The US Economy: A Russian Perspective

[thunder rising]

Pravda

When recession hits, the government usually starts deficit spending to increase employment. At the same time the interest rates are reduced to stimulate economic growth. United States is now in an unenviable position of entering recession with very low interest rates, huge deficit and declining dollar.

A person should take Pravda with a grain of salt. For Russians it is the MSM counterpart of our MSM, ie a propaganda outlet for the Putin and the government. However, they do not give a $hit about our boy king nor the US and it loves to dig up dirt.

[Double T]

1. Looks like a GOOD CONCISE assessment of our economic and financial situation..........

I would replace 'recession' with 'depression' because IT will be very long and very deep. Truth doesn't just hurt, its murder.

[LakeSamish706]

2. I actually think that Pravda might be bang on with this one. n/t

[HereSince1628]

3. What's presented is the old Keynesian model of a mixed economy

partly moving under market forces and partly by government. Eh?

Isn't that the long standing economics of the Democratic party? Folks like John Kenneth Galbraith?

That model was used in the US between 1932 and 1980. It isn't the US model anymore.

Now we've got lasso-fair (I know laissez-faire) lawless economics of the cowboy-holics.


The whole point of the mixed-economy model is to gain some control over the excesses of the free-marketers. At this point the free-market excesses (such as sub-prime mortgages, relaxation of: consumer protection rules, import rules, labor rules, safety rules, etc.) are really painful.

[KillCapitalism]

4. They may be right.

To be honest, I trust Pravda A LOT more than any US Media outlet.

[unblock]

5. in pravda there is no izvetzia; in izvetzia there is no pravda

nothing new here, though we could lower rates down to zero like japan did. not that that worked out so well for them....

the real problem is that the lower dollar in theory helps by encouraging exports. problem is, we went ahead and exported our manufacturing capability to asia and mexico. so the dollar helps not so much by making our exports cheap but by making imports expensive, which is inflationary, at least temporarily.


pravda in no longer the propaganda engine it was under the hammer and sickle, though probably not what it was in the days of glasnost. i think the u.s. msm has become far more pathetic.