Posted on 07/19/2010 8:22:24 AM PDT by central_va
With U.S. deficits expected to top $1 trillion per year for the next decade, its no wonder more than 50% of Americas say the deficit is "dangerously out of control," according to a recent Bloomberg poll.
But America's "sovereign debt hysteria" is "misguided," according to a recent report from the Jerome Levy Forecasting Center entitled: Uncle Sam Won't Go Broke.
The firm's director of research, Srinivas Thiruvadanthai, joined me last week to discuss and debunk several common misperceptions about America's soaring deficit, including:
U.S. = Greece: Comparing America to Greece is "like comparing apples to oranges," Thiruvadanthai says. Unlike Greece, the U.S. has control of its currency, a long history of managing its public debt without default, a proven ability to collect taxes, and a deep and liquid market for its publicly traded debt. For related reasons, he thinks there's little or no threat of a U.S. debt default and the latest rise in Treasury prices (which move in the opposite direction of yields) suggests global bond investors aren't too worried about it either.
(Excerpt) Read more at finance.yahoo.com ...
Why don’t we just “borrow” $100 trillion and make every one rich.
I wish I could write while stoned out of my mind, like these guys.
Believe this to your own demise ... Really.
“How public-sector unions broke California”
http://www.city-journal.org/2010/20_2_california-unions.html
...more like CA is like Greece.
firm’s director of research, Srinivas Thiruvadanthai,
Stopped reading right there.
Sorry, but why, again, are we supposed to trust this guy’s judgment?
Stopped reading right there."
Have to admit, I did too.
Not that there aren't plenty of true Americans maintaining their identity from their native country, but increasingly I'm seeing people who want to exploit what this country has to offer, and assimilating into American culture is not a priority.
I know it's unfair to make assumptions based on a name, but again, increasingly it's shown to be justified...especially when they're espousing ideas that seem to confirm that they either don't understand of reject the principles that made the United States the most successful, generous and creative nation in history.
These are all characteristics of a strong economy. The U.S has the strongest economy in the history of the world. That is why even the policies of the Obama administration haven't destroyed it yet. Obama's economic policies are very destructive. They are weakening the economy and creating unsustainable debt.
The difference between the U.S. and Greece is the difference between punching holes in the hull of a rowboat and punching holes in the hull of an Ocean liner. The U.S. economy is much larger and much stronger. It will take longer to destroy.
Another “the people are just stupid” article. That meme is getting pushed hard lately.
Consider that stolen....
Also quick crash followed by recovery and the lessons learned would be preferable to the drip drip drip death of a thousand cuts.
And real estate prices never go down. </s>
Past performance does not predict future results. Wall Street wolves don't heard the sheep to slaughter the same way twice.
Japan tried eight fiscal-stimulus plans in the 1990s and early 2000s to try to end their nearly two decade long depression. To put it in perspective, they basically paved the entire country via public-works projects (Obama's call for high speed rail anyone???). The Japanese also built the world's most expensive airport (Dubai style aka building it on a man made island).
And what was the result of all the borrowing and stimulus spending(by 2007, they had spent more than 1.4 trillion)?
After 16 years of government pumping, sixty percent of the country's financial wealth had disappeared.
Over the next 10 years, Obamas budget will chain america to $15 to $16 Trillion of debt. But don't tell that to Bush Jr., Paulson, Obama, Pelosi, Turbo Tax Timmy, Bernanke, and the rest of those who spent and continue to spend like drunken sailors in a whore house.
One question: Obama promised that the 800 billion porklus package would create 3.5 million new jobs. So after all that spending, how may new jobs do you believe were created?
To claim this will not lead to massive inflation, is criminal stupidity.
Depends on the size of the hole, and they are blasting some rather large ones.
Better make it 300. A Trillion ain’t what it used to be.
“a proven ability to collect taxes,”
so, what happens when you’ve collected everybody’s cash and you still can’t pay da bill?
Civil War II
Yes, clearly a false argument. "It has never happened" does not mean "it cannot happen."
Watch the UK the next decade. Combining personal and VAT type taxes, the rate is now over 60%. And now they are implementing special “bonus taxes” on top of that for higher wage earners.
At the same time, they have a nationalized healthcare service and generous “robin hood” style welfare system for the millions of mostly muslim immigrants flooding into the country.
And the seeds of the natural result are already being sown. Every year, more of the UK wealthy are moving to tax free havens like Monoco, Luxemberg, and Switzerland to escape.
What you just wrote pretty much exactly matches my thoughts on the subject.
Thank you for the affirmation contained in your post :)
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