Debt Ceiling Solutions - Page 5

I think there is a difference between the skirmishes in Afghanistan and a 6 year long full-blown war with the rest of the world, into which you invest all resources and send all 18-40 year old men (and lose most of them) which led to the complete destruction of the country and 10 million causalities.|||The conditions are set for a full blown war over there, it just hasn't exploded yet. That's not to say things haven't always been violent in the middle east of course. Its just that the heat is getting turned up a bit on that pressure cooker. Plus we've had troops stationed all over that region for a long time now, which is a constant drain on resources to go along with all our other spending problems.|||Quote:








We have pretty much run out of people we can borrow money from. Even China isn't too thrilled with the idea of loaning us more money. Thus, the next step is hyperinflation, if things continue as they are. That's going to be a lot of fun.




But I heard that the largest chunk of your debt, roughly 40%, is debt to the Federal Reserve.

Now, isn�t that funny that the US government owns money to it self? Absurd,.. perhaps? Have you ever owed money to your self?

Or perhaps the Fed is not state owned?

Anyway, hyperinflation is not fun. If you don�t know how to create food from a land or you don�t have storable dry food for many months,�.don�t know.

I lived in one, world record at the time. I survived and I see much clearer things now.|||No, the federal reserve is not state owned, although God only knows what's going on between them and the federal government behind closed doors. The Fed is a banking cartel created to muscle out competition and control all the money under the guise that its to protect the banking system.|||I'm not sure if I got your point, but in case you blame the Fed: Who should have bought all these bonds instead of the Fed? Maybe the US would have came to senses a bit earlier if the Fed had shown no interest, but I think the US government consists of grown up persons, with a brain of their own, so I guess they put enough thoughts into the question about which lion's maw they put their head into .||||||Quote:








I'm not sure if I got your point, but in case you blame the Fed: Who should have bought all these bonds instead of the Fed? Maybe the US would have came to senses a bit earlier if the Fed had shown no interest, but I think the US government consists of grown up persons, with a brain of their own, so I guess they put enough thoughts into the question about which lion's maw they put their head into .




Money creation

US Treasury needs money to fund something, like a budget for example. Doesn�t have any at the moment. Goes to The Fed: knock-knock.

The Fed: yea?

Treasury: We need money.

The Fed: What do you offer?

Treasury: Fresh new bonds

The Fed: How much

Treasury: 10 billion

The Fed: Just a sec�[types 10 billion in the computer, money transfer Treasury: Enter]

Treasury: Here are your bonds [IOU 10 billion plus interest, Fed can sell those bonds to someone else]

Now the US government has to find a way to find 10 billion in its economy to pay the debt. Every month several billion dollars just for the interest.

But it doesn�t have to be that way.

�If our nation can issue a dollar bond, it can issue a dollar bill. Both are promises to pay, but one promise fattens the usurers and the other helps the people.� � Thomas Edison.

Edison was a friend with car maker Henry Ford. Ford understood how the monetary system depended on keeping the average American �:

�It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.�

|||I agree wholeheartedly with this guy:


Quote:




The fact that we are here today to debate raising America�s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can�t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government�s reckless fiscal policies. � Increasing America�s debt weakens us domestically and internationally. Leadership means that �the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.




Well said, Obama from 2006!|||How much time was left at that time to raise the limit?

Whatever, Obama isn't different from other politicans with respect to blaming others when it's convenient.|||So just raise taxes and cut spending to get the finances sorted, like everyone else has to. Yes, paying more in tax and getting worse services isn't much fun, but it's necessary.

What is it about the American political system that makes a decision on whether or not to bankrupt the country a difficult issue?