Ricter defender extraordinaire of all government wasteful spending attempts yet again to justify his naivete.
It was meant as a joke, but i will bite. If that money put me to the point where i was deeply in the hole, then no, i would not go out and roll the dice and start spending more on credit, to try to make more, as it would be a clear sign that what i was doing was not profitable/not working. While that was a decent sized hit, I also had a record week that far exceeded my previous record last week, so unlike the government, i have plenty of money, and that really doesnt do much damage to my account, and it doesnt put me at risk of going bankrupt. If i was to look at it from the perspective of the federal government, and i was down 50k on the week, and that put me 145k into the hole, and i was losing money perpetually, as a result of my trading, and all my credit cards were maxed out I sure wouldnt be going out next week trying to find more credit, so i could roll the dice, and say "Well if only i blow another 100k, that will get me out of the hole." That is the kind of talk you expect to hear from a degenerate gambler.
I knew the cc part was a joke. I'll just sketch this out for speed's sake. Anyway, the fed gov is more complicated than your analogy, of course. The degenerate gambler in your story also has a job, but he's gotten his hours cut. Not to mention that much of his "gambling" could fairly be called speculating. Still, prospects for getting his hours back are fair, it's not the first time they've been cut, and restored. Meanwhile, his family, his friends, even complete strangers seem to believe in him so they keep loaning him money, he's had to promise them less and less in return since they offer him so much, and if we assume they're halfway intelligent, they know they won't get it all back, not the principle anyway. They are content with the interest he pays. And, to a point that 377 made, our gambler lives a lot longer than any other human being.
You seem to be under the impression that U.S. treasuries properly reflect the normal laws of supply and demand, surely you dont think we are yielding 2.07% because there is a line up of people who just cant wait to get their money into bonds at that price, you discount the fact that the yield on U.S. treasuries is controlled by the fed for the most part. The fed could raise interest rates to 10% tomorrow if they wanted to. And the people putting their money into U.S. bonds at 2.07% are idiots, but that game will come to an abrupt end as well eventually if we keep going on this route, once again it comes back to the point that we can not spend our way out of this mess. Actually, saying "we cant spend our way out of this mess based on credit, and deficit spending would be a more accurate portrayal, if we were flush with cash we might be able to spend our way out of it.
Watching Leftist try to deal with reality is like watching monkeys try to deal with a thunderstorm... I guess the Left really are idealists.. the problem is that they are willing to destroy everything in their path to get their ideal government and culture in place... but it's unreal to me, very very unreal, that you can show them all the examples of the complete failure of their ideas to work, lots and lots of examples... and it doesn't phase them.
Yes, Lucrum, I am taking notes. Eight's bit there sounds precisely like rightists, during the debt ceiling debate for example.
How come countries with more debt than us get to keep their AAA rating? http://en.wikipedia.org/wiki/List_of_sovereign_states_by_public_debt http://en.wikipedia.org/wiki/List_of_countries_by_credit_rating