America's Deficit Doomsday

[eeevil conservative]

and I thought I was a lonely nerd....

thank you..someone else who does the math with reality in mind...

[mbynack]

yefragetuwrabrumuy,

Good response. I think that we're getting to the point where foreign investors aren't going to be buying our debt. If they do, it will be at a much higher interest rate. We'll be like a couple making $40,000 who has $100,000 in credit card debt. It will take us a hundred years to pay it off.

[Zanton]

...When we pay the bills it will reduce the net household income and cause the economy to get worse. That will increase unemployment, which will reduce the number of taxpayers and increase the number of people collecting public assistance. That means we'll need to raise taxes even more on the those who are still working. That will make the economy worse...:

This is the vicious circle of socialism and welfare statism. But we can easily create a VIRTUOUS circle of capitalism and freedom -- if only we will.

[Zanton]

Why are you so darn eeeeeeeeevil? ;-)

Just kidding. I've actually heard and enjoyed your radio show on BlogTalkRadio! :-)

[wbarmy]

I have brought this up several times to friends of mine. Imagine a scenario where just prior to the 2012 election, President Obama claimed that because of “evil” financial tactics of China, he was declaring all our debt to China as null and void. All of the paper that they have would be immediately worthless, and all contracts wherein they “own” a property in the U.S. would be canceled. What would the American people think? Would they not rally around the President after such an action?

[wbarmy]

The U.S. would have a real bad time for a few years, guess how bad it would be for countries like Japan or China who depend massively on our buying power.

[greybull]

I’m not a great fan of Romney. For reasons that don’t need to be debated on this string. But that clip doesnt really tear him down. He comes off very well in defining his position. Not Pro-life Not Pro-Choice. A defender of the state law as it existed then. Still wont support him in the primaries. But if he is the nominee I’ll fight like hell for him.

[yefragetuwrabrumuy]

Andrew Jackson faced a similar situation, so he dropped the bomb, as it were, in two ways, just before leaving office.

The first was to not renew the charter of the 2nd National Bank of America, as the bank the government did business with, which was be like today canceling the charters of Bank of America and Welles Fargo at the same time.

The second was called the “specie circular”, that declared that all money, public and private, in the US, had to be backed with silver and gold. This threw hundreds of small banks out of business, and made all their money worthless, overnight.

And then the States canceled their enormous bond issues. Put it all together, and it created the Panic of 1837, which was the worst depression in US history until the Great Depression.

Since Jackson did this right when leaving office, his successor, Martin Van Buren, was blamed for it all.

Likely Obama would try the same stunt, if he could make it to 2012 before the economy collapsed.

[caww]

I watched the head of the Afl-Cio speak the other day at a function with other guest speakers, all who spoke of the economy. He dragged his points out and then listed his solutions....but I nearly fell of my chair when he said...” We have to borrow and then spend and spend”...listing then on infrastructure, education etc.

[Zanton]

Labor unions are evil — just like business cartels. Job One of the bloated American government — if we want to let the economy to grow — is to CUT spending.