Sunday, January 13, 2008

It's Time...

5 comments:

CS said...

I almost can't bear to watch those numbers flying by.

Mushy said...

An economics professor once told me that it's just money we owe ourselves...it'll never come due and it will always exist.

Jeannie said...

Those are some big numbers! And there is not one single person who is personally responsible. I'd like to know what happens when a government is unable to pay off their loans and the bank does not forgive the debt. Will the banks take over the country and run it like a business then until it's back on its feet? Why not get the bankers in there now and tell the politicians: NO...didn't Nancy Reagan have some drug campaign that went: Just say no? hmmm

Scott from Oregon said...

Actually Mushy, these days we are borrowing from China to make our payments.

When we have shortfalls, we borrow from a central bank (The Fed, which is not ourselves) and they charge interest.)

Given that we are no longer a society that produces, but a society that consumes, the numbers are even scarier.

There really is a reason the dolar is now worth less than Canada's and is still falling.

As it falls, the things we no longer produce become more expensive.

Meaning, if you rely on savings to live, you are losing your savings because the government can't stop spending.

Scott from Oregon said...

jeannie- the central bank profits the most from profligate spending as they charge interest on money they are allowed to "create" out of thin air and then loan to us.

Hence their continued support of the status quo...