“The future solvency of the United States as a nation state is currently in jeopardy.

Quote from ByLoSellHi:

Street Talk

Who is Going to Buy U.S. Debt?

Thursday, July 16, 2009 8:59 AM

By: Julie Crawshaw

http://moneynews.newsmax.com/streettalk/federal_debt/2009/07/16/236312.html

In fiscal 2009, the U.S. government must find buyers for $2.041 trillion in new debt, three times as much debt as it issued last year.

Given the current state of the economy, it seems frighteningly apparent that a threefold increase in debt purchases by foreign buyers, mutual and pension funds and other usual investors is mathematically impossible.

“There is simply not enough money in the present economy to support a tripling bond issue in the normal course of business,” Sprott Asset Management head Eric Sprott wrote in a newsletter to clients. “As the lender of last resort, the only purchaser left is the Federal Reserve.”

In 2008, the Fed was a net seller of almost $300 billion of bonds, but in the first half of this fiscal year it’s buying almost $280 billion of bonds under a policy of “quantitative easing.” That means the Fed purchases assets, including Treasury and corporate bonds, using newly created money.

“The Federal Reserve’s ‘solution’ to the debt problem is the problem,” Sprott said. “It has resulted in the Federal Reserve doubling the monetary base of the United States over the span of a mere nine months.

“The future solvency of the United States as a nation state is currently in jeopardy. It is in far deeper trouble than the mainstream press cares to admit,” he said.

Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget, said the White House and Congress should negotiate a broad plan to reduce deficits now.

"Most anybody who's being honest knows we've reached a point where we've got a very dangerous fiscal situation, and it won't fix itself," MacGuineas told The Wall Street Journal.

© 2009 Newsmax. All rights reserved.
More...

this is something i have been worried about for some time myself. in england as well the ability to generate capital (public capital) is not likely to be as good as it was. there have recently been a couple of bond strikes when the treasuries issued were not all purchased. this was the first time for i think twenty years.

what is needed is another method of generating capital that guarantees a return and also provides incentive. i have created such a product and it is being reviewed by the treasury and shodow treasury currently. so i hope something might come out of that.

any way it is a concern that i would agree with and think is one of the biggest economic problems. that along with the limitation of using monetary policy due to the high levels of debt and the affect that has on generating capital for the private sector and the lack of good investments around currently.

there are so many problems.
 
Quote from Scataphagos:

None of those are a threat to our borders or sovereignty. Just take care of them, if necessary. Seriously... do you think anyone is foolish enough to do a significant attack on the USA? Would be suicide and they know it.

All we NEED to do is defend our borders. And that doesn't necessitate fighting other countries' battles nor having troops in 130 countries around the world.
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On MEX: The cartels have been getting inside the US for years. The conflict in Mexico is really about the US and the hunger for drugs... Just like Chicago in the 20's, there's only 1 exit to that war... all military efforts will only serve to escalate violence and increase the cartel's profits. When they remove 1 cartel 3 others will take their place... it's like fighting a Hydra... the only solution is a legal one, just like back in the 1920's... but that requires that someone recognizes that some 80 years of policy have failed miserably....


Regarding attacks on US... N. Korea already took a shot last week with the cyber attack... fortunately they don't have any missile with the proper range to reach LA...
Chavez... well... never underestimate his foolishness...
 
Quote from libertad:

.................................................................................

1000% Correct....

America needs to go on military and industrial sebatical....

During this period it can totally remake itself....

Why ? It has to ....

...............................................................................

This is correct math....

And the only way to rekindle America.....

....................................................................................

You know the next drill....

Eliminate the IRS
10% State C tax....5% Fed Tax by state mandates, no other taxes
Reburbish the securities highway
Remove legal largesse
Reinvent wealth distribution
Compete head on with BRIC production costs

OR

Guaranteed 30% unemployment
Further US decline
Socialism at its finest.....F'n mediocrity

And no...THIS IS NOT A DRILL.....


WTF IS THE US WAITING ON ? THE TOOTH FAIRY ?
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Amen brother Libertad, Amen.
 
Quote from eusdaiki:

On MEX: The cartels have been getting inside the US for years. The conflict in Mexico is really about the US and the hunger for drugs... Just like Chicago in the 20's, there's only 1 exit to that war... all military efforts will only serve to escalate violence and increase the cartel's profits. When they remove 1 cartel 3 others will take their place... it's like fighting a Hydra... the only solution is a legal one, just like back in the 1920's... but that requires that someone recognizes that some 80 years of policy have failed miserably....


Regarding attacks on US... N. Korea already took a shot last week with the cyber attack... fortunately they don't have any missile with the proper range to reach LA...
Chavez... well... never underestimate his foolishness...
More...

.......................................................................

The best way to take care of Chavez is to bring the military home to build roads, bridges, and medicine in rural areas....as well as drug watch....

Chavez will lopping off another 000's from his currency after the shut down of this....

http://karbuz.blogspot.com/2009/04/us-military-energy-consumption-in-2008.html
 
Quote from ByLoSellHi:

Street Talk

Who is Going to Buy U.S. Debt?

Thursday, July 16, 2009 8:59 AM

By: Julie Crawshaw

http://moneynews.newsmax.com/streettalk/federal_debt/2009/07/16/236312.html

In fiscal 2009, the U.S. government must find buyers for $2.041 trillion in new debt, three times as much debt as it issued last year.

Given the current state of the economy, it seems frighteningly apparent that a threefold increase in debt purchases by foreign buyers, mutual and pension funds and other usual investors is mathematically impossible.

“There is simply not enough money in the present economy to support a tripling bond issue in the normal course of business,” Sprott Asset Management head Eric Sprott wrote in a newsletter to clients. “As the lender of last resort, the only purchaser left is the Federal Reserve.”

In 2008, the Fed was a net seller of almost $300 billion of bonds, but in the first half of this fiscal year it’s buying almost $280 billion of bonds under a policy of “quantitative easing.” That means the Fed purchases assets, including Treasury and corporate bonds, using newly created money.

“The Federal Reserve’s ‘solution’ to the debt problem is the problem,” Sprott said. “It has resulted in the Federal Reserve doubling the monetary base of the United States over the span of a mere nine months.

“The future solvency of the United States as a nation state is currently in jeopardy. It is in far deeper trouble than the mainstream press cares to admit,” he said.

Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget, said the White House and Congress should negotiate a broad plan to reduce deficits now.

"Most anybody who's being honest knows we've reached a point where we've got a very dangerous fiscal situation, and it won't fix itself," MacGuineas told The Wall Street Journal.

© 2009 Newsmax. All rights reserved.
More...

This is trivial but allow me to explain. I friend got promoted to top dog in the local post office and every day he used a binliner as a door stop to keep the main door open. The staff had used it and he continued with the "tradition" for 18 months until he decided to look in the bag. It contained $150,000 which he handed in to his employers.

The point is the Dept of Defence routinely loses a trillion or two every year and has no idea where it has gone, and you are worried about lose change?

The Fed or DOD can find that sum in some bag somewhere, or failing that just print off a few bearer bonds for a Central Bank to buy the debt.

No big deal.
 
Quote from Scataphagos:

Or maybe we can bring all the Marines and other military home and (1) save $1 TRILLION in expenses, and (2) give up our Imperialistic delusions.

We can't afford to SOCIALIZE THE CRAP OUT OF AMERICA. WE CAN "DOUBLY NOT AFFORD" TO SOCIALIZE AMERICA AND CONTINUE TO BE POLICEMAN TO THE WORLD.

America does NOT "owe it to everybody who wants democracy to fight for it on their behalf and pay for it with Amrican lives and out of US taxpayers pockets"...
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QFT

The true mindfuck of it all is we are out pushing democracy on the world while socializing ourselves at home. Really...WTF?!?!
 
Jeez after reading this I think I will leave the US for the shit hits the fan and the dollar still has any value left.

But the point is correct. The US needs to find a additional USD$2Trillion for investment in our debt this year alone......the math is that it simply doesn't exist unless someone prints it......and that is what the FED is going to have to do......print ....print....print......
 
Missile defence costs a fraction of an invasion, it would be the best defense along with the promise of returning the favor of nukes. N. Kotrea can be handled and so can Chavez easily.

But that's beside the point, the $60T socialist overhang is the real killer. Without rolling back medical handouts, nothing else matters
 
About 50% of US federal tax dollars go to defense related expenditures. 50%!! And we spend more on defense than all G20 countries combined!

Now, why do we do that? For the reason that Eisenhower laid out in his farewell address. Eisenhower really wanted to call it a "Congressional Military Industrial Complex" but he didn't want to piss off the Congress. Congress is important as they hold the purse strings. Esienhower, a former general, saw the system of retired generals working for defense contractors with congressional connections firsthand. He guessed (rightly) where it would lead.

I will acknowledge that the defense budget indeed supports many middle class americans that work for defense contractors. I know many people in that industry. We like to say that we have a capitalist system - but let's look at reality - we spend 50% of our federal tax dollars to support the defense industry - it is a huge taxpayer subsidized industry - more so than any other country in the world.

As for our global military presence - it is not some altruistic purpose of "promoting democracy" or being the world's "policemen."

It is to maintain free markets for our goods and services, to maintain the flow of money, and to preserve our access to natural resources. It truly is or maybe was in our best interest.

However... this military presence used to serve the average american well between 1946-1970s when our economy was the world's lender and producer. With de-industrialization and outsourcing - that is no longer the case. The people that benefit the most now are the elites. And they call the shots.

The elites use words like "world's police," "indespensable nation" and "promote democracy" to give a loftier goal to our true ambitions. After all, if the elites were honest with the population about our global adventures - then soldiers would feel ripped off or worse, used. Imagine if we said we liberated Iraq for their OIL -if you were a soldier facing bankruptcy because you served abroad with a lower wage - and you also saw the former Exxon Mobile CEO and Chairman retire with 100s of millions of dollars - wouldn't you feel pissed off? Don't you deserve some of that windfall for putting your life on the line?

That's why we "liberate" countries.... to make sure there is no moral argument for the little people to have access to the spoils of war.

In ancient times warfare was more entrepeneurial. You fought, you looted, you kept a chunk of the loot - and went home the equivalent of a millionare. Not today. Today you fight for "ideals" and get paid accordingly - like a social worker.
 
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