Could the problem be the terrifyingly huge national debt?

Discussion in 'Economics' started by SomeYoungGuy, Oct 26, 2011.

  1. Is anybody asking if the sluggish economy could be because the national debt is such a ginormous number?

    Because it scares the hell out of me.

    I'm not borrowing any money right now, not spending much more than I need to, buying physical metals, socking cash away in case a good deal comes along. It's the inability of gov't around the world to contain their spending that's got me worried. I do not believe that Soc Sec is going to be there for me, nor Medicare, nor any other gov't retirement dough. So I'm socking a lot away, not stimulating the economy.

    Just wondering if anybody else is scared shitless solely due to the crushing debt we have on us.
  2. its not scaring bondholders.
  3. The worst to expect from the US is inflation. A currency issuer only fears inflation, not default.
  4. rew


    It ought to, though.
  5. If you are worried about the US defaulting on its debt or having print like crazy to pay it or the economy some how suffering because of it then socking away US dollars would be a bad move. Just my 2 cents, I am not very worried about the US debt at this point.

  6. I don't think anyone really has any control over the situation. All of the excessive monetary printing will catch up and overnight one day our $ will buy 20% of what it does today. All it takes is for IMF to set a new peg rate or the chindians to further manipulate the exchange.

    There are so many angles in play... above the line deductions will buy you your tax rate more worth of goods. Further reducing your buying power is the excessive transactional tax gouging of your post tax $.. soda tax/ sin tax / sales tax.

    Reality is even those that pay no income tax spend nearly 100% of their earnings for the basic necessities to survive (gas, food, rent) and are paying approx 10% in transactional taxes.

    Those employed earning a modest middle class income $100K pay 20% or so in taxes and are left with 80K post tax to get clipped 10% as they spend it.

    Those that can manipulate the system by deferring taxes (Offshore income) and use pre-tax dollars do much better...

    Ultimately.. those that cheat and move their assets offshore can walk away and leave behind huge tax bills and debts... They get to live their lives out as cash rich kings somewhere outside of the US and still collect their social security benefits.
  7. jem


    Baloney... Quantitative Easing, operation twist?
    You are not looking at a true market price.
  8. How do you know the degree of "untruth" with certainty?
  9. Why be scared sh1tless? The current state of affairs is due to the natural and inevitable cycle.
  10. Lucrum


    Yes it should. I'm no economist, but I'm inclined to think as bad an investment as US treasuries should be given our debt, they are still the "best" around.
    Which in itself is scary.
    #10     Oct 27, 2011