Posted on 08/03/2010 1:34:17 PM PDT by blam
Edited on 08/03/2010 1:45:15 PM PDT by Admin Moderator. [history]
Right now, one of the core questions perplexing markets is how U.S. treasury rates on long term debt can remain so low, even though the U.S. government continues to add more and more debt to the supply.
The simple answer is that right now, the demand for that debt continues to outpace supply, reducing interest rates.
(Excerpt) Read more at businessinsider.com ...
The problem with economists is that they forgot math. The deal in illusionism and magic just l;ike the great Houdini did. Except these idiots have actually figured out how to make wealth disappear.
Meanwhile the share of the economy devoted interest payment increases and the government will need to find fresh ways to tax, fee and take to make the payments. Individual liberty gets thrown under the bus. Eventually the breaking point comes. Then I suppose it’s either repudiate debt and go to war or let the whole system collapse. I’m guessing we’ll choose war.
Oh, the government knows how to make debt disappear. They will simply print a boat load of paper, call it money, and send it to their debtors.
You know, when I was very small, probably only about 4 years old, I realized that money was nothing but pieces of paper with some ink on it. I told my mother that I was going to get some paper and use my crayons to make some money so she could buy her some nice things. She tried at the time to explain that the inked pieces of paper that my daddy had in his pocket were different from the pieces of paper that I could draw. It didn’t really sink in at the time but I never became a counterfeiter.
After the government services its debt with 14 trillion pieces of paper, a four year old making “money” with blank paper and crayons will suddenly not seem so silly.
I think the latin term is recio ad absurdum. You can reduce most of these arguments to the laughable just by pushing them to te limits. If cash for clunkers is smart, why not destroy all used cars? If $826 Billion in TARP funds can stimulate the economy, why not a quadrillion? If two years unemployment insurance is great, why not fifty?
Just don’t make their little pea brains work.
Reagan proved deficits don’t matter.
recio ad absurdum = Reductio ad absurdum (Latin: “reduction to the absurd”) is a form of argument in which a proposition is disproven by following its implications logically to an absurd consequence.[
Is the Business Insider the Goldman-Sachs house organ.
Are we being sarcastic?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.