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

To: TimbaBear who wrote (85589)	8/27/2007 9:39:58 PM
From: Giordano Bruno	Respond to of 110194

Remind me not to post to you. -g-

To: TimbaBear who wrote (85589)	8/27/2007 10:00:07 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 110194

Sure, we can afford more debt so let's pump it out! Bush has been doing his part. All I was stating is that, based upon GDP, the US is not the worse violator when it comes to our governmental national debt. Japan, with its tremendous saving rate, has a national debt of something like 140% of its annual GDP. This indicates that high cash savings is not necessarily the answer. In fact, in Japan's case, they are caught in a liquidity trap, where fiscal stimulus is like pushing on a string. One other point I've made with regard to Japan (on John Pitera's thread) is that Japan's banking system DEPENDS upon foreign borrowers to sustain any growth in their banking system. The unraveling of the carry-trade over the past couple of weeks played havoc with their banking sector. The answer is investment in financial products that provide a greater ROI than mere savings accounts. Now I'm not saying we don't have high credit card indebtedness. But even that is skewed by the fact that many of us choose to make our monthly payments (utilities, insurance, and domestic consumables) on our credit cards. I do it because I quickly build up frequent flyer miles. But that also means that I have a higher than average credit balance each month (which I normally pay in full). How do the statistics on indebtedness factor people like me into their analysis? Hawk