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

To: Tommaso who wrote (71499)	10/9/2006 1:28:53 PM
From: kris b	Read Replies (1) \| Respond to of 110194

"Much of this debt will probably end up being inflated away" It might or it might not. The jury is still out.

To: Tommaso who wrote (71499)	10/9/2006 3:40:07 PM
From: John Vosilla	Respond to of 110194

'To say this is not to say that financial disasters will not occur. But to say that we will have a repetition of the 1930s is not convincing. What has now happened is that the U. S. government (and Bush is fully responsible for this) is maxing out its credit by borrowing from China, Japan, and many others to pay for what is going on in Iraq and Afghanistan. We are not, and perhaps could not, pay for this by raising taxes. I don't know if anyone has calculated how much income taxes would have to be raised to do so. My guess is, by at least 40%. Instead, the U. S. Treasury has sold bonds to foreigners. Much of this debt will probably end up being inflated away. The dollar may in that case lose half its purchasing power. Gasoline prices will go to $6.00 a gallon and all sorts of things will cost more. We will pay for our bad government by becoming poorer as a nation.' Very nice. I would never have believed anyone could take us to this current situation in only five years. Amazing few on any side of this argument even talk about it. It's like the lowest long term rates in 50 years are now normal. Last time I checked if you can't pay your bills the creditor RAISES your interest rate..