Fairmon wrote: "Are you kidding? No those holding that paper are not happy but think they are protecting their money which is a major mistake."
alprova said...No country has a track record of honoring its debts any better than the United States of America, and that's not going to change because a bunch of idiots run around flapping their wings.
alprova, you economic idiot. Do you know what happens to those bonds when interest rates go up. They are of less value unless held to maturity although paying interest so low the principle will not keep up with low inflation. If sold before maturity, which can be up to 30 years, the value is less than the purchase price therefore a loss. Yes, they are very likely going to get what they have coming even if the government has to print or borrow more, increase the debt, to pay them. Either way, they are locked in to very low earnings on their money or to a loss if sold before maturity. Some people made a lot of money by buying bonds when interest rates were dropping and selling them at a higher face value at the lower interest rate. The flow of money out of bonds into stocks or the big money flow into stocks instead of bonds is one reason for the current stock market performance.
How many people do you know that pay their debts by borrowing money while paying the interest on old full credit cards and get another new card to add to their debt?
The prevailing prediction is a write in will win the republican primary....."none of the above" will prevail.
im said...There is overwhelming economic data showing that economic stimulus by spending against debt benefits an economy in dire trouble.
It is a false expansion and can only continue with ever expanding debt when not a result of increased production.
"You and those equally selfish boomers have no shame about leaving a debt for future generations they could never pay even at 80% tax rates on the highest incomes."
alprova said...Sir, it's not my debt, nor have I had any hand in creating it. Your beef is with the politicians who have spent all that money and continue to spend money.
You certainly advocate debt and spending and support those like minded.
alprova said...It isn't bad either. Those holding paper on that debt are making lots of interest on that debt. I'm sure you are aware that home grown Americans hold most of that paper and they like it.
Are you kidding? No those holding that paper are not happy but think they are protecting their money which is a major mistake.
real demand can only come from production, not from printing money or expanding credit."
alprova said...You might not think so, but the tactic has been used for decades and it has only been good for this nation. Outside of this nation, no so good, but that's the breaks.
Not to the extent it has for the past 5+ years. Do you know why it only works in the U.S. and what may cause that to change? Doubling the debt with the increase being equal to all past administrations combined cannot be good.
You and those equally selfish boomers have no shame about leaving a debt for future generations they could never pay even at 80% tax rates on the highest incomes. It is 17 trillion and projected to double again in the next decade give or take a year or two. Tell me again how that doesn't matter?
The economy tanked and since that time every time 'demand' slacks off, the Fed appears with more credit.
The idea of creating and enhancing "demand" with new money is hardly new. It is by far the easiest way to simulate demand growth. You print money (or otherwise boost credit).
The economy takes up the new purchasing power and confuses it with real demand. Sales go up. Prices rise.
A boom follows.
But it is a fool's boom, real demand can only come from production, not from printing money or expanding credit.
I didn't intend to say they will reach 14% but they will go up which is a major concern of the FED and why they warn congress about the cost of servicing the debt should interest return to a normal level.
You say you look at all sides. Check out how household debt has gone up in the past decade, especially since "quantitative easing began. Reduced spendable income and increasing prices have been a major cause.
I don't want to hear or see time wasted on impeachment since it will accomplish no more than sanctions in congress for egregious behavior like that of Charlie Wrangle. Incompetence and ineptness is not an impeachable offense. Also, neither are Promises not kept justification for impeachment. The stupid republicans sat on their hands and watched Obama make major changes in the healthcare law and did nothing to require it be implemented as passed or altered by congress. Screw them, they are all talk just like democrats.
alprova said....And as I have stated many times, that devaluation only matters when one is involved in International exchanging of currencies.
I have no such involvement. I never have and I likely never will.
Does that mean you never purchase an imported product? Does that mean you can buy the same thing with a dollar at the same price as you could in the past?
alprova said... despite all the chicken wing flapping, the printing of money has not had anything but a positive effect on the United States economy, and that is something you cannot refute.
It has certainly made the wealthy especially the mega wealthy more wealthy. The median income is down for the typical working person.
What happens when the printing stops and interest rates go up?
Will that dollar that is still worth what it has been your whole life if inflation is similar to the Carter years?
Impoverished Tennesseans can get Tenncare which pays health care cost and others can get a subsidized policy through the federal exchange. What advantage over time is it for a state to participate and have their own exchange? Some that started out doing so are opting out.