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Who would pay the taxes then? If this is just a call for a consumption tax, i can tell you what will happen. The prices of the goods and services that can be taxed would go through the roof as they would need to provide 2+ trillion more dollars in tax money. People would then stop buying all...

hairdresser - what is the point of moving to a foreign country when they may soon own much of what is around you? Did you not read the article? What do you think is going to be the gov'ts collat. for all of this debt?

People seem to forget that China had the world's largest economy at some point in the 1700s or 1800s. Then, Japan, Britain, and a few other countries attacked them like crazy, destroying their economy. It seems they are building it back.

It sure is glaring how he doesn't say how we will pay for the stimulus. We can't issue war bonds because we are not at war. Also, the United Nations, IMF, World Bank, globalization, etc, didn't exist during the first depression. So, all money generated then went to stimulate America at almost...

King - I hadn't seen that before. PAL is at 1.75, with a burst to 1.95 intraday. That is up 18 cents or about 10% since I mentioned it.

Let's hope the French and American rescues don't become a case of stirring up the hornet's nest. The Somalis should realize that if we go to war with them, the outcome will favor the U.S, unlike last time.

This started in 1970, when the gold standard was completely removed. It accelerated in 1981 when politicians realized that without the gold restraint, they could create the illusion of realtime prosperity by increasing spending and passing the bills on to future generations. The delayed ponzi...

Up from 1.57 to 1.61 since I mentioned it. Not great but still a 2 or 3 % gain.

It's still early. Like a good trade, have to give China's policies time to develop.

http://inevitablepoliticonomics.blogspot.com/2009/03/chinese-economists-favor-gold-over-us.html

The other problem with supply side theory is when too much speculative supply is created. If consumers can't or won't pay for the supply created at break-even levels, the supply creation was wasted. The housing market now is a prime example. Homebuilders went overboard in starting too many...

Any economic theory which creates sizable imbalances should be carefully examined before being deployed. Using supply side theories only ten years after the gold standard was removed was a complete disaster. Way too much money in the form of debt was created. We are now starting to feel the...

They need to call cash for gold.

Over 25% of America's manufacturing ability is sitting idle because of the influx of foreign goods. How can we be a producing nation if we just import cheap items from abroad? This system you espouse, trefoil, breaks down when we have to borrow from overseas to turn around and buy their goods...

The point you are missing, trefoil, is that America was a producer economy and a net creditor during the timeframes you speak of. We are now a consumer economy and the largest debtor in the world. Since our economy is a net importer as seen by the trade deficits, it is not possible for us to...

The debt increase you give the example for is a factor of 5 over 42 years which included two full blown hot wars. US debt has increased by a factor of 12 or 13 in 28 years without any difficult wars. Britain was able to pay back debt because their defense spending decreased dramatically and...

They can always fire it back up when the price is right.

No, debaser, paying back debt in the currency it was denominated in is not default. If the debt was agreed to be paid in Fed "legal tender" monopoly money, then Russia, China, and India had better hope they land on boardwalk and park place.

I bought a small amount of shares of this one yesterday after the latest cold fusion announcement. It is up about 13% in one day. Think there could be something to the latest cold fusion?

Germany's WWI debt was at least partially denominated in goldmarks, right? So they couldn't print their way out of it, I thought. With our debt in our own currency, we can print our way out of it. I don't think that is the solution we want because all of the wealthy people would lose everything.