Posted on 08/10/2011 7:27:20 AM PDT by PieterCasparzen
Turn on Fox Business if you have it.
They're all over the REAL situation, the $15 trillion U.S. debt - are we acknowledging that the principal will not be repaid ? Mark Steyn is ON and wants to know.
The Judge was on before.
IT IS FANTASTIC THIS MORNING...
don’t get fox business.
summarize please.
We just spent more.
This is news?
Translation : Gold is going to $10,000 an oz.
Wake me when they start seriously talking about the other $200 trillion or so we’re in the hole for unfunded entitlements.
My opinion is we don’t even deserve the AA+ rating. Any country that spends more than it takes in then continuously asks for more credit to continue spending more than it takes in should get a BBB rating or less.
Stey broached the subject of U.S. Treasuries seeing current save-haven status as a mirage of safe haven.
You saw it here on television for the first time.
The big dirty secret.
Where will the CASH ever come from the repay the principal - close to $15 trillion ??????
The government is losing well over $1 trillion annually. This is a classic ponzi scheme.
Steyn pointed out a specific year, I think 1768, where the French government was using 60% of their annual revenue just to service their debt - and, he said, you know how that worked out.
We’ve finally heard someone on television point out the nude emperor of U.S. Treasuries ! Perhaps a few, maybe a dozen, of those clueless people who just want to “get the guy from their party elected” will start to realize (light breaking through clouds, cue music) that the Federal government IS LIVING WEEK TO WEEK - IT HAS NO CASH OTHER THAN WHAT IT RECEIVES. And it needs 50% more than it receives, so it borrows that. With no intention of EVER paying back the principal !!!!!!!
Judge Napolitano previously very ably described how we certainly need a return to free markets and an end to government meddling in markets.
I can’t type fast enough I’m so amazed while I listen, sorry.
Perhaps the video will be on the internet soon, I hope so.
I’m no fan of Judge Napolitano as a business analyst
but if you don’t get FBN, you can watch Cavuto videos here
Cavuto one of the last “take no prisoners” host on FBN
Of course, my amazement is that NO other channel will permit this question to be raised - talk of U.S. default on Treasuries is strictly forbidden to be spoken of.
Or perhaps - NO ON on television anywhere in America happened to have thought of the possibility.
See, TV in America still controls the minds of countless rubes - and those are the ones who keep Dems in office.
The trouble with our media is that they refuse to do their job and have become a propaganda arm of the Democrat/islam/communist/revolutionary/bigbusiness/environmentalism cabal.
I’m just hoping more folks give Fox Business a try - it’s good a laugh - as long as they continue to at least a TEENY bit do their job of maybe questioning something here and there, like the $15 trillion the Federal government owes but in no way can ever repay.
I’m not used to hearing ANYTHING on TV but painfully obvious distraction and propaganda.
Of course it won’t be paid.
You don’t just write a check for 15 trillion.
Oh yeah, and court ruled unconstitutional Obamacare is about 2 years away...
Should be fun.
thanks.
i get and watch cavuto.
i like napolitano. he’s better than bill o’reilly and his herd of moo cows.
a conservative president who relied on americna and canadian drilling for oil, gas, and shale; and
cut off oil imports,
meanwhile whittled down some entitlements,
would have a chance at it.
Thanks FRiend
The Federal government lives literally month to month - just like someone buried in credit card debt.
Someone who takes home $3,000 per month and has credit card debts of $40,000.
They pay the minimum payment and have diddly left over.
The only differnce between that and the Federal government, of course, is that the Federal government is borrowing another $1,000 every month, adding to their debt.
There is no bank account with a bunch of cash reserves. The Federal government literally has no supply of cash to see them through ANY halt in revenue OR borrowing.
We are entering a phase of pure money printing and headed towards imminent complete collapse.
The gig will be up when a tipping point is reached - when those who own Treasury debt start selling it.
I think within a few months we will see this start. Once it starts, Treasuries are shot. When other governments demand payment and will not buy new debt to roll it over, the U.S. dollar is shot, the U.S. government will lose all credibility and be unable to pay it’s bills.
Hopefully we can make it until the 2012 elections and a new President who outright promises extreme termination of Federal spending, i.e., almost a complete and permanent shutdown of Federal bureaucracy, could possibly allay the fears of the owners of U.S. Treasury debt.
Yeah, I wonder what OUR credit scores would be if we did that.
Dave Ramsey personified the U.S. govt. spending and debt as follows:
John and Jane Q. Public earn 57k annually
They spend 75K annually
They have 325K in credit card debt.
This has to stop and won’t be pretty for many years.
Now is the opportunity for the Fed to sell it’s huge holdings of Tbills for a profit.
Sort of a reverse QE.
I do find myself questioning our arrival at 2012 elections.
Somehow, I don’t see us getting there.
Hopefully, I’m totally wrong.
They can’t, it’s in the trillions.
The entire money supply is only about 9 or 10 trillion.
...and the rope should start making an appearance. Just how far back in history can the responsibility go? Then we have to factor in the American people, who were part of the problem and not acting like part of the solution. So perhaps before examples are make of those on the frontline, we better figure out a solution double quick, before we are all hanging onto what may be left after the debacle.
The counterpoint to the discussion is of course the stock market crashing again.
Currently:
Dow: 10,809.93 -429.84 -3.82%
Nasdaq: 2,405.04 -77.48 -3.12%
The Dow has given up all of yesterday’s gains.
It’s clear to me that we’re in the middle of Great Depression II, and the latest government created bear market rally is over. The Fed doesn’t have much room to maneuver now.
I watch Fox Business every morning after Imus is over. I love Stuart Varney’s show.
The safe-haven market is huge right now.
By selling their holdings now they could suck in wealth from the world.
of course it would keep up yields on new Tbills so there would be some cost to the government. And it may spook the bond market... but it would be nice if they had real wealth in their vaults when TSHTF instead of promises.
Ping Post 10
Steyn broached the subject of U.S. Treasuries seeing current save-haven status as a mirage of safe haven.
You saw it here on television for the first time.
The big dirty secret.
Where will the CASH ever come from the repay the principal - close to $15 trillion ??????
The government is losing well over $1 trillion annually. This is a classic ponzi scheme.
Steyn pointed out a specific year, I think 1768, where the French government was using 60% of their annual revenue just to service their debt - and, he said, you know how that worked out.
We’ve finally heard someone on television point out the nude emperor of U.S. Treasuries ! Perhaps a few, maybe a dozen, of those clueless people who just want to “get the guy from their party elected” will start to realize (light breaking through clouds, cue music) that the Federal government IS LIVING WEEK TO WEEK - IT HAS NO CASH OTHER THAN WHAT IT RECEIVES. And it needs 50% more than it receives, so it borrows that. With no intention of EVER paying back the principal !!!!!!!
Judge Napolitano previously very ably described how we certainly need a return to free markets and an end to government meddling in markets.
I can’t type fast enough I’m so amazed while I listen, sorry.
Perhaps the video will be on the internet soon, I hope so.
There never was anything resembling a "surplus" that we, normal people NOT in Washington, would recognize.
The so-called surplus was a "projection" and had the 10 year "plan" completed, there would have been a surplus. That's the problem. They keep floating these "10 year plans" but no congress can actually budget more than 2 years ahead. So these "projections" are really "wishes."
Sort of like how we see these budget cuts 6 or more years out, and everybody knows, especially these ba$tard congress-critters that propose them, that they will never be carried out!
I'm tired of them pissing down my back and telling me that it's raining!
Mark
Which is why I put the word “surplus” in “quotes.”
The current year surplus included applying Medicare and Social Security overpayments to the general fund. Were it not for this accounting sleight of hand, there wouldn’t have been a balanced budget in any Clintoon year.
The goal for the political elite is to continue until everything collapses, and just hope, it happens after they have left office.
The Judge’s economics are very sound.
And the government expert (Greenspan) replies to that common sense example with ‘but they can’t print money, we can!’
With the Fed keeping interest rates at zero, and the Government spending as if there is no tomorrow, we might not reach 2012.
It is rigged!
“...could possibly allay the fears of the owners of U.S. Treasury debt.”
Mostly, these ‘owners’ are the banksters doing this to us. It is time to shut down the Federal Reserve, stop paying the ‘debt’ and screw the evil bankster families who have done all this. Wake up, America...this is not America’s debt.
Video
Mark Steyn on Fox Business
http://video.foxbusiness.com/v/1102782391001/steyn-america-overinvested-in-delusions/
Many “owners” own series EE savings bonds. I recently bought one for a youngster’s first communion gift. So the family would perhaps have their eyes opened to what the beloved tax and spend (and borrow) politicians that many hold so near and dear have done to them. Like their favorite politicians.
Other “owners” are mutual funds.
Other “owners” are local banks where real people and small businesses keep their deposits.
Defaulting on Treasuries will cause extreme pain to ALL Americans as well as people all over the world.
I would not be surprised at all if defaulting on Treasuries caused wars.
There is something called the rule of law.
That’s what conservatives are “for”, the rule of law.
When one borrows, one must repay.
For a government to renege is for politicians to be guilty of malfeasance, misappropriation of funds and probably a host of other crimes.
There are around 8,000 U.S. banks that are shareholders of the Fed. The Fed is not the “boogie-man”, it has just become an enabler of government overspending, hence, too politicized. The original intent was for it to be apolitical, a worthy goal, and for banks to all share in the responsibility of banks not failing; that is why nationally chartered banks must be shareholders.
One could make the argument that the Federal government could renege on Treasuries the Fed owns, however, the Fed shares owned by banks would then all become worth less, since the Fed would take an enormous write-down of it’s assets.
I haven’t run the numbers, but that might well be devastating to thousands of banks.
Simply put, when we allowed Congresscritters to spend, we were putting a noose around our own necks as citizens.
That is why I advocate a Constitutional Amendment that goes cold turkey off of government deficits by prohibiting any borrowing by Congress at all unless in time of declared War. And such War bonds must be Constitutionallly required to be paid back before ANY increase in government expenditure.
Congress can not be trusted to borrow one cent.
If the Treasury dept, i.e., the WH, and the Fed decide to allow inflation to accelerate once it starts kicking in, they will cause enormous pain to millions of low-income Americans (that they profess to want to help).
IMHO, and that’s worth approximately 2 cents, unfortunately.
bttt
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