PeakTrader.com

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PeakTrader said...

When there's a lack of liquidity (or idle resources), then more liquidity will create jobs and raise output.

The U.S. economy depends, in part, on efficiencies in production and new products, which often have market power.

I stated before:

Just like the volume of output in itself will cause declining prices and induce demand, the volume of capital will in itself cause interest rates to fall and induce demand. The gains of U.S. assets increased faster than the gains of U.S. liabilities. Similarly, the increases in U.S. output exceeded the rises in U.S. inflation, which induced demand and raised living standards.

Also, I may add, if prices of half the goods rise 5%, prices of the other half of goods fall 5%, and the quality of most goods rise significantly, then what's the change in the general price level?

Under the Bush economy and Wall Street, the U.S. became the most efficient wealth-generating machine the world has ever seen.

It was a "black hole" in the global economy, attracting imports and capital, and was quickly progressing through the Agricultural-Industrial-Information-Biotech Revolutions, to move way ahead of the rest of the world.

The Fed overestimated inflation and maintained a restrictive stance too long when it should've eased the money supply, while most Americans still hold the belief the U.S. economy in the 2000s wasn't that great or was a poor economic period.

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PeakTrader said...

VangelV: "Building multi-billion dollar bombers, ships, and submarines have no real value."

What about body-building, daily work-outs, taking boxing lessons, etc.. Do those have no real value either?

The U.S. has a world empire to defend.

"For FY 2010, Department of Defense spending amounts to 4.7% of GDP. Admiral Mike Mullen, chairman of the Joint Chiefs of Staff, has called four percent an "absolute floor.""

In the 1960s, U.S. defense spending as a percentage of GDP was about 10% and in the 1950s was over 10%.

After the Roman Empire fell, the world had a thousand years of economic stagnation called the "Dark Ages."

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