Comments on: Goldman Sachs: Brace For Recession In 2008

Wall Street's Biggest Investment Bank Predicts Housing, Credit Turmoil Will Shrink Economy

[usayesterday]

Posted by brianbwb at 12:12 AM : Jan 10, 2008
........

That''s a good point, and good examples brian.

Oh, there are so many things a lot of Americans don''t realize outside of the borders of the U.S., for example, the revenue reasons for trade tariffs. The Neo-Cons have many convinced that all tariffs are "bad", but clearly, they are convinced that helping the "little people" is a bunch of socialistic malarkey.

The Bible talks about the "anti-christ"...

...I''d bet my savings on the fact that the "anti-christ" will be a modern American conservative!

[brianbwb-2009]

to Usayasterday

Another point to consider is that some tariffs have reasons other than protecting locals from competition.

Singapore, for example has no auto manufacturing industry, but they impose a 150% tax on autos, why?

Besides generating a lot of revenue for the government, it keeps Singapore from becoming one big parking lot, so jammed that business becomes too expensive due to lost hours, and the impact on the fragile environment of this tiny island is mitigated.

For other countries, like Indonesia that have no infrastructure for income tax, it generates one of the few revenues besides the oil they sell on the market, only 15% of what they pump out of the ground, the rest is necessary for their own consumption.

So there are many reasons for tariffs, but the US insistence that some countries'' forgo major sources of revenue for the cost of government, is not only mostly unfair, but also doomed to fail.

[searingtruth]

"To ST
...
The real America has been in a recession for the past 35 years, that qualifies as a depression."
brianbwb


Very, very, interesting fellow patriot. I was aware of Reagan''s basic "printing of money in the basement" to make America''s economy look good during his reign, but was completely unaware of Nixon''s manipulations, although I well remember by father screaming something about a $6,000 hammer or something like that in my youth.

And I agree with you about the devastating affects of unrestrained capitalism, which are equal to the societal destruction of socialism and communism.

The only time capitalism works is when it is well regulated, to balance the motives of sheer profit with those of justice and the welfare and benefit of the people.

And thanks once again for your insight. I greatly respect your in depth command of history.
ST


"I have never cared about politics, only people. Especially the children."
SearingTruth


"From youth I had read stories of voices crying from the wilderness.
I never thought I would become one."
SearingTruth

A Future of the Brave - www.searingtruth.com

[brianbwb-2009]

"...if all markets in all countries were as unrestricted as ours, then yes, a weaker dollar would greatly help U.S. exports." Posted by USAyesterday

Markets are strange women, actually the markets are freer than some would have you believe, but don''t forget there are three main factors that hinder trade, one is the cost of delivery, for example if you have ever shipped a car across the Pacific, it is often cheaper to sell it, and buy, or rent another in the destination country, only those with classic cars will pay so much. Even given bulk deals to the Big three, the added cost can be several thousand per vehicle.

More added cost is due to the "made in the USA" branding, many still regard that as a mark of greater worth, and so prices are marked up to take advantage.

Third, the Japanese, Koreans, and even Malaysians are making cars that are equal, if not superior, to US imports, and they are cheaper, as these countries take the financial ability of consumers in their relative countries into consideration regarding pricing, something the Americans stubbornly refuse to do.

[usayesterday]

The real America has been in a recession for the past 35 years, that qualifies as a depression.

Posted by brianbwb at 11:45 PM : Jan 09, 2008
.........

It''s basically like I said in an earlier post...

...it''s only a "recession" when the wealthy have to cut back. (settle for a Lexus instead of a Bentley for example)

[brianbwb-2009]

To ST

During the US''s Vietnam crimes, the war profiteering corruption by Bechtel Corp. and others had drained the US, (remember $25,000 toilet seats, etc.?) the government was forced to print money to circulate in the US economy, but when France, and Singapore wanted to redeem their bills for the gold, there wasn''t enough. On August 19, 1972, Nixon sold the treasury''s gold on the open market, because the US was bankrupt.

We have actually never recovered from that in real terms, in ''72 is when the automakers also started their switch to slave labor in the east. The tech boom only affected a very few people, and the rest is illusion by the government bean counters, Reagan''s "cheerleading", feel good BS about the joys of unregulated capitalism, and the Bush (1 and 2) criminals'' distractions of war, which is a repeat of Vietnam, corruption inclusive.

The real America has been in a recession for the past 35 years, that qualifies as a depression.

[searingtruth]

"...Careful about that one, think about this, The Chinese hold 1.5+ trillion in US debt, thanks to Bush''''s Iraq mess, and the only reason the dollar has any value now is because OPEC takes dollars in exchange for their oil...."
brianwb


Indeed fellow patriot.
ST


"We suddenly discovered we had already surrendered."
SearingTruth

A Future of the Brave - www.searingtruth.com

[usayesterday]

In the early to mid 80s, inflation was at least double of what it is today. And our government is so worried about that?!

How many people were without healthcare coverage in the 80s? How many people were forced to file bankruptcy because of a catastrophic health or personal emergency? In the 80s, how many jobs did it take to buy a home, raise a family, save for retirement, etc.?

Our "federal" reserve and our government which answers to them, clearly is out of touch with the economics on main street that truly defines a recession. The old governmental "economic indicators" in todays global economy are a farce at best... and at least, are obsolete.

[incog-nito]

What does Goldman Sachs know? They''re just a big company whose performance depends on having a good understanding of the economy. I mean, President Bush has said everything is just hunkydory, and that''s good enough for me. After all, Mr. Bush is loaded, if he doesn''t seem at all concerned about the economy, why should we?

[usayesterday]

Posted by brianbwb at 11:17 PM : Jan 09, 2008
.........

And another thing brian, to add to your well stated post, is that jowand and others are going off of old news that says "a weaker dollar makes U.S. goods less expensive for consumers in other countries."

That by itself is true, but no other country in the world has their markets as open as ours. In other words, there are significant regulations and restrictions on selling imported goods. I remember a story a few years ago that talked about China and Japan''s restrictions on American car dealerships, the amount of dealerships allowed, and the amount of cars able to be carried at each dealership.

Needless to say, if all markets in all countries were as unrestricted as ours, then yes, a weaker dollar would greatly help U.S. exports. But as the world is today, that old notion is just a fantasy.