Do The Idiots in Washington Not Understand This Country Is F'ing Broke????

[FaninAma]

Hilliary and the Democrats prove that no matter how much money the GOP can spend they can spend more. Proposing a national health plan that by Clinton's own admission will cost $110 billion a year(you know it will cost 2 to 3 times that amount when it's all said and done) at the same time that Congress just raised the national debt ceiling to 9.1 trillion dollars(trillion with a "T") is just, plain and simply, financial suicide and insanity.
http://www.cnbc.com/id/20823958

$9,100,000,000,000.00 is what you, I and, more importantly, our children and grandchildren owe. There is no way the economy can withstand the relentless piling up of debt into infinity. At some point our kids will have to bear the horrendous price of our excesses. What a legacy we are leaving our kids to deal with.

I don't have the words to express the disgust I have for our "leaders" and the selfish, greedy voters who keep electing politicians who are willing to give away out children's future in order to get elected.

[yermom]

how can we be in trouble if we can borrow more money? :)

[rufnek05]

how can we be in trouble if we can borrow more money? :)


good thing china is on the rise.

[FaninAma]

good thing china is on the rise.

I don't think the Chinese will be in very good shape either. US consumers and taxpayers have been carrying the entire world on their back for 50 years. They are tapped out.

There are 2 possible scenarios:

1.Continued monetization of the debt and massive inflation.
2.Collapse of the debt structure and massive deflation.

Both scenarios hold dire consequences for economies of every country in the world.

[yermom]

I'm just one big freakin' ray of sunshine.

;)

[Mark_of_Tulsa]

How much do you think we can get for Texas?

[rufnek05]

$texas$

[OUinFLA]

Greenspan said in his interview last night that the "surplus" we had in the Cliinton administration was "not good" it was getting bigger than the govt could spend????

He completely lost me on that one, but, it seems the last two congresses proved him wrong.

Anyone care to help me understand his reasoning?

[FaninAma]

;)

Ain't it the truth? :D

But seriously, at some point in the near future the service on the national debt will be the biggest expenditure in the federal budget......either that or the country defaults leading to a depression that makes the Great Depression look like a little financial hiccup.

[Soonerus]

If you don't like what is happening...GO VOTE...it is astonishing how few Americans actually do what our troops fight so nobly to preserve...

[yermom]

vote for the Dims that want to give all the money away on healthcare or vote on the Pubz who want to waste it all fighting an unwinnable war... hmm.. decisions, decisions

i don't like the giant ****** OR the turd sandwich ;)

[FaninAma]

Greenspan said in his interview last night that the "surplus" we had in the Cliinton administration was "not good" it was getting bigger than the govt could spend????

He completely lost me on that one, but, it seems the last two congresses proved him wrong.

Anyone care to help me understand his reasoning?

Don't get me started on Greenspan. He's a f^cking idiot and one of the people most responsible for the current debt crisis and real estate bubble.
He and the Fed, along with encouragement of elected politicians, pumped trillions of dollars of credit and debt into our economy.

AFTER SPENDING HIS ENTIRE CAREER IN SOME CAPACITY DEALING WITH GOVERNMENT/PUBLIC ECONOMIC POLICY HE STILL DOESN'T UNDERSTAND THAT POLITICIANS WILL NEVER CUT BACK ON THEIR SPENDING.

[SicEmBaylor]

If you don't like what is happening...GO VOTE...it is astonishing how few Americans actually do what our troops fight so nobly to preserve...
For whom exactly? There's only one candidate running that I really truly trust with taxes/spending.

[Soonerus]

For whom exactly? There's only one candidate running that I really truly trust with taxes/spending.

Then run yourself and quit bitching about the caliber of the candidates...

(p.s. If you run we retain the right to bitch about the candidates)

[OUinFLA]

Don't get me started on Greenspan. He's a f^cking idiot and one of the people most responsible for the current debt crisis and real estate bubble.
He and the Fed, along with encouragement of elected politicians, pumped trillions of dollars of credit and debt into our economy.

AFTER SPENDING HIS ENTIRE CAREER IN SOME CAPACITY DEALING WITH GOVERNMENT/PUBLIC ECONOMIC POLICY HE STILL DOESN'T UNDERSTAND THAT POLITICIANS WILL NEVER CUT BACK ON THEIR SPENDING.

Ok................that didn't answer my question.:rolleyes:

[SicEmBaylor]

Then run yourself and quit bitching about the caliber of the candidates...

(p.s. If you run we retain the right to bitch about the candidates)
Trust me Rus, I do more than most.

[yermom]

you can't say ******???

[OUinFLA]

you can't say ******???


not since he made that stupid statement about us running up the score.

[Soonerus]

Trust me Rus, I do more than most.

Hey, trust me, I trust you....

[FaninAma]

Ok................that didn't answer my question.:rolleyes:

Greenspan's answer to every financial problem was to lower interest rates and create more artificial liquidity. This policy was directly responsible for creating, in order, the equity bubble, the real estate bubble and now the credit/debt bubble. He worked hand in hand with the government and greedy investment firms to flood our economy with debt and cheap credit to keep the US consumer spending way above his means. Now the bill is coming due.

Greenspan's policies are the reason the Fed and the economy are facing a choice between inflation, which is detrimetal to this country's economy and workers, or deflation which is even worse.

I have no clue why he would think a surplus was a bad thing. I would be interested in hearing his explanation.

BTW, I was wrong about the national debt ceiling. It was raised to 9.82 trillion....not 9.1 trillion. http://money.cnn.com/2007/09/12/news/economy/federal_debt_limit.ap/?postversion=2007091216

[Jerk]

Sometimes I think it best if the whole thing collapses and we start again from scratch. It's just that you'll have to survive some really tough times.

[Xstnlsooner]

I say it's time for a REVOLUTION! Throw the b*stards out and
start again! ANARCHY! ANARCHY!

[crawfish]

When will Americans realize that there is really only one party?

[yermom]

the $$$ Party?

[FaninAma]

The Fed announces their decision on rates this afternoon. If they announce anything less than a 50 basis point cut the market will tank. If they hold they are only putting off the inevitable.

The only way to avoid a deflationary cycle(debt contraction) is for the government, the Fed and the rest of the world's Central Banks to flood the world with even more liquidity and credit in hopes of spending our way out of a debt contraction.

If that happens we will see extremely high inflation. Anybody familiar with the history of the Weimar Republic?

This year, IMO, is a watershed year in terms of the US and the world coming to grips with poor economic decisions and spendthrift habits for the past 50 years. Nobody, not even the US government, can sustain economic growth and properity on the back of huge debt accumulation. It just doesn't work that way.

And remember, the US consumer has about 3 times the debt burden that the governement has (=27 trillion cumulatively).

[OUinFLA]

When will Americans realize that there is really only one party?


You do have my current address to send the invitation to, don't you?
I love a good party.
I'll bring oranges and lemons.

[Jeopardude]

The Fed announces their decision on rates this afternoon. If they announce anything less than a 50 basis point cut the market will tank. If they hold they are only putting off the inevitable.

The only way to avoid a deflationary cycle(debt contraction) is for the government, the Fed and the rest of the world's Central Banks to flood the world with even more liquidity and credit in hopes of spending our way out of a debt contraction.

If that happens we will see extremely high inflation. Anybody familiar with the history of the Weimar Republic?

This year, IMO, is a watershed year in terms of the US and the world coming to grips with poor economic decisions and spendthrift habits for the past 50 years. Nobody, not even the US government, can sustain economic growth and properity on the back of huge debt accumulation. It just doesn't work that way.

And remember, the US consumer has about 3 times the debt burden that the governement has (=27 trillion cumulatively).

If only the South had beaten Stalin Lincoln... Sigh

[FaninAma]

If only the South had beaten Stalin Lincoln... Sigh

I hope you didn't burn up too much of your cerebral wattage adding that little pearl to the discussion.

[Vaevictis]

I think a better question is whether they care that this country is broke.

From my point of view, I often don't see a lot of difference between politicians in Washington and the looters in New Orleans.

[Jeopardude]

I hope you didn't burn up too much of your cerebral wattage adding that little pearl to the discussion.

I burned a little more to find you this: http://youtube.com/watch?v=HTN6Du3MCgI

:texan:

[85Sooner]

So whats the answer and what is the profile of those who would be in good shape?

[Scott D]

When will Americans realize that there is really only one party?

THERE ARE GOOD AND BAD! THERE ARE NO SHADES OF GRAY! ;)

[FaninAma]

The Fed cut the PI rate by 50 basis points and the discount rate they charge banks by 50 basis points. The dollar immediately fell 0.34. US treasury bonds just became less valuable and desirable to own(meaning it will be even harder to finance our national debt.) I am, quite frankly, suprised the Fed was this aggressive. The data they acted on must be a bit pessimistic to say the least.

The stock market will do OK for the next few weeks. But commodities are where the real action will be because I fully expect the Fed to cut several more times before the end of the year and as the dollar sinks, commodities will rise. The 50 basis points was the most they could cut without causing massive pandomonium and fear in the markets.

[Chuck Bao]

There is just too much liquidity in the global system. This is a problem, although I'm not going to complain that Asian markets are going to go crazy today.

I've got to write something in the next hour before the market opens.

I think the lesson that we need to learn here is that the US Fed is not taking care of stability.

[yermom]

what the heck is a basis point?

[FaninAma]

what the heck is a basis point?

One basis point=0.01 percent, so 50 basis points=1/2 of a percent(ie 0.5%) in terms of the interest rate.

Chuck, I agree. The Asian markets are going to go crazy. I think the Asian and developing markets will have a higher and more sustained rate of return than the US domestic equity market. But inflation is rearing it's ugly head in Asia....especilly the Chinese economy.

Conversley, if the US consumer is tapped out it will really cool off the Asian economies since we(the US consumers) are the gasoline that has allowed the world markets to open the throttle all the way.

Slowing US consumption has worrisome consequences for the entire world.

[85Sooner]

One basis point=0.01 percent, so 50 basis points=1/2 of a percent(ie 0.5%) in terms of the interest rate.

Chuck, I agree. The Asian markets are going to go crazy. I think the Asian and developing markets will have a higher and more sustained rate of return than the US domestic equity market. But inflation is rearing it's ugly head in Asia....especilly the Chinese economy.

Conversley, if the US consumer is tapped out it will really cool off the Asian economies since we(the US consumers) are the gasoline that has allowed the world markets to open the throttle all the way.

Slowing US consumption has worrisome consequences for the entire world.


So what position would you want to be in reagarding home job savings etc...

[Chuck Bao]

So what position would you want to be in reagarding home job savings etc...

That's not going to happen. The large influential US companies are already multinationals. They don't give a flip about the American worker. They only care about collecting intellectual property rights - movies, music, medicine, tech, etc.

[FaninAma]

So what position would you want to be in reagarding home job savings etc...

Savings.....get out of debt as quickly as possible. Pay down your mortgage ahead of time and, for goodness sakes, if your in an ARM get the heck out of it at all costs...especially if the short term prime continues to fall because if we get increased inflation like I think we will the prime interest rate will have to go back up and will probably go higher than the present PI rate within 24 months.

Investments....commodities>foreign market>domestic market>bonds. I actually think the domestic market will bounce up for a few weeks and then head down againn as inflation becomes a concern. And don't believe that one interest rate cut has made the subprime mess disappear.

Foreign equity markets, especially in those countries who have positive account balances, will do well unless the US market/economy drags them down. Bonds will be OK until the interst rate has to go back up.

The critical factor will be how agressive will the FED be with future rate cuts. IMO, the subprime mess is still out there and hasn't gone away. American consumers are exhausted and if consumption is to continue, the FED will have to be extremely aggressive about pumping liquidity into the market for a long time which means inflation will be the overriding economic force which means commodities should outperform the domestic market.

I think any sector that involves the production, buying and selling of commodities, including mining, agriculture, and energy will do well and these sectors will have a lot of job growth. Healthcare will be another high growth sector as the US population ages. Conversely, the financial, real estate and retail sectors will not do as well in a high inflation environment.

There will be a lot of other factors that could come into play besides economic factors(political/miltiary/social).

The USD will continue to lose value and purchaing power so it is important to hedge against this.

Of course, these are only my opinions and should be taken as such. Any sound financial plan begans by getting and staying out of debt.

[FaninAma]

http://www.kitco.com/market/

USD falling throught the basement. What will the Fed and US government do to halt the fall?

Inflation is here, boys and girls.

[FaninAma]

DP.

[StoopTroup]

I've been to a $$$ Party a couple of times....

BTW...Amway is teh Debil.

[FaninAma]

I think a better question is whether they care that this country is broke.

From my point of view, I often don't see a lot of difference between politicians in Washington and the looters in New Orleans.

I missed this post at the time you posted it, but you are exactly right. The politicicans are looting our kids' futures by saddling them with debt that they and 10 generations can never hope to pay off.

I am glad the USD is falling to the level it is. I hope it falls further. When people are paying $10 for a loaf of bread maybe then they'll wake up and realize what the morons in DC have done to them and their children.

BTW, the Chinese and a lot of the other foreign holders of USDs and US treasuries are p*ssed. They are dumping dollars and bonds as fast as they can. The Fed and the government are in a no-win position. They are getting squeezed n a vise of gigantic proportions.