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To: strange1

***...and what’s scary is he’ll really try and do all of it, never once thinking about the cost.***

And Congress will likely bend over backwards to accommodate him. Predictions for the National Debt?


4 posted on 12/07/2008 10:00:32 AM PST by djsherin (The federal government:: Because someone has to f*** things up!)
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To: djsherin

I’ll go with about 50 quintillion (and that’s a conservative estimate).


5 posted on 12/07/2008 10:02:02 AM PST by GOP_Raider (Have you risen above your own public education today?)
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To: djsherin

“Predictions for the National Debt?”

They are predicting about $1.5 trillion so it will probably be even more once all the Congressional pigs line up at the money trough and start writing earmarks.

But there’s a catch.

The outstanding debt is already over $10 trillion. Now they expect to add $1.5 more? That means there will have to be buyers for all those Treasury Bonds out there. Once you dump that much money in bonds on the market the supply will overwhelm the buyer pool (China, Russia, Japan) such that the demand will go down.

What is the solution to a depressed demand for T-Bonds? The Fed has to jack up interest rates until someone wants to buy them again. In Jimmy Carter’s administration it went all the way up to 20% to get people interested in financing our debt again.

Anyone who lived through that can expect it to come around again. There is simply no way to finance that kind of debt without ramping up the interest rate.


34 posted on 12/07/2008 12:31:44 PM PST by webstersII
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