bullet points ARE LIES.

Perhaps you noticed I posted links again ....and the OP didn't post ONE LINK FOR ALL THOSE CLAIMS

Imagine makeing the claim that ALL THESE POINTS ARE CORRECT ? ...Jeeeesh, some people.

We have unfinished business! What are your two products you liar!

[Zafod]

We have unfinished business! What are your two products you liar!

Me thinks someone needs to contact the IL DES and inform them that a certain someone is misreporting their income.....just like a crook.

[Rockntractor]

Me thinks someone needs to contact the IL DES and inform them that a certain someone is misreporting their income.....just like a crook.

Does he have a post admitng to collecting unemployment?

[Nubs]

So he is not reporting income and collecting unemployment?? This is fraud and being over $100 is considered a felony. It would be neat if someone could find out Beelzebub's, rather Beelzedouche's real name. Inquiring minds, and the UI office, want to know.

[Zafod]

Does he have a post admitng to collecting unemployment?

http://www.conservativeunderground.com/forum505/showpost.php?p=161605&postcount=51

[Zafod]

I have income of my own thank you very much.

http://www.conservativeunderground.c...earchid=235073

which is it? Unemployment checks or a private buisness?

http://www.conservativeunderground.com/forum505/showpost.php?p=161605&postcount=51

[Zafod]

So he is not reporting income and collecting unemployment?? This is fraud and being over $100 is considered a felony. It would be neat if someone could find out Beelzebub's, rather Beelzedouche's real name. Inquiring minds, and the UI office, want to know.

here he claims to be collecting unemployment checks

http://www.conservativeunderground.com/forum505/showpost.php?p=161605&postcount=51