Some of the weaker ....more exotic currencies ....have the game down.... Offer higher rates ...then widen the conversion spread.....then inflate.....then narrow....then boot interest.....and do it again and again....like bait and switch versus the central currency.... Then one looks at 1.?x1.?x1.?...etc....versus the more central currency....currency plus local interest.... To be sure interest rate tables are going to stack and offer each year....It was not long ago that the Swiss Franc was cheap...then went higher....Swiss travel got cheap and then more expensive.... The interest rate stack is starting from a very low overall series... And it WILL change..... So the question at hand is....does the US $ start to behave like an exotic....? If so....versus what central currency ? All in all....the debt picture being responsible for wiping out the savers....who did the right things....NOT COOL.... IT'S STEALING.... There are a lot of people in jail ....because of stealing.... WHY SHOULD THE TYPE OF STEALING MATTER ? STEALING IS STEALING..... If one takes away 50% of what one has saved....and knowingly does it.... THE SON OF A BITCH SHOULD FRY FOR IT....ESPECIALLY LYING THEIVING POLYS....THEY SHOULD BE FIRST TO BE PLACED IN JAIL....THEY ARE SUPPOSED TO BE PROTECTING THE SAVERS.....AS THEY ARE THE CORE OF THE ECONOMY.... JUST WHAT IS THE JUSTIFICATION FOR THIS STEALING ?????
I don't understand one thing here... well first of all 100T is not exaggerating. The gov't has a clear record of overspending and underestimating costs of programs. Back to my point, the answer is quite simple, the problem is health care , so stop giving away so much. SSI can be handled, its friggen grandpa 5 years in the home on a respirator. It's all the crack preemie babies that right to lifers and liberals say we must keep alive. It's the illegals invading and having 20 kids. Our culture needs to grow some balls and start facing death in a more grown up way, we need to start asking people to do more about their own health. Is it asking too much that people on welfare should not get obese and have kids?
From my understanding, these astronomical numbers are based on a 80 or 90 year projection of total spending. For Medicare, for example, which the unfunded liabilities now stand at $89 Trillion over the entire period. If the former time frame of 80 years, then you're talking spending of upwards of $1.112 Trillion, if it's 90 years, then $988 Billion. It's a hefty amount, I'll say that for sure. Indeed, both are tantamount to about 1/3rd the today's budget.
Why do we always hear about USA debts?. Why do we never hear about China debts and India debts?. Now China and India are prospering and getting rich.
................................ China is a sleeping disaster.... Funny how populism type ignorance is everywhere eh ???? Very true....and good observation..... They will have their day....soon.... They are in no position to give up their currency rigging.... And they won"t....
Well, you wouldn't want to offend your voting base... Better to let them continue doing what they want and force somebody else to pay for their care.
I agree that China needs to keep currency valuations artificially low to support their high growth. However, I believe that Chimerica will be able to unwind this thing gradually without the disaster that you are predicting. The current export and consumption balance will be much more even as time passes. The result? A weaker USA (but not collapsed) and a stronger China. It is inevitable in my mind. China will gradually consume more, export less. USA will gradually export more, consume less. A balance will be struck at some point in the future without a complete disaster.
U.S. Debt Totals $133 Trillion, China Prime Beneficiary of Fed Money Printing Even if the government could somehow pay off that debt at the rate of, say, $100 MILLION PER DAY, EVERY DAY STARTING RIGHT NOW, IT WOULD TAKE 3,663 YEARS BEFORE THE TOTAL GOVERNMENT DEBTS AND OBLIGATIONS ARE PAID OFF. Even if Washington were to pay off $1 BILLION per day, it would still take about 366 years before theyâre paid off. The U.S. Federal deficit at $1.6 trillion The officially recognized national debt at $12.1 trillion $3.5 trillion owed to foreign investors Unfunded national obligations of $106.5 trillion Another $9 trillion in cumulative deficits over the next 10 years At least another trillion dollars needed for health care reform! Grand total: $133.7 TRILLION IN DEBT! http://www.marketoracle.co.uk/Article15977.html
I think I need to get drunk and stay drunk instead of paying attention to this. Why is it called health care reform when it costs at least a trillion more dollars? That's reform? promising more money we don't have? I though the demos big selling point was that we could save big coin by having the gov't run health care because we spend more per capita than everyone else... so then why is more money needed for 'reform'. I feel completely hopeless with Reid and Pelosi in charge, Obama is an empty suit who will sign anything they shove in front of him.