Stop blaming and attacking the jobless. They're NOT taking your money.

[girl gone mad]

Mike Norman:

[dkf]

1. It's not the 1% on the government dole, it's every single one of us from the day we are born.

The national debt is sickening. I guess I should realize that its all a giant spreadsheet but that is no comfort when one is trying to figure out how to retire and achieve some amount of security.

I guess I am supposed to pooh pooh it away as a joke in a joke of a monetary system but I have a feeling the government will eventually ask a whole lot of us for its past profligacy and will manage to make things harder in the future.

I've never thought the debt was purely a burden on the rich. I've always felt it was on my back.

[DonCoquixote]

2. But it is run up mainly by the rich

Who want their bloated MIC and Junk bond schemes.

[dkf]

4. Well I am not confident that my hide will be exempt when they start looking for someone to pay China

God I wish I believed that I was immune then it wouldn't distress me so much.

Right now I only see government as a huge debt I have to pay that I can't reduce because those in power only want to grow my obligations.

In the rest of my life I have control. I can pay off that credit card bill monthly, I can keep my expenses to a manageable level, except for this, my future tax burden.

[girl gone mad]

7. This is irrational.

The Chinese government and individuals in China store their surplus US dollars in US bonds in part to strengthen the dollar v. yuan and in part because our bonds offer more security and a stable return. Most of these bonds will simply be rolled over at expiration. I can't envision a scenario under which China decides to cash in all of its Treasury bonds and go on a crazy spending spree, can you? Who would benefit? Where and how would China spend the dollars? Don't you think that such activity would weaken the dollar and help our manufacturing sector? This would certainly offset negative inflationary effects.

The US government never needs to raise taxes to cover its same currency debt obligations. That includes every bond China owns.

[dkf]

8. Are you saying the US will never attempt to raise my taxes to pay its debt?

Maybe not specifically to pay off Treasuries owned by China, but all the other debts it owes.

You know I actually support getting rid of the Bush tax cuts even though I will pay more because I want to reduce the debt that is being incurred in my name. Should I actually be fighting to keep it as is under the assumption it is better for me as I will suffer no consequences if the debt grows and grows and grows?

[RommelDAK]

9. No, taxes are completely unnecessary to "pay off" the debt

The one thing we still don't import from China are dollar bills. So long as debt is owed in dollars, it is impossible to be forced to default--we can always print more of them.

And there is no reason to believe that is inflationary:

http://www.forbes.com/sites/johntharvey/2011/05/14/money-growth-does-not-cause-inflation/

Furthermore, the Chinese know that if they don't purchase US financial assets (t-bills or otherwise), then they can't have a trade surplus with us. Trade surpluses are always offset by capital account deficits, and vice versa.

[mbperrin]

10. Well said.

Really, there is no place for China to spend that kind of money, because it would create a bubble in whatever market was chosen, resulting in eventual losses when the bubble broke. The current situation works well for them - no reason in the world to think they will change - that's why interest rates are so low.

[Komputernut]

3. So......

What are you trying to say?

[girl gone mad]

5. Once again, I think your opinions are based in fear..

Last edited Sun Jun 3, 2012, 07:04 PM - Edit history (1)

rather than in rational analysis.

The federal government spends unwisely - on wars, bloated military contracts, corporate welfare and the like - rather than making smart investments in infrastructure, education and energy. But does the federal government spend too much overall? I don't know how anyone can logically make that claim while we are at 9% unemployment with low inflation and massively underutilized productive capacity.

If you want to ensure that people can save enough for retirement, Step A is for the people to be able to earn an income. A 50% unemployment/underemployment rate for recent graduates means a lot of people can't provide for their basic needs and pay down debts, let alone save for retirement (or any other future need). In my view, the most logical path out of the mess created by excess private sector debt creation is for the currency issuing federal government to spend (debt-free) money into the economy so these bad private debts can be retired and we can restore demand.

[mother earth]

11. You are so right, if they spent a pittance of what goes to the military on a real stimulus plan

it might have gotten us somewhere. They ignored good economic advice to go big for the stimulus, and extended Bush tax cuts for some "pie in the sky" imaginary job creators.

The real issue is jobs and the real issue will continue to be ignored, and they will scratch their heads and feign ignorance while stuffing their pockets. We just aren't listening enough to Dimon & friends, economic principles are just too complicated for the simple minded masses. Let's have another round of fear and dictate more corporate policy for the job creators and the integral banksters.

You make far too much sense, ggm.

[RommelDAK]

6. Debt = good!

Actually, the national debt is not analogous to personal debt, so the only thing that should make you sick about it is that it's not big enough!

See here for an explanation:

http://www.forbes.com/2011/03/18/deficit-cut-danger-budget-jobs-leadership-managing-employment.html