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Indy
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Is The US Bust?
It isn't often that I make a story about politics or finances a cover story on this site but the latest financial news required it. I was reading a story on CNN.com and it indicated that the Fed reached reciprocal currency agreements with a number of countries that allowed the Fed to receive up to $30 billion in loans so it can in turn loan money to banks in the U.S. This move apparently follows a similar agreement reached between other nations earlier for a much greater amount ($247 billion).
I find the term reciprocal currency agreement to be interesting. What exactly does that mean?
I see the nations debt approaching $10 trillion dollars. I see corporate bailout packages being made at the expense of taxpayers. As I write this there is a proposed $700 billion dollar bailout package in the works for the banks. This is in addition to $25 billion in loans going to Detroit for the automakers.
Are we broke? With what I have just mentioned above has our government run out of money? Has the Fed become so desperate that it must go begging for money in an attempt to bail out our failing economy? Maybe I am missing the boat on this but such a story as the one run by CNN.com leads me to believe we are in very serious trouble even though the tone of the story was relatively neutral.
Whether you have an interest in climate change or not I would love to hear your thoughts on this.
Full Story At CNN.com
"I think God gives us children so death won't come as such a disappointment." - Two and a Half Men |
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ghoster
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The US is not broke!! It has printing presses 
As democracy is perfected, the office of president represents, more and more closely, the inner soul of the people. On some great and glorious day the plain folks of the land will reach their heart's desire at last and the White House will be adorned by a downright moron."
- H.L. Mencken |
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Indy
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The problem is that the dollar is pretty much worthless now and if we keep printing money eventually those who buy our debt will stop and we will begin to default on loans because we can no longer obtain debt to pay off our old debt. The time is coming anyway. Question is whether that time is now.
"I think God gives us children so death won't come as such a disappointment." - Two and a Half Men |
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ghoster
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Isn't defaulting loans the cause of this bailout panic? Once Joe 6pak figures out that the money is worthless or worse the ATM won't throw out money then the real panic will set in. Most don't have any extra bills or for sure gold or silver. I just hope it stalls until after the 18th of November. I am moving out of town and to the country hopefully to a better place. That remains to be seen.
As democracy is perfected, the office of president represents, more and more closely, the inner soul of the people. On some great and glorious day the plain folks of the land will reach their heart's desire at last and the White House will be adorned by a downright moron."
- H.L. Mencken |
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chrisisasavage
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| Quoting ghoster - posted on 9/24/2008 at 07:55 |
Isn't defaulting loans the cause of this bailout panic? Once Joe 6pak figures out that the money is worthless or worse the ATM won't throw out money then the real panic will set in. Most don't have any extra bills or for sure gold or silver. I just hope it stalls until after the 18th of November. I am moving out of town and to the country hopefully to a better place. That remains to be seen.
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Good luck with that. Inner city America could get really ugly if people can't eat. |
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Aerology
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Iraq war vs jobs
Bush promised jobs, got the openings by sending all of the employed National Guard troops to war, freeing up those job slots.
Now he cannot bring them home to lost jobs, and the housing crises with out overloading the failing system more.
But the war efforts that started the escalation of the process, are bleeding the economy from the inside out, and bringing troops home, is going to be the coup de gras, when next term president tries to bring the troops home.
I only hope the rage they feel when they get home, is directed at those who put them there. Bush is afraid of that, so he leaves them there as scapegoats, of his attention distraction agenda, while handing his friends the banking sector at home.
The collapse of the system and the loss of personal freedoms is what the CYA has been working on since they assassinated J.F.K., and L.B.J. deregulated the price of oil. J.F.K. was the last president that cared about truth, justice, and American honor. |
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DanG
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Aerology - that is a Five Star post, thank you.
*****
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MattN
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Funny. Greed and corruption brought down the Roman empire too.... |
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Indy
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I bet just before the fall of the Roman Empire the very same type of conversations were taking place.
Comicus "I think the Roman Empire will fail."
Sparticus "Fail? Yov are nvts. N.V.T.S nvts!"
"I think God gives us children so death won't come as such a disappointment." - Two and a Half Men |
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MattN
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*Sigh*
At some point we are going to have to man-up and pay for this debt 'W' has put us in. And that means....taxes. I hate taxes, but what I hate worse is spending more ($5Trillion more) than we have. At some point, we have to suck it up and pay it. We have to. It will not simply disappear.
*Sigh*
Clinton certainly had his faults. But this country ran like a Swiss clock when he was getting hummers in the oval office... |
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chrisisasavage
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Empires coming down?!
I know DanG already posted a link to this, but it seemed relevant. |
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chrisisasavage
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Let's see:
Clinton ruined a dress. Bush ruined a once great country.
Clinton lied about getting a blow job. Bush lied to get us into a war.
I'm no fan of Clinton, or even the Dem's, and am not a liberal person, but I'd LOVE to see the GOP go away and be relegated to the history books. The fact they still have a strong base in our country makes me fear for our long term future. |
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MountainManMike
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so is it time to tax the crap out of the upper and middle class? |
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MountainManMike
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my idea is for the US gov to start drilling offshore. they take that oil and sell it overseas to places like china. they make boat loads of cash slowly paying off the national debt. we also force american oil companies to sell to the US first and outside our borders second if they end up having excess.
then maybe, we start working our way back onto some sort of standard so that our money is not just paper.
we could also save a heck of a lot following pauls foreign policy.
anyways, those r just my late night tired philosopher thoughts. feel free to rip them apart. |
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ghoster
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Might work if China was still growing like mad, but they too are affected by this financial storm. Times are changing and this will only get worse, how worse depends on how it is handled but you can bet that things are not going back to the "good old days" that is for sure.
Unemployment is going to continue to rise. Why? Because the jobs that would pay a decent salary aren't here anymore. How many people are making over 50K a year? How many are making 30K a year? Seems that when an industry is offshored the unemployed don't make as much in their new job, about 35% less usually. So with prices going up, wages going down, and the dollar weakening it ain't gonna be long before things get really bad. I give it until next summer before there is real pain in this country. This economy is large and it takes time to collapse, but it is only headed in one direction. No matter how much sunshine the government blows up our collective arses. 
As democracy is perfected, the office of president represents, more and more closely, the inner soul of the people. On some great and glorious day the plain folks of the land will reach their heart's desire at last and the White House will be adorned by a downright moron."
- H.L. Mencken |
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DanG
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yep, as I've said before - the dinosaur (U.S.) has been mortally wounded -- but just hasn't figured it out yet. |
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chrisisasavage
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Why do I get the feeling war is the end result of all of this.
When the US is unable financially to be the world's police, I can't help but see everyone attacking everyone they always wanted to but were afraid to. |
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DanG
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| Quoting Indy - posted on 9/24/2008 at 20:22 |
I bet just before the fall of the Roman Empire the very same type of conversations were taking place.
Comicus "I think the Roman Empire will fail."
Sparticus "Fail? Yov are nvts. N.V.T.S nvts!"
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FVNNY !!!
SAD - but fvnny |
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DanG
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| Quoting chrisisasavage - posted on 9/25/2008 at 10:05 |
Why do I get the feeling war is the end result of all of this.
When the US is unable financially to be the world's police, I can't help but see everyone attacking everyone they always wanted to but were afraid to.
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being the 'world's policeman' is largely what got us into this mess. |
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DanG
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U.S. losing financial superpower status
| Quote From Source: | Germany's finance minister on Thursday laid the blame for the global banking crisis on the Anglo-American free-market model's quest for ever-higher near-term profits, predicting the United States would soon lose its role as the world's dominant financial power.
| | Click source url to view entire story. |
http://www.marketwatch.com/n...178%2D9BFE%2DF9A8C897D209%7D |
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DanG
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Bailout can't hide it; the country is busted
| Quote From Source: | The country is simply busted. Its financial obligations are unpayable, its asset prices are illusions, and the great undertaking in Washington and New York is to preserve those illusions rather than face reality. If the price of preserving those illusions is $700 billion -- and of course it is more likely to run into the trillions -- could it really be more expensive to dispense with the illusions now? After all, instead of rescuing financial institutions that disregarded risk, the government just as easily could keep the country going by sending checks to everyone every month -- as it already sends Social Security checks to retirees.
But as long as the government keeps paying ransom, the financial class will keep taking the country hostage.
| | Click source url to view entire story. |
http://www.journalinquirer.c...oc48db9d8625518811197071.txt |
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chrisisasavage
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What worries me about the bailout is provisions to basically give the countries economy to the government, and probably the countries elite. Honestly, what's going to stop them from just taking our country from us. Oh, and someone has to pay for this, so I also suspect, part of our economy is going to be given to the world's elite and other countries to cover the cost. Who really trusts these people? Who is to stop them from giving the rest to their own? The average American may very well live in a shanty town in 5-10 years. |
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FatalWishes
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If this 700 billion package goes through that would put the tab at about 2 trillion o the tax payer just this year. My math sucks but with 300 million people that would be our responsibility????
On top fo the 8 trillion in debt......There is no way we are going to repay this crap. Bust? Dude we are broke lol.
They should take the warning labels off of everything and let stupidity sort itself out.
Please check out our new website at www.globalwarmingisnotreal.com |
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chrisisasavage
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Yup, right now we're talking 10K per tax payer or so, just from this years mess. |
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MountainManMike
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i already dont make that much, lol. |
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posted on 9/24/2008 at 07:31
