US Stocks Down 15% in 2 Weeks

[J. J.]

BTW:  The Dow ended up a mere five points, so stability might be returning.

[BigSkyBob]

...our economy boomed after WWII. The German, and Japanese economies, also, boomed after the war. You can't plausibly claim that it was government fiat in WWII that lead to their booms, because their policies left their countries in a pile of rubble. Yet, you make the exact same claim about the US!

Of course I can make that claim - the Keynesian economics caused a boom in all countries, as it always does. 

Germany simply didn't follow a Keynesian path after WWII.

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The boom is the US was in part the result of our bombing their factories. We were the last producer left standing.

This isn't true in regards to Germany. Production in Germany actually increased through 1944 (...in large part due to workings of Albert Speer).

1) This isn't true. Civilian production was cancelled. Military production topped out in mid-1994, and declined thereafter.

2) There was a lot more bombings after mid 1944.

1) I didn't know we were differentiating between civilian and military production.

We aren't. In 1944 German armament production peaked. Total production did not peak. Civilian production was cancelled in late '43. You confused the fact that armament production increased until mid-1944 with total production peaking.

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Incrementally, much of Germany was reduced to rubble. The notion that the war left Germany a legacy of factories ready for civilian production is bogus.

[opebo]

Except, as pointed out, there is a diminishing marginal utility for government created demand.

Obviously there isn't, but even if there were it would be at the end of a high-growth inflationary period, and we are currently in a deflationary depression.

[J. J.]

Except, as pointed out, there is a diminishing marginal utility for government created demand.

Obviously there isn't, but even if there were it would be at the end of a high-growth inflationary period, and we are currently in a deflationary depression.

Ah, the inflation rate has been positive since 2009.

[J. J.]

So much for the hopes of the return to stability.

[opebo]

Ah, the inflation rate has been positive since 2009.

If you believe that, we're probably speaking different languages, J.J.  Actually it is rather funny how conservatives tend to doubt a lot of government economic statistics, but are always eager and willing to believe in 'inflation'.  We're having deflation, J.J., as bond yields show.  Just like Japan all over again.

[J. J.]

Ah, the inflation rate has been positive since 2009.

If you believe that, we're probably speaking different languages, J.J.  Actually it is rather funny how conservatives tend to doubt a lot of government economic statistics, but are always eager and willing to believe in 'inflation'.  We're having deflation, J.J., as bond yields show.  Just like Japan all over again.

You are talking about lower interest rates, not deflation.  It is cheaper to borrow money.  People are not borrowing it.

[Fmr. Pres. Duke]

Ah, the inflation rate has been positive since 2009.

If you believe that, we're probably speaking different languages, J.J.  Actually it is rather funny how conservatives tend to doubt a lot of government economic statistics, but are always eager and willing to believe in 'inflation'.  We're having deflation, J.J., as bond yields show.  Just like Japan all over again.

You are talking about lower interest rates, not deflation.  It is cheaper to borrow money.  People are not borrowing it.

Banks also don't want to lend it out. My father is an engineer and builders who owe him money cannot borrow enough money to pay him. Perhaps they had already taken out too much, I don't know, but from what I'm hearing, banks aren't exactly wanting to make loans.

[opebo]

You are talking about lower interest rates, not deflation. 

Yeah, lower interest rates are the best evidence of deflation there is.

Besides, the price of real estate is still going down, which is by far the most important aspect of deflation.

[J. J.]

You are talking about lower interest rates, not deflation. 

Yeah, lower interest rates are the best evidence of deflation there is.

Besides, the price of real estate is still going down, which is by far the most important aspect of deflation.

The best evidence of inflation/deflation is the increase/decrease of prices.  That is the measure of inflation.