Mountain of Debt Piling Up

2009 July 4
by bc3b

$11 trillion; $37,000 per man, woman or child. Where will it end?

Here’s a break from talking about Sarah Palin.

27 Responses leave one →
  1. 2009 July 4 3:44 pm
    [1]
    rightwingyahoo permalink

    Obama can either raise taxes or print money, or both…..

    If he raises tax, the GDP will plummet and the deficit will remain high despite the rate hikes, and we will lose the ability to pay the interest on the debt, commonly called “debt servicing”… This will cause Argentina style default and collapse of the currency and we will have economic meltdown.

    So, if Obama does not raise tax to preserve GDP and economic growth, the deficit will be high and we will have to print money and keep monetizing the debt, which we are already doing. This will lead to a slower collapse of the dollar, unless a run is started by the BRIC countries dumping dollars and placing assets in gold or other currencies… BRIC is Brazil Russia India China….

    So how do you want your economic collapse? Slow or fast, or slow with sudden quick drops mixed in?

    I think Obama will do both: raise tax and print money, and God help us, I give us 3 years max to collapse, but it could be 6 months. BRIC decides, more or less. If they want it to go slow, it will go slow.

    The only way out is to stop printing money and slash Fed and state spending to incoming revenues, less 10%, and start rebuilding the treasury. but that will never happen, because the Feds think they are the only thing holding up the economy right now.

    So we are doomed.

    Spend the next 2 years paying off all unsecured debt, or variable rate debt. Try if you can, to get your cars paid for and everything but your mortgage paid off. Don’t pile up credit cards unless you have an emergency.

    then, if you can, buy in cash the following:

    guns/ammo
    seeds
    generator/solar panels
    household items like canned food and toilet paper.
    batteries and LED headband lights
    tools
    spare battery for your car, other parts like oil/filters, maybe some good used tires… these should be wrapped in plastic and stored in a cool place to avoid dry rot, or don’t bother….
    spare bike chain, tubes, tires

    And hey. If you’ve anything left over, get a flatscreen tv and blue-ray player, if you havent already, to treat yourself to movies on those long, dark nights.

    my2 cents

    I think anyone who says we have turned the corner on this economy is certifiably nuts. The economy is TRYING to turn around, but too much debt, government, and socialism is holding it down…

  2. 2009 July 4 3:46 pm
    [2]
    rightwingyahoo permalink

    Just typed a long post and the internet ate it when I hit submit…..

  3. 2009 July 4 3:47 pm
    [3]
    rightwingyahoo permalink

    Basically, the economy cannot recover because too much debt, socialism and regulation is in the way. We are too poor to start spending again, and businesses are way to scared of Obama to hire anyone.

    We have no industry to generate revenue for any recovery, there is no wealth, no earnings, and no growth…

  4. 2009 July 4 3:49 pm
    [4]
    rightwingyahoo permalink

    3 things can happen:

    1) Obama could become responsible overnight and slash spending to revenues, less 10% to rebuild the treasury… the states would be forced to follow suit. Obama could declare the bill of rights inviolate and the country could be breathe a long sigh and begin to recover..

    This has about as much chance of happening as pigs speaking French and flying in fighter formation…

  5. 2009 July 4 3:50 pm
    [5]
    bc3b permalink

    Nearly $150k for a family of four. About the cost of an average house.

  6. 2009 July 4 3:52 pm
    [6]
    bc3b permalink

    How about cutting federal employees pay and benefits like private sector employers do?

  7. 2009 July 4 3:52 pm
    [7]
    rightwingyahoo permalink

    2) Or, Obama could keep tax low to try and get GDP moving upward again. This is what Bush would have done, printing the money and monetizing the debt with the Fed, in the hopes that the economy will eventually wake up.

    The downside of this is massive debt and inflation, with a slow to medium drift of the dollar into oblivion. if the BRIC nations ( Brazil Russia India China) decided it was in their interest to do it, they could speed this collapse up quite a bit by dumping dollars, and I think they will do this when they are good and ready…

  8. 2009 July 4 3:58 pm
    [8]
    rightwingyahoo permalink

    here is Obama’s third option, and the one I think he will pursue:

    3) Raise taxes massively, regulate everything in sight, choke off personal freedoms and send the GDP into a tailspin by criminalizing EVERYTHING. They are already trial-balooning this

    The crash in GDP will bring about a situation in which not only can we not pay our national debt, ( we are already in that boat) but we can’t even pay the interest on it. Similar to not being able to pay your minimum credit card payments.

    This will cause a quick crash of the dollar and an Argentina-type 2002 meltdown. Total disaster.

    So Obama will indeed preside over the death of the USA. What rises from the ashes in its place? Nothing good or free, I’ll bet.

  9. 2009 July 4 3:58 pm
    [9]
    fedupartist permalink

    RWY is correct, this economy is fuc%$#.

    Which may be the only thing that dooms Obama.

    If they’re going to destroy the country, we’re going to take them with us.

  10. 2009 July 4 3:59 pm
    [10]
    fedupartist permalink

    How about cutting federal employees pay and benefits like private sector employers do?

    ……

    Starting with ALL elected officials.

    All of them, I’m TIRED of this SHIP!

  11. 2009 July 4 4:01 pm
    [11]
    rightwingyahoo permalink

    And in case you think this is far-fetched, the BRIC countries are gaming in out right now.

    They don’t need us anymore, and we have been stupid enough to transfer our national wealth to them and pile up debt instead.

    So they are going to dispose of us at the time of their choosing. We could avoid this, if we were smart, but sadly no, we are not smart…

    the biggest problem is we have nothing to rebuild around. All heavy industry high margin manufacturing has been outsourced, regulated into oblivion or killed
    off my marxist unions.

    I see a bad moon rising, or something like that. …

    All this talk of recovery is flaming horse crap. IMO.

  12. 2009 July 4 4:11 pm
    [12]
    rightwingyahoo permalink

    If you are employed and have a little money:

    Pay off all variable rate interest loans, credit cards and such.
    Refi to a fixed rate home loan, you are crazy if you have an ARM’
    Save up 6 months cash, minumum

    Pay off at least one car, if you can.

    Then, if you can, buy a good gun and some ammo, if you can find any ammo
    Some canned goods, a month or 2 worth at least. Don’t count on the supermarket..

    A small generator or some solar panels, to offset power outages at least partially, or in the case of solar, your normal power bill which will double with cap and tax….

    some spare car parts, like a battery, oil and filters, and a spare wheels and tires, although tires only keep for 4 years or so unless you shrink wrap them and store in a cool place….

    It won’t hurt you to have these items even if the economy does miraculously recover, but you might really need them.

    IMHO…..

  13. 2009 July 4 4:20 pm
    [13]
    Colorado KnightOwl permalink

    6 months cash? What will that be worth unless you need fire starters? I am converting whatever cash I have into things that can be used for barter. Silver, ammo, foodstuffs etc….
    The crash is now unavoidable…..It may be 6 months, it may be 2 years but it is going to happen…There is no way to stop it now….

  14. 2009 July 4 4:23 pm
    [14]
    rightwingyahoo permalink

    Well, you pay a big markup for converting cash into metals. And you’d pay another to convert it back.

    Until inflation really takes off, local Americans will still use the dollar for most transactions?

    I haven’t bartered for anything yet, though I have heard of it.

    have any of you?

  15. 2009 July 4 4:25 pm
    [15]
    rightwingyahoo permalink

    Could you open an account in a Euro bank, and wire all your dollars into Euros, paying bills in dollars from those accounts? The euro is not sliding like the dollar is.

    What about the Canadian dollar? Boy, a few years ago what a joke that was…

  16. 2009 July 4 4:45 pm
    [16]
    bc3b permalink

    The Canadian dollar got as low as 56 cents (compared to the U.S. dollar). Now it is at 82 cents.

  17. 2009 July 4 5:08 pm
    [17]
    drdog09 permalink

    First of all buying into Euros is no better than US dollar. The Euro is a fiat currency as well, backed by nothing. If it got really bad there the member countries would start disowning their participation in the Euro. Germany has already hinted at it.

    We already have a collapse of the 8th largest economy in the world — California. Not only that they are issuing scrip as they can’t afford to pay in cash.

    Barter. Check here Tho most folks rather deal locally of course.

  18. 2009 July 4 5:20 pm
    [18]
    justrand permalink

    currency?? I hear China has a really snappy one!! 👿

    I am going to buy a few more silver coins each month, and then when the hyper-inflation takes off dump my cash into metals and durable goods.

    p.s. I cannot imagine anyone WILLINGLY taking a California I.O.U.

    p.p.s. the CEO of a “major International corporation that is based in California” has quietly indicated that they will simply locate the HQ outside the USA if the tax rates get any more punitive.

  19. 2009 July 4 5:46 pm
    [19]
    rightwingyahoo permalink

    First of all buying into Euros is no better than US dollar. The Euro is a fiat currency as well, backed by nothing. If it got really bad there the member countries would start disowning their participation in the Euro. Germany has already hinted at it.

    I have not checked in months, but the last I heard the Euro was not falling as fast as the buck…

    A short time ago the Canada buck was at parity, but the US dollar has recovered somewhat since then.

    But of course the Euro is a fiat currency. Nevertheless, fiat currency can work if it is backed by a reasonable fiscal policy and strong economy. When you don’t have those is when you run into problems.

    I think we need a return to the gold standard, personally. It stops the fed printing money or easing too much…

  20. 2009 July 4 5:51 pm
    [20]
    rightwingyahoo permalink

    We already have a collapse of the 8th largest economy in the world — California. Not only that they are issuing scrip as they can’t afford to pay in cash.

    Yep. Scary when you really stop and think about it. What will Obama do? Pull bankrupt states one by one into a federal protectorate program and void the state governments, setting up martial law in those states?

    Nothing is off limits with this crew. And I thought that was true of Bush, sheesh…

  21. 2009 July 4 5:54 pm
    [21]
    gnqanq permalink

    IF, we are heading towards a crash – commodities.

    There are three things you need – food, clothing & shelter. Everything else is a want.

    I buy food and bullets. I look at expiration dates when buying food. Money will be meaningless and gold & silver wont be much behind money. Gold & silver wont fill your belly or keep you warm at night.

  22. 2009 July 4 6:09 pm
    [22]
    MFG permalink

    JR

    True story:

    I have a friend in CA who owns a Broker Dealer; he tells me the CA OSHA rules are so onerous when you get to 50+ workers that he INTENTIONALLY stays at 49 employees; he could hire many more people but he just won’t put up with the regulation…

  23. 2009 July 4 6:35 pm
    [23]
    rightwingyahoo permalink

    Gold & silver wont fill your belly or keep you warm at night.

    True, I keep a small amount of silver and cash in the house, and the gold I bought was a piece of a 401k that I can’t cash out without taking a huge hit anyway, so I converted it to money market, and some of it to gold.

    I don’t keep any gold in the house….

    But you never know. If all hell breaks loose you will need food, water, clothing, ammo, shelter, and would want some electric…. if you have these you will be ok.

    But suppose you got shot, or very ill, and needed a doctor. The doc might take a chunk of silver as payment, or even cash….

  24. 2009 July 4 6:36 pm
    [24]
    rightwingyahoo permalink

    or suppose you wanted to buy your neighbor’s truck, or trailer, and he had all he needed of the essentials…

    Might need a little money, one way or the other…

  25. 2009 July 4 8:16 pm
    [25]
    drdog09 permalink

    I buy food and bullets. I look at expiration dates when buying food. Money will be meaningless and gold & silver wont be much behind money. Gold & silver wont fill your belly or keep you warm at night. — GN

    Wife’s favorite saying — “Potatoes you can eat, Rubles you can’t”.

  26. 2009 July 4 10:03 pm
    [26]
    gerryowen permalink

    It will end, when we break the paradigm of ignorance and end the tyranny. Plain truth. We either stand up, or we fade to oblivion. The decision time is fast approaching, the clock is ticking….

  27. 2009 July 4 10:51 pm
    [27]
    BCL permalink

    I am going to buy a few more silver coins each month, and then when the hyper-inflation takes off dump my cash into metals and durable goods.

    From what I heard old silver dimes have the most silver and are the easiest to exchange or barter with because of the simple math. Other coins have different percentages of silver and have to be converted separately or in batches. Plus dimes are smaller!

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