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Rising debt may be next crisis


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This really has very little to do with Pres.Obama. U.S. has to first stablize the banking industry. Currently, individual's and companies with good credit has difficulty borrowing money on big ticket items, such as real estate, cars, business investments, etc. The result is that money is circulating very slowly. Within 2-3 years, U.S. economy will be stable and the banks will loosen up the credit requirements and will result in modest (3-5%) positive growth. U.S. will still has majority control of foreign investments. In 2008, U.S. had 700 billion dollars in trade deficiet with the rest of the world. They are still the engine for the world. I still have all the confidence in U.S. economy.

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US government is printing the dollars like news paper factory for supporting the fragile economy. It is restrutcturing the broke and hopeless companines like fredie and GM. At the moment US dollar is an international currency. Investors have little choice to diversify their life saving. They have to hold their treasury bonds whether they like it or not.

However nothing will last forever. If the US bonds become default like sub prime morgage, China, Japan and Gulf nations will withdraw their money with huge loss. For surviving, US government will print the dollars again. Too many dollars will become worthless papers. A loaf of bread need to buy with millions because of inflation. The new dawn of prudent finanicial regulation and strong international currency will come.

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"Sarge, you forgot to add & ""owned by China, Jpn & S.Arabia"

We're owned by China, Japan and Saudi Arabia, are we? Then I guess they can fight for their shares, ha ha ha!

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If the US bails on its debt in a big way, business activity wud stop pretty damned quick, currencies wud collapse & appreciate wildly & then it will be a worldwide free for all with losers everywhere.

The violence & suffering if business as usual stopped wud be a mjor catastrophy, soon the oil/gas supplies wud dry up, the electicity wud stop flowing & there will be world wide mayhem.

If the US defaults we wud all be screwed

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Um, no. The United States isn't and never has been an empire, it's only been and still is the the most powerful nation on Earth

Sarge, you forgot to add & ""owned by China, Jpn & S.Arabia""

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As Sun Tzu wisely quoted more than two thousand years ago "There is no instance of a nation benefiting from prolonged warfare". The United States unfortunately will not prove these sage words wrong any time soon. Sarge - I think you are on a hiding to nothing here. Quit while you are only a little behind - you arent going to win too many people over.

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But sarge, don't you realize that he "inherited" this mess? He has done absolutely NOTHING to create the current mess we are in.

Well... besides being "present" as a sitting member of the government who VOTED AND APPROVED every last expenditure that occured under Bush's watch.

I mean... other than that... Obama's hands are completely clean!

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I have to correct SushiSake3 - Under Bush, the national debt increased by a little over $4 trillion, from $5.7 to about $10 trillion.

That took 8 years, and we had 9/11 and liberated two countries.

In the few months since Obama took over, it's alraedy increased to 11.5 trillion and it's projected to reach nearly $13 trillion by the end of 2009.

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As the US Economy goes further into debt, the more jobs become available for security/censorship. If the US defaults, the very basis of it's powerbase comes to a standstill.

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And just why not borrow to the limits from China, India, etc... Exactly what is the down side of this? I have a sneaking suspicion that those that control the country, ie, those that control the purse strings down at the federal reserve know exactly what they are doing. They are sucking up the cash capital of those countries that think they are getting rich of the US and stringing them along with interest payments. Lets say that America does default on its China debt... Exactly what is China going to do? Are they going to try to repo California? Manhattan Island? They are going say "enough is enough! our political prisoners are no longer going to make mcdonalds happy meal toys"? So what? We are going to lose the Chinese market for say GM? Do you really think that GM can compete with Toyota for that market for the next 10 years? Absolutely nothing will happen if America defaults. Just like when GM goes under and nothing changes. Just like when uncle willy's bike shop goes under and nothing happens.

The Donald did the same thing when he boxed the banks into the corner by borrowing so much that they could only come out by being his cheerleading squad. Welcome to 21st century economics.

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Sarge - "It took George W. Bush 8 years to increase the national debt by around 4 trillion. It's taken President Obama a few months to increase it another trillion."

What Sarge clearly refuses to acknowledge is that if President Obama had sat on his hands and did nothing - no stimulus package, no bailouts, etc. - the U.S. economy would be in an even worse shape, ditto for unemployment.

What Sarge also clearly refuses to acknowledge is that President Obama has had no choice but to attempt to clear up the fiscal and economic disaster left for him by president bush, the loser that Sarge voted for twice.

What does this say about Sarge? It says that Sarge adamantly refuses to acknowledge his own role - through his 2 votes for bush - in the economic disaster we are now facing.

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I'm starting to suspect U.S. debt is directly related to U.S. obesity rates since both are increasing rapidly....

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Sarge - "It took George W. Bush 8 years to increase the national debt by around 4 trillion."

6 trillion ($4 to $10 trillion).

You're only $2 TRILLION out. :-)

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Nobody cares about the USA anymore.

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Real unemployment is reaching 20%, Obama has done nothing to help even though he constantly touted mainstreet, and he has abandoned California. The income gap has probably widened even further. And he's given trillions to the very companies that created this mess.

For some reason he is enjoying flying around the globe talking about wars with other poor countries, and making up excuses why they are a threat, so the US can deal "defensive" weapons to countries like Japan.

Its not the end of an empire, it is more like the rise of the imperial army, except noone can see this.

Here's what the imperial army did to Afghanistan as it did to Vietnam:

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Vast majority of the deficit spending under Obama comes from the continuation of Bush administration programs and policies. Iraq/Afghanistan, bank bailouts, effects of Bush tax cuts etc. Criticize the new spending programs all you want, but they are a minor part of the overall mess.

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[So far, they've done more harm than good.] for example?

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=The bankers that run The Federal Reserve (and most other countries money) are the most powerful entity on earth and the American people ( and US dollar buyers) empower them.

A 3rd party central bank (The Federal Reserve) is against the Constitution of the United States.

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"let the Democrats do their best to save the country"

So far, they've done more harm than good.

"End of an Empire"

Um, no. The United States isn't and never has been an empire, it's only been and still is the the most powerful nation on Earth.

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I'm just guessing, but if the US Economy is facing incredible problems, Pres. Obama would need major, MAJOR influence in APEC. These annual APEC Leaders' Meetings LOOMS very Large. :)

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U.S. has problems with over 700 billion dollars trade deficit a year with rest of the world. This issue has to be addressed where fair trade issue especially with China and Japan which accounts for over 300 billion dollars a year. This inbalance cannot continue if U.S. wants to recover to healthy economy.

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End of an Empire. Debt is what killed most of the previous great Western Empires.

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Afghanistan has been liberated? -1 point

Iraq is free of Sadam (1 point) but replaced with AlQaeda and ethnic violence (-1 point) -> 0

Too bad... the total is negative...

"It's taken President Obama a few months to increase it another trillion."

The Republican party is happy that a Democrat assume the problem. I mean the Republicans can't put more money in the economy. How will it look like?

So, for a little while, let the Democrats do their best to save the country. During that time, your job is to criticize. This is sane in a democracy.

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Tumble - Can you not admit that what I have said is true?

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it's called PLEASE CHINA BUY MY DEBT! next stop, INDIA.

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Sarge: wow wow wow... Obama's job is fill the big hole made by Bush and his insane politic.

Please take back the "liberated two countries" back.

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Maybe they can consider emptying CA and Hawaii of people and selling these sunny and genki places to overseas investors. Its called a "carve out".

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It took George W. Bush 8 years to increase the national debt by around 4 trillion ( during that time we had 9/11 and liberated two countries ).

It's taken President Obama a few months to increase it another trillion.

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In 1913 Wildrow Wilson was scammed into creating "The Federal Reserve" -->The privately owned, non-tax paying, central bank of the U.S.

The more we borrow (or even use/lease the money) the more we make these crooks powerful.

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