The federal deficit for the month of October is $176.4 billion.
Of course, that must be added to the Sept. 30 total deficit of
$1.42 trillion.
Now, I would like for a representative of either major political party to
explain this as acceptable.
Wake up America! This is a runaway freight train with no one to slow it down. Where is the new job and wealth creation? Certainly the middle class is not seeing it.
and determined scheme to devalue the Dollar to erase debt. Effectively attempting to get out of a hole by digging faster.
Our present regime is determined to spend our personal $$$ we have in savings and the treasury "investments" other countries are foolhardy enough to buy. The way this'll happen is to spend our money for us and use the present value of the dollar to do something with with a huge devaluation in the future. You effectively lock up someone's money and then use it, returning the "shell" later as a fraction of the value of the original investment. Not really alot different than the ponzi schemes of Madoff and others--just a different M.O. and variation on a theme. We can see the incipient stages of this with the rise in Gold's value (although demand has gone way up as well, creating a bit of a bubble effect).
It's important to remember that doing this by other nations has (with the potential exclusion of Japan recently but they got the brakes on relatively quickly when they saw the mistake they were making) throughout history been fraught with peril--it has ALWAYS resulted in some kind of war -- either within the nation or with outside nations. Red China evolving from the Kumontung is a good example of the former and WWII Germany the classic example of the latter. In general the conflict has been directly proportional to the military and industrial strength of the nation. It is relevant that both Germany and the U.S. were in the midst of extreme depressions prior to the onset of WWII, and both (although the U.S. to a lesser extent) either tried or were trying to spend their way out of a bad situation (reparations in the case of Germany and the failed Keynesian attempt during our own Great Depression). The U.S. case was mitigated somewhat by not deliberately inflating/devaluing the currency to the extent Germany did -- who later lost control of it giving rise to Hitler.
Although I believe Hitler and Hussein to be cut from the same cloth, I don't see the same situation developing in that Hussein is far less competent and has been heretofore unable to control our media (AND would be wholly unable to disarm the population of the U.S.). Also, our economy has been getting much worse under the present regime, and he and his regime will bear the legitimate blame for what they are doing to us.
However, only BAD things can happen from continuing down the path we are right now. More are unemployed as we are espouted platitudes of how great things are and how this HUGE spending is somehow "saving" us. The prime movers of our economy are going overseas as we encounter the systematic destruction of our economy. AND NOW we want to add our health care to this ?!!!
It HAS to be intentional on the current regime--no one could be so incompetent to consistently make so many wrong turns. The law of averages is wholly against it. One could've flipped a coin and had better results.
__________________
God gives us free will; the statist tries to take it away
Very excellent point, especially in the past twenty years...
Correct me if I am wrong, but as the dollar declines, it takes more dollars to retire foreign debt....
No. Actually a declining dollar favors the sale of American goods because our labor costs and standard of living are lower relative to the other nation (however, we've ensured to have NO chance of exploiting even this "bone" by locking up our own resources and industries with environwackoism and overregulation--AND huge tax increases on all fronts hitting small business and the middle class the hardest which will prevent job growth as well as investment in American industry (ALL of the "health" bills are effectively a two-pronged attempt to destroy the American insurance industry/health care system AS WELL as a tax increase) -- with cap and scam on the horizon).
As far as the foreign debt, we've effectively locked most of that up (from the "Suckers" in China and Japan) in treasuries where they cannot get at it for a number of years--by which time their original investment will be devalued by at least a factor of ten and likely much more than that. Even with TIPS (which, unlike some other treasuries, ARE specifically indexed for inflation), we can "declare" the inflation rate to be lower than it actually is by excluding certain sectors of our economy (Klinton did this by excluding energy costs from inflation indexes to make his numbers look prettier). But it could well become a moot point--as inflation spikes the dollar chases it's tail trying to meet the debt service and keep up with the interest rate. If "real" value is pulled out of an economy during this the currency collapses. (not only have we spent into this abysmal debt but also we've more than doubled--closer to tripled-- the amount of cash present in the economy as well; big ben's betting on his deft timing being able to cut the fuse on the way to the powder keg). Argentina experienced something similar to this with interest rates around 140% -- and interest rates ALWAYS lag inflation which erases real money's value over time. We're facing well over 10% of GDP with simply deficits this year -- and the debt is orders of magnitude above this.
Those with large dollar positions (i.e. a bunch of liquid cash) will also lose extensively in the value of their investments--this will actually help the currency run away (if you read Dick Morris' book "Catastrophe" it has a pretty good description of this) as folks with dollars sitting around look to invest them elsewhere.
__________________
God gives us free will; the statist tries to take it away
No. Actually a declining dollar favors the sale of American goods because our labor costs and standard of living are lower relative to the other nation (however, we've ensured to have NO chance of exploiting even this "bone" by locking up our own resources and industries with environwackoism and overregulation--AND huge tax increases on all fronts hitting small business and the middle class the hardest (ALL of the "health" bills are effectively a two-pronged attempt to destroy the American insurance industry/health care system AS WELL as a tax increase) -- with cap and scam on the horizon).
Exports are certainly favored with a declining Dollar, inverse of Imports..
As far as the foreign debt, we've effectively locked most of that up (from the "Suckers" in China and Japan) in treasuries where they cannot get at it for a number of years--by which time their original investment will be devalued by at least a factor of ten and likely much more than that.
Treasury debt can and does sell on the open markets, but you are right the Asian nations will lose plenty of money, as their holdings depreciates.
Even with TIPS (which, unlike some other treasuries, ARE indexed for inflation), we can "declare" the inflation rate to be lower than it actually is by excluding certain sectors of our economy (Klinton did this by excluding energy costs from inflation indexes to make his numbers look prettier). But it could well become a moot point--as inflation spikes the dollar chases it's tail trying to meet the debt service and keep up with the interest rate. If "real" value is pulled out of an economy during this the currency collapses. (not only have we spent into this abysmal debt but also we've more than doubled--closer to tripled-- the amount of cash present in the economy as well; big ben's betting on his deft timing being able to cut the fuse on the way to the powder keg). Argentina experienced something similar to this with interest rates around 140% -- and interest rates ALWAYS lag inflation which erases real money's value over time. We're facing well over 10% of GDP with simply deficits this year -- and the debt is orders of magnitude above this.
Yes, you are right, if you think that the Central government wants to inflate itself out of its monetary problems...
Those with large dollar positions (i.e. a bunch of liquid cash) will also lose extensively in the value of their investments--this will actually help the currency run away (if you read Dick Morris' book "Catastrophe" it has a pretty good description of this) as folks with dollars sitting around look to invest them elsewhere.
I am still reading Mr Morris' book about the 2008 national race, between Hillary and Condi....
__________________
God bless and our Men and Women In Uniform. RIP Arkansas Hunter e
The biggest incentive to devalue the dollar is the 57 TRILLION of them owed to Baby Boomers in the form of Social Security and Medicare benefits, that the government collected the money for and spent on pork barrel projects.
The US government is bankrupt! Fiscally and MORALLY. They have no alternative but to keep printing phoney money, hoping they can outrun the economic destruction that is coming.
Be prepared!
__________________ Criminals cheer for infringement of the Second Amendment. AR10 MBR GLOCK CCW
One thing I've been wondering is about saving money. My knee jerk reaction to this is to try to save up for any upcoming economic collapse but, if the dollar is getting less and less valuable everyday it doesn't seem like simply putting money in a low interest savings account will help much. So what then should the average joe like me do to prepare financially?
I think spending is the mantra of the incumbent. Left or right makes no difference.
Ditto that. That's why we've got to turn congress inside out in next election. Especially in the house. The house is the one that must okay all money spent. Also, every member of the house is up for re-election.
One thing I've been wondering is about saving money. My knee jerk reaction to this is to try to save up for any upcoming economic collapse but, if the dollar is getting less and less valuable everyday it doesn't seem like simply putting money in a low interest savings account will help much. So what then should the average joe like me do to prepare financially?
Gold's kind of on a bubble, so's if you ain't bought already it might only be worth getting a little as an "insurance policy" for food, ammo, and energy. Although it is quite relevant to note that it's gone from $800 to $1100 and ounce over just the last year or so which is quite a sustained jump--we haven't seen it below $1K in quite a while so's having at least some might be wise.
Capitalizing is always good -- real estate, tangibles, guns/ammo, motorcycles, improvements in what you have -- stuff you might need in the future which lasts indefinitely. It's probably a good time to buy a house if you don't have one and can get a good price; also a good time to fix it up and make it as good as you can.
Cars are kind of a push--they devalue quickly but if it's close to time for a new one it might be a good time to buy. If not fix up the old one really well so's it can run for a few years.
Equities across the U.S. and the world (i.e. Stocks) should also hold their value because they're based on real things. Counterbalancing this is the present regimes total attempt to destroy our economy but stocks seem to be holding up despite this. The major downside is hussein's increase in the capital gains tax--which few other nations have--which will cut into profits for money you put at risk. This is one of the reasons so much capital has been frozen and no one has been investing -- why put money at risk when it's going to get taxed anyhow (or destroyed with cap and scam) ? But equities are probably OK somewhat to balance out your portfolio.
OR just look at what the dems are doing and how they "hide" their money. They're going to write tax codes and laws which punish the prime movers but leave their personal fortunes intact. However, there is much economically they don't figure and don't know so this might not be all that safe either.
I guess the best analogy is we're flying into a storm and to have you and your stuff as well fixed up (and trained and capable) while it's happening. That way even if it doesn't get really really bad you've done things you wanted to do anyhow.
But I personally can't see how we're going to have anything left of the dollar. It's kind of interesting when I see folks buying, driving, and flying domestically--some of it's surreal because it's essentially China (and maybe Japan) and to a lesser extent folks with savings in the U.S. (because most of them can get the $ out as inflation spikes) paying for the trips and stuff--we're all as a nation making a trip on their dime with credit. They're paying us (via treasuries) so people here can buy their own stuff from them. Maybe I'm wrong and we'll be the first nation in history to pull this off.
__________________
God gives us free will; the statist tries to take it away
One thing I've been wondering is about saving money. My knee jerk reaction to this is to try to save up for any upcoming economic collapse but, if the dollar is getting less and less valuable everyday it doesn't seem like simply putting money in a low interest savings account will help much. So what then should the average joe like me do to prepare financially?
The problem with our economic system is that without doing enough to inform, it relies on people who it assumes are informed and don't have knee jerk reactions. People don't always act in the best interests of the economy as a whole because those interests seem to be incompatible with what individuals think are their own best interests.
Not only will putting money in a low interest savings account not help you, it will hurt everyone else. It's too late to prepare financially for an economic downturn once the economy is in recession, saving will reduce output further making the recession last longer. What the average joe should be doing now is spending or investing his money to help close the recessionary gap, and once this recession is over start saving for the next one. I second TXplt on buying stocks, don't be put off by CGT, you pay tax on the money you make working, why shouldn't you pay tax on money you make doing nothing?
But buying stocks only makes sense if you believe that the economy is only in a temporary downturn and will improve soon. If you think we aren't coming out of this recession and are heading for an economic collapse, money would become worthless, spend it now on tinned food.
and our Men and Women In Uniform. RIP Arkansas Hunter e 
