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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Nadine Carroll who wrote (307691)	5/30/2009 8:59:07 AM
From: alanrs	4 Recommendations Read Replies (1) \| Respond to of 793800

"Americans won't adjust to it, Tobias." I used to think that. I don't any more. The senior secured bond holders of both Chrysler and General Motors have adjusted. Anybody who buys a GM or Chrysler product going forward will be ratifying this behavior, no matter how good a deal or product. A great cry of "Oh well, what can I do? At least I got a bargain." will rise up from the land. Just you wait, Henry Higgins, just you wait. ARS Edit: When the iron curtain fell and Russian immigrants started showing up here I was very curious having read a lot of great Russian literature. Would they exhibit some depth of soul or insight into the human condition as a result of their ordeal? Some special flame that they had kept alive to survive all those years? Nope. Who I met instead were good shoppers with bad teeth.

To: Nadine Carroll who wrote (307691)	5/30/2009 9:52:12 AM
From: Tobias Ekman	2 Recommendations Read Replies (1) \| Respond to of 793800

The thing is, that with the high taxes comes enormous payouts. I would guess that at least 60% of the population in the scandinavian countries rely on government payouts. They vote accordingly. The system is forever in place.

To: Nadine Carroll who wrote (307691)	5/30/2009 10:32:11 AM
From: rich evans	Respond to of 793800

Check out the gdp per capita and the annual growth of gdp for the last 20 years in Denmark vs the US. You pay for the adjustments in lower growth. Yes that is the key. If the Gov sells its bonds to the public and not the FED then debt is not monetized but money withdrawn from the private sector where it could be invested efficiently causing growth. Instead it goes to the public sector which is much less efficient or a simple transfer payment and you get no growth. We need to grow the pie to pay for future gov spending especially in SS, Medicare and medicaid. To do so the private investment must be greater. We have been lucky to a certain extent so far as foreigners have invested or loaned us money to make up for our poor savings allowing us to grown. These foreign investment/loans will continue but to a much lesser extent(1/3). The gov taking all this money on Lindy's graph means we will stagnate not grow. Rich