| Nuar M |
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Monday, June 29, 2009
Thank you Andrew Lahde for your criticism regarding my previous post. Actually, at the time of writing that piece, I have no intention of bringing up the subject of economics at a greater depth as it was just a rhetorical article and part of what i think is the true scenario here in the ever increasing case of swine flu. Yes, bailouts are used to mobilize funds and help those companies who is at the verge of bankruptcy to stand up again and is meant for a long term plan, but lets face it, some of these bailed out companies do not even last for two years before they seek for another bailout again. Printing and injecting more reserves into the economy to help them would not work as well as it'll only increase the interest rates and at the same time brings up inflation, lucky enough the era of hyperinflation hasn't arrived yet. With more and more US citizens being unemployed, what good does inflation serve as now more and more people will suffer. In Obama's administration, what they are not telling is that in order to help the federal debt, a giant tax is aimed at the middle class. In theory, yes such accounts could offset any deficits in an economy, but if it really does work like how you mentioned, why is the government still in debt? Thus to pin-point the source, I would say that all these debts are generated from the ineffectiveness of several bailout plans that the burden has to be carried by the middle class citizens. Therefore, wouldn't the selling of the anti-viral in a few months time a way for foreign investors to buy the debts from US as was quoted by the Fed Chairman "Rates can only stay low if foreign investors keep buying our debt". Pardon me for the inadequate knowledge of economics as I am yet to learn more about it in greater depth in the following years to come. Armed with only the basics of it, this is my explanation.
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Profile under construction A runner's life. Aim high, reach higher! Al-Fatihah
A loving and caring friend who will be greatly missed.
Dk Hjh Raihana Hazwani bte Pg Hj Md Kassim.28th April 1987 - 17th September 2009 (27 Ramadhan 1430H). Class of BA Hons (Economics) 2007-2011, Universiti Brunei Darussalam. Shoutbox by Photographer
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