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PeakTrader said...
Monetary policy can't get much more accommodative. Now, it's up to the Obama Administration to (finally) make job creation the top priority and realize how important the private sector is to the survival of federal, state, and local governments.

Unfortunately, there's not much government can do now, since it squandered trillions of dollars and created massive inefficiencies in the macroeconomy. However, government can stop attacking businesses and instead praise their value to society. Also, lifting uncertainty about taxes would help.

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PeakTrader said...
Instead of focusing on job creation, the government sends more unemployment checks, after the huge "stimulus" bills, while implementing massive regulations that drive-up costs and uncertainties. The result will be huge tax increases, and less government services.

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PeakTrader said...
The U.S. dollar as the world's reserve currency and the ability of the U.S. economy to expand with huge negative net exports (which no other country or group of countries can challenge) allow the U.S. to expand its global economic and military empire.

It seems, the U.S. can consume more than produce at least 3% of GDP indefinitely (through inflation, interest rates, and currency exchange rates). So, foreigners are paying most of the U.S. military budgets.

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PeakTrader said...
I agree, there's almost no chance of a double-dip within a year. However, when will growth accelerate?:

Boston Fed’s Rosengren: Growth Slowing, Deflation Is Emerging Risk
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July 13, 2010

The core inflation rate is right around 1%,” he said. “Given the amount of substantial excess capacity that we have in the economy, there is some risk of further disinflation.

If you look at final sales — which is just taking inventories out of GDP — final sales only grew by 0.8% in the first quarter and that is after two previous quarters that averaged below 2% as well.

BEA
Gross Domestic Product: First Quarter 2010 (Third Estimate)

Real final sales of domestic product -- GDP less change in private inventories -- increased 0.8 percent in the first quarter, compared with an increase of 1.7 percent in the fourth.

Second-quarter growth looking softer
July 14, 2010

Macroeconomic Advisers lowered its second-quarter forecast from 3.2% on Monday to just 2.1% on Wednesday after weak reports on international trade, retail sales and business inventories. Moody's Economy.com lowered its forecast from 2.9% to 2%. JP Morgan went from 3.2% to 2.2%. Barclays Capital cut its estimate from 3.5% to 3%.

"Consumer spending has lost momentum," wrote Chris Christopher, a senior economist for IHS Global Insight. "The consumer is troubled by high and persistent unemployment rates, reduced values of residential properties, tight credit, and high debt burdens."

"The economy can expand in a mediocre range of 2.5% to 3.5% for a long time," Stanley said. "However, that sort of growth is not close to enough to dig the economy out of the massive hole created by the 2007-09 recession."

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PeakTrader said...
The point of capitalism is generating more wealth with less effort. Profit is the reward for efficiencies.

Socialism generates more effort for less wealth. Trade-offs make up for the inefficiencies.

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canuck said...
I live in BC, Canada. I do not see a real demand for Zocdoc here. We have privately run walk-in medical clinics in shopping malls that allow us to see a doctor without an appointment almost 24/7. The cost is zero and there is no paperwork as we are all covered by public health insurance, if we want it, and I have never met a Canadian who doesn't.

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Canadian said...
canuck's got it all wrong.....

the cost ain't zero, a pack of smokes costs 9 to 10 bucks in this country...and a bottle of scotch is forty bucks.

That pretty well is the cost of universal healthcare....AND of course the fact that you have to wait while somebody WAY sicker than you gets treated first....no matter how much money/coverage you might have . Have a problem with that one???Like your hangnail is a REAL emergency???? Then you are the canadian that goes to the states....and gets all the media attention....LOL

NOBODY goes bankrupt because of an illness in this country.

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PeakTrader said...
Canadian says: "NOBODY goes bankrupt because of an illness in this country."

They just don't get the medical care and if they do, everyone gets less of everything else.

So, socialist countries need to invent arbitrary indices, like the HDI, to feel better about the poor state of their countries.

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Anonymous said...
C'mon Americans!
The grim truth is that you spend around 14% of your GDP on healthcare, the "socialist world" around 7%. You don't live longer (or better with regard to health). American docs and insurance companies, drug companies etc do very well from you all. I love America, I am a right wing capitalist. If I can spend half the money and get the same outcome isn't that called market forces?

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PeakTrader said...
Anon, the grim truth is foreigners are "free riders" of the U.S. health care industry. They benefit from the new drugs, medical equipment, treatments, etc. of the $2.2 trillion U.S. health care industry.

When controlling for accidents, Americans live longer than anyone else. Also, the U.S. black population lowers U.S. life expectancy.

If you're a "right wing capitalist" why do you defend a socialist system? Health care would be much cheaper if it wasn't heavily regulated by government.

You're getting cheap health care, while everything else is more expensive. Health care needs more competition, not more regulation.

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