Paul: We dont have a revenue problem, we have spending problem

[boutons_deux]

"It's the healthy ers that just won't die that are the REAL problem"

no, it's the 150M Americans inflicting themselves with lifestyle diseases of hi BP, CVD, diabetes, stroke, smoking (400K smoking deaths/year), dementia, osteoarthritis, etc.

they're eating ty corporate food-like substances and no exercise, mental or physical.

Also, BigPharma has hypnotized everybody into thinking that taking their ty, dangerous drugs is necessary, bringing happiness, hard s, and giving health, just a swallow away (for the rest of your life).

[mavs>spurs]

If we have to choose between policing the entire world and taking care of our own people, i'm going with taking care of our own 10 times out of 10. no reason why we should spend almost a trillion per year on defense budget then that we can't take care of our sick. government is too big and out of control, and government spending is never efficient spending. the government knows it will always get its revenue (taxes) and can't fail like a business, so therefore they aren't thrifty with their money. So much money gets wasted it's mind boggling.

[Wild Cobra]

Oh.... My.... God....

Everyone, mark this day...

I agree with boutons.

[mavs>spurs]

"It's the healthy ers that just won't die that are the REAL problem"

no, it's the 150M Americans inflicting themselves with lifestyle diseases of hi BP, CVD, diabetes, stroke, smoking (400K smoking deaths/year), dementia, osteoarthritis, etc.

they're eating ty corporate food-like substances and no exercise, mental or physical.

Also, BigPharma has hypnotized everybody into thinking that taking their ty, dangerous drugs is necessary, bringing happiness, hard s, and giving health, just a swallow away (for the rest of your life).

well yeah you're pretty much right here, natural news says that prescription drugs kill 16,400 times more people annually than terrorists do. they give you something that only causes something else to go wrong then you need another medicine for that and so on. , it's funny you mention hard s, it's no coincidence that were the only country outside the middle east who cir cises and then all our s won't get hard after 40. we spend way more on viagra than other countries, just another example of being scammed. then the foreskins are turned into a several hundred billion a year industry as they are used in pharmaceutical industry and cosmetics. we're being scammed by big pharma big time.

[ElNono]

How can something that does not exists be sitting anywhere?

Accounting. The spreadsheet that holds the number is sitting there.

[ElNono]

Give hem a break. He's addicted to Hope-ium.

lol cheerleader pointing fingers

[cheguevara]

Accounting. The spreadsheet that holds the number is sitting there.

what spreadsheet?

[ElNono]

what spreadsheet?

The one that says how many US dollars are on China's account at the Fed.

[cheguevara]

so it's not US dollars sitting in the Fed.

Ok thanks

The US debt is in US Dollars. All of it.

What we owe China? Sitting in the Fed in US Dollars.
What we owe France? Sitting in the Fed in US Dollars.

[ElNono]

so it's not US dollars sitting in the Fed.

Ok thanks

You're correct.

It's denominated in US Dollars. And it's only convertible to US goods and services.

[mavs>spurs]

And it's only convertible to US goods and services.

i dont think so. i think technically you can withdraw your money like at any other bank...

[Wild Cobra]

You're correct.

It's denominated in US Dollars. And it's only convertible to US goods and services.

I wonder what would happen if we placed an expiration date on debt. Convert the debt obligation, or lose it...

[CosmicCowboy]

The US debt is in US Dollars. All of it.

What we owe China? Sitting in the Fed in US Dollars.
What we owe France? Sitting in the Fed in US Dollars.

Well, technically it's not sitting there yet.

[cheguevara]

Truth is we are living on borrowed money. An unsustainable path to economic doom.

[ElNono]

Well, technically it's not sitting there yet.

And likely never will be. AFAIK, it's not redeemable directly from the Fed.

[ElNono]

i dont think so. i think technically you can withdraw your money like at any other bank...

I don't think so. I think part of the deal is that you cannot.
Obviously, you can use the money to purchase goods then resell them.

[CosmicCowboy]

I don't think so. I think part of the deal is that you cannot.
Obviously, you can use the money to purchase goods then resell them.

ing clueless...

[cheguevara]

I don't think so. I think part of the deal is that you cannot.
Obviously, you can use the money to purchase goods then resell them.

what "deal" are you talking about?

[cheguevara]

nothing is stopping China from dumping US securities. That is why we cannot really enact any protectionist measures against them or even intervene in the Taiwan-China relations.

ElNono read some more. you got homework tonight

[cheguevara]

Debt with China is not even the issue

We have already seen that when the United States runs a current account deficit, there must be net capital inflows (i.e., a capital account, or more precisely financial account, surplus) to fund the gap between domestic savings and investment. The United States needs to increase private domestic saving and cut the size of the budget deficit, preferably by slowing the growth of government spending rather than increasing taxes. Cutting marginal tax rates on saving and investment, meanwhile, would help promote U.S. growth. Downsizing government and tax reform would reduce the growth of U.S. public debt relative to GDP, and increase the standard of living for future consumers.

Limited government, strong private property rights, and open markets were the hallmarks of the U.S. economy during the first wave of globalization in the nineteenth and early twentieth centuries. Economic growth was strong and the United States ran persistent trade deficits financed by foreign investment and borrowed from foreigners for private investment—not to fund government deficits. Limiting government growth would help strengthen property rights, and adhering to free trade in goods and capital would encourage foreign investment in the U.S. private sector. Running a trade deficit under those conditions would not be a problem.

http://www.cato.org/pubs/articles/dorn_bjwa_142.pdf

[boutons_deux]

Cato, VRWC funded stink tank.

[mavs>spurs]

nothing is stopping China from dumping US securities

Yes there is, us being the biggest buyer of all their crap being why. China destroying the US economy would be just as destructive to their own economy.

[CosmicCowboy]

Well, it doesn't benefit China to dump right now but they are damn sure considering their options. We are too deep into them and their position is too big. They would just screw themselves. They ARE making new buys for shorter terms and letting their longer positions age out. When they are ready, they will move. One day we will have a treasury auction and nobody will buy and we will be well and truly ed.

[CosmicCowboy]

BTW, they are dumping HUGE amounts of money into South America and commodities in general as they diversify. We AREN'T the only game in town.

[ElNono]

ing clueless...

ing clueless...

this is too easy