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Citizens Against Government Waste

Posted: Sat Oct 30, 2010 12:32 am
by teflor the ranger

Re: Citizens Against Government Waste

Posted: Sat Oct 30, 2010 1:57 am
by Corth
I like the punchline. Of course, there's the old saying (updated for current values):

If you owe the bank a million dollars the bank has a problem. If you owe the bank a billion dollars the bank has a problem.


What about when you owe China a trillion dollars?

Re: Citizens Against Government Waste

Posted: Sun Oct 31, 2010 6:17 am
by Teflor Lyorian
It's funny that you say that, Corth, because you might note that we owe China "dollars." Not in another currency. Inflating our way out of a debt would destroy the life savings of Americans. Refusing to pay kills the credit rating that the United States has come to depend on for all of it's political and government growing spending.

Yes, it's China's problem, but do we really want China to have an "America" problem?

Re: Citizens Against Government Waste

Posted: Sun Oct 31, 2010 3:43 pm
by Corth
I don't think inflating is ideal. You are absolutely right that it will destroy people's life savings and undermine our country's credibility vis-a-vis foreign investors. This is very destructive. On the other hand, I'm not quite sure that the country's debt, public and private, actually CAN be paid back in real dollars.

Re: Citizens Against Government Waste

Posted: Mon Nov 01, 2010 3:43 am
by Teflor Lyorian
They could potentially trade it for other influences. And yet, they could just also accept our interest payments.

Re: Citizens Against Government Waste

Posted: Mon Nov 01, 2010 7:12 pm
by Corth
Rofl - the national debt turned into a circa 2006 real estate craze interest only loan. :)

One thing I know is that the US government has never outright defaulted on any obligation in it's entire history. I don't expect Uncle Sam to plead poverty and seek a 'loan modifciation' any time soon. It's an interesting idea but the interest only solution seems dubious to me.

Especially when the US government prints the currency that it owes. It will be a stealth default. We owe you a trillion dollars - and you're going to get it exactly when we agreed to pay it to you. The problem is that perhaps a trillion dollars won't go quite as far as it once did. But you will get what we owe you!

Re: Citizens Against Government Waste

Posted: Mon Nov 01, 2010 7:24 pm
by Teflor Lyorian
It's becoming an issue when so much of our budget goes to interest payments. Nearing 20 cents of every Federal dollar...