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Economy In Crisis
- Thread starter ktmexc20
- Start date
the debt ceiling has already been reached. There are all sorts of ways teh Treasury gets around it, suspended SLGS issuance already.
Foremost, the focus upon foreign ownership is a form of isolationism. It didn't work in the 1930's (Smoot-Hartley act) it won't work now.
The foreign aspect may be a symptom of "the problem" but it's not the root.
The US has a $7.4 trillion debt. Even IF both the budget and current account deficits were "cured", the compounding on the elapsed figure in time will become formidible if not insurmountable.
The US Dollar, since August 1971, has been backed by anything (other than the full credit and faith in the US government). Might as well be monoply money.
All in all, the biggest credit bubble in the history of mankind and helpled along by a demographic bulge. That bulge, as it both ages and lives longer, will cause addtional problems as they downsize housing, demand for medical care, and demand on the social security system
It's a wild card whether Petrodollars will cease (or severely diminish) with the advent of the Iranian bourse, but the Treasury has taken a pre-emptive step in ceasing to report M-3 (which includes your foreign component).
Besides, most of us have foreign anscestry (albeit generations before).
The foreign aspect may be a symptom of "the problem" but it's not the root.
The US has a $7.4 trillion debt. Even IF both the budget and current account deficits were "cured", the compounding on the elapsed figure in time will become formidible if not insurmountable.
The US Dollar, since August 1971, has been backed by anything (other than the full credit and faith in the US government). Might as well be monoply money.
All in all, the biggest credit bubble in the history of mankind and helpled along by a demographic bulge. That bulge, as it both ages and lives longer, will cause addtional problems as they downsize housing, demand for medical care, and demand on the social security system
It's a wild card whether Petrodollars will cease (or severely diminish) with the advent of the Iranian bourse, but the Treasury has taken a pre-emptive step in ceasing to report M-3 (which includes your foreign component).
Besides, most of us have foreign anscestry (albeit generations before).
The National Debt is $8.2 Trillion!
In Fiscal Year 2005, the U. S. Government spent $352 Billion of your money on interest payments* to the holders of the National Debt
http://www.federalbudget.com/
But that's obviously only half of the picture, when they own our companies and industries (and according to the original article it's a widespread phenomenon) they also get to keep the profits generated by those companies/industries which probably significantly exceed the interest on the national debt.
In the name of free trade we're giving away the store.