How long can the government borrow and spend 70% to 100% of it's GDP to fund welfare programs, though, especially if this downturn is protracted and faith is lost by creditors in the ability to pay back our debts in anything but depreciated dollars?
Great Depression vs. Great Recession
- Thread starter Kevmeister
- Start date
How long can the government borrow and spend 70% to 100% of it's GDP to fund welfare programs, though, especially if this downturn is protracted and faith is lost by creditors in the ability to pay back our debts in anything but depreciated dollars?
Ha! You should see the BLIZZARD of Enzyte and Extenze ads here...
We've got about a half-dozen MONSTER problems... that is, ones which are so important they dwarf all lesser ones.
This is one.
Most of the debt is still owned internally.
My country (Belgium) had a 150% debt to GDP ratio build up during the seventies and the eighties.
They managed to get it down to 80% a year or 2 ago.
It can be done.
As my former prime minister used to say.
As long as you can roll it over don't worry about it.
since we are no longer on the gold standard like we were during the great depression the government is not limited on how much money it can print. eventually the dollar will suffer but the government will consider that a necessary evil.
The government may deem it a 'necessary evil' to keep printing money so it can keep borrowing, but market forces will severely hamper its efforts, as this path will significantly raise its borrowing costs - i.e. the market will take into consideration the real rate of depreciation of the dollar and impose an interest rate surcharge to more than compensate for this depreciation - and the end result will be to deter further borrowing at what will ultimately be crushing costs of borrowing.
And if this doesn't achieve equilibrium, credit will simply be cut off.
And if this doesn't achieve equilibrium, credit will simply be cut off.
Quote from ByLoSellHi:
Unemployment inching closer (methodology for calculating unemployed has been modified significantly since 'Great Depression'):
http://www.shadowstats.com/alternate_data
According to that chart the rip roaring 90's had pretty damn high unemployment. Looks to be a non-factor.
With jobless recoveries becoming the normal thing we are heading for a time when a day's pay gets you only a day's food. It could happen slowly or quicker but it almost has to happen... A day's pay would have to drop from, say $200 to $10.. if workers fall behind by 10% a year due to productivity enhancements that would take 31 years. Throw in some inflation at another 10% and it only takes 16 years. If inflation is 20% it takes 11 years... and some are predicting much higher inflation than that...
Give it time. Did you see the Treas. markets today? The Spread is sick. If this continues, say hello to the abyss for the housing markets and stock market.
And another brilliant Idea from the Ass Clowns in DC>:
A VAT's Bottom Line
"What would it cost? Emanuel argues in his book that a 10 percent VAT would pay for every American not entitled to Medicare or Medicaid to enroll in a health plan with no deductibles and minimal copayments. In his 2008 book, "100 Million Unnecessary Returns," Yale law professor Michael J. Graetz estimates that a VAT of 10 to 14 percent would raise enough money to exempt families earning less than $100,000 -- about 90 percent of households -- from the income tax and would lower rates for everyone else"
Keep in mind, that before any "Depression" there was a slight rebound and positive growth. Then the real Major Ursa broke in...
We are only 7 to 8 months into the hell storm....we have had our Rally and oh look now!..... VAT tax talk, T bill spreads looking to get outa control..."Talk of growth next quarter"...Consumer Confidence at a 6 month high.
The writting is on the wall....you just have to read it.
The GREAT WORKS project is under way and keep in mind, FDR only pushed the country into a deeper Depression with his "COMMUNITY" ideas and Work Projects. FDR ran the country in to the ground and a war, that kicked up manufacturing saved us.
Guess what....we do not have the manufacturing base that we had back then......
"Save your money boys....save your money...there are a lot of sharks out there..." Cypress Hill's advice ....I'd take if I were you.
And another brilliant Idea from the Ass Clowns in DC>:
A VAT's Bottom Line
"What would it cost? Emanuel argues in his book that a 10 percent VAT would pay for every American not entitled to Medicare or Medicaid to enroll in a health plan with no deductibles and minimal copayments. In his 2008 book, "100 Million Unnecessary Returns," Yale law professor Michael J. Graetz estimates that a VAT of 10 to 14 percent would raise enough money to exempt families earning less than $100,000 -- about 90 percent of households -- from the income tax and would lower rates for everyone else"
Keep in mind, that before any "Depression" there was a slight rebound and positive growth. Then the real Major Ursa broke in...
We are only 7 to 8 months into the hell storm....we have had our Rally and oh look now!..... VAT tax talk, T bill spreads looking to get outa control..."Talk of growth next quarter"...Consumer Confidence at a 6 month high.
The writting is on the wall....you just have to read it.
The GREAT WORKS project is under way and keep in mind, FDR only pushed the country into a deeper Depression with his "COMMUNITY" ideas and Work Projects. FDR ran the country in to the ground and a war, that kicked up manufacturing saved us.
Guess what....we do not have the manufacturing base that we had back then......
"Save your money boys....save your money...there are a lot of sharks out there..." Cypress Hill's advice ....I'd take if I were you.