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World worries how U.S. will pay for stimulus

hypocritexposer

Well-known member
Few people attending the World Economic Forum question the need to revive America's economy, the world's largest, with a package that could reach $1 trillion over two years. But the long-term fallout from increased borrowing by the U.S. government, and its potential to drive up inflation and interest rates around the world, seems to be getting more attention here than in Washington.

U.S. officials maintain they are aware of the challenge. A top White House adviser, Valerie Jarrett, promised in Davos on Thursday that once the stimulus plan had achieved its intended affect, the United States would "restore fiscal responsibility and return to a sustainable economic path."

Is she saying they aren't being fiscally responsible at this point in time?
 

Cal

Well-known member
hypocritexposer said:
Few people attending the World Economic Forum question the need to revive America's economy, the world's largest, with a package that could reach $1 trillion over two years. But the long-term fallout from increased borrowing by the U.S. government, and its potential to drive up inflation and interest rates around the world, seems to be getting more attention here than in Washington.

U.S. officials maintain they are aware of the challenge. A top White House adviser, Valerie Jarrett, promised in Davos on Thursday that once the stimulus plan had achieved its intended affect, the United States would "restore fiscal responsibility and return to a sustainable economic path."

Is she saying they aren't being fiscally responsible at this point in time?
I think it's like someone on drugs, that's always going to quit after just one more time.....

How did government get so far away from it's original intent of providing for national defense?
 

Tam

Well-known member
hypocritexposer said:
Few people attending the World Economic Forum question the need to revive America's economy, the world's largest, with a package that could reach $1 trillion over two years. But the long-term fallout from increased borrowing by the U.S. government, and its potential to drive up inflation and interest rates around the world, seems to be getting more attention here than in Washington.

U.S. officials maintain they are aware of the challenge. A top White House adviser, Valerie Jarrett, promised in Davos on Thursday that once the stimulus plan had achieved its intended affect, the United States would "restore fiscal responsibility and return to a sustainable economic path."

Is she saying they aren't being fiscally responsible at this point in time?

The US is not going to beable to return to sustainable anything if they don't cut the spending in the Stimulus bill and drop the idea of universal health care in a country as big as the US. That alone will be a drain on the pocket book that will force higher Tax rates which will in turn result in less jobs and more welfare. The US can't keep borrowing money or printing money, they have to start living within their means now or the World is going to be paying heavily.
 

Tex

Well-known member
Dave Ramsey always says you can't get yourself out of a hole by continuing to dig.

Isn't over borrowing (due to low interest rates and "creative loans") the cause of the present crisis?

It is hard to believe that putting a band aid on a busted artery is going to do the trick when the artery needs a major operation and be stitched up again.


The whole "stimulus" theory supposes that we don't have a major problem with our government policies and that a band aid will do the trick.

The problem is that this is the 100th band aid on a busted artery and the band aids are not holding.

Cal, I think your drug addict analogy is right on. Debt financing is so addictive and we have a bunch of junkies instead of people willing to face the problems they created.
 

hypocritexposer

Well-known member
good post Tex. It's an even gloomier picture when you take into account the Gevernment doesn't even show the real debt. They have no money saved for Old Age etc. Where are they going to get the money?


The federal government does not follow the rule, so promises for Social Security and Medicare don't show up when the government reports its financial condition.

Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined.

Unfunded promises made for Medicare, Social Security and federal retirement programs account for 85% of taxpayer liabilities. State and local government retirement plans account for much of the rest.
 

Tex

Well-known member
hypocritexposer said:
good post Tex. It's an even gloomier picture when you take into account the Gevernment doesn't even show the real debt. They have no money saved for Old Age etc. Where are they going to get the money?


The federal government does not follow the rule, so promises for Social Security and Medicare don't show up when the government reports its financial condition.

Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined.

Unfunded promises made for Medicare, Social Security and federal retirement programs account for 85% of taxpayer liabilities. State and local government retirement plans account for much of the rest.


They are going to print it and the only people who can play that game are the big boys who can move money around the world. We will all pay for it.

I bet George Soros is already plotting a strategy ( I don't think George Soros is the villain he is made out to be---he is a capitalist who spends his money on the political ideology in the open and for what he thinks is the common interest---not like those who spend it on themselves in the dark to satiate their own greed). You might not agree with everything about George, but he is being demonized by the club for greed for their own interests.
 
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