Oh god, I agree with Sarah Palin? (just this once) Economic article

[Chibibar]

'Refudiation' of $600 Billion Printed Out of Thin Air - WSJ.com

In my defense, I just read THIS article and I do agree with it. I believe that in U.S. economy you have to let the private company work itself out without government intervention. I know that sounds bad to some, but pumping money into a company that is failing doesn't make it "not fail" it just prolong the inevitable.

Of course I try to keep up with these things since my parents do a lot of trade with China (their business) and keep me in the loop between China and U.S. It is not looking good since all the money pumping done by the government doesn't seem to do anything yet.

My father worried about the major inflation coming with all the U.S. money printing. The dollar is getting weaker and weaker.

Unless the U.S. is trying to be like China and have TOTAL control of their economy (yea it is true in China) everything is government influence, if you don't have the government backing, most of the time, your business won't last too long. (at least from what I have observe and what my parents have deal with in China and Taiwan)

 

[Dubyamn]

There are no definates in anything. Sometimes it's better to let a company crash and burn letting scavengers and opportunists fill the void, other times it's best to float them a little loan and let another company buy them out and rebuild the whole thing. Then there are times where it's best to loan them all the money they need so they can rebuild and reemerge a leaner and better company. Now I'm not going to say that the government gets it always right but we are getting our money back from our GM investment and Harley Davidson would have gone bankrupt if congress hadn't protected them against foreign competitors.

*Edit hit the post button before I was done *

As for this causing the value of the dollar to drop that is great. American goods will become cheaper and more competitive in foreign and domestic markets meaning that we can finally start getting the trade deficit under control. Only problem with that is the fact that China will also devalue it's currency to keep it's advantage in the goods department. But that unfortunately isn't controllable because China will keep on undervaluing it's currency so that it can keep growing it's economy.

But in a broad sense a lower value for American currency is the best thing for the American economy a high value would only increase our deficit, increase our debt and keep thousands of workers from finding jobs.

 

[sixpackshaker]

Free market populism, would have us facing greater unemployment as all the workers from GM and Chrysler hit the streets. Then from Dana, Mopar, Firestone, Delco, Philips... basically all the parts suppliers that are directly linked to the American Auto Industry. Now imagine if she was in charge when the banks collapsed...

There should be a time to get away from Reganomics, but you can't do that in this type of a crisis. Regan's second term or Bush's term should have been the time we stopped "Priming the Pump." But now that we have the high unemployment and teetering economy you need to keep spending high. It is just difficult for the US to stop the WWII level of spending that made our economy strong in the first place.

 

[Necronic]

The fact that Refudiation was used in the article should indicate something.

Anyways, I wish people would actually research the value of the dollar before they talk about this. Because, guess what, the dollar has gained value in so many places since the recession started including vs the Euro, the GBP, and the Indian Rupie, all of which the dollar has increased by 20% or more against.

Yes, we are losing to the Yuan and the Yen, and a couple other places, but really the dollar is not doing that bad.

In FACT. Its doing too good. Printing money is EXACTLY what we need to be doing, hence the round of quantitative easing. The dollar is simply too highly valued right now which is leading to crazy trade deficits with China. The reality is that Global Economics is REALLY REALLY complicated, and people make these ideologically based arguments that maintain a degree of common sense, but are completely ludicrous in the real world.

Long story short. Palin said 2 stupid things.

Edit: And OH YEAH. Palin talks about so-called 'stag-flation' which is a real concern. However, a much more serious concern is the possibility of deflation as it would pretty much kill the investment banking industry, which would subsequently hammer the hell out of the business world in America.

And how do you combat deflation? That's right, by printing money out of thin air.