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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (92866)	7/25/2012 2:57:51 PM
From: KyrosL	Respond to of 219535

The US is doing OK compared to other big developed countries.

To: carranza2 who wrote (92866)	7/26/2012 10:27:37 PM
From: Hawkmoon	1 Recommendation Respond to of 219535

The fundamental truth is that loaning money to the government seldom generates an economic return on investment that exceeds the cost of capital. Borrowing money is fine (in general), so long as the projected profit exceeds the cost of that capital. Basically, if borrowing at 5% results in business activity that generates profit in excess of total operational costs, taxes, and interest payments, that grows the economy. Therefore, here we are with interest rates at historic lows, but facing looming operation cost hikes from extra taxation to pay down the interest on that national debt. I do believe that gov't spending can assist in inducing and motivating the private sector to invest in public-private partnerships to undertake R&D into new technologies, build and repair infrastructure, and retrain and educate our workforce (the most general examples). But gov't has the onus to ensure that any public monies dedicated to these endeavors justify the risk and cost.. We're getting too many "Solyndras".. We need a vision.. a realistic vision that drives our economy to develop greater productivity and growth. Hawk