this is something i have been worried about for some time myself. in england as well the ability to generate capital (public capital) is not likely to be as good as it was. there have recently been a couple of bond strikes when the treasuries issued were not all purchased. this was the first time for i think twenty years. what is needed is another method of generating capital that guarantees a return and also provides incentive. i have created such a product and it is being reviewed by the treasury and shodow treasury currently. so i hope something might come out of that. any way it is a concern that i would agree with and think is one of the biggest economic problems. that along with the limitation of using monetary policy due to the high levels of debt and the affect that has on generating capital for the private sector and the lack of good investments around currently. there are so many problems.
On MEX: The cartels have been getting inside the US for years. The conflict in Mexico is really about the US and the hunger for drugs... Just like Chicago in the 20's, there's only 1 exit to that war... all military efforts will only serve to escalate violence and increase the cartel's profits. When they remove 1 cartel 3 others will take their place... it's like fighting a Hydra... the only solution is a legal one, just like back in the 1920's... but that requires that someone recognizes that some 80 years of policy have failed miserably.... Regarding attacks on US... N. Korea already took a shot last week with the cyber attack... fortunately they don't have any missile with the proper range to reach LA... Chavez... well... never underestimate his foolishness...
....................................................................... The best way to take care of Chavez is to bring the military home to build roads, bridges, and medicine in rural areas....as well as drug watch.... Chavez will lopping off another 000's from his currency after the shut down of this.... http://karbuz.blogspot.com/2009/04/us-military-energy-consumption-in-2008.html
This is trivial but allow me to explain. I friend got promoted to top dog in the local post office and every day he used a binliner as a door stop to keep the main door open. The staff had used it and he continued with the "tradition" for 18 months until he decided to look in the bag. It contained $150,000 which he handed in to his employers. The point is the Dept of Defence routinely loses a trillion or two every year and has no idea where it has gone, and you are worried about lose change? The Fed or DOD can find that sum in some bag somewhere, or failing that just print off a few bearer bonds for a Central Bank to buy the debt. No big deal.
QFT The true mindfuck of it all is we are out pushing democracy on the world while socializing ourselves at home. Really...WTF?!?!
Jeez after reading this I think I will leave the US for the shit hits the fan and the dollar still has any value left. But the point is correct. The US needs to find a additional USD$2Trillion for investment in our debt this year alone......the math is that it simply doesn't exist unless someone prints it......and that is what the FED is going to have to do......print ....print....print......
Missile defence costs a fraction of an invasion, it would be the best defense along with the promise of returning the favor of nukes. N. Kotrea can be handled and so can Chavez easily. But that's beside the point, the $60T socialist overhang is the real killer. Without rolling back medical handouts, nothing else matters
About 50% of US federal tax dollars go to defense related expenditures. 50%!! And we spend more on defense than all G20 countries combined! Now, why do we do that? For the reason that Eisenhower laid out in his farewell address. Eisenhower really wanted to call it a "Congressional Military Industrial Complex" but he didn't want to piss off the Congress. Congress is important as they hold the purse strings. Esienhower, a former general, saw the system of retired generals working for defense contractors with congressional connections firsthand. He guessed (rightly) where it would lead. I will acknowledge that the defense budget indeed supports many middle class americans that work for defense contractors. I know many people in that industry. We like to say that we have a capitalist system - but let's look at reality - we spend 50% of our federal tax dollars to support the defense industry - it is a huge taxpayer subsidized industry - more so than any other country in the world. As for our global military presence - it is not some altruistic purpose of "promoting democracy" or being the world's "policemen." It is to maintain free markets for our goods and services, to maintain the flow of money, and to preserve our access to natural resources. It truly is or maybe was in our best interest. However... this military presence used to serve the average american well between 1946-1970s when our economy was the world's lender and producer. With de-industrialization and outsourcing - that is no longer the case. The people that benefit the most now are the elites. And they call the shots. The elites use words like "world's police," "indespensable nation" and "promote democracy" to give a loftier goal to our true ambitions. After all, if the elites were honest with the population about our global adventures - then soldiers would feel ripped off or worse, used. Imagine if we said we liberated Iraq for their OIL -if you were a soldier facing bankruptcy because you served abroad with a lower wage - and you also saw the former Exxon Mobile CEO and Chairman retire with 100s of millions of dollars - wouldn't you feel pissed off? Don't you deserve some of that windfall for putting your life on the line? That's why we "liberate" countries.... to make sure there is no moral argument for the little people to have access to the spoils of war. In ancient times warfare was more entrepeneurial. You fought, you looted, you kept a chunk of the loot - and went home the equivalent of a millionare. Not today. Today you fight for "ideals" and get paid accordingly - like a social worker.
OMG I am getting good. I knew this topic was a BiLoSellLower scare job and surprise surprise I was right.