Reply #8: corporate influence on gov, corruption [View All]

[kuozzman]

corruption, lies
few lies, many lies
gov accounting worse than Enrons, innacurate indicators
plug one leak, two more pop open
Once one bursts, they all do
What will be the trigger??
We're in an impossible situation unless we invade China or something.

We have HUGE DEBTS, especially when you don't only count the next ten years, as our gov does, despite GAO objecting to it, in the GAO report, it's for next 75 years=$35Trillion!That’s over three times the GDP! (that that figure does not include the most recent Medicare Prescription Drug, Improvement and Modernization Act of 2003, which will cost $534B over 10 years)
Other Record Numbers(From paper I wrote in october):
• Total Outstanding Credit Market Debt: $35Trillion+/Over 300% GDP for first time ever(267% During Great Depression)
• Outstanding Derivatives: $234T in Dec.2003-Currently about 2000% of GDP and was about 10%GDP in 1986
• Foreign Owned US Debt Instruments: 42% of total
• Trade Deficit: Record High in June, 2nd Highest In August
• Ratio Of Household Debt To Disposable Income: 108.3% If the household debt continues to grow at the same rate in the next presidential administration as it has since 2000, it will reach 152.0 percent of disposable income by the end of 2009

Corruption worst ever.
Dependence on other nations more than ever.
Piss off the world more than ever.
People hate Bush more than ever.
Baby boomers going to start retiring in 2008.

When the foreign dependency ratio begins to increase in 2008 as the Boomers start to retire, the attempt to cash in on the illusory assets will bring the bubble to light. The actual profitable stream of goods and services yielded from an asset will be surprisingly low and the recognition of a lower valuation will become apparent.

What will be the expectation of foreigners holding US assets?
They will begin their attempts to cash in the "fruits of their labor" beginning in 2008 as well because of their own "Boomer" population profiles. They will expect to receive the same real value in return for goods that they have shipped to the US, plus a reasonable return.

Since we are operating at a current deficit rate of nearly 6%, the US dollar is at least 100% overvalued based upon empirical experience where the dollar exchange value dropped 50% (I.e. 100% overvalued) from 1985 to 1988. As a result, the current account trade deficit reduced from 2.8% (in 1985) to 0% (in 1991). Additionally, the US equity, bond, and real estate markets are approx. 35% overvalued. Combining both factors, the foreign investors will only receive 20-30% of their investment in real terms, and will become extremely upset.

We're Fu**ed!