Here we go again... pushing up the debt ceiling.

Quote from peilthetraveler:

I completely ignore it when they talk about "raising" the debt ceiling. Why do i ignore it? Because I know there is no debt ceiling. How can there be a debt ceiling when every time we reach it, they just raise it?
More...

Correctamundo! The "debt ceiling" BS is all about deception.. like, we're actually giving it some thought with intention of repaying.... Hahahahaha!

Our "debt ceiling" is nothing more than our print-money deception with a twist.
 
Quote from S2007S:

100% of GDP, now that is something to look forward too. Only way to keep the economy floating is to print as much as they can, of course this can only last so long before the system collapses.
More...

I think the Germans are probably going to be laughing at all of the Americans when they hear about this since it happened after World War 1 with the new government they had except on a much more smaller scale.

Ironically, the Germans are already out of the recession now.
 
Misthos,

You make some great points here.

As for your question about the end-game, this is what has made financial markets interesting in recent weeks, and what will make it interesting in the coming months and years.

As you suggested, it's just a case of watching which country / countries will be first to default or hyperinflate as a result of their debt burdens.

So far it seems that a rough order is:

Greece
Ireland
Portugal
Spain
Japan
UK
USA

Even though the USA is in trouble, (in the eyes of this observer) it will still take some years before we reach the end-game.

However while we wait we can watch the PIGS, Japan and UK and see how these countries work through their difficulties.


Quote from Misthos:

Good point. But you have to admit, approaching or breaching the GDP threshold is a milestone in itself.

I think it illustrates the inherent flaw of a fractional reserve/fiat model economy. (and no, I'm not suggesting a solution or supporting the abandonment of our current system here - that's another debate) What I am saying is that every subsequent dollar of debt creates a dimishing amount of gdp growth. Debt outpaces gdp growth, that's apparent if you look at debt to gdp for the past 30-40 years. This is obviously and clearly unsustainable.

So what's the end-game? Is there a plan? Do we wait it out for every other nation to default/hyperinflate first? Will the last man standing be the victor and dictate the next global monetary regime? Or is there no plan, that the current crisis is merely an uncontrollable runaway train... and we are merely both spectators and passengers watching a real-time slow-motion (for now) impending train wreck?

Friedmanites, Keynesians, Neo-classical economists, please explain to me how this is normal!
More...
 
Quote from Lethn:

I think the Germans are probably going to be laughing at all of the Americans when they hear about this since it happened after World War 1 with the new government they had except on a much more smaller scale.

Ironically, the Germans are already out of the recession now.
More...

The Germans didn't suffer the same as America.

They make "middle-class wages because they make high quality goods not commonly available elsewhere in the world".

America expected to make "middle class wages, manufacturing run-of-the-mill goods... and the Chindians usurped our place in the world labor force".

America has been hurt perhaps the worst of all developed countries. We had middle-class wages thanks mostly to (1) lack of competition, and (2) union extortion.... can't do that any more, so THERE WILL BE FEW/NO MIDDLE CLASS WAGE JOBS FOR AMERICAN HIGH SCHOOL DROP-OUT EMPLOYEE HOPEFULS...

We're still in denial, hoping this isn't true.. that the American economy will "get back on track"... NOT A SNOWBALL'S CHANCE IN HELL!!

We are forced to accept that the "new" American way of life includes the majority of people making near minimum wage, like it or not... and with PERMAENTLY AND STURCTURAL high unemployment rates!!
 
Quote from Scataphagos:


THERE WILL BE FEW/NO MIDDLE CLASS WAGE JOBS FOR AMERICAN HIGH SCHOOL DROP-OUT EMPLOYEE HOPEFULS...
More...

And so there shouldn't be...

Citizens (and that includes Americans too believe it or not) should not be entitled to "middle class wage jobs" (whatever those are). High school drop outs deserve minimum wage jobs. That's how it should be.
 
Every congressman except Ron Paul believes we can deficit spend our way out of this recession. It worked so wonderfully well for the Japanese, after all.
 
Quote from rew:

Every congressman except Ron Paul believes we can deficit spend our way out of this recession. It worked so wonderfully well for the Japanese, after all.
More...



Spending our way out of the recession is not going to happen, yes we might see a pick up here or there but true organic growth without intervention is not true any more. They are trying to create jobs with stimulus money, they are trying to forcefully create jobs by spending trillions of dollars, this is not how an economy works.
 
Quote from Scataphagos:

The Germans didn't suffer the same as America.

They make "middle-class wages because they make high quality goods not commonly available elsewhere in the world".

America expected to make "middle class wages, manufacturing run-of-the-mill goods... and the Chindians usurped our place in the world labor force".

America has been hurt perhaps the worst of all developed countries. We had middle-class wages thanks mostly to (1) lack of competition, and (2) union extortion.... can't do that any more, so THERE WILL BE FEW/NO MIDDLE CLASS WAGE JOBS FOR AMERICAN HIGH SCHOOL DROP-OUT EMPLOYEE HOPEFULS...

We're still in denial, hoping this isn't true.. that the American economy will "get back on track"... NOT A SNOWBALL'S CHANCE IN HELL!!

We are forced to accept that the "new" American way of life includes the majority of people making near minimum wage, like it or not... and with PERMAENTLY AND STURCTURAL high unemployment rates!!
More...

Lower standards of living: probably, i agree with you. But, when the babyboomers retire, expect a over-supply of jobs and a shortage of working age people.
 
You must log in or register to reply here.
Back
Top