Boogy: "isn't debt the lifeblood of the economy?"


If there isn't a more telling example of where we find ourselves then that question. Man how far we have fallen as a country.

no seriously debt is the engine that drives economic growth...without lending there would be no economy

That is simply not true. Sure lending is a natural part of the economy and is good for the economy; but it is not the life blood of the economy.

Production is the life blood of the economy.

Updated graphic:

http://i52.tinypic.com/ezoh0n.png

Too much lending is one of the catalysts of why we got into this mess to begin with...i.e. Fuck-ups who bought houses they couldn't afford and were lent money they could never pay back by banks that were too greedy and too stupid to realize what would happen.

Controlled debt....controlled lending.....these things can help drive the economy.

Sure I agree that the housing market had issues; subsidies for housing and lending standards that dropped.

But ultimately why were the housing prices going up to the begin with? Why were people under the impression that houses never drop in value?

It is because of the monetary policy of the USA. We are printing money like crazy. Inflation is rampant.

Housing prices were rising;
Medical prices were rising;
Food prices were rising;
Insurance prices were rising;
Commodity prices were rising;
Stock prices were rising;
Tuition prices were rising;

This is the definition of inflation and inflation can only be caused by one thing. Printing money.

We print money; then when prices rise; we play the class warfare card; "those greedy such and such".

The gig is up; we've been had.

inflation can have more causes than just printing money................i know this from macro econ 101
interest rates affect inflation for ex.

My pops thinks debt is how you live your life.

He has modeled the family fortunes after the US economy and we are taking a fucking nose dive to hell because of it.

Too much debt just doesn´t make sense no matter what anyone says....

Boogy; you aren't fooling me. You read my post and reflexively google'd "what are the causes of inflation". The first link is a Keynesian article explain all the causes of inflation; but it doesn't even mention money printing; funny how that is left out.

Listen Boogy; I know you love disagreeing with me; but take a step back and look at the big picture here. How many times do I have to predict these things before you give me some credit here.

Just like I said a year ago when debating BO. We are going down the toilet; and everything Obama is doing will just make it worse. Here we are; give me some credit where credit is do. Because back then all you guys were on the Obama wagon signing "better times are a comin'".

Singing*