Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Sunny Jim who wrote (44865)	11/6/2005 2:45:26 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

I can assure you there are no unbooked assets to handle those unfunded liabilities, and the debt market will not allow them to be financed with anything short of the worst "developing third world" interest rates. That is an assumption on your part (other than assets not there a fact not in dispute here). Anyway here are you assumptions: 1) That SS is not scrapped 2) The Medicare etc is not scrapped 3) That costs keep spiraling up 4) That debt market will not allow them to be financed with anything short of the worst "developing third world" interest rates So far #4 has proven hopelessly incorrect. Look at Japan. Federal debt at 250% of GDP and interest rates close to 0%. Central banks can do all sorts of things that consumers can not do. Consumer debt right now anyway is a far bigger problem now than theoretical problems 20 years down the road. Perhaps 20 years down the road we see mammoth hyperinflation. Right now consumer debt is deflationary. Mish