American Economy Going Strong ! Thank God !

by DebSmithLopez 53 Replies latest jw friends

  • zeroday
    zeroday
    So far you haven't put any form of argument forward to back up your claims that the economy is doing well which goes against practically every economic report coming out.

    Actually I did. My portfolio is up 23k last year thanks to the US economy and the stock market. I made more money last year than ever before. Trucking is a bellweather for the US economy and it is going great.

  • hemp lover
    hemp lover

    DebSmithLopez: "Stock market is up triple digits in spite of the new, Democratically-controlled, Congress." Actually, the Dow closed up 11 points yesterday. Did you read the article you posted?

  • Jourles
    Jourles
    Actually I did. My portfolio is up 23k last year thanks to the US economy and the stock market.

    It's one thing to say your portfolio went up so much in a year, but it's another thing to prove it. For all we know, you could have lost $23k. I'm fairly sure that no one on the board is willing to offer up their financials on a public board.

    BTW, did you know that some of the best performing mutual funds last year were ones that focused on China(avg. 50-60% returns)? That's where the stable growth is at right now.

  • avidbiblereader
    avidbiblereader

    Jayhawk1, SImon and Fisherman, I am a realtor and have made more money in the last three years than ever even though I have always had good jobs, But that doesn't matter. I agree with you. I see what the housing boom has done, there is a lot of unspoken panic in my business. Foreclosere are rampant and there is 3 Trillion dollars worth the ARM products coming due this year compard to 400 Billion last year. People are at an all time high in debt, taxes are rising faster then people can deal with it because the govt from the local, to the state to the federal is Broke. People have over spent and it is showing. Three National Lenders this week closed their doors, once the first domino falls, hold on, the difference is people wont be as friendly as they were in the 30's during the depression, imagine a New Orleans senerio everywhere.

    The Chinese and Indian economy are growing in certain sectors faster then they can handle them, they are now sending out their work to other countries for even lower wages, while they have textiles stocked to the nines. Many leading economists have stated their economies will have an impact on us, they are already saying their economies are going to derail in the near future as close as 2009 according to Forbes Magazine. Oil prices are expected to raise over $100 a barrel by the beginning of 2008 and that is if Saudi Arabia doesn't flood the market as they have stated to the US; if they dont get the Iraq situation under control soon in defiance to Iran. It will be the biggest deflation since the Depression, if done it would cause a world wide economic collapse.

    No things are not good, I dont care how much money you make or how much you have in the bank, the world economy is hanging by a thread. Too many things happening now that are an exact mirror of the late 1920's and especially 28+29, I prefer not to put my head in the sand and I have a huge portfolio and made a lot of money the last couple of years. When money one day is worth less than toilet paper, it wont matter how much of it we have stocked piled. No I am not a pestimist but a realist. I see it in my business and it is coming, trust me.

    abr

  • zeroday
    zeroday
    It's one thing to say your portfolio went up so much in a year, but it's another thing to prove it. For all we know, you could have lost $23k.

    I tend to believe people unless I have reason to believe they are lying. You can take anything I say with a grain of salt.

    No things are not good, I dont care how much money you make or how much you have in the bank, the world economy is hanging by a thread.

    That's seems to be overstateing it a bit but then I'm not an economist. In my 20 years driving a truck I have never seen a down year for me personally. The economy has been up and down in that period of time. Why was I not affected? Everyone's circumstances are different. I am in a recession proof industry. Sure the trucking industry suffers in bad times but as a driver I have never suffered. This industry is in a perpetual shortage of drivers and allways will be. So if you can drive truck you will always have a job no matter the economy.

  • Qcmbr
    Qcmbr

    Even though the US economy owes a lot of money according to the stats it doesn't actually have as great a problem as it might look. Time wipes out debts as inflation takes it down quite rapidly while the growing economy also tips the balance of wealth back in favour of the US. With GDP of $12.31 trillion (2005 est.) and growth of GDP 3.2% (2005 est.) you find that it doesn't take many years before you can cover even astronomical debts. Now when you look at that debt you find that most of the personal debt (mortgages or loans) is debt held by Americans and owed to Americans while the public borrowing will also represent a vast amount of internal debt (Public debt: 64.7% of GDP (2005 est.) Your external debt of $8.837 trillion (30 June 2005 est.) looks large but represents less than one years worth of output (as an example my personal debt when I first started working and bought a house was 4 times greater than my yearly income and yet I was fine. As I improved my employment my debt to income ratio has dropped to a far lower level.) As you dollar drops so the balance of trade swings back in your favour (I now buy most of my online puchases from the US for example) but its a measure of your dominance that the dollar will need to fall much much further before you will be back in surplus however, that would then mean you were far poorer on the world market (if the dollar halved in value against the pound you'd be finacially half as rich to the Sterling users as you'd previously been and you'd find loads of purchases of your capital assets being from sterling holders.) With a relatively strong dollar you purchase more foreign assets and consumables but your capital remains more valuable. If your dollar got stronger overnight it would push up your trade imbalance but actually reduce the debt to asset ratio (here in the UK house prices are rising so I can take on previously mind boggling debt because my overall asset value is actually greater - I'm richer now because I hold capital even though I owe more!) Selling your capital abroad while it is high value exports the problem (i.e. sell some land to overseas investor and it is they who will lose out if the economy cycles the capital debt ratio.)but is a bad plan for the US right now. While the US remains a net immigration/pop growth location your asset inflation rate will rise (e.g. land will get more expensive as demand increases) Birth rate 14.14 births/1,000 population (2006 est.) Death rate 8.26 deaths/1,000 population (2006 est.) Net migration rate: 3.18 migrant(s)/1,000. population (2006 est.) I would suggest that your economy is the ONLY world economy that could survive massive natural disasters (Katrina), massive war expenditure and massive energy price rises and still be healthy and growing with hardly a blip on your yearly GDP. The real problem as highlighted in the posts is that the strength of the US economy is being undermined by the growing divide beween the haves and have nots. When the gap gets too large those who perceive they are without will try to correct the situation (and I don't mean by educational and hard working means.)

  • avidbiblereader
    avidbiblereader

    Time will tell

    abr

  • Green Chille
    Green Chille

    This country is so rich...Bush has decided to give illegal aliens SS checks.

  • zeroday
    zeroday
    The real problem as highlighted in the posts is that the strength of the US economy is being undermined by the growing divide beween the haves and have nots.

    Excellent anaylsis but as to this last point. I see the US economy as a pie growing and everyone sharing in it not as someone getting a bigger slice at the expense of others. There are haves that have a lot but the vast number of Americans fall into the middle class. A rising tide raises all boats. Actually the 1% of the top wage earners pay almost 50% of taxes in this country. At 50k a year I pay an adjusted federal tax at 7%.

  • hemp lover
    hemp lover
    My portfolio is up 23k last year thanks to the US economy and the stock market.

    Zeroday

    I know this is none of my business, but I'm curious. Does the $23k include your 2006 contributions? If not, I'd like your stockbroker's number.

    Also, $23k could be an amazing growth for one year or it could be so-so, depending on how much you started with. I would think percentage would be a better way to measure.

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