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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Bilow who wrote (65694)	1/12/2003 10:17:37 PM
From: Oak Tree	Read Replies (1) \| Respond to of 281500

I guess I'm worried about the so called peaceful condition. If we end up in a three continent war, Afagan, Iraq and Korea, even if the wars are all soft, the US could be in disaster. Let me explain .... The national debt is currently 10-15% of every dollar we pay for taxes. If interest were to rise, and it could easily tripple compared to present levels, that would increase the national debt to 30 to 45% of every dollar. To still pay for current national needs that would require a 20 to 35% increase in taxes. Fed taxes would rocket to 50 to 70% of every dollar we make. Most every state is now at risk of default on its loans. NY was the first to "almost" bankrupt -- the feds did bail it out. NY is expecting a 10 billion dollar shortfall this year. If state taxes go up along with federal taxes that will bankrupt america. If we default that will sure help the world's economy. My accountant says to buy federal bonds. He doesn't even think that money markets are safe anymore -- unless they are so big that the fed's can afford to let them fail. State and municipalities rarely default but if they all run into trouble as they appear to be now, who knows what will happen. He even notes that people have lost money in banks that folded and the FDIC limit is unlikely to go up. He is telling me to make sure I use banks that are too big to fail (which one is that -- JP morgan chase). The good news -- the federal government can raise money by increasing taxes so we can rebuild Afganistan and Iraq. The feds can also print money -- another advantage.