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.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (316190)	12/18/2006 10:45:32 AM
From: RetiredNow	Read Replies (1) \| Respond to of 1573242

Debt is a bad thing when there are no appreciating assets behind it. I have enough money to pay off my mortgage, but I continue to hold a house debt, because it is financially beneficial to me to hold the money in the market rather than pay it off. I have no other debt. All my cars are paid off and I never cary credit card debt. Contrast this with our gov't. They spend more every year than they bring in in tax revenues. To finance it, they issue gov't bonds. There are no assets behind that. Or yes, longnshort, there are public lands they could sell off, but that is our legacy, not something they should feel free to mortgage. Then in addition to running a deficit in relation to tax revenues, our gov't also spends the total amount of incoming social security funds. You might think that as they rack up Social Security debt to all of us, they'd save the incoming social security taxes to fund that obligation. But they don't. The social security trust fund is only backed by the full faith and credit of the US (http://en.wikipedia.org/wiki/Social_Security_Trust_Fund). But if the US gov't continue to spend beyond it's means and other countries, most notably China, continue to fund our profligate spending, then eventually the US full faith and credit won't be worth a hill of beans. Do you want evidence that the US credit factory is worth less and less every day? Look at the value of the dollar. It has been sliding since the day Bush took office and it shows no signs of recovering. The dollar has lost value against the Euro every year since 2000 (http://en.wikipedia.org/wiki/United_States_dollar).