Author: myfriend

A good use of China's treasure chest, "Buy America" [Copy link] 中文

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Post time 2009-3-18 10:06:19 |Display all floors

America's debt problem

I have read all the posts regarding buy America and the replies that have been given. America is in a financial crisis that has been created over the past few years by its banking industry making loans to people who were not financially able to pay the loans back. This began in the Clinton administration with the "community reinvestment act." This act forced banks to loan money to people with less that good credit and has grown to the point that the bubble busted in October 2008.  Many banks were on the verge of folding and going bankrupt so a bailout plan was conceived to give banks huge amounts of US printed dollars to bolster the solvency of the banks. They (the banks) continue to mismanage the money and upon election of a democratically controlled government. Trillions of dollars have been thrown into special projects and expanding of government greater than was done during the Johnson administration in the early 60's known as the great society. However the trillions of dollars are not backed by anything but the faith and credit of the US. Remember the Breckenwood system was put into place after the end of WWII.  Using the US currency as the global reserve currency instead of using the Gold Standard for currency.

Obama is raising takes to pay for this but history has proven that you do not raise taxes during a recession. Ronald Reagan reduced taxes to two tax brackets and reduced the capital gains tax and the results were the greatest economic recovery in the history of the US.  Many of us who are conservative are concerned that we are faced with ten years of depression similar to Japan’s lost decade of recession. I fear that upon China deciding enough is enough and stop buying American Bonds America will plunge into deep recession/depression.  Our only hope is to rid ourselves of Obama in four years and begin recovery with fiscal conservative policies.

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Post time 2009-3-18 10:06:52 |Display all floors

it is US

firstly,the USA won't allowed any cuntry to buy the key industry .secondly,the breakdown of wallstreet do not mean the breakdown of US.So we just do our business just like the chairman hu had announced.

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Post time 2009-3-18 10:27:48 |Display all floors
hi, man. not be so naive

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Post time 2009-3-18 11:34:45 |Display all floors

you are crazy.please be low-key

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Post time 2009-3-18 12:18:26 |Display all floors
Interesting thing to note: most commenters on this board are rightists. Time and again I see right-wing talking points trotted out like the CRA and so on.
"Justice prevails... evil justice."

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Post time 2009-3-18 12:20:01 |Display all floors
Originally posted by truthinexile at 2009-3-18 10:06
Obama is raising takes to pay for this but history has proven that you do not raise taxes during a recession. Ronald Reagan reduced taxes to two tax brackets and reduced the capital gains tax and the results were the greatest economic recovery in the history of the US.  Many of us who are conservative are concerned that we are faced with ten years of depression similar to Japan’s lost decade of recession. I fear that upon China deciding enough is enough and stop buying American Bonds America will plunge into deep recession/depression.  Our only hope is to rid ourselves of Obama in four years and begin recovery with fiscal conservative policies.



Obama has not raised taxes, and said he wouldnt until the economy started to recover.
We just had eight years of fiscal conservative policies that were hampered by neocon craziness.  Durring the boom years where where the limits on spending, the increase in taxes, the saving for a rainy day.  No the conservative party lowered taxes, increased the debt and decided Iraq was a good idea.  Go Conservatives!

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Post time 2009-3-18 15:07:29 |Display all floors

Reply #16 interesting's post

>You've pretty much just said nothing. The fact is that capital isn't scarce, it's just not being loaned to consumers but hoarded in cash instead

In that case there's certainly no need for China to purchase additional Treasurys, given all that capital availability you purportedly are seeing. Enjoy your next quarterly refunding!

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