Posted on 03/26/2006 10:05:19 PM PST by Neanderthal
Good explanation!
I'm buying gold and silver (GG and CDE) and I already own bullets.
I've been saying for years the govt. should just file chapter 11 and get it over with...then sue every former congressman who voted for these these unconstitutional expenditures.
True, but not 6% of gdp year after year after year. And even when the US economy is in recession like 2001, we still had a huge CA deficit.
This will end badly for the US as the only way out of a CA deficit is to produce more and import less which is the same as working more and getting to spend less.
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That is exactly what has been happening to me for several years 8 0 )
Everyone over 65 will be bagging groceries for a living while the government scribes will be vacationing in Florida - we are truly becoming slaves to people who are putting us into massive debt; but nothing bad will ever happen to them.
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Something similiar is happening where I work, equipment and systems that worked but gave some problems are being replaced with equipment and systems that were supposed to cure the problems but end up creating far more new problems. The people who made the changes keep on drawing their big salaries while all the new problems are blamed on the workers who are struggling to operate with all this new junk. One key piece of new eqipment is so obviously not up to the task that I looked at it sitting on a pallet and remarked to someone that it would not work, so far I don't think it has operated for twelve hours straight without causing big problems.
"This is what prolongs the current structure. His scenario is predicated on the major foreign holders successfully overcoming their domestic problems first."
Or simply China deciding they have purchased enough military with our liquidity we gave them to pull the plug on buying dollars.
"The only realistic solution is nuclear. And it isn't happening."
Nuclear energy would barely dent consumer consumption of petroleum products. Replacing Arab oil is already happening but at a creeping pace. Coal to oil and ethanol mass production are our immediate hopes to replace Arab oil. Pennysylvania and Colorado both have working plants subsidized by the Feds. Billions are being invested by the private sector in ethanol. Nuclear plants could lower the cost of conversion of coal/ethanol with the rest of spare power feeding major metros. I do not see a "Hydrogen Economy" for at least two decades.
That was a very shallow recession and we were doing better than the rest of the world. Foreign capital kept coming in because the US was a safer, more profitible place to put it. A trade deficit characterizes all US boomtimes. Lack of it implies a very poor economy. But a recession is not necessarily accompanied by a "surplus." There is nothing dangerous about a large, even a huge such "deficit." It just means that the rest of the world has that much faith in the US economy. A trade deficit is a sign of prosperity. If you wish to make doom and gloom out of it you can also notice and complain about the other side of the situation-"The Chinese/French/Whatever are buying up all our property and assets!" That is popular from time to time among liberals who do not understand and do not like an economy, or anything else, that is not under their direction.
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