I’ve heard rumors that China doesn’t want any more US debt and certainly not 900 Billion or a Trillion more. Other countries that are big holders of our debt probably aren’t in any better shape than we are…so that leaves the rich oil countries.
So either we borrow a trillion dollars from people that for the most part already have us over a barrel, literally or we figure this out without a stimulus package.
What happens if we can’t get funding at all? Does the US end as many of our politicians claim? Or do we go on living like the 1994’ish “Government shut down” that was supposed to destroy our lives?
I’ve heard rumors that China doesn’t want any more US debt and certainly not 900 Billion or a Trillion more. Other countries that are big holders of our debt probably aren’t in any better shape than we are…so that leaves the rich oil countries.
So either we borrow a trillion dollars from people that for the most part already have us over a barrel, literally or we figure this out with a stimulus package.
What happens if we can’t get funding at all? Does the US end as many of our politicians claim? Or do we go on living like the 1994’ish “Government shut down” that was supposed to destroy our lives?
~Matt
Don’t worry. We are going to do what we did so successfully here in CA. We will borrow against future revenue. Yes, that’s the ticket.
We will borrow against future revenue. Yes, that’s the ticket.
Uhhh…isn’t all borrowing against future revenue? Otherwise it’s not “Borrowing” it’s “Being gifted”
The reason China doesn’t want any more US debt because they know we aren’t good for it. We are trying to buy a 400K house on a 50K salary and it will take a 100 year loan in order for us to afford the payments. China doesn’t like the terms especially since they are hurting as well.
I’ll give you a hint: While it is true that the government cannot create wealth, it can create money.
I thought about that but I’m hoping beyond hope that the people running this country won’t do that. Seriously the impact of 1 trillion dollars of “Funny Money” on the long term economy would be catostrophic. We’d be looking at the Carter years all over again.
If people thought that a “tight credit” market was tough, try 15% interest rates.
Face it we are screwed. Obama has told us this is no the time to think too much. People , states and businesses who have shown no ability to handle money will get more which they will loose and ask for more. The Republicans and Democrats will both lie and say that they are against the other guy and they want a real solution when in fact they will pass anything.
We should just stop this package and let what happens happen.
I’ll give you a hint: While it is true that the government cannot create wealth, it can create money.
Not that I disagree, but here’s another one. While it is true that the Government has the Constitutional authority to be in charge of the monetary system; we’ve “outsourced” that priviledge to a quasi-private entity with the name “Federal Reserve System”. Not Federal, no Reserves, and the only part of the system that is working is the part where that Cartel enriches itself by creating money out of thin air and charging the Country and Americans Interest on that inflationarly money that the Government could have created on its own without the added interest fee.
If people thought that a “tight credit” market was tough, try 15% interest rates.
Completely agree with you. They can’t raise interest rates much since today much more is affected by interest rates. Credit Cards, variable mortgages, student loans, etc. It would literally kill the economy. It wouldn’t affect us much had people all locked long term rates,e.g. 30 year fixed, fixed CC rates, etc.
Given that they are very well aware of that, what can they do once China et al. start dumping the USD? I don’t think it’s a matter of if but when. They can raise rates at that point but it wouldn’t help much since it would cause other problems. That’s why I was surprised that the Fed lowered rates around 5%. It was a clear signal to me that long term they don’t care about the currency. Lowering rates certainly allowed RE to collapse “slowly” but it still collapses. And I know this sounds conspiracy BUT a failure of the monetary system would open up possibilities for them to create a new one by either creating a union-currency similar to the Euro or through other changes.
It’s commonly referred to as “quasi-private,” but in reality it is a branch of the government (along with the other so-called “private” USPS, Freddie Mac, etc.). After all, its chairman and Board of Governors are appointed by the President and confirmed by the Senate. The chairman reports regularly to Congress and works hand-in-hand with the Treasury Department.
In all honesty this is enough to make a grown man cry. This is so out of whack…I can’t believe we have gotten to this point. The “shit” hasn’t even hit the fan, but we are using all our ammunition.
If people thought that a “tight credit” market was tough, try 15% interest rates.
I was at university in the mid eighties in NZ when we had rampant inflation and mortgage rates in the 20%+ range. I can remember being able to put $100 into a 3 month saving plan at an interest rate of 20.5%
But with good government (from both parties, when the government got voted out, the new government continued the reforms) NZ got back on track.
So yes, tried it, it was survivable, but I wouldn’t recommend it.
Porkasaurus bill just got passed. Fire up them printing presses!!!