Posted on 03/08/2011 8:18:37 AM PST by Michel12
Debt, debt and more mounting debt is plaguing countries around the globe. In this U.S., states across the country face a collective $125 billion shortfall for fiscal 2012, while Congress is facing a budget gap nearly 10 times that size. PIMCO founder and co-CIO Bill Gross has previously said that if the United States were a corporation, no one in their right mind would lend us money. For the last decade, we’ve been “relying on the kindness of strangers” to help cover our debts, he tells Aaron in the accompanying clip. By “strangers” he is referring to our foreign counterparts, like China for example. Basically, for years Americans have spent their hard-earned dollars on less-expensive Chinese made goods. With great gratitude, China turned around and used all those dollars to buy up U.S. Treasuries and other dollar-denominated assets. But now after years of reckless spending, America’s debt level is nearing a breaking point and can no longer rely on foreign capital as a last resort. “When a country reaches a certain debt level, confidence in that country’s ability to repay that debt becomes jeopardized,” says Gross, citing the work of Ken Rogoff and Carmen Reinhart in This Time Is Different.
(Excerpt) Read more at finance.yahoo.com ...
more great news today.....not
The best and the brightest (democrat and republican) up in Washington have mismanaged the financial health of this nation for decades.
This is a national security issue and those responsible should be held to account.
Oh Obama’s new spending plan will get us out of debt,just ask him. /s
We the people have been royally screwed over.....
But I thought Michael Moore said we’re NOT in debt. I’m SOOOOOO confused!
Be prepared...
We can’t rely on foreign capital to finance our annual deficit for the simple reason that it’s just not there. At $400 billion, there was enough surplus capital abroad to buy the treasuries and “externalize” our debt. At $1.6 Trillion, it exceeds the world’s capitalization capacity (the money ain’t there). So we have to internalize and monetize the debt. In three to five years we will see Weimar-style turbo inflation in the U.S. economy. The signs are already there. Unless the government MASSIVELY slashes spending and we endure a bad, but recoverable, depression, the outcome will be an unrecoverable tailspin.
When the collapse does occur, I expect, and will demand:
1) trial and incarceration of ALL congress and senate critters who have voted throughout the years for increasing the dept.
2) adding these idiot people names to our list of “don’t let fly out of the country - so we can get our hands on them
3) they must forget ALL monies gained in their net worth - from the time they opted to become a felon (e.g., senator or congresscritter) and the present.
The public is just as stupid as they are easily manipulated by TV and the media. Some people here think it is a big joke that I point it out. They respond “oh Fox is our friend or I just watch TCM or ball games.” BS - you are still supporting the beast.
The big joke is when they see their standard of living drop dramatically and more and more freedoms are taken away. Old people will become too expensive for society. People will be robbed and beaten and the perps will claim social justice.
The Repubs suck especially RINOs like MCCain, Bushes, et al but the Dems are 10X more evil.
I'm not worried though. Congress is talking about cutting spending this year anywhere from 4 to 60 billion.
The public is just as stupid as they are easily manipulated by TV and the media. Some people here think it is a big joke that I point it out. They respond “oh Fox is our friend or I just watch TCM or ball games.” BS - you are still supporting the beast.
The big joke is when they see their standard of living drop dramatically and more and more freedoms are taken away. Old people will become too expensive for society. People will be robbed and beaten and the perps will claim social justice.
The Repubs suck especially RINOs like MCCain, Bushes, et al but the Dems are 10X more evil.
Yea, I hear ya.
Did ya catch the Jesse Jackson Jr. speach on capitol hill in regards to the constitution?
What a freakin idiot! If his comments were not so rediculous, it would be scary.....wait a minute, it is scary.
lol
I'll probably be OK until my ammo runs out.....
I agree... But now somebody will have to pay the piper...
When the collapse occurs all government pensioners WILL see their pensions reduced to subsistence levels, their luxury automobiles and vacation properties confiscated.
Living standards are naturally transitory. The violation perpetrated by the Leftists involves, of all things, hope:
Your Hope has been redistributed. Here’s your Change.
You’re an optimist. No sarcasm intended.
The spending cuts you mention need to be done and done NOW. No more pussy footing around. It’s beyond me that our government believes that we can continue to spend more than it brings in and all the while, give our borrowed money back to the nations we borrowed if from and pay interest on it. It is said that we give our tax money to 150 countries around the world. We can no longer, nor should we, support the world when the majority of these countries hate us. Nor should we defend them with our military without them paying for that defense.
The citizens create their standard of living and it’s government that destroys it.
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