Has the World Bitten Off More Debt Than it Can Chew?

Fox Business Network ^ | June 11 2010 | Guggenheim Partners CIO Scott Minerd

[Red Dog #1]

Please follow link to video...

[central_va]

duh

[Ev Reeman]

The reason why strict socialism and communism never work alone is because they are both unsustainable types of governance over any long extended periods of time without some kind of capitalistic ventures that will bring money in. That is why you see China combining capitalism with communism. But even so, their people live in deep poverty and under a strict communist government that allows for no freedom or liberty of independent thought or action. That is also the reason why China has very little in the way of developing technology which is also the reason why they must outright steal or copy other country’s technology. Europe meanwhile is collpasing under a mountain of debt it can never repay without some major budget and government cuts. The US is headed in that direction to unless it is stopped now.

[pieceofthepuzzle]

Absolutely correct..

[sayuncledave]

All of you need to go here, and read:
www.market-ticker.org

The math cannot lie. Karl has it nailed, and it isn’t pretty.

[DeaconRed]

HAS THE WORLD. . . . . . . .?
One word answer.
YES

[HangnJudge]

— All of you need to go here, and read:
— www.market-ticker.org

And...

http://www.zerohedge.com/
http://www.marketoracle.co.uk/
http://theburningplatform.com/

[HangnJudge]

http://globaleconomicanalysis.blogspot.com/

20 States out of Money by 2025

Seven states will run out of money to pay public pensions by 2020. That hasn’t stopped them from hiring new employees.

The seven are Illinois, Connecticut, Indiana, New Jersey, Hawaii, Louisiana and Oklahoma, according to Joshua D. Rauh of the Kellogg School of Management at Northwestern University. Combined, they added 9,700 workers to both state and local government payrolls between December 2007 and April of this year, says the U.S. Bureau of Labor Statistics.

Generous and bloated are the terms that have been used to describe them; critics have set up websites to pillory those government retirees who enjoy $100,000-plus annual pensions and other goodies, such as health-care benefits for themselves and their families for life.

[Ev Reeman]

You will take note that most of those states have been run into the ground by democrats and liberals for decades.

So is it any surprise REALLY?

[TheBattman]

If someone spends their way to zero, then opens up lines of credit to further spend, then takes how even more credit (for consumers, think home equity loans in particular) to pay towards the first round of borrowing - with total accumulated debt far exceeding your income... can you continue to expand your lines of credit with impunity?

That is exactly what the Federal Government (and many states) is doing, as well as nations all around the world. The debts are being shuffled around, bought and sold... but the debts are not going away - instead they continue to grow without limits.

This world owes more than it has..

If the total worldwide debt is X, and we are at X3 or X4.... how exactly can that EVER be repaid?

[Texas resident]

I’ll see your duh and raise you a couple of duh’s.

Since our congress either can’t see this or is intentionally breaking the bank, my question is what next?

If a state goes broke, the feds come in and bail them out. If the US goes broke, then what? Seems like china will be running the show at that time, but then what?

[dennisw]

burning platform is very good today...thanks for the link (the big short)

[central_va]

but then what?

Civil War....

[Red Dog #1]

China has significant monetary and banking problems of it’s own. Although potentially of significant danger, they’re hardly ten feet tall.

[Texas resident]

True, but China is working on becoming THE superpower. They may see an opportunity and take advantage of it. Especially given who is running our govt now. ozero bows and scrapes to dictators, but turns the full force of the American government against it’s domestic political enemies.