- Banned
- #1
fanocks2003
Banned
Here's my constructive idea of how the US (and almost every other country for that matter) could solve the Bailout mess.
Right now, correct me if I am wrong (I have not followed every piece of the story to be honest), the US is to pay several hundred Billions of dollars to bailout sloppy, big banks. Where do all of these money come from? Am I wrong to assume: printed money? Which means higher inflated currency?
My solution for the current mess: Yes, bailout the banks, but let it be the absolute last time for bailouts. The goverment needs to say no. The US is treating its big banks like it was their evil children. Children that lives on their parents money and who never learns anything from their mistakes. For christ sakes, let the big banks grow up, will ya. If they mess up, let them fall and let smaller banks take over the reign. I think they will do a better job. So long the US is not helping the small banks as they helped the big banks today. New reign, new rules.
Why do goverments print money? Am I wrong to assume it is due to lack of exporting income? I am no US economy expert by any means (far from it), but RK said something about the US importing more than they exported. If that is so, then there has to be a deficit somewhere in the financial equation. So raise the exporting efforts for crying out loud.
This means, every industry should be encouraged in any way possible to do exporting deals. Make it child like easy for the business community.
All of us on this forum, with our financials straight, knows that in order to have a sound private economy you need higher incomes than expenses. You need less import than export. More export than import. The equation is based on simple mathematics. No need for any kind of genius at all.
Raise exports, minimize imports. I am really sad that a capitalistic country like the US, fails at this simple task. I mean, it is basic business stuff. You have gone from being the smartest capitalists in the world to having amnesia of some kind (sorry to be so harsh. But come on, what would you call this? I call it "financial amnesia". It's like the smart capitalist fathers built it up, and now the capitalists "Trust Fund children" spend it).
I am in no way pointing finger to any one american individual. Rather I am pointing finger to the leaders of the US.
Printing money is a stupid thing to do. It does no one any good. Printing money is the same as, quoting RK freely, private individuals writing bad checks. It solves the problem in the very, very short term, but it busts you in the end.
A simple idea for the US goverment and for every other country as well:
- Use some of all that tax money you recieve and support exporting companies. You will see a good return on tax money. Believe me. And when exports exceeds imports there will be more tax money paying down the inflated dollar of yours (or swedish crona or whatever might be the case). Because that high inflation of yours will only be solved with higher income. Only exports will solve the inflation, together with a rule for how much a country may or may not print in a certain time frame. Also, do the printing of currency a matter for every citizen in the US to decide upon. That is to big a thing to let a few representatives decide upon. They clearly can't control it. Current situation proves it many times over.
In Sweden we have a 4.3% inflation at the moment of writing this. In the US I would believe it is above 10%? Am I assuming wrong? In Kenya the inflation is so high that the swedish crona is something like 10 times stronger. All countries with super high inflations clearly has no exports. And clearly they have done little to imporve upon that particular area. You can only come so far with what you have right now.
If I have $1 in my bank account and I have $10 in expenses, then clearly I can't pay more than $1 in expenses. You have two choices: invest the $1 and make more money with it so you can pay more than $1 in expenses (exports) or you can take out your checkbook and write a faulty check and hope for the best (printing money to pay for stuff that you can't afford and that you can't back-up with real coins).
More constructive ideas is supported, please fill in (only constructive ideas, nothing else. PhxMJ is free to act on non-constructive posts). Good initiative by PhxMJ, by the way.
Right now, correct me if I am wrong (I have not followed every piece of the story to be honest), the US is to pay several hundred Billions of dollars to bailout sloppy, big banks. Where do all of these money come from? Am I wrong to assume: printed money? Which means higher inflated currency?
My solution for the current mess: Yes, bailout the banks, but let it be the absolute last time for bailouts. The goverment needs to say no. The US is treating its big banks like it was their evil children. Children that lives on their parents money and who never learns anything from their mistakes. For christ sakes, let the big banks grow up, will ya. If they mess up, let them fall and let smaller banks take over the reign. I think they will do a better job. So long the US is not helping the small banks as they helped the big banks today. New reign, new rules.
Why do goverments print money? Am I wrong to assume it is due to lack of exporting income? I am no US economy expert by any means (far from it), but RK said something about the US importing more than they exported. If that is so, then there has to be a deficit somewhere in the financial equation. So raise the exporting efforts for crying out loud.
This means, every industry should be encouraged in any way possible to do exporting deals. Make it child like easy for the business community.
All of us on this forum, with our financials straight, knows that in order to have a sound private economy you need higher incomes than expenses. You need less import than export. More export than import. The equation is based on simple mathematics. No need for any kind of genius at all.
Raise exports, minimize imports. I am really sad that a capitalistic country like the US, fails at this simple task. I mean, it is basic business stuff. You have gone from being the smartest capitalists in the world to having amnesia of some kind (sorry to be so harsh. But come on, what would you call this? I call it "financial amnesia". It's like the smart capitalist fathers built it up, and now the capitalists "Trust Fund children" spend it).
I am in no way pointing finger to any one american individual. Rather I am pointing finger to the leaders of the US.
Printing money is a stupid thing to do. It does no one any good. Printing money is the same as, quoting RK freely, private individuals writing bad checks. It solves the problem in the very, very short term, but it busts you in the end.
A simple idea for the US goverment and for every other country as well:
- Use some of all that tax money you recieve and support exporting companies. You will see a good return on tax money. Believe me. And when exports exceeds imports there will be more tax money paying down the inflated dollar of yours (or swedish crona or whatever might be the case). Because that high inflation of yours will only be solved with higher income. Only exports will solve the inflation, together with a rule for how much a country may or may not print in a certain time frame. Also, do the printing of currency a matter for every citizen in the US to decide upon. That is to big a thing to let a few representatives decide upon. They clearly can't control it. Current situation proves it many times over.
In Sweden we have a 4.3% inflation at the moment of writing this. In the US I would believe it is above 10%? Am I assuming wrong? In Kenya the inflation is so high that the swedish crona is something like 10 times stronger. All countries with super high inflations clearly has no exports. And clearly they have done little to imporve upon that particular area. You can only come so far with what you have right now.
If I have $1 in my bank account and I have $10 in expenses, then clearly I can't pay more than $1 in expenses. You have two choices: invest the $1 and make more money with it so you can pay more than $1 in expenses (exports) or you can take out your checkbook and write a faulty check and hope for the best (printing money to pay for stuff that you can't afford and that you can't back-up with real coins).
More constructive ideas is supported, please fill in (only constructive ideas, nothing else. PhxMJ is free to act on non-constructive posts). Good initiative by PhxMJ, by the way.
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