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

To: Elroy Jetson who wrote (104749)	9/1/2009 4:04:08 PM
From: GST	2 Recommendations Read Replies (1) \| Respond to of 110194

<the U.S. government does not have unmanageably high debt levels> The US cannot find anybody to finance the US current account deficit . To say that the US does not have an unmanageable debt level is pure hogwash -- there is no source of funds to service and expand the current account deficit. If you do not grasp this fact then you do not grasp the situation at all. BTW -- the debt you must look at is the current account deficit -- but you knew that already didn't you? Balancing the current account deficit is THE issue -- but you knew that already didn't you? We have only one choice now -- repudiate debt by printing money -- and that is exactly what we are doing by printing money. It is why China has warned us on the dollar as they will only stand pat with their holdings if we assure them that we will not repudiate our debt -- or at least that we will control the rate and extent of repudiation. And repudiation means inflation -- but you knew that already didn't you?

To: Elroy Jetson who wrote (104749)	9/2/2009 12:39:51 AM
From: Hawkmoon	3 Recommendations Read Replies (1) \| Respond to of 110194

There are politicians who have obsessed about government debt while ignoring the main problem in the consumer and business sector. I concur. IMO, the TRUE PROBLEM is unemployment. Unemployment creates debt default since you have to feed the family, and pay the mortgage, before you pay your credit card. And when you can't pay the mortgage you just hunker down until the Sheriff's department comes for the eviction. Now.. that said, the KIND of employment the government fosters is very important. It must go to maintaining infrastructure, but ALSO must be directed towards preparing the workforce to enter into technologies and industries that increase productivity. The government doesn't exist to support corporations. It exists for its citizens. Corporations don't vote, people do. So helping corporations is only for the purpose of helping the citizens/voters who work for them. So I don't see where giving the banks Billions for the purpose of parking that cash into T-Bills does a lot of good for the average J6P in this country. We will continue to have deflation in this country until either private debt has been written down/off, or people have jobs that enable them to pay these debts off. Of course, that assumes they are willing to continue to pay a mortgage on a house that's depreciated in value by 20-40%. Hawk