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To: ChanceIs who wrote (240919)	3/15/2010 8:50:23 AM
From: bentway	Read Replies (1) \| Respond to of 306849

You're clearly an extreme right wingnut. Citing the AEI! It's nothing but an ideologically-driven right wing prop shop.

To: ChanceIs who wrote (240919)	3/15/2010 10:49:55 AM
From: James Hutton	Respond to of 306849

"I have Rogoff and Reinhart's somewhat new book "This Time Iss Different" on my wish list. That would be wish I had the time to read it. I have it in my cart at Amazon" I read it. Recommend it if you have the time.

To: ChanceIs who wrote (240919)	3/15/2010 12:37:16 PM
From: ChanceIs	Read Replies (1) \| Respond to of 306849

Denninger corroboration of my previous post - at least the numbers: Social Security: "Here It Comes"..... Because we continually call the debt-to-GDP ratio as $12.57 trillion to ~$14 trillion "right", or 89.8%, while ignoring the claimed amounts of the Social Security and Medicare promises. But unless you're going to tell Granny that she's not going to get her check (or her health care), along with the 80 million boomers (all of who will instantly vote out anyone who tries to tamper with those programs, whether the money exists or not!) those "promises" are real. So what's the real debt-to-GDP ratio of the federal government? About 500%, if one assumes the forward liabilities are on the low end of CBO and private estimates, or $60 trillion. This makes the total "debt" $72 trillion dollars and the ratio 514%! No nation has ever managed to pull that off past the point of recognition of these costs. The reason is simple - interest costs. Compute the damage that, say, 5% interest imposes on $72 trillion and you blanch immediately (that's $3.6 trillion by the way, or more than our entire federal budget!) We get away with not paying that by sleight-of-hand, effectively playing "Option ARM" and adding to the principal. But all Option ARMs have a recast point. We're just not sure where this one is. and.... Good luck to the politician who reneges on that debt, said Barbara Kennelly, a former Democratic congresswoman from Connecticut who is now president of the National Committee to Preserve Social Security and Medicare. ''Those bonds are protected by the full faith and credit of the United States of America,'' Kennelly said. ''They're as solid as what we owe China and Japan.'' To which Denninger added: China and Japan aren't going to get paid either. market-ticker.denninger.net My sense is that Denninger is very smart. He is slightly rabid. I find him amusing. He has stooped to many a sexual parody (for example - not not have been exact) - Barney Frank blowing Lloyd Blankfein, or perhaps the other way around. I know I shouldn't approve of his derisiveness, but honesty precludes me from that stance.