What is keeping our country afloat

Does anyone understand what is keeping our economy going because I do not. With the rise in oil causing everything else to rise in price and the recent flooding in the midwest combined with draught in the west how are we doing it. Is our economy being pumped up some how?

Even with oil prices, some families can take the hit no problem.

Besides that I don't know either.

There's an interesting article here which shows the fed may be preparing for a financial crisis:

FX Street
Money Supply, the Dollar, and Gold:
Normally my take on rising M-3 is that it means most markets, especially equities, will rise (see issues nos. 50 and 52 in the archives at www.technicalindicatorindex.com). However, the unprecedented pre-crisis liquidity infusions we are seeing this past month are saying something else. The amount of growth is too much, too soon, indicative of an unseen (to all but the master planners) imbalance about to blow. The Fed knows something, and their massive infusion of liquidity is a signal that a crash event is not only imminent, but likely unavoidable. The extraordinary M-3 growth we are seeing is the level of liquidity infused to halt crashes, and to fuel post-crash recoveries. Given that M-3 increases take 1 to 6 months to affect markets, that means what has just been injected into the economy should be kicking in around mid to late summer, just about when the 2002/2004 analog suggests the coming crash should end.

There has never been a six-week infusion of M-3 of this size preemptively (before a crash has occurred) in the history of the United States.

There was only one other time we saw this level of M-3 growth over a six week period in the history of the United States, and that was AFTER 9/11/01. The Fed rightfully pumped $170 billion into the system the week of 9/17/01. They did a good job doing so. After the stock market crash of 1987, the Fed increased M-3 a mere 0.08 billion, or at the time 2.2 percent, from 3.61 to 3.69 trillion.

But in the past 4 weeks, M-3 is up a whopping $155 billion, a $2.0 trillion, 22.2 percent annualized pace. Since the Dow Industrials topped in February, M-3 is up $280 billion. The entire money supply in the U.S. was $2.0 trillion in 1981. The Fed is now on a pace to grow M-3 by that amount over the next twelve months.

We've had five equity crashes since this Bear market began in 2000. Here are the annual M-3 growth figures:

2000 - up $568 billion, up 8.6%.
2001 - up $900 billion, up 12.6%.
2002 - up $521 billion, up 6.5%.
2003 - up $272 billion, up 3.2%.
1st 5 months of 2004 - up $400 billion.

What bothers me most about this crisis level of liquidity infusion is that it is coming before a widely known catastrophe.

Its entrtainment(sp). I would bet its the one. All kinds sports, tv, movies, whatever.

The impact of the spike in oil and its effect on the economy as with all economic dislocations - takes time.

For it to evidence itself.........say like the effect of an interest rate change by the Fed may take 6 months or more to show.....

So to with price hikes in oil...........

Will kick in just before November if the effect holds true to course, if not sooner..........

i also noticed they raised those packs of gum with 5 sticks in it raised by 5 cents....would you say the economy just went through inflation of 25% percent?

Your attempt at humor( giving you the benefit of doubt) is either poorly conceived or a desperate need to say some thing...............and I'm sure you're familiar about the adage associated with the decision to speak/no speak.............so there's no need for me to repeat it here now.

Oil price increases, unlike chewing gum, has a exponential effect on an economy because it is central to most all economic activity, except bean-bag, and concomitantly results in price increase up and down an entire economy�����.need I draw pictures?


Don't tussle with me son............you're not in my league. SO

..........You be nice and so will I.................OK?

We're on the verge of extremely inflated prices. You can't go up this much in the underlying driver (fuel) and not see an across-the-board increase in prices.

Now, for the rural view:

UNFORTUNATELY what tends to happen here is that the farmer's prices don't reflect the increase in prices on a macro level...he isn't the one making the money...the middle-man (who buys the fuel) is. SO, be prepared to hear of yet more and more farms going under.

The long-story...we're approaching the inability to sustain ourselves food-wise. Yep...the bread-basket to the world is going to have to start cutting the pipelines.

hey it wasnt supposed to be funny and if your so smart you wouldve noticed...thats a 25% increase and you just look at prices of gas......

Now, you wish to be coy?

Please............

Have a nice day.

who says im being coy it wasnt meant to be funny god damn your an idiot...i will deny you since you are ignorant as this website says...fool just saying what i noticed and you come along blabbing how im trying to be funny....maybe your just jealous cuz i found out 1st...its a possibility

That's enough with the bickering.

Stay on topic.
Don't make me angry.

-B.

OH yes my goddess..............I promise to comply with your every wish.........(damned if I'm going to loose any more points and get put in the stock one more................the humiliation.......oh the humiliation...........the humiliation of it all......... Plus please��..cut the kid a break.

I see he suffers from the same disorder you so quickly cured me of����.

I see he too, is from NYC����.great town, but out of its element usually perceived as culturally inappropriate. �� I�m sure he will try to be good.

Originally posted by CookieMonster000 who says im being coy it wasnt meant to be funny god damn your an idiot...

I see you're from NYC, Me, formerly.........explains lots..........what part of NYC?

SO, you have gone to far with this guy. LOL He is like a no liner.LOL Really very funny.

Originally posted by CookieMonster000
i also noticed they raised those packs of gum with 5 sticks in it raised by 5 cents....would you say the economy just went through inflation of 25% percent?

That would depend on the extent to which gum makes up a part of the basket of goods in the consumer price index you are using, and the starting price of the gum.

In a gum-based economy, it could be quite impactful indeed.

But the US instead is an oil-addicted economy. That may well change soon, finally!

Originally posted by gmcnulty
I see you're from NYC, Me, formerly.........explains lots..........what part of NYC?

queens

I'm dead serious............I hate to lose points. God only knows why!

But its true. Still trying to figure it out............. I do tend towards the strange and sardonic.........but I'll be seeing my doctor soon and maybe he'll adjust my meds............

well technically im the annoyingest person in school....but everyone knows me and likes me....so i dont think i need to see a docter....nor do i need pills....whats funny??? just because i stumbled onto this site while looking for lists of top secret stuff and be annoying like in school....we cant express real emotions with letters on a screen.....im annoying and funny but some of you think im a freak or a weirdo....OK back to the subject well the only thing keeping the country afloat is the congress....non of this Bush administration stuff is keeping us up its pulling us down like sharks....and the citizens are keeping this country afloat with their patriotism....the gornment sucks now...it should be like a government in the 1800's where nothing was kept a secret...cept secret battleplans and secret war tactics and stuff