U.S. Debt Actually $200 Trillion?
- Thread starter bearice
- Start date
I guess you're referring to Oprah and other fatties. Sorry, but you're wrong.
You could tax every dollar of everyone in CA who makes over $250K and its pension and handout systems would still bankrupt it sooner or later. You may even end up taxing the upper echelon of CA's double-dipping gov't employees (take their money then give it back to them in pensions...with a huge cut taken out to run all the admin. Only in the land of fruits and nuts.)
I'm right about everything. Greece is a tick on a fleas ass. It doesn't matter if China and America step in and multilaterally bailout the Greeks. They're inconsequential. Nobody can bail out France, UK, Spain, America or Japan. They're too big. Jacking taxes does nothing to solve the problem. Awarding a larger piece of the pie to Government means consumption gets a much smaller piece than before ! This is basic stuff. Tax more, and consumption goes in the toilet.
The way things are going, I'd say it's pretty much guaranteed America will not restructure or repudiate it's debt. Instead, they'll monetize.
china is only doing it rhetorically, especially their premier before every time the shanghai index drops he will come out and remind the world that they gov't spending so & so on investment, he did the same thing like 10 times in a yr but its always the same very old overly mentioned amount
With world over capacity to produce the autos, fridges, TVs etc then the competition on price and quality is going to get even fiercer, with the losers going bust. Govt handouts only put off the days of reckoning. Companies ( industries ) must get used to the idea that wages and other costs need to drastically go down before its too late imho.
The annual pay rise and perks, pensions etc. need to be cut quickly. No more feather bedding by the unions or overpaid management.
GOTTA get a grip guys
Have the US politicians, Govt employees etc. taken a 10% per year pay cut yet, until there is some hope of survival ?
If they haven't then it is safe to assume they haven't understood the gravity of the problem and aren't serious !!
The annual pay rise and perks, pensions etc. need to be cut quickly. No more feather bedding by the unions or overpaid management.
GOTTA get a grip guys
Have the US politicians, Govt employees etc. taken a 10% per year pay cut yet, until there is some hope of survival ?
If they haven't then it is safe to assume they haven't understood the gravity of the problem and aren't serious !!
Yup. Jaw boning. Not much else.
I agree with all that.
Problem is, a wage/price deflation prolongs the recession by another 5+ years. Without a commensurate offset in deficit spending (increased) over the same period, the global economy will lose ground, and could eventually fall into a Depressionary spiral. And I'm fine with that. That's what we need to clean the system.
Unfortunately, the bankers, industrialists, politicians and the voting public will vigorously oppose any tightening of credit because it means certain death to their bailout lifestyle. This recession is more than an economic problem. It's a political one that gestated from a cultural one. Generations of bailout queens and Special Interests addicted to taxpayer smack . Nobody wants to see the gravy train end because most peeps are dependent on it. Which is why, imo, the US won't attempt to repudiate or restructure. They'll just get voted out when Americans get pinched.
The FED's job through all this is to act as an INDEPENDENT adjudicator of tough financial medicine. And look they're doing. Same shit. Everything points to monetization. Hence gold.
What is to stop U.S. banks and their customers from creating $1 trillion, $10 trillion or even $50 trillion on their computer keyboards to buy up all the bonds and stocks in the world.
http://www.alternet.org/news/148481...st_of_the_world_will_fight_back_/?page=entire