NationStates Jolt Archive

How big of a stimulus package does the US need, to "fix the economy"?

Total private household+business debt in the US stands at nearly $50 trillion. As the savings rate goes up and this debt is paid down by consumers and businesses, money is withdrawn from consumption and investment, and the figure of $50 trillion will fall off a cliff. The tangible effects of this tsunami-like process of debt-deflation are: defaults, bankruptcies, mass layoffs and unemployment.

During the 1930s Great Depression, debt levels from the 1920s bubble economy were more than halved during the 1930s debt-deflation. If the Great Depression serves as a guide, debt levels may fall more than $20 trillion during our current episode of debt-deflation, which means $20 trillion less for consumption and investment. Should the government make up for all these lost trillions with an equally massive $20 trillion stimulus package?

How big of a stimulus package do we need,

Mine's large enou-
to "fix the economy"?Oh. :$

No stimulus is good stimulus

No stimulus is good stimulus

That what your wife tells you?

That what your wife tells you?

i dont have a wife. jsut a few girls i fuck/

i dont have a wife. jsut a few girls i fuck/

They must just be really bored or something.

They must just be really bored or something.

only the one i knocked up.

only the one i knocked up.

The fact that you have spawned offspring is frightening to the rest of us.

Disclaimer: Large Negro Penis double entendres allowed in this thread

Disclaimer: Large Negritic Penis double entendres allowed in this thread

Like you could stop us! :p

Like you could stop us! :p

But only black penises, not penises of other races.

But only black penises, not penises of other races.

You and what army is going to stop us?

The fact that you have spawned offspring is frightening to the rest of us.

only like 6 so far. though they dont know me because i used fake names to avoid child support.

only like 6 so far. though they dont know me because i used fake names to avoid child support.

You have lived a horrifying life.

You have lived a horrifying life.

Immoral is not necessarily horrifying

Immoral is not necessarily horrifying

No, but drunk is almost necessarily sleepy (after a certain point), and I am both. Night.

You and what army is going to stop us?

We go by the black penises honor system. Black penises only.

No, but drunk is almost necessarily sleepy (after a certain point), and I am both. Night.

yeah i feel pretty zonked too.

yeah i feel pretty zonked too.

Later. Have fun passing out.

Later. Have fun passing out.

i am going to ahve to answer for all this in the morning aren't I?

i am going to ahve to answer for all this in the morning aren't I?

Probably. Fools don't drink enough water when they drink large amounts of alcohol and then wind up with a hangover.

Probably. Fools don't drink enough water when they drink large amounts of alcohol and then wind up with a hangover.

i always drink water. Ahhh i didnt call for the overthrow of the government on this board.

i always drink water. Ahhh i didnt call for the overthrow of the government on this board.

You might not have.

as in other things, size isn't everything! besides of which, the numbers are a moving targe, because as more paper gets printed, economics 101 again, the more paper it takes to represent the same amount of real value.

really printing more paper is pretty much self defeating other then to transfer what wealth there actually is, away from those who have less, sometimes less then they need to get by, to those who already have more then they know what to do with.

clearly we do need to do a LOT of things very differently then what we have been doing, but again, a real solution requires a much broader focus.

whatever is done probably will legitimately cost something, the real value of human effort, and the real value of the actual tangible fiddly bits involved in the proccess,
but this whole bussiness of bailing out banks, sure looks to me, like throwing good money after bad.

as in other things, size isn't everything! besides of which, the numbers are a moving targe, because as more paper gets printed, economics 101 again, the more paper it takes to represent the same amount of real value.

The debt-deflation still needs to be accounted for though. If the savings rate keeps up, trillions of dollars will be withdrawn from consumption and investment. The "size" of the debt-deflation is like a tsunami and can't really be ignored.

You have to have some solids along with all that water. Otherwise, the next day you'll be a slightly less hungover dude with watery....things going on in your stomach.

You have to have some solids along with all that water. Otherwise, the next day you'll be a slightly less hungover dude with watery....things going on in your stomach.

thanks time to eat cheezits

infinity plus one ought to just, maybe, cover the current methodology (throwing money at banks) of approach.

clearly greater efficiency with an approach more intelligently targeted ought to be possible.

as big as yo momma's ass.

(no-one had done a 'yo momma' joke for a while so I felt obliged to. I'm sure there's a law on the internet which states as the number of posts grows, the probability of a 'yo momma' joke approaches 1)