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I'd like for ONE PERSON in this thread - liberal or conservative - that can tell me that is in any way acceptable?
The solution is simply more debt. Take rates negative and keep the debt train chugging. Has worked brillantly so far. Only right-wing conspiracy theorist would crow otherwise. Record low rates, record high stock market, and America has never been better. Proud to be an American.
The solution is simply more debt. Take rates negative and keep the debt train chugging. Has worked brillantly so far. Only right-wing conspiracy theorist would crow otherwise. Record low rates, record high stock market, and America has never been better. Proud to be an American.
Do you like living on the edge of a cliff? Between September of 1929 and June of 1932 the DOW declined about $4,000 and it only started of at about $4,700: Dow Jones 100 Year Historical Chart | MacroTrends.
I am aware that we cannot compare the US 1929 market to todays. There have been many, many changes. But, even back in 1929, the liquidation of foreign debt was a contributing factor to the demise of the market. Today we make very few of our own products. If one of our major suppliers stops producing or call in their debt; we could be in trouble - we are not the captain of our own ship.
But what happens to us if we would have an economic meltdown? It could trigger wars; or it could trigger anarchy. We really don't know. But I would speculate that most people would not be content to sit back for a decade/s scraping by whatever means necessary - we are too spoiled.
I would much rather see us in a stronger position so we don't have these issues and that we could hold our heads up a little higher.
Do you like living on the edge of a cliff? Between September of 1929 and June of 1932 the DOW declined about $4,000 and it only started of at about $4,700: Dow Jones 100 Year Historical Chart | MacroTrends.
I am aware that we cannot compare the US 1929 market to todays. There have been many, many changes. But, even back in 1929, the liquidation of foreign debt was a contributing factor to the demise of the market. Today we make very few of our own products. If one of our major suppliers stops producing or call in their debt; we could be in trouble - we are not the captain of our own ship.
But what happens to us if we would have an economic meltdown? It could trigger wars; or it could trigger anarchy. We really don't know. But I would speculate that most people would not be content to sit back for a decade/s scraping by whatever means necessary - we are too spoiled.
First, why would a foreign supplier stop selling us goods they want to sell? So, I can't see your first "if" every happening.
Second, foreign holders of American debt do not have a right to "call in their debt." Treasury notes have a fixed expiration. One cannot demand payment before that date. What they can do is sell those notes and not buy more.
Obviously, terrible things would happen if a country like China stopped buying our notes, or worse yet, started to sell off those notes. Interest rates would soar and the U.S economy would plunge, right?
Well, don't tell anyone, but that's what's happening now. As China tries to prop up the yuan in the face of capital flight, it's selling lots of U.S. debt; so are other emerging markets. And the effect on U.S. interest rates so far has been zero.
Quote:
Originally Posted by fisheye
I would much rather see us in a stronger position so we don't have these issues and that we could hold our heads up a little higher.
The U.S. IS in a very strong position already. We have no trouble selling our debt to foreigners and other Americans at historically low interest rates. In other words, investors are so confident in the U.S. that they are willing to lend us money at nearly zero interest.
As much debt for ONE President, as 43 Presidents before him...
One to the temple comes to mind..... Use the 2nd Amendment for what it was originally intended.
Ok, so you blame Mr. Obama for this added debt. What actions did he take to make him culpable and what should he have done instead? Should he have cut unemployment benefits, Medicaid, and other assistance in the heart of the recession just when people needed it the most? Should he have urged Congress to raise taxes during the recession?
If you have no answer, it means you are playing a partisan blame-game.
A debt you never intend to pay off is not a debt but an investment. The rest of the world seems happy to continuing to invest in our economy so why are so many of us so worried about it?
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