Posted on 01/11/2010 7:13:07 PM PST by Lorianne
So, exactly when does a lot of debt for a country such as the U.S., Japan, the United Kingdom, Greece or Italy become too much debt?
The threshold is when government debt rises above 90% of national gross domestic product, economists Carmen Reinhart and Kenneth Rogoff argue in a paper headed for publication in the American Economic Review.
The U.S. finished 2009 with a debt-to-GDP ratio of 85%, according to the International Monetary Fund (IMF). On current trend, the U.S. will finish 2010 at 94% and 2011 at 98%.
(Excerpt) Read more at articles.moneycentral.msn.com ...
I believe we are past the tipping point.
We will just continue going through the motions until we can’t....
MSN??
Oh boy. Even the lib sites are starting to get an inkling that something wicked this way comes.
More accounting spin—we are way beyond the tipping point. 41 trillion conservatively, 1.4 quadrillion globally.
Monetization of debt and a new monetary system are coming—the global system is beyond bankrupt, the banksters are looking for the exits like a preacher in a whorehouse.
The Mother of all resets.
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What would this mean?
Then the good stuff follows. any "savings" that you have are reset to the new currency of say.... 100:1. so if you have 100,000 dollars you get 1000 of the new dollars. all money made before a certain date will be grand fathered in and must be turned in to "protect the public".
Finally, property that you think you own has taxes that must be paid.... in the new money but at the old rate.... so the government gets to have your property other than your homestead.... unless they want that for their friends and business associates.
neat, huh? Don't think it can happen. Do some digging my friend, it's gonna get scary.
See Zimbabwe, Argentinia, and the Weimar Republic, you can google images of wheelbarrows of banknotes, also, Afghanistan—debased currency, cancelled same and issued new notes.
1.4 quadrillion in global debt. You can’t get your mind around it really. Remember as a child playing “old maid”? Or musical chairs? Same thing. The banksters will know who has the old maid, know when the music stops, they will acquire real assets for pennies on the dollar. Wait until you see the 100.00 (formerly dollar) budget menu at McDonalds. Go back the next day and it is the 200.00 dollar menu.
You can see this graphed out on family expenditures as the Weimar Republic “monetized’ the debt owed to the victors at the end of WWI.
At the beginning of hyperinflation, people spent reasonable amounts of their available cash in typical fashion, less than 10% of income was spent for food. By the end of the collapse, 95% was spent on food, by then, no one was even pretending to make rent, mortgage or credit payments.
It is all there for you. Just go look and decide for your self.
A double-dip recession will grow those percentages even more. "Everybody" is forecasting 3-4% GDP growth over the next few years.
Let's not forget that tax revenues will not come close to expectations, adding further to the deficit. Of course, Little Lotta and her merry band of clueless economists haven't the foggiest notion of what's going on in the real world.
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