[some_guy282]

Uh, that was a joke. You were supposed to laugh.

[Colorado-Valley]

The current estimate is a minus $330 billion. But the government has chosen not to count the Iraq war, which will probably add another $130 billion.

Hey, it's only money!

[Daculling]

Ya lets not discount the oil we sit on now...

[Kingcoal]

It's all fiat money anyway. Unfortunately oil, which is real money, keeps going up and up!

[frankthetank]

Yup...and those poor bastards that own all that debt are seeing their dollars buying less and less of that black stuff.

[hull3551]

$this->bbcode_second_pass_quote('frankthetank', 'Y')up...and those poor bastards that own all that debt are seeing their dollars buying less and less of that black stuff.

[Falconoffury]

Will the USA ever balance its budget again? Will the USA spiral into ultimate destruction based on a forever unbalanced budget?

[the_sword]

Yes the budget will be balanced, directly after an Argentina style currency meltdown of the US dollar, a forced IMF policy, and sale of 1/2 of the US Infrastructure( read: city water companies, interstate hwys, national forest mineral rights, etc etc etc).

[mmasters]

May be balanced under a new economic system to replace the current one 10-30 years out (after this one goes to hell).

Wasn't on the list so I chose the "what are you smoking" option

[paoniapbud]

Why am I in this basket and where are we going?

[gego]

There are two ways government can take purchasing power from you. One is tax, and the other is by inflating the money supply with new loans to government, which makes money worth less than it was and gives the government purchasing power.

Government taxes to the extent that they can do so and still remain in power, but this does not give them enough purchasing power. Their needs are greater than taxes would allow because they need the funds to not only provide the minor ligitimate functions of government, but the also need the funds to keep the voting populus voting for them, i.e., they need to buy votes with largesse.

The accumulated debt and the expected level of government spending cannot be paid, so eventually they will default on both debts and the other promises they make like social security. This probably will put an end to those in power, but the general public is so conditioned to government running life that they will just accept the bankruptcy of the present government and institute an new government that will begin the scam afresh, sort of like the USSR failing and breaking up followed by new governments like Russia.

Overlay this all with the chaos of economic activity disintegrating and life becomming unsustainable by many and the failure of the government may not be perceived as so significant after all.

[paoniapbud]

$this->bbcode_second_pass_quote('gego', 'T')here are two ways government can take purchasing power from you. One is tax, and the other is by inflating the money supply with new loans to government, which makes money worth less than it was and gives the government purchasing power.

[NordicHero]

$this->bbcode_second_pass_quote('the_sword', 'Y')es the budget will be balanced, directly after an Argentina style currency meltdown of the US dollar, a forced IMF policy, and sale of 1/2 of the US Infrastructure( read: city water companies, interstate hwys, national forest mineral rights, etc etc etc).

[rwwff]

$this->bbcode_second_pass_quote('NordicHero', '')$this->bbcode_second_pass_quote('the_sword', 'Y')es the budget will be balanced, directly after an Argentina style currency meltdown of the US dollar, a forced IMF policy, and sale of 1/2 of the US Infrastructure( read: city water companies, interstate hwys, national forest mineral rights, etc etc etc).

[rwwff]

NB... Maybe we could sell Yellowstone and Yosemite as amusement parks ??

[gego]

$this->bbcode_second_pass_quote('paoniapbud', '
')

You are right that issuing bonds does increase the government's purchasing power. However, inflation is a consequence of the macroeconomy. Inflation does decrease purchasing power but only to the extent that real wages and interest rates do not keep up. Through the years our wages have, more or less, kept up with the rate of inflation. Otherwise we would still be making a dollar a day and paying the prices we currently do. The government doesn't "control" the real value of money. In fact, the Federal Reserve has increased interest rates to stave off inflation.

Sorry to be nit-picky but we gotta get this stuff straight!

[MrBill]

$this->bbcode_second_pass_quote('gego', '
')



Let me make sure I am looking into your thoughts correctly. You get a raise at work; on your way home a stick-up artist stops you at gunpoint and you hand over 1/2 of the raise you just got; he takes it and runs; he spends what he has taken from you so you admit that he has an increase in purchasing power. Your logic is that you did not have a decrease in purchasing power, because you just got a raise.

Now you say the government does not control the real value of money, so I suppose you do not hold them accountable at all for the fact that money today only buys a nickel's worth compared to money a century ago.

It looks to me that your logic is a little fuzzy; maybe those university economics courses really do have an effect after all.

[paoniapbud]

$this->bbcode_second_pass_quote('gego', 'I')t looks to me that your logic is a little fuzzy; maybe those university economics courses really do have an effect after all.