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: SilentZ who wrote (508725)	8/28/2009 4:45:17 PM
From: i-node	Respond to of 1577592

But that's assuming that the debt load needs to be reduced quickly. It doesn't. It can't get out of control, of course, but even if the projections that we're going to add on $7 trillion worth of new debt in the next 10 years are true, and don't think that's inevitable, we'll still have a debt/GDP load comparable to those that we've managed in the past, and we have a lot of international leverage. Inflation is not inevitable. It could happen, but I don't think it will as long as the countries holding our debt still think our debt is worth holding. This may be the most economically ignorant post I've seen here. Worse than RW's, if that is possible. Totally unsustainable, as interest expense alone will approach, then exceed, HALF of our total tax revenue. It is utterly insane for anyone to make a statement such as this remark by Z and he damned well ought to defend it or STFU.

To: SilentZ who wrote (508725)	8/28/2009 4:50:35 PM
From: Tenchusatsu	Read Replies (3) \| Respond to of 1577592

Z, > But that's assuming that the debt load needs to be reduced quickly. Whether it needs to be or not is irrelevant. It's going to be "reduced" one way or another, either via higher interest rates or inflation or a combination of the two. Weren't you concerned a while back when China decided not to peg the yuan to the dollar anymore? What changed since then? Obama? Tenchusatsu

To: SilentZ who wrote (508725)	8/28/2009 6:12:20 PM
From: tejek	Read Replies (1) \| Respond to of 1577592

>That's why I think inflation is inevitable. In the absence of other solutions, inflation will be the only way the debt load will be "reduced." But that's assuming that the debt load needs to be reduced quickly. It doesn't. It can't get out of control, of course, but even if the projections that we're going to add on $7 trillion worth of new debt in the next 10 years are true, and don't think that's inevitable, we'll still have a debt/GDP load comparable to those that we've managed in the past, and we have a lot of international leverage. Inflation is not inevitable. It could happen, but I don't think it will as long as the countries holding our debt still think our debt is worth holding. And its still a debt load smaller as a percentage of GDP than other industrialized countries. That doesn't make it okay but its certainly manageable until it can be reduced.