[MonteQuest]

Everything that still functions in the US now runs on government bail-outs and guarantees via deficit spending and monetization of the debt…just flat creating money out of thin air by printing it. Without this “stimulus,” all manner of the economy would come to a screeching halt.

So, as in Charles Dicken’s story, “please, sir; can I have some more?” I think government bail-outs and guarantees will be necessary forever…or until the boat sinks. Who would have thought we would ever see…Government Motors? 20 billion to date, and the hand is out for 30 billion more. We have bought into a perpetual Money Pit, not only with GM, but with all manner of what makes this country, and the world, for that matter, run.

99 trillion in unfunded entitlement programs, from Social Security and Medicare to VA pensions? Say what?

Our financial system now closely resembles the definition of a boat: a wood-lined hole in the water into which you pour money. (Boat owners will know what I mean)

If a person has $40,000 of income, and $500,000 in credit card debt - there is virtually no rational scenario in which their income will ever catch up with the debt. He goes bankrupt. The court says, “we judge that these debts can never be repaid.”

When the govt does this, it is called debt repudiation, or a unilateral disclaiming of a debt instrument obligation by a debtor.

We are going to do that, as there is no way in hell the US can pay off that amount of debt. And with all this printing of money, it looks like inflation of the money supply may well be the vehicle. And since, we have this “money pit” to justify it, it is easy to do.

And only an impossibly fast return to a very high GDP growth in the United States could ever prevent this.

[erl]

$this->bbcode_second_pass_quote('MonteQuest', '
')When the govt does this, it is called debt repudiation, or a unilateral disclaiming of a debt instrument obligation by a debtor.

We are going to do that, as there is no way in hell the US can pay off that amount of debt. And with all this printing of money, it looks like inflation of the money supply may well be the vehicle.

[Grautr]

$this->bbcode_second_pass_quote('erl', '')$this->bbcode_second_pass_quote('MonteQuest', 'W')hen the govt does this, it is called debt repudiation, or a unilateral disclaiming of a debt instrument obligation by a debtor. We are going to do that, as there is no way in hell the US can pay off that amount of debt. And with all this printing of money, it looks like inflation of the money supply may well be the vehicle.

[Caffeine]

$this->bbcode_second_pass_quote('Grautr', 'A')nd this will eventualy start WWIII

[joewp]

$this->bbcode_second_pass_quote('Caffeine', '')$this->bbcode_second_pass_quote('Grautr', 'A')nd this will eventualy start WWIII

[Tyler_JC]

Grautr,

Going to war with the United States would not make the US more inclined to pay back its creditors.

China has NOTHING to gain by declaring war on the USA.

[AgentR]

Something to think about, if we're talking China... Who do you think a Taiwanese businessman is likely to consider a more reliable and honest partner after such a default, the US or the PRC.

I got a a feeling his friends in Beijing are about to get a significant bump up, and his friends in Los Angeles are about to suffer a significant demotion.

Otherwise rephrased as.. how to get Taiwan to realize her interests are best served under the Aegis of the PRC, not the United States.

[seldom_seen]

$this->bbcode_second_pass_quote('MonteQuest', 'E')verything that still functions in the US now runs on government bail-outs and guarantees via deficit spending and monetization of the debt…just flat creating money out of thin air by printing it.

[MonteQuest]

Look for an FDIC bailout soon. They are about out of cash.

[yesplease]

$this->bbcode_second_pass_quote('MonteQuest', 'E')verything that still functions in the US now runs on government bail-outs and guarantees via deficit spending and monetization of the debt…just flat creating money out of thin air by printing it.

[Caffeine]

$this->bbcode_second_pass_quote('yesplease', 'I') doubt that. The stimulus was what, a trillion or so? US GDP is about 12-13 trillion IIRC. Where did the government hide the extra 10 +trillion?

[Quinny]

Good Luck Caffeine. You'll need it!

[bratticus]

$this->bbcode_second_pass_quote('MonteQuest', 'L')ook for an FDIC bailout soon. They are about out of cash.

[patience]

Looks like the FDIC could be next on the bailout list. Been waiting for that, as a signal of when to get out of cash and into hard assets entirely, minus some living expenses. Or, the short term US Treasury market going to hell in a handbasket. That would trip my trigger.

[MonteQuest]

$this->bbcode_second_pass_quote('yesplease', '')$this->bbcode_second_pass_quote('MonteQuest', 'E')verything that still functions in the US now runs on government bail-outs and guarantees via deficit spending and monetization of the debt…just flat creating money out of thin air by printing it.

[gnm]

$this->bbcode_second_pass_quote('MonteQuest', 'C')BO says the cost of the stimulus is $3.27 trillion over ten years. 10 trillion? Say what? Systems don't have to experience total capital shut downs to stop functioning.

$this->bbcode_second_pass_quote('', 'G')ood thing we have about 12-13 trillion/year in income, and about 4-5 trillion/year in debt over the next 7-8 years.

[yesplease]

$this->bbcode_second_pass_quote('MonteQuest', '')$this->bbcode_second_pass_quote('yesplease', '')$this->bbcode_second_pass_quote('MonteQuest', 'E')verything that still functions in the US now runs on government bail-outs and guarantees via deficit spending and monetization of the debt…just flat creating money out of thin air by printing it.

[MonteQuest]

So, all this monetization of the debt and debt guarantees is not meant to keep the financial system afloat and commerce functioning? LOL!

[MonteQuest]

Please, sir, can I have some more?"


$this->bbcode_second_pass_quote('', 'B')enefits, such as Social Security, food stamps, unemployment insurance and health care, accounted for 16.2% of personal income in the first quarter of 2009, the Bureau of Economic Analysis reports. That's the highest percentage since the government began compiling records in 1929. In all, government spending on benefits will top $2 trillion in 2009 — an average of $17,000 provided to each U.S. household, federal data show.

[odegaard]

$this->bbcode_second_pass_quote('MonteQuest', '')$this->bbcode_second_pass_quote('', 'B')enefits, such as Social Security, food stamps, unemployment insurance and health care, accounted for 16.2% of personal income...