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US Economic Confidence Sinks To 2011 Low; 55% Say Economy Still In Recession Or Depression

Friday, April 29, 2011 - 8:15 PM
A pair of recent Gallup Polls shows distinct loss of confidence in the US economy. The first poll shows Americans' Economic Confidence at the 2011 Low. A second poll shows 55% still think the economy is in a recession, or worse.
MikeMike327 posts since
Feb 22, 2010
Rep Points: 876
1. Saturday, April 30, 2011 - 1:45 AM
Mike, it is unfortunately true that the US economy seems to be stalling despite the the enormous deficits, zero interest rate policy and the printing of money alarmingly approaching levels seen in countries like Zimbabwe. No amount of stimulus or ridiculously easy monetary policy is going to save us. Instead, even though our policy makers are too obtuse to see it, we need go down a completely different path than the one were on .
loulou553 posts since
Aug 3, 2010
Rep Points: 3,432
2. Saturday, April 30, 2011 - 7:21 AM
Lou, my grasp on world economics is very limited. 

One could argue that the same could be said of most world polititians and economists, too.

If Mish is right (see the other post about reserve currency), then the gamble seems to be that noone wants to see america fail, because it serves the world's purpose as reserve currency.  I don't know if that is a valid or true view, but it may explain the lack of concern in our monetary policy.

In a most extreme example, even if our monetary policy is actually a ponzi scheme, it will work...  until or unless it is fully challenged.  For those who hold US Debt, that challenge is not in their best interest.  If challenging the ponzi scheme means you lose all your money too...  you might not make that challenge.  In fact, you might actually come out in full support of its legitimacy and strength (like leaders of prominent economic countries did this month, when S&P suggested a possible downgrade of US).  If you fully divest yourself of the ponzi scheme (if and when), then you may challenge it... 

The gamble, seemes to be that we will always be wanted and needed...  so there will never be a challenge.

It's an extreme example, I know.  But some would say it isn't far off the mark. 

Madoff, in a recent interview, thought he might actually have had "time" to fix it (get it all back).  But, he forgets that he was abusing the wealth, spending, spending, spending...  he only fooled himself into thinking he would ever really invest and get it all back.

Exit strategy.  Where is it?  It is sorely needed.  If the others have time to divest themselves before the ponzi scheme fixes itself...  that's when the cookie crumbles.

MikeMike327 posts since
Feb 22, 2010
Rep Points: 876