The New York Times (not my favorite paper editorially) has begun a series of articles grouped under the heading - The Debt Bomb
As of today the federal government is in debt for all its financial instruments totalling $12 trillion. Debt servicing for this fiscal year will
be $202 billion.
The federal government (to keep operating) will need to borrow $3.5 trillion over the next three years.
Now comes the larger world issue - Some of the major nations are in the same sort of condition - namely Japan and Germany.
I would appreciate the thoughts of fellow forum members.
As of Sept. 30, 2009, the national debt was almost $12 trillion and interest on that debt was $383 billion for the year, according to the Treasury Department's Bureau of the Public Debt. The Congressional Budget Office on Oct. 7 estimated the 2009 budget deficit to be almost $1.4 trillion (about 10% of GDP). In August, the White House Office of Management and Budget (OMB) estimated total government revenues at about $2 trillion. The revenue estimate included $904 billion from individual income taxes. This means the cost of interest on the debt represented more than 40 cents of every dollar that came in from individual income taxes. ...
There are worldwide excesses of all to many central banks and governments, including ours...
In essence, the central banks are printing too much money and the governments are spending too much money...
This to me, will represent slower growth and monetary inflation, worldwide..
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God bless and our Men and Women In Uniform. RIP Arkansas Hunter e
yes only the treasury can print money but if they just print more the value of the dollar drops. Think about Germany after WWI it just printed more money to pay off debt and retribution so they printed so much currency it became pretty much useless it would of taken something like a wheelbarrow full of money to buy a loaf of bread and there are pictures of people using the currency for fire starting and wallpaper cause it wasnt worth anything.
David, they are doing that with the Zimbabwe dollar already; the things are so without value that they locals who use them for toilet paper are cautioned not to flush them down the public loos because they clog the pipes. The Obamists keep running the printing presses the way they are, and it could happen here too.
We may yet wind up remonetizing in the United States - that is, if Obama simply doesn't abrogate the debt. But if he keeps on the way he's going, I have one piece of advice for you:
The New York Times (not my favorite paper editorially) has begun a series of articles grouped under the heading - The Debt Bomb
As of today the federal government is in debt for all its financial instruments totalling $12 trillion. Debt servicing for this fiscal year will
be $202 billion.
The federal government (to keep operating) will need to borrow $3.5 trillion over the next three years.
Now comes the larger world issue - Some of the major nations are in the same sort of condition - namely Japan and Germany.
I would appreciate the thoughts of fellow forum members.
Do you have a link? I am interested in reading it.
__________________ Well done is better than well said - Benjamin Franklin
Think what it would do to you to continue to spend more than you make and having to borrow from different sources just to make ends meet? Imagine that a third of what you borrowed was what it took to merely pay the interest on what you'd already borrowed. What do you think would eventually happen?
Now, realize that this is what our govrnment has been doing for years!! Our currant economic problems are due, in large part, to people over spending. Buying houses/cars they could not afford. Borrowing money on the so-called "creative lending" practices of numerous banks, which they could not repay. Paying more for those items than they were worth. Then those pin heads in washington actually believe they can solve the problem by DOING THE SAME THING!!
We had better get a handle on this & it'd better be quick!!
yes only the treasury can print money but if they just print more the value of the dollar drops. Think about Germany after WWI it just printed more money to pay off debt and retribution so they printed so much currency it became pretty much useless it would of taken something like a wheelbarrow full of money to buy a loaf of bread and there are pictures of people using the currency for fire starting and wallpaper cause it wasnt worth anything.
One thing good about that, no one steals it anymore!
Quote:
Originally Posted by cremley
Banks can't print money...
Central Bank = Federal Reserve.
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God bless and our Men and Women In Uniform. RIP Arkansas Hunter e
The New York Times (not my favorite paper editorially) has begun a series of articles grouped under the heading - The Debt Bomb
As of today the federal government is in debt for all its financial instruments totalling $12 trillion. Debt servicing for this fiscal year will
be $202 billion.
The federal government (to keep operating) will need to borrow $3.5 trillion over the next three years.
Now comes the larger world issue - Some of the major nations are in the same sort of condition - namely Japan and Germany.
I would appreciate the thoughts of fellow forum members.
All good words by everyone so far. I don't know much for Germany, but Japan did try the keyensian thing and barely got the brakes on before their currency ran away--this almost ALWAYS involves forcing your economy into recession via interest or tight money (a "controlled coma" as it were--we did this after karter but didn't have the massive debt we now have and are building). I think they've gotten a handle on THEIR debt, but it has been a VERY painful lesson for them. This also explains why they are accepting deflation vice try it again--unfortunately we couldn't learn from them, anyone else thru history, or even our own recent past. What I CAN'T understand is why they (and China) buying our treasuries--I didn't peg them for suckers but guess they might be.
Didn't see the article, but our debt will likely cause the loss of the dollar as we know it; I really don't think there is anything we can do at this point and we've not even gotten the brakes on. For God's sake we're even looking at spending 3 Trillion MORE for the privilege of wrecking our health care system completely and insuring MAYBE 5 to 10% of our population.
There's no end in sight--although gold is on a bit of a bubble, look at what's happened; a little over a year ago you could get gold for $800 an ounce. We've devalued the dollar 20% over the past year alone.
The point our currency will run away (like Germany, Zimbabwe, or even to a lesser extent Argentina) is when we can no longer even service the debt on it and begin to roll interest into our principal debt. Since interest rates are exponential this triggers an ever accelerating death spiral.
Didn't read the article, but I'm surprised the ObamaTimes is having any un obamalike thoughts. Maybe they're trying to "globalize" our governments incredible irresponsibility in its spending and fiscal policy but the buck will certainly stop here. It would be comical (including hearing Der Leader be "concerned" with the very debt HE IS CAUSING) if it weren't serious.
Buy Energy, Gold, Guns, Food and Ammo -- this is always a good idea
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God gives us free will; the statist tries to take it away
At the present rate this country is spending and borrowing,the money collected from income tax won't even cover the interest on our debt.But they want to spend massive amounts on a flawed healthcare plan and cap and trade energy fiasco.I think the Body Snatchers have landed and they're thriving in D.C.!
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Do not fear the night.
Fear what's in the night. Mike
and our Men and Women In Uniform. RIP Arkansas Hunter e 
