Social Security calling in IOUs. Makes you wonder how many more money problems the US can pull out of the woodwork. I hate to say this, but the Republicans are right. You can't spend you way out of this problem....

Quote: Original post by Alpha_ProgDes
You can't spend you way out of this problem....

Exactly right. I see what our US politicians are pushing for and it makes me scratch my head. The more the US goes into dept the more we're just pushing some of our problems down the road for our younger generations to deal with. At the same time other problems pop up. It feels like a downward spiral.

Quote: Original post by Alpha_ProgDes
You can't spend you way out of this problem....

That quote reminds me of an excellent speech by Daniel Hannan (UK Conservative MP), slating Gordon Brown about trying to borrow his way out of debt..

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The problem with the mortgage crisis is ongoing? Don't know. I haven't heard anything about in the news for the last few months. We're still bailing out banks and allowing these same companies to give exorbitant bonuses based on terrible performance. The stimulus has stopped the freefall but now things seems to be at a standstill. Health care ....well I don't agree with one major component: being forced to buy insurance. Now Social Security has to call in those IOUs because of the recession and the government doesn't have the money to pay back those IOUs because it used that money for unrelated programs (I believe Medicare/Medicaid has the same problem).

So in short, will Obama get and listen to pragmatic and forward-thinking economic experts and lay out the plan for the American people and give us the facts and the hard truth. Or will Obama still be fighting the Senate, the House and the Republicans all at once? Still.

Quote: Original post by nsmadsen

Quote: Original post by Alpha_ProgDes
You can't spend you way out of this problem....

Exactly right. I see what our US politicians are pushing for and it makes me scratch my head. The more the US goes into dept the more we're just pushing some of our problems down the road for our younger generations to deal with. At the same time other problems pop up. It feels like a downward spiral.

Indeed, I agree wholeheartedly. Your government should start cutting social services so that you can keep funding your wars. I mean seriously, who needs healthy living people when you have oil and colonial interests? Thumbs up!

Remember, the US government is always ready to help you out of your financial woes, assuming your woes -- assuming your woes are not being able to afford fuel for your Gulfstream V.

Quote: Original post by deathtrap

Quote: Original post by nsmadsen

Quote: Original post by Alpha_ProgDes
You can't spend you way out of this problem....

Exactly right. I see what our US politicians are pushing for and it makes me scratch my head. The more the US goes into dept the more we're just pushing some of our problems down the road for our younger generations to deal with. At the same time other problems pop up. It feels like a downward spiral.

Indeed, I agree wholeheartedly. Your government should start cutting social services so that you can keep funding your wars. I mean seriously, who needs healthy living people when you have oil and colonial interests? Thumbs up!

Or we could stop socializing business failures and stop promoting corporate monopolies.

I find it amazing that the Congress can sell to the American people and pass laws to, effectively, reward horrible business practices and keep these companies afloat, but can't pass an across the board moratorium on foreclosures, can't renegotiate mortgages, can't pass a law that keeps them (fox in the henhouse right?) from raiding SS and Medicare/Medicaid, and can't agree to allow a public option (paid for by taxes and/or minimal fee) to provide basic and preventative medical services.

I mean, REALLY AMERICA?!

If only we hadn't spent 1+ trillion dollars on a foreign wars on borrowed money we might be more financially more sound and hadn't dismantled banking oversight to avoid the 1 trillion dollar real estate scam. The debt bomb was well know for decades but neither side had the political will to fix it, now it comes to a head, when we least can afford it (worse recession in 50 years). Can't blame it on the politicians thought, people voted in these incompetents in.

-ddn

The way I see it, you guys are getting far too upset by this. I can see why your govt has done this; If they borrow from other parts of the government, where there is spare cash, they don't have to go to foreign bankers. They don't pay interest. They can write bonds and at a moments notice they can do one of the things they would have done anyway to get the money back.

When the money needs to be paid back, which is presumably several years down the line (several years of not paying interest) they can borrow money from foreign banks. They have saved money by not paying those years of interest. But they have not lost anything; they are only doing now what they would have had to do in the first place.

The only downside is hysteria from the general public who see everything as the end of the world.

Remember that there are few emotional arguments in macroeconomics, which is a science most of us sub-trillionnaires understand little about.

Quote: Original post by speciesUnknown
Remember that there are few emotional arguments in macroeconomics, which is a science most of us sub-trillionnaires understand little about.

Macroeconomics is most definitely not a science.