U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-14-2013, 01:21 PM
 
Location: West Paris
10,263 posts, read 10,008,583 times
Reputation: 24401

Advertisements

How will be the bank accounts of people ??
Reply With Quote Quick reply to this message

 
Old 02-14-2013, 02:36 PM
 
904 posts, read 1,164,860 times
Reputation: 570


If you're asking wether gov can repay debt or not the answer is no. It ill keep increasing and from the looks of it, every country will still denominate everything in dollars for years to come so no biggy.

The lost generation is ****ed though. Right now every baby is born with 60K debt currently. Heck even fed admits they screwed the youth over...
Reply With Quote Quick reply to this message
 
Old 02-14-2013, 03:26 PM
 
Location: West Paris
10,263 posts, read 10,008,583 times
Reputation: 24401
Quote:
Originally Posted by MilksFavoriteCookie View Post


If you're asking wether gov can repay debt or not the answer is no. It ill keep increasing and from the looks of it, every country will still denominate everything in dollars for years to come so no biggy.

The lost generation is ****ed though. Right now every baby is born with 60K debt currently. Heck even fed admits they screwed the youth over...


People will pay it.Sad for the young generation
Reply With Quote Quick reply to this message
 
Old 02-15-2013, 06:41 PM
 
17,749 posts, read 15,029,293 times
Reputation: 6377
Quote:
Originally Posted by french paris View Post
People will pay it.Sad for the young generation


What is sad is you seem not to know what the US money supply is.
Reply With Quote Quick reply to this message
 
Old 02-16-2013, 02:41 AM
 
Location: Someplace Wonderful
5,170 posts, read 3,727,230 times
Reputation: 2546
Quote:
Originally Posted by gwynedd1 View Post
What is sad is you seem not to know what the US money supply is.
Perhaps you would be so kind as to illustrate your point by demonstrating money supply versus spare amounts to pay all that federal and state deficit out there.

California, for example, has some 600 billion in debt, even though our Uncle Jerry is doing the happy dance about his predicted 1 billion deficit this upcoming fiscal year. The federal debt is into the teens of trillions now, with no hope of any balance coming soon.

I cant help but be a pessimist. There is no hope. Look forward to collapse, followed by an era in which most of us are slaves to the rich and the powerful and the privileged. Welcome to the machine.
Reply With Quote Quick reply to this message
 
Old 02-16-2013, 11:35 AM
 
48,519 posts, read 81,030,761 times
Reputation: 17978
Actauly people i US are deleveraging and increasing savings.Even compnaies have huge amounts of cash. Companie ahve about cut the bottomline as much as possibler to keep profits up and FED has pretty much byt heir own admission run out of arrows. Now its ust a mter of poltical will to deleverage the governamnt. Some states are fine now but deleveragig the FED governamtn will meaqn alot more cuts in states.
Reply With Quote Quick reply to this message
 
Old 02-16-2013, 04:36 PM
 
Location: Someplace Wonderful
5,170 posts, read 3,727,230 times
Reputation: 2546
Quote:
Originally Posted by texdav View Post
Actauly people i US are deleveraging and increasing savings.Even compnaies have huge amounts of cash. Companie ahve about cut the bottomline as much as possibler to keep profits up and FED has pretty much byt heir own admission run out of arrows. Now its ust a mter of poltical will to deleverage the governamnt. Some states are fine now but deleveragig the FED governamtn will meaqn alot more cuts in states.
Not sure I understand. Are you willing to expand your points?
Reply With Quote Quick reply to this message
 
Old 02-16-2013, 07:01 PM
 
17,749 posts, read 15,029,293 times
Reputation: 6377
Quote:
Originally Posted by chuckmann View Post
Perhaps you would be so kind as to illustrate your point by demonstrating money supply versus spare amounts to pay all that federal and state deficit out there.

California, for example, has some 600 billion in debt, even though our Uncle Jerry is doing the happy dance about his predicted 1 billion deficit this upcoming fiscal year. The federal debt is into the teens of trillions now, with no hope of any balance coming soon.
California debt isn't monetized, and you would do well to know the difference. State budget shortfalls do not increase liquidity or add to the money supply. A state charted bank certainly could. Why is California in debt anyway? If they want to pay for it they can pay it with their own bank. Why pay an interest charge? If citizens are worried about over spending there are cheaper ways to stop the state from spending like voting no and changing tax policy designed to drive up real estate wealth while insulating them from taxes. The property tax freeze means home owners will always vote for amenities which drive up their home values while passing on the costs to everyone else.

The national debt is the money supply not California debt.

Quote:
I cant help but be a pessimist. There is no hope. Look forward to collapse, followed by an era in which most of us are slaves to the rich and the powerful and the privileged. Welcome to the machine.
You are an optimist. Why do people think of a collapse? It could grind on for decades or centuries and just decay.
Reply With Quote Quick reply to this message
 
Old 02-16-2013, 07:23 PM
 
17,749 posts, read 15,029,293 times
Reputation: 6377
Quote:
Originally Posted by chuckmann View Post
Not sure I understand. Are you willing to expand your points?
Most money is "borrowed" into existence. Coins are an exception. Its either Federal deficits or borrowing from banks(however when the Fed grows the money supply with purchases its phony debt because its kicked back to the Treasury). With lower employment labor cannot negotiate higher wages so business profits have created huge cash hoards. However without demand companies see no reason for capital spending. Its a liquidity trap and we have been in one for 5 years.

I don't think its deleveraging so much( which is only a few hundred billion in mortgages) but rather that to get to full employment it took 1 trillion a year in mortgage debt to do it, which is basically money pouring into the economy. Now its not here and mortgage debt is still deleveraging(paying it back). Lately other debt has been on the rise which is why the economy has "improved". However again, by debt. Trillion dollar deficits has stood in place to some extent to replace the massive mortgage debt, but it would take more like 2 trillion a year deficits, especially as the Fed keeps mopping up interest income and returning it to the Treasury.

FRB: G.19 Release-- Consumer Credit

If you see it turn negative for a few month a recession is assured , unless mortgage debt goes on a boom again which I very much doubt.

U.S. Mortgage Market 2000-2008: The Reason We're in Today's Economic Mess - Seeking Alpha

From 2000 to 2008 mortgage debt rose from $6.9 trillion to $14.6 trillion, an increase of 110%.

Think the economy did not become accustomed to a flow of funds that had that much debt creation along with college and consumer debt + war deficits?

Last year looks like it went down about 300 billion.

FRB: Mortgage Debt Outstanding, December 2012
Reply With Quote Quick reply to this message
 
Old 02-16-2013, 07:29 PM
 
Location: San Marcos, TX
2,572 posts, read 6,262,662 times
Reputation: 3999
Quote:
Originally Posted by texdav View Post
Actauly people i US are deleveraging and increasing savings.Even compnaies have huge amounts of cash. Companie ahve about cut the bottomline as much as possibler to keep profits up and FED has pretty much byt heir own admission run out of arrows. Now its ust a mter of poltical will to deleverage the governamnt. Some states are fine now but deleveragig the FED governamtn will meaqn alot more cuts in states.

What does this even mean???

Between this and the original post, I feel like I am in the Twilight Zone.

I think too many people are posting from their phones.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top