Our Financial State of America

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I don't think any of the founders ever promoted unlimited debt. It's not the fact that we have debt that I have a problem with- it's the sheer size of the debt. Cut it by a factor of 10 and I won't even think about it.

The fact is the day is coming when we simply won't have the resources to meet our promises in Social Security and Medicare. The sooner we act, the more smoothly we can fix the problem. If we wait too long, we're going to incur a lot of pain.
 
It's just mind-blowing how they have allowed this to happen. Maybe it would not have been this bad if it was not for all the deregulating they did in the last couple decades.
 
Banjo said:
It's just mind-blowing how they have allowed this to happen. Maybe it would not have been this bad if it was not for all the deregulating they did in the last couple decades.
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Yup. One reason behind it: Greed.
 
planetdoodle said:
Simple cut taxes
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You mean cut "bush-era 2% wealthiest" taxes???? Sure go for it.

It's not mathematically impossible once you factor that in. There was an art Ike somewhere that frames this point well.... Brbhttp://www.washingtonpost.com/wp-dyn/content/article/2011/01/26/AR2011012602971.html
 
posts from hell said:
Just curious - what does everyone think of the quote by Hu saying that the dollar base is a product of the past..
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Hmmm, China is making all the right moves financially so maybe he feels confident the yuan is the coming world currency.
 
Beowulf said:
Hmmm, China is making all the right moves financially so maybe he feels confident the yuan is the coming world currency.
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Even the Canadian Dollar is doing better than the US Dollar these days. That's a big deal considering the fact that we were trading at just below 62 cents CAD to $1 USD back in 2002.
 
Banjo said:
Even the Canadian Dollar is doing better than the US Dollar these days. That's a big deal considering the fact that we were trading at just below 62 cents CAD to $1 USD back in 2002.
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Does Canada have good gold reserves? Hint: China and Russia has been buying tons of the stuff over the years.
 
Beowulf said:
Hmmm, China is making all the right moves financially so maybe he feels confident the yuan is the coming world currency.
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Yeah.

But now I don't understand why the yuan is intentionally weakened? Or at least that is what our government is saying. If it was weakened - our dollar can buy more of their yuan... :confused:
 
$14 trillion in national debt to pay off with interest takes at least few generations with real careful budgeting is within possible. But in reality it is just too impossible to pay it off so it's no point of return already, I believe (though it would be nice to be wrong).

Even making it far worse that the USA does not own the Federal Reserve!

Our government is indeed walking on very thin line going with expensive Obamacare thus military, Social Security, and Medicare bills along. We should not be surprised someday, may God prohibits, that USA economy could crash. Blame it on too much overspending, too much greed by big businesses, and too many foreclosures & too deep credit card debts altogether. And the burden is carried upon our grandchildren and theirs ahead.
 
Beowulf said:
Does Canada have good gold reserves? Hint: China and Russia has been buying tons of the stuff over the years.
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TORONTO - Gold was quoted at C$1,327 bid (US$1,335) and C$1,328 asked (US$1,336) in mid-morning trading Thursday at Travelex Canada Ltd., a major gold and foreign exchange dealer.
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Toronto gold quoted at C$1,327 bid, C$1,328 asked in mid-morning trading - Winnipeg Free Press

World official gold holding (December 2010)

Ranking - 79th
Gold (Tonnes) - 3.4
Gold's share of national forex reserves - 0.2%
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Gold reserve - Wikipedia, the free encyclopedia

I have heard that we are sitting on at least $300 billion worth of freshly mined gold in Canada. I don't know if there is any truth to it. :hmm:
 
posts from hell said:
Yeah.

But now I don't understand why the yuan is intentionally weakened? Or at least that is what our government is saying. If it was weakened - our dollar can buy more of their yuan... :confused:
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We're just whining because China's exports are far cheaper than ours. *shrug*
 
Banjo said:
It's just mind-blowing how they have allowed this to happen. Maybe it would not have been this bad if it was not for all the deregulating they did in the last couple decades.
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**nodding** Consequences of past actions.
 
Banjo said:
Even the Canadian Dollar is doing better than the US Dollar these days. That's a big deal considering the fact that we were trading at just below 62 cents CAD to $1 USD back in 2002.
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Actually, this is true for the first time in my memory.
 
jillio said:
Actually, this is true for the first time in my memory.
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Not the first time, it has happened several times throughout the years. It happened before during the 50s and the 70s and over the last few years.
 
alex.jpg
 
posts from hell said:
Yeah.

But now I don't understand why the yuan is intentionally weakened? Or at least that is what our government is saying. If it was weakened - our dollar can buy more of their yuan... :confused:
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Right....and that is the point of intentionally weakening.....They hold our debt If the dollar becomes less valuable....the debt becomes less valuable.

No doubt they are doing it IMO.... In part to keep us from printing more money. If they are not careful they may create their own economic bubble.
 
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