The Federal Reserve; US Debt; and the Deficits means a POWERFUL UNITED STATES

I'm doing very well with what I'm managing so you can take your negativity elsewhere. Feel free to U2U if you want some better advice.





I own a particular stock that this month last year was at 110/share...now it is at 45.
Less than I purchased it for...WFMI ok.

it is very disappointing.

Now, you misinterpreted negativity with skepticism, and a question of your motive for starting a "discussion" you seem to have made up your mind about. It just struck me as odd that you would seem to be so defensive if you OWN the truth about the subject at hand. What gives? Make some real world investment strategies available to the board-put your mouth where your money is and prove your acumen.

With love,
Pilot

[edit on 17-4-2007 by Pilot]

being able to spout armchair economics doesn't mean someone can pick good investments and someone who can pick investments like a god isn't always going to understand all aspects of economics.

Originally posted by TheIntelligentInvestor

That is not how debt is measured it's measured against the GDP because the Bond holders have the options to sell their debts to another holder...they do not need to be "reclaimed" as debt. Because the GDP is the net income of the entire nation the entire nation can buy back its debt in under a year.

Income is not profit. You cannot take all of GDP because that is the value of all goods and services. From these funds employees must be payed along with suppliers and anything else that costs money.

You must look at it from the perspective of what is already being collected by the federal government. If they said everything that represents GDP must be turned over to them there would be riots in the streets. Washington lawmakers would regret installing those fancy lamp posts.

Consider income tax, which generates more than a half trillion a year. Corporate taxes are a similar amount. You would have to increase both Federal income tax and corporate tax by at least 800% to pay off the federal debt in one year.

Again, there would be riots in the streets.

Just to set an eight year payback timetable would require doubling the taxes on people and business.

Again, there would be riots in the streets.

And this all assumes that the government quits spending a half trillion more than they take in per year so there will be less funds to pay back this debt.

In the future - you should really just know something instead of parrott something you heard on TV.

I don't watch TV other than some CNN and Faux news on occasion to see how the sheeple are being programed.

[edit on 17-4-2007 by Malichai]

double speak and retardation off the scales! intelligent investor clearly works for either the government (directly or indirectly/contracted) or for Fox news. that's the only way to explain such diatribe.

Central banks no longer have the incentive to buy US Treasury bonds if the US relieves their debt, as this leaves the US with very little crediting capability!!!

Having the debt means we loan money to central banks--Paying off the debt means we can no longer lone money to central banks. The US becomes a net debtor overnight if this happens. It is that simple.

Pay interest on debt = Good
Pay off debt completely = WWIII

Originally posted by Damage
Good post.

You still got debt though...

with a country roughly

Here we go. Here's the debt counter clock....

US Debt counter Clock.

With congress having set the limit for US debt at 9 trillion dollars, and increasing at 1.93 billion dollars per day since Sept 29, 2006...

It will reach that 9 trillion mark in about 57 days.

When it does, with a population of 301,624,814 people...


Every man woman and child owes estimated: $29838 each.

And yeah so it's not so bad, considering that you have all those reserves that other countries have. Anyways...

Meh. It's still a lot of debt.

I just wanna ask you what all the other Countries debt is at? I say debt cause im more than positive there's no country out there that actually has something in their chequing account.


That being said, money is a creation of man, as is tax and interest. Those last two crucial things creates large amounts of never existing money.

Our federal reserve is flaud, as is the whole money system.

Start off with 1,000 dollars between 4 people = $250 per person

Bob builds houses
Sam makes furniture
Eric is a electrician
Ron is a plumber

with the 1,000 dollars in circulation between the four people, with each having their own trade, that money starts to spread out and one of the four will be richer than the other, Lets say Bob is the richest, Bob is now at $550, and lets say Ron is the poorest at $5. Bob being a good guy loans Ron another $250 out of his own pocket but adds a stipulation called interest at 7% each month Ron has to pay Bob back minimum payment plus the interest. Bob would be profiting $17.50 each month just off of interest. Since there's only 1,000 in circulation where does this extra $17.50 come from?

My point being, if everyone in the world empties out their bank accounts to the last penny, and they have their currency in a physical form, the money that actually exists wouldn't amount to a fraction of the worlds debts. IMO

The extra money comes from increased production. That is why the world has since the 1200s had increased production value almost every year. The world had a stagnate economy before 1200s just as you described (1,000 between 4 people never changing) because the concepts of inflation and debt never truly existed. Macro-scale debt managements never truly existed.

Today, people understand these concepts and are able to improve production by 10% by adding a 7% interest to a debt, and this way people profit on the future, and society moves forward, standards of living increase, etc.