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To those who support the stimulus plan, I have an honest question - I'm not sure if the president has said anything about this, but how are we going to pay the stimulus money (not only the 800 billion, but the trillions we are borrowing to bail out the banks) back to the nations that we are borrowing it from - China, Dubai, Saudi Arabia, etc?
That is the biggest concern in the financial market today. If you were the average Chinese investor with a few billion dollars, would you want to invest in US treasuries paying less than 1%? No! In order to fund this debt (including Bush's), rates will have to rise. At that point, all hell will break loose. Expect rising rates and inflation in the next few years. The guys in DC know this...they just don't want you to know they know. They are still trying to figure out how to keep Larry-Liar-Loan in his house without collapsing the market further.
That is the biggest concern in the financial market today. If you were the average Chinese investor with a few billion dollars, would you want to invest in US treasuries paying less than 1%? No! In order to fund this debt (including Bush's), rates will have to rise. At that point, all hell will break loose. Expect rising rates and inflation in the next few years. The guys in DC know this...they just don't want you to know they know. They are still trying to figure out how to keep Larry-Liar-Loan in his house without collapsing the market further.
Yeah, that's why I really am puzzled that no one in the media has asked this question. They can raise taxes on the rich all they want, and it won't make a dent in this debt. I am genuinely interested in the point of view on this issue from those that support the stimulus.
Investment returns (yes some of this and other bailouts is a direct investment with returns expected)
Future tax increases (though nothing world-changing as some would suggest)
Inflation (not horrible inflation, but not slight inflation either)
I am no expert by any stretch of the imagination, but that is how I see it. It's better than the alternative, however. Being someone with little cash savings and being someone who will be taking out a fixed mortgage soon - I cannot complain much about inflation as it could possibly help my type, as long as I have a job when it eventually hits. Feel bad for the baby-boomers though.
How are we going to pay the Civil War debt back? We haven't gotten around to doing that yet either. Meanwhile, the yields on US Treasury securities are currently as low as they are specifically because so many people want to hold them, including the Chinese. Don't forget that the US is China's customer of last resort. They make everything they can, then we buy everything that no one else does. China needs growth rates of 8-9% in order to continue adding to its middle class while keeping the lower classes from revolting. The very last thing they want is for the US economy to collapse. Without us and our ability to consume all their stuff, they are flat out sunk.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Quote:
Originally Posted by OhioNative
To those who support the stimulus plan, I have an honest question - I'm not sure if the president has said anything about this, but how are we going to pay the stimulus money (not only the 800 billion, but the trillions we are borrowing to bail out the banks) back to the nations that we are borrowing it from - China, Dubai, Saudi Arabia, etc?
Honest answer- we ain't gonna pay it back! What we will do is just keep trading old paper for new paper (treasuries) until inflation eats it most of the debt up.
But if the Chinese are stupid enough to keep buying worthless paper, we are smart enough to keep selling it to them.
Yeah, that's why I really am puzzled that no one in the media has asked this question. They can raise taxes on the rich all they want, and it won't make a dent in this debt. I am genuinely interested in the point of view on this issue from those that support the stimulus.
If the bush tax cuts cost $1.6 trillion through 2008 (which we borrowed money to pay for) ... isn't it reasonable to assume that repealing those taxes would generate a like number in tax revenue over a similar period ($200 billion / year is a big chunk)?
No we aren't gonna pay it back.America at some point will be like the homeowners who just said frack it,I'm not paying the mortgage anymore go ahead repo the house.
I wasn't kidding about Hawaii.Land we have,we don't have much else left.Our industry is long gone.We have food and land that's about it.We'll probably be selling the U.S.S Bush and U.S.S Obama aircraft carriers to the highest bidder at some point,if they aren't used in a world war first.
About the only thing I can think of that is still quality American made is guitars and amps,guns,music and movies and the music and movies are questionable sometimes...
When the masses decide it isn't worth going to work when the government takes 60 or 70% of their paycheck and there isn't the money to cover the healthcare,welfare,Social security and medicare and whatever else there is and people decide F it,I'm not working just to support those anymore well then all I can say by then I'll be like Snake Pliskin and just smoke a cig and take a sip of whisky and watch the world go dark.
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