What does the 'US is over and will have to print money' crowd has to say about this?

[Daal]

Go to the last page of this report
http://www.federalreserve.gov/releases/z1/Current/z1.pdf
It shows that US net worth(total assets less liabilities) is growing every year even with all the budge deficits, iraq war funding, government debt ballooning plus current account deficits(which is fueled by selling US assets to other countries).

Someone might say it doesn't count the $60 trillion of future liabilities for SS and medicare, of course thats true. But that's not going to be paid, at least not all of it.

Eventually the government will be forced to increase the retirement age, cut benefits and roll back the tax cuts(I bet its not going to be a democrat) the budge deficits will became huge so they will have no choice and will have a pretty good excuse for it

In the end a weaker USD and lower GDP growth will pay the bill but the US wont end and the gloom and doom crowd will be wrong again

 

[SiSePuede!]

Quote from Daal:



In the end a weaker USD and lower GDP growth will pay the bill but the US wont end and the gloom and doom crowd will be wrong again

First of all, you're linking to information from the government about how the US government won't fail.

Second of all, I think people think things will go downhill, not necessarily that one day the government will close.

Try not being a nutcase, trying to disprove points that no one else attempted to prove for instance, that's usually a good place to start when trying to make a point.

 

[Mvic]

My own solution to the risk of the standard of living dropping substantially in the US is to set up a high style life in a place where the standard of living is rising (Shanghai) while it is still cheap to do so. If things goes the way the doom and glooomers predict I will be set nicely in Shangahi if not then I will be able to live at least a 1/3 of the year quite happily in the US. Spain is my safety in case the US goes down the tubes and China implodes.

 

[daddyeaux]

daal

the summary of your link discusses debt more than equity....and the compounded debt numbers are significant.

net worth and net wealth are different in my way of looking at it...

whenever you see "seasonal adjustment" in a gov. document..beware

household debt is a measure of how we're doing over the long haul...and we're living off of a credit card

 

[thriftybob]

What are those assets worth when you try to sell them? As long as the money supply keeps increasing, the numbers get larger. Its when people can't or don't want to borrow more that there comes a problem.

 

[gnome]

Quote from thriftybob:

"... As long as the money supply keeps increasing, the numbers get larger...."

Eventually the "print money" extravagance is paid for with inflation and currency destruction. Everyone will be a millionaire/billionaire/gazillionaire... but it won't matter... The $USD will be almost like Monopoly money. It won't be completely worthless, but it will take a shit-load of it to buy anything, and nearly all of us will suffer a huge decline in standard of living.

 

[Comanche]

Don't forget an easy way to get rid of all this "printed money", a global equity meltdown. Money vanishing before your eyes, liquidity gone.

 

[dtan1e]

Quote from Daal:

Go to the last page of this report
http://www.federalreserve.gov/releases/z1/Current/z1.pdf
It shows that US net worth(total assets less liabilities) is growing every year even with all the budge deficits, iraq war funding, government debt ballooning plus current account deficits(which is fueled by selling US assets to other countries).

Someone might say it doesn't count the $60 trillion of future liabilities for SS and medicare, of course thats true. But that's not going to be paid, at least not all of it.

Eventually the government will be forced to increase the retirement age, cut benefits and roll back the tax cuts(I bet its not going to be a democrat) the budge deficits will became huge so they will have no choice and will have a pretty good excuse for it

In the end a weaker USD and lower GDP growth will pay the bill but the US wont end and the gloom and doom crowd will be wrong again

u sh try living off a credit card and justify to yourself that ur assets say a hse appreciates yr on yr and lets see how long u can survive without blowing up

 

[blackchip]

The Weimar Republic of America.

 

[Madison]

Quote from Daal:

In the end a weaker USD and lower GDP growth will pay the bill but the US wont end and the gloom and doom crowd will be wrong again

you should define "over" and "end" -

did japan "end" in 1990? did argentina "end" in 2001? turkey in 1997? did their populations suffer wealth destruction at the hands of government liars and thieves?

the source of the cited report renders any conclusions or projections it contains worthless