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Post by smackdown on Jul 19, 2011 8:35:15 GMT -5
"Maybe I'm missing something but it seems to me that even in the good years before the recession we were borrowing money just to get by. How is the govt going to be able to burn money when they have to borrow more or simply print it out of thin air just to get by?"
You didn't miss a thing. In fact, we still believe the GAO can manage accounting to FASB and GAAP but each generates a derivative component that is fire resistant. The more we print, the more escapes into the Black Hole of excuses for why BIG isn't paying what it needs to while having an exclusive portal to the fresh cash. We will NEVER see a deflation as long as we ignore the fact that we cannot add-up the equation. IF after August 2nd, there was a FLAT TAX MANDATE... the massive unemployed would be unaffected and the derivatives pocketed by BIG would be redirected to close the Black Hole and begin settling our obligations at a reasonable rate of speed.
Defaulting almost exclusively targets GREED and makes it bleed cash back into the economy. At first, it goes directly to debt note interest but as that becomes tedious, it goes to create jobs that generate incomes so the pain gets shared.
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The Virginian
Senior Member
"Formal education makes you a living, self education makes you a fortune."
Joined: Dec 20, 2010 18:05:58 GMT -5
Posts: 3,629
Today's Mood: Cautiously Optimistic
Location: Somewhere between Virginia & Florida !
Favorite Drink: Something Wet & Cold
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Post by The Virginian on Jul 21, 2011 9:43:58 GMT -5
Looks like the Hedge Funds are getting ready to rush in and buy Treasuries if everyone else starts to bail.
Money goes to the strong - The Weak - Just pay more Taxes! ;D
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Post by lifewasgood on Jul 21, 2011 14:53:06 GMT -5
The basic story is that the Fed has bought roughly $1.6 trillion in government bonds through its various quantitative easing programs over the last two and a half years. This money is part of the $14.3 trillion debt that is subject to the debt ceiling. However, the Fed is an agency of the government. Its assets are in fact assets of the government. Each year, the Fed refunds the interest earned on its assets in excess of the money needed to cover its operating expenses. Last year the Fed refunded almost $80 billion to the Treasury. In this sense, the bonds held by the Fed are literally money that the government owes to itself. www.tnr.com/article/politics/91224/ron-paul-debt-ceiling-federal-reserveOne can easily imagine that by raising the debt ceiling it provides room for more QE with the FED buying more bonds. No increase in Debt ceiling means the fed is just about out of ammo. If the ceiling is not raised, then we default and the big banks get hurt, which is why the ceiling will be increased. It is all about the banks not grandma and grandpa's SS check. |
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Post by lifewasgood on Jul 24, 2011 12:22:44 GMT -5
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Post by maui1 on Jul 25, 2011 7:44:39 GMT -5
playing the debt limit, seems to me, like someone betting on a group of people playing russian roulette.
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Post by maui1 on Jul 25, 2011 8:59:17 GMT -5
the debt ceiling not going up, is positive for the dollar, and negative for gold, long term.
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Post by lifewasgood on Jul 25, 2011 16:21:46 GMT -5
“As a result of this audit,we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world. This is a clear case of socialism for the rich and rugged,you’re-on-your-own individualism for everyone else.” Senator Bernie Sanders VT
The above quote was in reference to the Fed Audit which is linked on Decoy's restructuring post. With this unabated money supply, gold and silver are safe and going higher for quite sometime. I always knew we were bailing out the world, this is just proof positive!
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silverguy25
Junior Member
Joined: Dec 20, 2010 19:11:30 GMT -5
Posts: 165
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Post by silverguy25 on Jul 25, 2011 16:56:51 GMT -5
16 trillion is a crazy high number and everyone should be pissed on moral grounds, but at the same time I think it reflects the gravity of the situation the economy was pitted in. Without that money available it could have been bad, really bad. Course you could probably argue that the time will eventually come when stimulus and bailouts won't work any longer...
Until then, sleep well. The show is on for the rest of this week, and be sure to enjoy the circus as its carried over this weekend, with the clowns finally reaching a deal on Monday morning.
I'll bet anyone on this board 50 dollars to their favorite charity who would care to claim otherwise. The bet wouldnt be about the timeframe I laid out, that I'm just guessing on. Just that they will pass a deal by next Monday. Any takers?
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Post by lifewasgood on Jul 25, 2011 20:04:09 GMT -5
Silverguy25,
Mind numbing 16 Trillion! It shows just how ridiculous this debt discussion is, we have the leaders of our country discussion raising a debt limit by 2.4 Trillion and cutting spending by 4 Trillion and all the while the Fed in the background loaning out 16 Trillion. This is a clear example of how broken we are and why all these one worlders need to be rounded up and hung.
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Post by lifewasgood on Jul 25, 2011 20:04:42 GMT -5
O and I will bet with you and not against OK
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Post by maui1 on Jul 28, 2011 8:14:49 GMT -5
and cutting spending by 4 Trillion
no one is CUTTING spending. every proposal is CUTTING the GROWTH of spending..........BIG DIFFERENCE!
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Post by lifewasgood on Jul 28, 2011 8:21:49 GMT -5
Exactly and it does not solve the financial problems of this country. It does however make bankers richer.
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