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Old 08-10-2010, 10:39 PM
 
Location: Orlando, FL
12,256 posts, read 16,216,266 times
Reputation: 6610

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Quote:
Originally Posted by Donna7 View Post
It's not getting tough at all to understand that an ounce of prevention is worth a pound of cure. It makes no difference if Obama or McCain had won the general election, we were in a deep pile of doo doo based on the decisions made in the Bush Administration. More cuts to the rich, more exporting of American jobs, more de-regulation of banks, more gravy train terms for credit companies, more control by private insurance companies, more everything for Corporate America - period. Of course, the quagmire of a war we're in was the final straw that broke the camel's back; that and the massive bail-out tells us that Americans are paying for the ultra-rich and the ultra-rich and greedy war mongers.
We were headed down this road before Bush. Washington was bought and paid for a loooooong time ago; we're just now seeing the price tag.
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Old 08-11-2010, 08:51 PM
 
1,532 posts, read 1,422,654 times
Reputation: 383
Quote:
Originally Posted by sanrene View Post
I wonder if the poster realizes those unfunded liabilities have morphed into tens of TRILLIONS of dollars.

Sad part is I do realize it is trillions of dollars, roughly 220 trillion, Congress just keeps it off the books by calling it loans and other names so the GAO will not count the total mess.

from the Market Ticker

And yes, this sort of recognition will result in a major economic contraction. I've opined on this before - we are running a debt level some 60% above sustainable levels, and GDP 40% above. Both must correct to sustainable levels, and the pain that this will bring to our society will be sizable. Every "Big Bank" - all of them - are in fact insolvent, as all are relying on perpetual growth in the debt ponzi that cannot, mathematically, occur. The depositors can be protected but nobody else can be, including the pension funds that own their paper. The over-levered must be forced through resolution - bankruptcy - with the equity holders wiped out and the debt holders converted to equity. Yes, this too will hit pension funds and individuals. Prices must fall generally, especially in housing but also in all other asset classes, to the point where asset valuations reflect forward cash flows without the promise of an indefinite-forward growth rate that cannot occur. This is not deflation per-se, it is reversal of the ponzi-based inflation that resulted from the fraudulent schemes foisted upon our society by the political and bankster classes.
(Incidentally, if we don't cut this crap out right now the correction will be worse than 40%. Thus far, from the above graph, it's 9.7% + 11.6% + 12.35% - compounded, or 37.67%, and that's just the distortions from the last three years. The longer we let this go on the worse it will be - there is no way around the mathematics of this.)
Markets eventually suss out the truth. The heroin high of credit expansion always feels real good at the time you take up the new credit, but the compound annualized growth rate of DEBT in the system, not including the off-balance-sheet Federal programs, has been 8.78% since 1953!
In the same time the compound growth rate of GDP has been 6.81%.
This is the definition of a Ponzi Scheme - the premise that one can growth GDP forever (and business plans are made and predicated on that) but also that credit can grow faster than GDP forever.
Neither of those premises is true, and having run this scam for sixty years we've now found the end of the rope - and it's 20 stories up from street level.
For more than three years I have been banging this drum. It is delightful to finally read these facts in a mainstream media publication, but at the same time rather sad that it took this long.
Buckle up folks.

The Market Ticker
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Old 08-12-2010, 12:09 AM
 
Location: Eastern Missouri
3,046 posts, read 5,239,349 times
Reputation: 1386
Quote:
Originally Posted by Donna7 View Post
It's not getting tough at all to understand that an ounce of prevention is worth a pound of cure. It makes no difference if Obama or McCain had won the general election, we were in a deep pile of doo doo based on the decisions made in the Bush Administration. More cuts to the rich, more exporting of American jobs, more de-regulation of banks, more gravy train terms for credit companies, more control by private insurance companies, more everything for Corporate America - period. Of course, the quagmire of a war we're in was the final straw that broke the camel's back; that and the massive bail-out tells us that Americans are paying for the ultra-rich and the ultra-rich and greedy war mongers.

If we are going to get out of this mess, first thing is knockoff the class warfare. The simple facts are we all pay WAY too much in taxes. Look at brazil, dropped their business taxes i think it was 7 or 8 years ago, and now they have the fastest growing standard of living and fastest growing economy in the world. So the class warfare has to quit!! It is just a tool to keep us divided and not get a solution that works to get out of this mess. The exporting of our jobs started all the way back under LBJ with the "Maquiladora" plan with mexico. Under Clinton, more factories left the USA than all other Presidents combined. Not something I like, but it is fact. His deals with mexico, india, and the entire Pacific Rim was sending over 4000 big employer factories away every year he was President. As for the balanced budget he likes to take credit for, it was only because the republican congress at the time would not allow him to do otherwise. If only they had kept that up under Bush. As for the moron in the whitehouse now, his policies has spent more already than ALL previous Presidents combined! He needs to go, and so does the looney Congress we have now. We need all new members of Congress. I am in the if they are in now, vote for who isn't. We change them every election the next 6-8 election cycles, we will get people who will listen to the people, get the job done right or know we will get rid of them. That still isn't a fear current congress members have, unfornately.
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