No, America isn't broke -- yet (So far, markets are still eager to lend us money, cheap)

MSN Money ^ | 02/09/2012 | By Anthony Mirhaydari

[SeekAndFind]

Of all Super Bowl commercials, Chrysler's latest pro-America, Imported-from-Detroit pep talk may be getting the most attention. As you've no doubt seen by now, Clint Eastwood's steely gaze and growling baritone speak of a county knocked down but not out. A country that's hurting, scared and angry. A country that's lost its AAA credit rating. A country that needs to pull together to pick itself up.

The advertisers are trying to tap into the sense that all's not right in the economy. Something is fundamentally broken, and, until it's fixed, problems like chronic joblessness, bombed-out home prices and stagnant wages will continue. These are all problems I've been exploring over the past couple of years.

At the very top of the list, according to the polls, is the fiscal situation in this country. The total national debt stands at nearly $15.4 trillion, and the annual budget deficit is expected to total $1.1 trillion this year -- levels that as a percentage of the overall economy haven't been seen since World War II. Our deficit, relative to the size of our economy, is larger than that of any other major nation, including Greece and Portugal, according to estimates by the Organisation for Economic Co-operation and Development. Not good.

With tepid economic growth, dysfunctional bitterness in Washington and some big decisions looming on taxes and spending, the situation is likely to get worse, according to new estimates from the nonpartisan Congressional Budget Office.

But we're not broke. We have by far the biggest, richest economy in the world. And we enjoy some of the lowest borrowing costs in history.

The worry is that America will eventually face the same fate as Greece: Broke, unable to pay its bills and begging for mercy from its creditors.

[Psycho_Bunny]

So....If I spend my paycheck within three days of receiving it and go the rest of the month living off credit cards, I’m NOT broke?

OK, Anthony....whatever.

[bigdirty]

So America should be gleeful that it can continue to build up insane debt? One day I hope an angry mob puts these traitors to death for bankrupting America with this kind of thinking.

What kind of people are happy about being dependent on borrowing money? Disgusting!

[SeekAndFind]

RE: So....If I spend my paycheck within three days of receiving it and go the rest of the month living off credit cards, I’m NOT broke?

Not when the credit card companies are still willing to lend you money at 2% interest ( according to the author ).

[Buckeye McFrog]

I don’t think anyone who is trying to live off of credit cards would look at their 30%+ compound interest rates and think of it as “cheap money”.

[Freedom4US]

Here is why S&P downgraded the US credit rating.

• U.S. Tax revenue: $2,170,000,000,000

• Fed budget: $3,820,000,000,000

• New debt: $ 1,650,000,000,000

• National debt: $14,271,000,000,000

• Recent budget cut: $ 38,500,000,000

Now let’s remove 8 zeros and pretend it’s a household budget.

• Annual family income: $21,700

• Money the family spent: $38,200

• New debt on the credit card: $16,500

• Outstanding balance on the credit card: $142,710

• Total budget cuts: $385

[aMorePerfectUnion]

We have by far the biggest, richest economy in the world.”

Biggest, yes. Richest. No.

“And we enjoy some of the lowest borrowing costs in history. “

Sure. The Fed is manipulating the credit markets to prevent a meltdown. If rates went back up their historical levels,
interest on our debt would be +$1 trillion annually...

It isn’t a good scenario.

[JerseyHighlander]

This article is pure propaganda by a soulless bastard.

The Fed is buying 90% of 10 yr Treasuries, in effect monetizing the debt and preparing a scenario of sustained high inflation for the next decade.

money.msn.com is in the business of lying to the economically illiterate peon classes in the US and Anglophonic world. They are in effect the enemy of every freeper’s financial survival, and they do so with the zealotry of fanatics due to their corporate structure’s position as a semi-official mouthpiece of the wealthy cadres in the country and world.

They are on par with Iranian Revolutionary Guards’ websites FarsNews Agency and PressTV, or the Chechen Islamists mouthpieces at kavkazcenter.com