US Federal Debt As Percent Of GDP Fiscal Years 2000 to 2010Year GDP-US $ billion Gross Public Debt-fed pct GDP 2000 9749.1 58.20 2001 10286.2 56.46 2002 10642.3 58.52 2003 10886.2 62.31 2004 11607 63.57 2005 12638.4 62.77 2006 13398.9 63.49 2007 13715.7 65.67 2008 14165.6 70.50 2009 14237.2 83.41 2010 14623.9 94.27
Good stats, thanks Now obviously, the interest rate payments to service that debt as a percentage of tax revenues would grow disproportionately higher than tax revenues grow. Does anyone have those figures? In my view, that's where ultimately, TSHTF.
N IS A ------------------------------------------------------------------------------- Hyper inflation is a mortg. holders best friend. Your now paying off your mortg. with cheaper $. Take the cash and exchange it into a stronger currency and make monthly pymts on the mortg. with the difference in the long currency's appreciation. cheers john
I was not speaking literally of course I'm speaking of dollar in nominal terms all it's forms physical,bookkeeping entries. and government debt. the element that makes the dollar good makes the bond good too. If the dollar was no good the bond is no good either. If the bond is no good then the bill is no good . They both derive there purchasing power from the same element. Instead of printing treasuries why not print money and skip the middle man, avoid interest previously you said all our money is created trough debt, but you fail to put the pieces together. (1) every time a loan is made new money is being created. It does not come out of deposits. So the money supply increases.So when the Gov. borrows money the money supply increases. just the same as if it printed sovereign money instead. The effect on the money supply and in turn inflation is the same either way (2) the treasuries are then used in the banking system as reserves for more loans. so is money when it created in the banking system, as far as the banking system is concerned the are the same. As you can see borrowing causes > increase in money rather than printing debt free money.Because now not only are the treasuries used as reserves to create new loans, but so is the money created to buy those t-bills.why not create just the money instead of both If every country printed money (instead of borrowing from a central bank) to the amount of goods and services it produced, then their would be no inflation and no debt. The notion that governments would go crazy with this power and create massive inflation is a strawman argument fabricated by the fed and their big moneyed vultures. In fact, a slogan of the dallas branch of the fed says "Those who have the power to spend money (governments) can not have the power to create money. It sound good but is deception at it's best. NAME ONE TIME THE FED HAS STOPPED GOVERNMENT BORROWING yes if the U.S treasury just put the money on it's books instead of giving the fed t-bills and let them create the for the t-bills, like i said a few times already then money would be born of credit
Antitrust - I share your disdain for the Fed. But the system is what it is. If we were to bypass the Fed and credit system and create money at free will, that would have long range consequences to international markets, the sovereign bond markets, and international trade. All the indebted countries would wipe out their debts and the creditor nations would be stiffed. In that scenario, I could easily see a trade war, if not a real war breaking out. Let's just look at China - they have an account surplus, they use that money to buy and/or develop mines, farms, oil fields etc... Now all of a sudden, deficit spending countries can do the same and compete directly with China. Is that fair for the saving nations? Is it fair for the consuming nations to squander their money and then create more money to bid up what global resources China wants to buy? Them's fighting actions. China would say: I played fair and square, my people don't get a fraction of the entitlements your people are getting, and now you want to create money without obligation to bid up the scarce global resources that exist. C'est la guerre. It would also be hyperinflationary - globally - in my view. The current system will not be replaced peacefully. It will collapse before it is replaced, and not one day sooner.
Again, Explain to me how the government creating money instead of the fed is better. the fed has NEVER stopped the Gov from borrowng. which is creating money just as if the government would have The soveign bond markets would not exsist so it is irrelevant. How exactly would they be stiffed they would receive the exact number of dollars that they are owed . Does you're bank get stiffed when you pay off a loan. When a loan is made isn't the goal to get money for the loan. If every country produced sovereign money an honest currency would exist were it's based on a counties resources and production output. Rather then the amount of money foreign investors put into the country and protect it from speculative attacks. Why should their be an obligation to the creation of money. money is just a instrument to measure the value of goods and services. Aristotle said it best âAll goods must therefore be measured by some one thing...now this unit is in truth, demand, which holds all things together...but money has become by convention a sort of representative of demand; and this is why it has the name nomisma - because it exists not by nature, but by law The reason your people don't get your fare is because the U.S. through the IMF and World Bank sac's a country with debt in dollars which forces countries to sell their products and resources cheep to obtain the dollars necessary to pay a loan payment. Which enables it to create a ton of money without hyperinflation. The dollars remain strong in spite the fact that we produce less and less real wealth.Also oil is priced in dollars if you want to buy oil from opec which also creates huge demand for dollars. It is not a fair system as you can see. So create your own debt free sovereign currency and watch the dollar collapse I've tried to explain my side with the mechanics of how money works in a fractional reserve system. could you expand and give details on how it would be inflationary