US economy will continue to recover - Powell

[tbterryboy]

The thing about printing money is that it makes your money a lot less valuable, when it doesn't worth as much as it used to you have to pay more for stuff and when you pay more for stuff you end up having more debt for it and when you have more debt there is a crisis and when there is a crisis you print more money. You see how it goes around in circles?

This is exactly why I believe it should be noted that governments should not print money, no matter what the situation is, flushing down the economy time to time would teach people a lesson, some will be super poor, but people are poor already, but in return we will get hundreds of billions of dollars (even trillions) not going towards companies, those companies will bankrupt and this will give a lot bigger lesson to be careful to companies than people.

[matchi2011]

The thing about printing money is that it makes your money a lot less valuable, when it doesn't worth as much as it used to you have to pay more for stuff and when you pay more for stuff you end up having more debt for it and when you have more debt there is a crisis and when there is a crisis you print more money. You see how it goes around in circles?

This is exactly why I believe it should be noted that governments should not print money, no matter what the situation is, flushing down the economy time to time would teach people a lesson, some will be super poor, but people are poor already, but in return we will get hundreds of billions of dollars (even trillions) not going towards companies, those companies will bankrupt and this will give a lot bigger lesson to be careful to companies than people.

Inflation will be having a greater impact on the poor and the middle class. Because they are more likely to keep their savings as bank deposits. Also, if they have pending loans from the banks, then the EMIs (equated monthly installment) are likely to go up. The rich mostly keep their wealth in the form of bullion (gold, platinum, silver.etc), real estate and shares. And these assets are more or less protected from inflation.

Rich people who understand how wealth to work with them, they are capable of finding ways on how they will use their advantages.

While class B and C types of people will suffer from this inflation that will take place. Banks will find ways to
survive from this economic crisis putting most of the burdens to people who are using their services.

[abhiseshakana]

The thing about printing money is that it makes your money a lot less valuable, when it doesn't worth as much as it used to you have to pay more for stuff and when you pay more for stuff you end up having more debt for it and when you have more debt there is a crisis and when there is a crisis you print more money. You see how it goes around in circles?

This is exactly why I believe it should be noted that governments should not print money, no matter what the situation is, flushing down the economy time to time would teach people a lesson, some will be super poor, but people are poor already, but in return we will get hundreds of billions of dollars (even trillions) not going towards companies, those companies will bankrupt and this will give a lot bigger lesson to be careful to companies than people.

Japan is also a country that is diligent in printing money, but there is no inflation, it is even very difficult for inflation because Japanese people are too fond of saving. So it is not always the habit of printing money that causes inflation.

America and China are also diligent in printing money, even printing money done by America can save America from a great depression and crown America as the winner of the second world war and become a world hegemon, to this day. China also prints RMB based on layered projects, China prints money to make production machines, so that the economy rotates in China. No matter where the project is, as long as the project is independent and productive, the Chinese government will all out in printing money. The OBOR program is China's strategy to attract dollars into China without spending dollars, namely by printing RMB.

[Xembin]

Obviously,US is really facing covid-19 cases,which US has the highest number of covid-19 in the world.  US economy is going down because of the new number of covid-19 cases  that is increasing everyday in their country.
If their government can do something fast to end covid-19 in their country like the way China is fighting their,to recover their economy fully.

[MCobian]

Even though the spread of the corona virus in America is still quite high, and the number of unemployed has not decreased.
But I am optimistic that the US government can make the economy continue to recover. Because America is a big country,
so America should be able to recover its economy. Maybe the US economy is not recovering as fast as the Chinese economy,
but I believe the US economy will recover soon.

[exstasie]

Japan is also a country that is diligent in printing money, but there is no inflation, it is even very difficult for inflation because Japanese people are too fond of saving. So it is not always the habit of printing money that causes inflation.

I don't think it's a culture of saving that is responsible. In my opinion, what happened is that 25 years of easy monetary policy made QE the norm. It's now been firmly priced into the market's expectations:

Though since Japan’s interest rates have effectively been zero since 1995, we have to wonder what “normalization” would even mean. Surely, after this length of time, zero interest rates are "normal"?

This, in a nutshell, is Japan’s problem. After such an extended period, expectations of zero inflation and zero interest rates are firmly baked in. Anyone under 40 has never really known anything else. Shifting these expectations is a Herculean task. No wonder inflation has proved ephemeral.

https://www.forbes.com/sites/francescoppola/2018/07/31/japans-lowflation-problem/#1fde81da3d64

[bryant.coleman]

Rich people who understand how wealth to work with them, they are capable of finding ways on how they will use their advantages.

While class B and C types of people will suffer from this inflation that will take place. Banks will find ways to
survive from this economic crisis putting most of the burdens to people who are using their services.

This is the perfect reason why poor people should never vote for populist parties, which will promise them handouts. These handouts will worsen the inflation problem, and this in turn will make the poor people even more poor than they were before. On top of that, since funds are required to finance these handouts, the governments will target the rich and the middle class with new taxes. In the end, no one will benefit. Neither the rich, nor the poor.

[imstillthebest]

Obviously,US is really facing covid-19 cases,which US has the highest number of covid-19 in the world.  US economy is going down because of the new number of covid-19 cases  that is increasing everyday in their country.
If their government can do something fast to end covid-19 in their country like the way China is fighting their,to recover their economy fully.

no , what is written on the opening post isnt about the covid19 but if you try to read it carefully you will read the keyword such as trump , bank and election . so by that , i guess the post talks about politics but the fall of a countrys economy still have something to do with the covid19 .

 we dont need or they dont need to rush things .  the covid can be cure and the economy can always be revive if done slowly

[Salauddin1994]

The US economy will continue to recover but it will take some time in that case even in the most comfortable state of the US economy growth will be extremely unstable. Needless to say the worst case scenario the United States may see a long-term contraction and recession in the economy. The impact of the virus has diminished in many countries around the world  and each country is trying to recover its economy trying to allocate more in the economic sector.

[justdimin]

I do not get how the economy is recovering in the statistical way. I mean think about it, while stocks are breaking new records and everything looks awesome in that way, there are over 20 million unemployed people, considering how much of the population is retired old people and people who are too young to work, the population left has over 20 million unemployed people, that is USA historical record and never has been done before.

So while stocks are super high, the unemployment is also breaking records, how could those two things exist together? How could it not contradict each other? How could you look at general stock market cap and say economy is great while you have people who can't afford to pay their rents? It doesn't make sense at all, I think that USA is not recovering at all and only will recover when they actually get better all together and not just stocks.

[barbara44]

How though? Like tens of millions of people are out of work right now, and nasdaq says everything is okay? US economy will not recover, it can't recover, the system is broken and as long as system is broken how could it ever recover. It is like saying a broken foot will heal when it is not even in a casket, it is just limping there, dude is walking with a broken foot, it hurts every time he steps, but he keeps walking with that broken foot like nothing happened because eventually it will heal.

Instead of letting it be, USA should instead put it to rest for few weeks, cast it and just make it heal a lot faster and a lot better, that way it could go back in a few weeks like nothing happened. But that would mean loss of money for the rich so they are not doing that at all, not even remotely close to it.

[seoincorporation]

It looks like it's on the recover way, but at the end is only a bubble filling up, when the bubble crash it will be worst than 2008. Remember what happens there... tons of people using their homes, their cars and just getting more debts with the Government. The economy will not recover by the printing money way, that is a big mistake that grows up the country debt.

[Silberman]

The thing about printing money is that it makes your money a lot less valuable, when it doesn't worth as much as it used to you have to pay more for stuff and when you pay more for stuff you end up having more debt for it and when you have more debt there is a crisis and when there is a crisis you print more money. You see how it goes around in circles?

This is exactly why I believe it should be noted that governments should not print money, no matter what the situation is, flushing down the economy time to time would teach people a lesson, some will be super poor, but people are poor already, but in return we will get hundreds of billions of dollars (even trillions) not going towards companies, those companies will bankrupt and this will give a lot bigger lesson to be careful to companies than people.

It is obvious that most of us will have similar thoughts regarding this, in fact during a lot of time in the past even if governments minted their own coins the coins minted by private institutions and individuals were accepted as long as they were made of gold and silver but then governments outlawed this practice because they wanted to get control of the money supply.

As such governments know exactly what they are doing and for the most part they aren't going to give up that right willingly and even if they lose it in practice in the case of a currency crisis you can be sure they will try to regain it as soon as it is over, so in my opinion this is going to be a battle fought for a very long time but fortunately now we have bitcoin on our side to give us an edge.

[kawetsriyanto]

There are many desires that can lead the economy in the US to increase highly. However, is it the real data or not? As we know, the US also faces a difficult moment because of the recession and this pandemic like most countries in the world. But, how can they recover the economy so suddenly? they are a big country and it may not be so difficult to recover it. But, we can see the updates of how the development because it is also heading to the election??

[jaysabi]

There are many desires that can lead the economy in the US to increase highly. However, is it the real data or not? As we know, the US also faces a difficult moment because of the recession and this pandemic like most countries in the world. But, how can they recover the economy so suddenly? they are a big country and it may not be so difficult to recover it. But, we can see the updates of how the development because it is also heading to the election??

The recession though isn't caused by any fundamental weakness in the economy, but by the need to reduce economic activity to combat the spread of the virus. Since the economy was artificially slowed and did not lose momentum on its own, this gives us reason to hope that the recovery will be similarly as swift. It's not a lack of demand harming the economy, it's health concerns causing demand to drop. Remove the health concern, remove the artificial recession.

[Vishnu.Reang]

The recession though isn't caused by any fundamental weakness in the economy, but by the need to reduce economic activity to combat the spread of the virus. Since the economy was artificially slowed and did not lose momentum on its own, this gives us reason to hope that the recovery will be similarly as swift. It's not a lack of demand harming the economy, it's health concerns causing demand to drop. Remove the health concern, remove the artificial recession.

Even after the governments removed some of the restrictions a lot of the people were still staying at home, avoiding non-essential travel. If they stay at home, that means that by default the consumption will go down. And this can have a negative impact on the economy. There is no quick-fix solution to this as of now, as a vaccine is many months away. I am guessing that the economy will remain in a suppressed state for at least 6 more months.

[jaysabi]

The recession though isn't caused by any fundamental weakness in the economy, but by the need to reduce economic activity to combat the spread of the virus. Since the economy was artificially slowed and did not lose momentum on its own, this gives us reason to hope that the recovery will be similarly as swift. It's not a lack of demand harming the economy, it's health concerns causing demand to drop. Remove the health concern, remove the artificial recession.

Even after the governments removed some of the restrictions a lot of the people were still staying at home, avoiding non-essential travel. If they stay at home, that means that by default the consumption will go down. And this can have a negative impact on the economy. There is no quick-fix solution to this as of now, as a vaccine is many months away. I am guessing that the economy will remain in a suppressed state for at least 6 more months.

Yeah, that's because it's not safe to go out and do things like there is no pandemic.  We're technically in a "recession" because we've had two straight quarters of negative GDP growth, but again, not because the economy has faltered on its own, but because of a health crisis forcing everyone to reduce economic activity.  The recession will be "over" in that GDP is going to surge in the third quarter, but we'll still be far far below where we would have been without the pandemic.  Characterizing the economy as being in "recovery" hides how bad things still are.

[TIDOVEE]

There is one thing I so much like and appreciate about the US government, and it is that every government competitively stands to bear all necessary pain no to have a lesser delivery and to make sure they get no condemnation over the economy, just that in this existing condition,it's like the government has very little to do to put the jobless back in place. This time around, it's a harder nut for the government to crack since obviously almost all nations economy is affected, yet this is an opportunity to approve the competent government.

[bryant.coleman]

Yeah, that's because it's not safe to go out and do things like there is no pandemic.  We're technically in a "recession" because we've had two straight quarters of negative GDP growth, but again, not because the economy has faltered on its own, but because of a health crisis forcing everyone to reduce economic activity.  The recession will be "over" in that GDP is going to surge in the third quarter, but we'll still be far far below where we would have been without the pandemic.  Characterizing the economy as being in "recovery" hides how bad things still are.

Recession will be there for at least two more quarters. Those who have burned up all of their savings are not going to splash their money, even if the restrictions on social distancing are removed. I am not sure how the GDP growth is calculated, but if I am not wrong, then the GDP of a particular quarter is compared to the figure from the corresponding quarter of previous year (for example, Q1Y2020 vs Q1Y2019 and so on).

[Silberman]

There are many desires that can lead the economy in the US to increase highly. However, is it the real data or not? As we know, the US also faces a difficult moment because of the recession and this pandemic like most countries in the world. But, how can they recover the economy so suddenly? they are a big country and it may not be so difficult to recover it. But, we can see the updates of how the development because it is also heading to the election??

The recession though isn't caused by any fundamental weakness in the economy, but by the need to reduce economic activity to combat the spread of the virus. Since the economy was artificially slowed and did not lose momentum on its own, this gives us reason to hope that the recovery will be similarly as swift. It's not a lack of demand harming the economy, it's health concerns causing demand to drop. Remove the health concern, remove the artificial recession.

This is wishful thinking and nothing more, a reduced economic activity will not be a problem if businesses were managed in a conservative way, but this is not the reality of our economy, the focus is on ever increasing profits and disregard everything else, this means that most companies were heavily indebted and they were not prepared to have their doors closed for months, many business have gone bankrupt and many more will probably do so during the next months as people either do not have money to spend and those that do keep it in case they need it for important stuff.