Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: waverider who wrote (22113)	5/15/1998 5:00:00 PM
From: Broken_Clock	Read Replies (2) of 95453

OT I think this will be my last OT post on this subject. I enjoy the thread but I don't want to alienate anybody! Diamond & H....all you say is true....short term! The FED has most definitely added "liquidity" and it has found its way into debt. Debt has far outstripped any short term benefit. 5.5 trillion is still 5.5 trillion. IF we balanced the budget and IF we payed down the principle at the rate of 100 bil/yr it would take us 55 years to elinimate the national debt. We haven't addressed personal/corporate debt which I believe is equal or greater than the national(I could be wrong). Of course, we would first have to start by making at least the interest payment on the 5.5 trillion. We don't even do that! To put it in terms that I can understand: This would be like me saying I live on a balanced personal budget because my check book is balanced. Meanwhile I have to get one new credit card every month, get limit cash on it and pay the minimum interest payment on the other 58 credit cards I already have maxed out! But my check book is balanced. Har! It seems logical to me that one day the credit card companies will stop giving me cards. Likewise, as the nations that buy our treasury debt get further stretched, they will quit buying out debt and sell it back to us(Japan is doing this now). IF this becomes a more pronounced problem, what is the solution? I haven't heard of one so far, but I do know that at some point that debt will be called. just because we don't know how, when or where it willl happen doesn't mean it won't. I don't buy the argument that the rest of the world is "dependent" upon the US economy for survival. We just taught SE Asia how foolish that policy is! Furthermore, India & Pakistan just gave us the nuclear middle finger this week in case anybody was watching. I am not saying that we will be flushed down the toilet next week. I do think a little humility coming from the USA to the rest of the world might not be a bad thing. No matter what we think we know, they do have us by the short hairs, debt wise. But no, we carry on in our own selfish interests...and if Indonesia gets crushed(they are real people over there), well, we'll be there to buy up their companies for 2 cents on the dollar. It's just good business. Good old American know how.<<last 2 sentences were sarcasm>>

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