mannfm11 wrote:We are about to see a financial crisis that will make the Lehman collapse look like a hick town bank failure. The US is in a real paradox along with the world because the entire world system depends on them being able to allow the US to spend itself bankrupt then spend some more or everything collapses. The entire game of reserve currencies with no mechanism to rebalance is coming home to roost. So, collapsing economies that have no liquidity have no choice but to finance the US, but cannot finance the US because the system has no mathematical solution. Thus the solution is to use a solution that cannot be present. Absurdity and all its chickens are coming home to roost.
freddyv wrote:> I can't say I disagree with your argument but what you fail to
> enter into your equation is time. Time truly does heal all
> Let's take your example of the woman who wanted to pay her rent
> late. You can actually help solve the problem by taking on some of
> the pain of your tenants yourself. By reducing their rent or
> allowing them to use you as their credit card you can keep the
> downward spiral from getting worse and time will heal her credit
> situation as she pays off her debt over time and allows deflation
> to work for her. People are starting to realize that and
> understand that they are part of the solution. This is part of the
> generational change that I think John is missing because he is too
> focused on the big picture; big pictures are made up of small
> drops of ink.
MisterB wrote:> John: Are you referring to President Obama’s victory as a
> political victory or as a practical victory?
> This was a momentary political victory no doubt. However even
> politically, I’m not sure that it was successful in that he won
> only with a partisan democrat vote. It’s telling to me that John
> McCain was not brought along as a moderate republican. The
> partisan victory will make future actions more difficult.
malleni wrote:Very interesting article:
http://www.bloomberg.com/apps/news?pid= ... refer=home
It looks like Chinese are NOT very happy with "monetary easing" in US and EU.
With other words - they demand (!) US and EU (I personally think that those others i.e. US are especially targeted) - NOT to "print" any more money.
malleni wrote:Situation is dire:
1. With other words - US has NO "real" dollars, can NOT collect it from taxpayers, and obviously can NOT get them from abroad! On the other side - USA MUST (!) pay interest of all previous IOU they sold to borrower nations around the Globe!
2. Last "news" saying that US MUST (!) pay - 10 BILLIONS $ PER DAY - just in interest!!!
Higgenbotham wrote:> The big question in my mind is: In the past, government programs
> eventually returned more money to the treasury. In other words,
> there was a return on the money borrowed for the program and the
> economy continued to grow. I do not believe that will be the case
> this time. The ChInese probably have not yet come to a conclusion
> on this. If it does become clear that government stimulus is not
> working as desired, my feeling is that the Chinese are going to
> put pressure on the US to stop future government stimulus programs
> in order to protect the value of their reserves and if the US
> refuses there are going to be problems.
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