Jump to content
House Price Crash Forum
bpw

Mull On The Total Madness

Recommended Posts

I was talking with an American the other day and he denied that US Federal Spending was as bad as I suggested. Take a look at this and mull on it.

LINK

This is so totally outrageous that its been buried below consciousness American minds and media. Once you have reflected on the numbers you will draw the same conclusion: the USA is planning on a massive default in a move designed to cause chaos in Europe and Asia. There is simply is no other outcome.

Of course, Daniel Hannan will be the first to bend over and start licking american ar se as he fawns with republicans and reviles the EU. All while you loose your savings.

I would be interested to see the same figures for France and Germany and the UK?

Share this post


Link to post
Share on other sites

I was talking with an American the other day and he denied that US Federal Spending was as bad as I suggested. Take a look at this and mull on it.

LINK

That article you linked to was written on Friday, August 28, 2009...and Quote : The 2010 figures are estimates, based on current policy proposals which have not all been enacted yet.

Are there not real figures somewhere seeing as it is now 2011..

Share this post


Link to post
Share on other sites

I was talking with an American the other day and he denied that US Federal Spending was as bad as I suggested. Take a look at this and mull on it.

LINK

This is so totally outrageous that its been buried below consciousness American minds and media. Once you have reflected on the numbers you will draw the same conclusion: the USA is planning on a massive default in a move designed to cause chaos in Europe and Asia. There is simply is no other outcome.

Of course, Daniel Hannan will be the first to bend over and start licking american ar se as he fawns with republicans and reviles the EU. All while you loose your savings.

I would be interested to see the same figures for France and Germany and the UK?

The problem in the US isnt the spending but what has happened to taxes which are now are at a 60 year low.

US_TAXGDP1210.gif

Share this post


Link to post
Share on other sites

The problem in the US isnt the spending but what has happened to taxes which are now are at a 60 year low.

US_TAXGDP1210.gif

If the spending was at a similar low, there wouldn't be a problem.

Share this post


Link to post
Share on other sites

The problem in the US isnt the spending but what has happened to taxes which are now are at a 60 year low.

The U.S. government last week reported a record monthly budget deficit for February 2010 of $220.9 billion. Total tax receipts for the month were only $107.5 billion compared to outlays of $328.4 billion. The total U.S. deficit for the first five months of fiscal year 2010 was $651.6 billion, with tax receipts of $800.5 billion and outlays of $1.45 trillion. The deficit was up 10.5% for the first five months of fiscal year 2010 over the same period in fiscal year 2009.

We are now at a point where if the U.S. government taxed Americans 100% of their income, the tax receipts generated would not be enough to balance the budget. Likewise, if the U.S. government cut 100% of its spending including defense, but kept paying Social Security, Medicare and Medicaid, we would still have a budget deficit. NIA believes it will be impossible for the U.S. to have a balanced budget ever again.

LINK

Share this post


Link to post
Share on other sites

If we've truly reached the point where raising the tax rate to 100% is not enough to keep all the old, poor, and disabled people alive in the U.S. (Social Security, Medicare, Medicaid progams), does this mean that it will take either bankruptcy or an external force (IMF, group of creditor nations, etc.) to balance the budget?

I suppose a group of creditor nations or the IMF could force an austerity budget that ends up causing the old/poor/disabled population to die off and reach a more sustainable level. If Congress tried to do this, they'd face a big voter backlash, but an international group would be immune to this type of pressure.

Share this post


Link to post
Share on other sites

OP-

"I was talking to an American"

There are over 300 million Americans -

What American?

Who was this American?

Where was this American?

I doubt you were talking to Mr Obama, Rosie Rios or Ben Bernanke ...........but I might be wrong.

Share this post


Link to post
Share on other sites
I doubt you were talking to Mr Obama, Rosie Rios or Ben Bernanke ...........but I might be wrong.

Why bother talking with Bank employees- better off talking to Blankfein and co- at least they wield real power.

Share this post


Link to post
Share on other sites

OP-

"I was talking to an American"

There are over 300 million Americans -

What American?

Who was this American?

Where was this American?

I doubt you were talking to Mr Obama, Rosie Rios or Ben Bernanke ...........but I might be wrong.

Might be wrong, certainly reaching.

I know it's helpful to focus on the weakest part of something put forward in a debate, but jesus. :lol:

Share this post


Link to post
Share on other sites
<br />If we've truly reached the point where raising the tax rate to 100% is not enough to keep all the old, poor, and disabled people alive in the U.S. (Social Security, Medicare, Medicaid progams), does this mean that it will take either bankruptcy or an external force (IMF, group of creditor nations, etc.) to balance the budget?  <br /><br />I suppose a group of creditor nations or the IMF could force an austerity budget that ends up causing the old/poor/disabled population to die off and reach a more sustainable level.  If Congress tried to do this, they'd face a big voter backlash, but an international group would be immune to this type of pressure.<br />

Big Business America is sitting on the largest cash pile in the history of American Capitalism - Trillions of Dollars!

They are not spending on expansion/development and not hiring any newbods - withdrawing the Trillions out of the USA economy.

I wonder which banks the Big Business Elites 'know' are safe to keep these 'reserve' Trillions in?

Share this post


Link to post
Share on other sites

Big Business America is sitting on the largest cash pile in the history of American Capitalism - Trillions of Dollars!

They are not spending on expansion/development and not hiring any newbods - withdrawing the Trillions out of the USA economy.

I wonder which banks the Big Business Elites 'know' are safe to keep these 'reserve' Trillions in?

This seems to be the problem. It's like a night of playing poke where there is one winner and everybody else at the table is broke. The players beg for the game to continue but whats the point he has already got all the money. Why waste money on expansion/development and not hiring any newbods.

Share this post


Link to post
Share on other sites

If we've truly reached the point where raising the tax rate to 100% is not enough to keep all the old, poor, and disabled people alive in the U.S. (Social Security, Medicare, Medicaid progams), does this mean that it will take either bankruptcy or an external force (IMF, group of creditor nations, etc.) to balance the budget?

I suppose a group of creditor nations or the IMF could force an austerity budget that ends up causing the old/poor/disabled population to die off and reach a more sustainable level. If Congress tried to do this, they'd face a big voter backlash, but an international group would be immune to this type of pressure.

It will be very unlikely that the IMF would be brought in to lend money to the US.

They still have the right to print their own money in order to pay their debts, wheras the eurozone countries have given up the right to print their own money.

In the last minute of this video, even Warren buffet explains the PRINTY PRINTY advantage of the US.

Share this post


Link to post
Share on other sites

It's a mistake to think that printing money is a solution to the USAs debt problems. While it deflates American debts to foreign creditors it also deflates American savings. The current evidence also suggests that QE has done little to repair the American or UKs economies, and very likely it's caused further speculation and increased debt: for example here in the USA mortgages are 4.6% not the 8% they should be. People are still buying properties we know will continue to fall in value. Both the USA and UK are living in Alice in Wonderland.

Amusingly some are pointing to Argentina's default as a model for Greece, and by inference the USA and UK. Imagine for a moment how it might end if both decided to default on their government debts. For example, some here are talking about 'payment holidays' on US treasuries if there is no agreement on lifting the Federal Debt ceiling. If that happens it won't be just the Chinese who take the hit. It will be the EU and everyone holding treasuries. There would be total chaos in the markets as everyone started dumping treasuries with a massive rise in every other foreign currency including GBP and EUROs. The end result will be massive military expansion in China who would have the right to strike back, most likely in the form of an arms race that cripples the American economy and increases the risk of war. A stupid idea..

It will be very unlikely that the IMF would be brought in to lend money to the US.

They still have the right to print their own money in order to pay their debts, wheras the eurozone countries have given up the right to print their own money.

In the last minute of this video, even Warren buffet explains the PRINTY PRINTY advantage of the US.

Share this post


Link to post
Share on other sites

This seems to be the problem. It's like a night of playing poke where there is one winner and everybody else at the table is broke. The players beg for the game to continue but whats the point he has already got all the money. Why waste money on expansion/development and not hiring any newbods.

if this was true, and banks have buggered balance sheets as it is...the mere act of calling on the banks to pay out would finish the lot of them.

Share this post


Link to post
Share on other sites

It's a mistake to think that printing money is a solution to the USAs debt problems.

And yet it's the only one they are giving a go.

Share this post


Link to post
Share on other sites

The situation is not as bad as you think. It's bad politics that'll be show stopper here not bad economics... So says the economist this week.

IN THREE weeks, if there is no political deal, the American government will go into default. ... And the longer such a default went on, the greater the risk of provoking a genuine bond crisis would become. There is no good economic reason why this should be happening. America’s net indebtedness is a perfectly affordable 65% of GDP, and throughout the past three years of recession and tepid recovery investors have been more than happy to go on lending to the federal government. The current problems, rather, are political.

Share this post


Link to post
Share on other sites

The situation is not as bad as you think. It's bad politics that'll be show stopper here not bad economics... So says the economist this week.

the "Investors" being banks ( a favoured few) who days later can dump their magnificent purchases on the FED for an instant profit.

Share this post


Link to post
Share on other sites

the "Investors" being banks ( a favoured few) who days later can dump their magnificent purchases on the FED for an instant profit.

Then buy them back at double digit yields after demand drops through the floor.

Share this post


Link to post
Share on other sites

.

.

.

The current evidence also suggests that QE has done little to repair the American or UKs economies, and very likely it's caused further speculation and increased debt: for example here in the USA mortgages are 4.6% not the 8% they should be. People are still buying properties we know will continue to fall in value. Both the USA and UK are living in Alice in Wonderland.

.

.

.

Actually, some of us can be thankful that people are still living in Wonderland and can get low-rate mortgages to buy houses. I just sold an inherited house down in CT to someone that got a mortgage for about 2/3 of the sale price (presumably at 4.6% or so). The big question is what to invest in (besides the obvious) once the cashier's checks clear -- things that will hold their value, even if there is a currency collapse.

Share this post


Link to post
Share on other sites

Pepactonius - there is nothing to invest in. When the sh..it hits the fan then we are all going down. That said, I am toying with buying property in an area that have seen large declines. My guess is a turn of the century stone townhouse, in need of renovation, or somesuch, in Spain or southern France is more likely to generate some revenue and ride the wave of inflation thats coming than say a Bond or Treasury. Originally, I was hoping to buy somewhere in Tuscany but it seems Italy has postponed its financial crisis like the UK - that said they both have the worst to come.

Actually, some of us can be thankful that people are still living in Wonderland and can get low-rate mortgages to buy houses. I just sold an inherited house down in CT to someone that got a mortgage for about 2/3 of the sale price (presumably at 4.6% or so). The big question is what to invest in (besides the obvious) once the cashier's checks clear -- things that will hold their value, even if there is a currency collapse.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.