if we had a balanced budget requirement 50 years ago, as many states require now, we would be telling the special interests "SORRY, WE CANNOT AFFORD IT." Instead, we owe $10 trillion+ and counting. What idiot ever thought up deficit spending? How much more money would we have now if we weren't spending $400 billion plus annually just on interest payments?
That would shrink the monetary base, and crush the prices of everything, which is really why we're hurting in the first place. The fed would just print, print, print, and sell off gold to give the illusion that inflation is non existent and the currency is solid. Steady price appreciation (to an extent) is the foundation of American economic growth.
Well we got to pay the smart guys at the fed something. Interest is a small price to pay for having a sound stable economy, not to mention a strong currency. Just think were we would be if the Fed were not looking out for the American people geesh.
What if the US is unable to sell treasuries? Who is to say for sure that has not already occurred? The Gubmint may be buying its own debt. Paper is ILLUSIONARY. It is not if like Gubmint cannot thwart both the WILL of the people and FREE MARKETS. Gubmint accounting makes Madoff look meticulous. The Gubmint has lost billions and billions on paper. Now that Barry, Nancy, and Dingy Harry be in charge the number is more like trillions. What do I cite for evidence? The Department of Agriculture for one has billions that has NEVER able to account for. And that was under the Republicans clowns who called themselves "capitalists" not this current crew which is unashamedly Socialist as well as Marxist in ideoleogy.
nothing is a problem until it becomes a problem. it is all guesswork till it happens. then u will explain it away.
I would suggest that the United States is far more resilient than many people give it credit for. Given all of the "Doom & Gloom" scenarios that have still yet to pass from the perma-bears, not too mention Marc Faber on TV earlier this week "hedging" himself implying that yet another "bubble" in equities is about to occur . . . I would say that many of the issues that you have highlighted have indeed, been explained away . . . and here we are at SPX 975. Good Luck to You.
Trader - the gold standard WAS our balanced budget amendment. Virtually every U.S. economic chart clearly shows the early 70's, when we went off the standard, as a point when economic fundamentals changed. You can't print gold out of thin air, although you can obviously manipulate it to keep the price low when it is paper money auction time...