How's Paulson going to get 700 billion ?

L

luckybastard

I can't find it anywhere. Everybody knows the US has only debts. Now, Paulson is going to spend 700 billion (total US debt is about 10 trillion right now, so that's an increase of 7 % of the total us debt).

Ok, so where is he going to get it ? Is China going to finance it ? Or are they just going to print it ? In that case they're probably hoping inflation will be high so the 7% will be 'gone' within a year ?
 
They are going to issue plenty of US government Bonds.

They may increase taxes.

No matter how they get it, one thing is certain: the American tax payers will finance all this.
 
<cite>How's Paulson going to get 700 billion ?</cite><p>The old fashioned way, paper and ink and functionally operating printing press. You combat deflation with inflation. Have you ever seen the REAL pictures of post WWI Germany where there were actually wheelbarrows of pretty much WORTHLESS paper money?
 
Tax payers are going to get it up the assssssss! Their punishment for electing GWB and his henchmen twice.

Only other way is to have Chinese and Arabs buy upto 49% of the US corporations going under. Chinese and Arabs both have $1T each from exports and oil funds. Even little but oil rich country like Norway has $328B in National Funds which are parked outside of Norway.

The choice is between taking it up the assssss from the Fed or prefering Commie Chinese or Fanactic Arabs to do the probing.

US problem is it is obsessed with Russians. After 1991 even if defense budget was reduced by $50B a year by now it would have amounted to Easy $1T in Fed Savings. Not to forget extra $1T blown up in Iraq and still blowing by $10B a month.

Core of America is smart and hard working but US leadership is Idiotic and Republicans are outright TRAITORS!

And now the MOTHERFUCKKKKING anchors at the CNN are talking a trend towards more government regulation and ditching of the Reaganonomics.

Why not take lesson from Canada.......responsible fiscal and foreign policies..........all the while having free healthcare and nearly crime free societies.
 
TOC, I wouldn't be focus all fault on the Republicans. There is plent of fault for BOTH parties.

This has been decades in the making. Not 8 years.

I didn't hear the Democrats (or Republicans) clamoring to eliminate off balance sheet financing, eliminating extreme leverage, raising interest rates to market rates (rather than being set by th Federal Reserve), asking to make the CPI more accurate, classifying derritives as insurance (which they are), fixed FannieMae and FredieMac., not spend FDIC insurance monies, etc.

In fact, many polocies they voted for did the opposite. Now I am not Republican fan either, but realize that both parties F' us - just form different directions.
 
I found this interesting article:
http://www.nytimes.com/2008/09/21/business/21qanda.html?em

It says, indeed the taxpayer is going to cough it up. But how should I see that ? I guess the FED prints $700 billion, lends it to the government, the debt gets added to the total US debt and the taxpayer just now has to pay more interest yearly ? And ... they pay interest to the FED = banks, who all caused this mess in the first place ?

Anyway, this should lead to higher taxes, but Obama AND McCain are planning to cut taxes ? Or are they just planning to add the yearly interest to the total debt ? It's all pretty confusing at least :)
 
And I just found this movie:

http://nl.youtube.com/watch?v=EN-z2BOgymE

It says '... approving the bailout plan, pushing the US government's debt to more than 11 trillion dollars'.

So indeed, the 700 billion just gets added to the total debt. But then I do wonder, where does the additional interest come from ? I guess I already know the answer: they're indeed just going to add it to the total debt again :)
 
No one is buying US govt. debt.

The Fed is running a printing press ( like Zimbabwe ) and hoping weakness in other economies result in purchasing of USD.

The interest paid is going to the private banking entities that own the US Federal Reserve Bank.

The best mafia scheme in world history.

Print money from thin air and get the dumb tax payer to repay the fed along with the interest. The owners of these private banks must be worth Trillions. Where do they park all that money?
 
Quote from Rickb:

TOC, I wouldn't be focus all fault on the Republicans. There is plent of fault for BOTH parties.

This has been decades in the making. Not 8 years.
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Either way, it's high time for Bush and his cronies (eg. McCain) to get the fuck out of Washington.
 
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