1. Attention: We have put together a thread with tips and a tutorial video to help with using the new software. Please take a moment to check out the thread here: Trapshooters.com Tutorial & Help Video.
    Dismiss Notice

SPEND & BORROW, SPEND & BORROW

Discussion in 'Uncategorized Threads' started by hunter44, Sep 18, 2005.

Thread Status:
Not open for further replies.
  1. hunter44

    hunter44 Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    2,367
    Fix the fiscal crisis threatening America

    By REGISTER EDITORIAL BOARD

    September 18, 2005
    Here's an unpleasant thought: What if another disaster were to strike the United States just about now?

    Where would we get the resources to deal with it?

    A second great disaster in the aftermath of Hurricane Katrina is not inconceivable.

    Hurricane season isn't over yet. San Francisco or Los Angeles could be shattered by the long awaited Big One. If the dormant New Madrid fault were to awaken as violently as it did in the early 1800s, the city of Memphis could be destroyed. A major terrorist attack on some U.S. city can't be ruled out.

    Then there's the possibility of civil unrest, war or natural disaster in the Middle East, Russia, Africa or South America causing a disruption of oil supplies, making the recent $3 per gallon gasoline seem like a bargain. Or the United States could be drawn into another military conflict, on top of the costly engagements in Iraq and Afghanistan.

    The likelihood of any of these things happening in the near future is remote. But it is instructive to consider the possibility, because thinking about it brings the realization that this nation is living too close to the edge — the edge of fiscal disaster. The United States has used its credit so irresponsibly that it has little cushion left for emergencies.

    All it would take would be for other countries to stop lending money to the U.S. government — perhaps triggered by another disaster here or abroad — and there could be soaring interest rates, a crashing stock market and all the misery that would follow.

    This is because the United States let itself become a debtor nation — an extraordinarily large debtor.

    At its present rate of borrowing, the United States is on track to have its debt, as a percentage of the economy, reach a level never before borne by any advanced nation.

    More than one-fourth of the national debt is owed to foreigners, with China among the largest creditors. Even a rumor that China will stop buying U.S. notes is enough to send shock waves through Wall Street.

    Interest payments on the national debt are the fastest-rising expenditure in the federal budget. At the rate debt is accumulating, gross interest costs will exceed defense spending by 2011.

    The numbers are appalling — all the more so when it is realized the vast majority of this debt was run up during good times.

    Borrowing is necessary in emergencies, it is useful in financing big projects, and it is wise in times of recession. But the most recent recession ended three years ago, and still the United States is operating on borrowed money. Despite the administration's happy talk about deficit reduction, realistic projections show debt continuing to accumulate in staggering amounts indefinitely into the future. The United States has built a fiscal structure in which it permanently collects less in taxes than it spends, and borrows the difference.

    The government is spending roughly 20 percent more than it takes in — year after year after year.

    The nation was already operating on borrowed money when the Iraq war was launched, and every dime of the war's cost so far has been borrowed, simply added to the national debt.

    Then came Hurricane Katrina. Congress rushed $62 billion in relief as a down payment on what is estimated to reach about $150 billion. Every dime of it will be borrowed.

    It cannot be known at what point the national credit card will be maxed out, when lenders will be reluctant or unable to advance the United States more cash. But it is not unreasonable to think that one more disaster, man-made or natural, would bring us close to that critical point, with devastating consequences.

    Reckless borrowing has left America in a position no great nation should be in.
     
  2. buzzgun

    buzzgun Member

    Joined:
    Jan 29, 1998
    Messages:
    577
    We can't be broke - we still have checks!


    Seriously, it will be interesting to see how this US - China economic co-dependency works out in the long run. We need them to buy our dollars and debt, to prop up our standard of living. However, they need to BUY our dollars, to keep their currency from overheating and their export market from clamming up...so they can continue to increase THEIR standard of living by sucking off our riches, and thus prevent their central communist empire from crumbling economically, as happened to the Soviet Union.

    The Chinese learned very well from Moscow's mistakes...so well, in fact, that eventually, the unthinkable will happen: the strongest economy in the world will be in a communist, non-democratic country.

    So here we are - in this symbiotic relationship. We need them, they need us. At some point, they will have sucked everything they can out of us, until they ARE us.

    "Boy, I sure do fear for my Grandkids." How many times have you heard that? And that's the whole key - it's easy to put off action, because everybody is sure the shit won't hit the fan until long after they're gone.

    So, we just keep going...
     
  3. stokinpls

    stokinpls Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    6,481
    Looks like the commies have their work cut out for them.

    Must be true, LA Times. Can't imagine the Democrats(Socialists) allowing articles like this being printed, BEFORE The B*tch takes over.
     
  4. noseeam

    noseeam TS Member

    Joined:
    Jan 29, 1998
    Messages:
    65
    Hang on to your # ss we will have to pay.

    Bocephas
     
  5. halfmile

    halfmile Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    15,639
    Location:
    Green Bay Wisconsin
    You get it up the keister no matter which party is in.

    It goes to the entitlement bunch one way, and the fat cats the other.

    But the price tag is the same, all you can afford.

    The next year will be interesting for sure. The year after will be cataclysmic.

    Our economy is hollowed out till there is not much left.

    Buy bullets and powder.

    HM
     
Thread Status:
Not open for further replies.