Chinese Video on USA Debt

The American federal debt now tops $16 trillion, the Treasury Department of the United States said on Tuesday. The federal government now owes $50,000 for every man, woman and child in the United States.

How did the United States get into this mess? It started with George W. Bush, who in his second term grew the federal debt from $7.6 trillion to $10.6 trillion. In his first term, President Barack Obama has president over an increase to $16 trillion.

Anyone else find it weirdly comical? How Uncle Sam was going around shopping for cannons with AIG in his cart? And the communist Panda.

Ahhh, if only the debt were not mathematically impossible to pay off it'd be worth caring about.

reply to post by RealSpoke


Pot meet kettle.

China is also reported to have embroiled itself in massive debt.
From the looks of things it was emulating the united states.
And is succeeding in that emulation.

reply to post by RealSpoke


I am so worried about what will happen to the US when it loses the Reserve Currency status. How will the US pay all that money back then? The USD will be worth nothing.

I dont think Americans understand what will happen when the Reserve Status is lost. Americans dont understand what having the Reserve Status has allowed the US to do. Americans seem to think they will keep the Reserve Status forever and they will never have to live within their means. Thats wrong.

And the US does not owe so much money that the world will just have to wait for it. Use logic. China and Russia and most of the world is moving to a Basket Reserve. If anyone thought they couldnt survive without US consumers then the world would not be actively seeking to destroy the USD. And they are.

National debt is a serious issue for every other nation. It will become a serious issue for the US in the very near future.

I think it makes it pretty obvious that the American people are different from the American Bureaucracy.

That is actually a GOOD THING for us. When things start getting really bad and we can't pay our debts it may keep the foreign investors from taking our country from us. Realize that debtors may call in loans at any time and we must pay up. If our currency is crap we must pay up in the currency that is accepted by the creditor.

I am fiscally responsible. I do not have a deficit. I do not want a government that operates outside it's means. I am not alone. So why is this becoming worse? Why does Congress just avoid everything? Why do we constantly spend more?

It is our appetite for war. The new homeland threat from 9-11takes up every waking thought of some elderly Americans. they think Osama Bin laden is going to bomb their porch while they are sleeping. Little do they know that unless there was someone complicit in the bombings in a position of authority to help things along it would have never happened. That's what we call a false flag. They will never understand because they do not allow their minds to grasp such treachery.

Fortunately more intelligent and better informed people exist to right the wrong. It may take decades, but the truth will come out in the end. I hope when it does that we still have a constitution and a country with free people.

Originally posted by grey580
reply to post by RealSpoke

 

Pot meet kettle.

China is also reported to have embroiled itself in massive debt.
From the looks of things it was emulating the united states.
And is succeeding in that emulation.

China has a trillion dollar surplus. America is Trillions in the red. Its worse than the media figures when you add it all up.

China has awesome 'ghost cities' waiting to be filled. The US has Detroit.

China is on the up. The US is on the backswing.

Originally posted by freemarketsocialist

Originally posted by grey580
reply to post by RealSpoke

 

Pot meet kettle.

China is also reported to have embroiled itself in massive debt.
From the looks of things it was emulating the united states.
And is succeeding in that emulation.

China has a trillion dollar surplus. America is Trillions in the red. Its worse than the media figures when you add it all up.

China has awesome 'ghost cities' waiting to be filled. The US has Detroit.

China is on the up. The US is on the backswing.

edit on 12-9-2012 by freemarketsocialist because: (no reason given)

link

Here's something for you to read.

From the beginning of 2009 to the end of June this year, Chinese banks have issued roughly 35 trillion yuan ($5.4 trillion) in new loans, equal to 73 percent of China's GDP in 2011. About two-thirds of these loans were made in 2009 and 2010, as part of Beijing's stimulus package. Unlike deficit-financed stimulus packages in the West, China's colossal stimulus package of 2009 was funded mainly by bank credit (at least 60 percent, to be exact), not government borrowing.

They are on their way. Just like us.

reply to post by freemarketsocialist

China has awesome 'ghost cities' waiting to be filled.

Waiting is the key word there. At what point does the typical iPad/iPhone prison laborer begin to afford some space in the 'ghost cities'? By the time any of the Chinese peasants are able to be financially capable to move there they will need to remodel all of those unoccupied, run down, ghost cities which are nothing more than a band-aid to mask their faltering economy. What good is living space if no one can afford to occupy it?

reply to post by Nucleardoom


Or if they ever will. Not every country has successful workers rights revolutions.

reply to post by freemarketsocialist


The only good thing China is doing is spending all their fiat toilet paper on real assets.

As to China being on the up swing.....then are doing a bang up job following the American model of spend spend spend.

reply to post by MidnightTide


American debt is real assets?

reply to post by RealSpoke


*sigh*

I have to clarify I guess. Unlike the US, China in the recent years has spent a great deal of money in physical assets....but like the states, it has spent money it does not have in projects to stimulate its economy (as well as falsifying it's GDP - China is said to have built the equivalent of Rome every two months, and many of these "projects" are likely going to be bad loans)

China acknowledges these problems, as their premier Wen Jiabao says China's economic development is "imbalanced, uncoordinated, and unsustainable".

Just as today's QE3 was officially announced. Thank you to the OP for posting the video. Economies have had hyperinflation in the past, but it's never been a problem across the world.

The GDP to Debt ratio of the USA was 103.00% as of the most recent statistics I could find:

www.tradingeconomics.com...

All countries in the world have debt, but the USA is in 6th place in the world under Japan, Greece, Italy, Ireland, and Portugal.

If you look at the above chart, from 2000 to most current (10-12 years) the ratio has DOUBLED. 10-12 more years of that will make the USA the nation with the deepest debt in the world if the printing presses keep rolling.

The statistics for Debt to GDP for Russia is 9.60% and for China is 25.80%. They had better figure out a way to get some production and jobs in the USA soon or it will be unsustainable.

Economies in the world have suffered before but never on this scale for a nation with the large economy of the USA. It will be scarier than the Great Depression.

Gold and silver also rose today with the announcement of QE3.