When Albert Einstein died, he met three New Zealanders in the queue outside the Pearly Gates. To pass the time, he asked what were their IQs. The first replied 190. "Wonderful," exclaimed Einstein. "We can discuss the contribution made by Ernest Rutherford to atomic physics and my theory of general relativity".
The second answered 150. "Good," said Einstein. "I look forward to discussing the role of New Zealand's nuclear-free legislation in the quest for world peace".
The third New Zealander mumbled 50. Einstein paused, and then asked, "So what is your forecast for the budget deficit next year?"
The Economist, June 13th 1992, p. 71
What makes the above so very perceptive is that there are huge numbers of self-proclaimed 'economists' who deny the injurious effects of high debt.
In a recent thread about debt, a self-proclaimed economics wonk revealed the that, actually, he was the bottomless pit of ignorance. He summarized his view of our national debt as ".......it doesn't necessarily matter.... so what? US public debt simply represents the total savings of the US economy - or the propensity of the private sector to save. If people correctly referred to it as national savings or equity, it would clear up a TON of confusion." ( http://www.usmessageboard.com/economy/335353-debt-and-if-i-laugh.html)
As there are actually dolts like this practically falling out of the trees, who probably believe that they have an understanding of economics, the following is necessary remediation.
1. "A record 141 million Americans shopped in stores and online from Nov. 28 to Dec. 1, 2013. Thats nearly half the American population. Millions lined up for hours outside stores, in the middle of the night, in freezing cold weather to spend money. The average shopper spent just over $407.
2. The average credit card debt is $4,878 per person. Fifty million Americans are on food stamps. Half the people in the country get some kind of financial assistance or benefit from the government.
And 27 percent of Americans have no emergency savings.
3. In 2010, [Liberal Democrat] House Majority Whip Rep. James Clyburn made a telling statement: Were not going to save our way out of this recession. Weve got to spend our way out of this recession, and I think most economists know that.
4. Most of Americas debt is now financed by the U.S. We print trillions of dollars to finance our addiction to spending. This is why inflation will get much worse and why the dollar is becoming worthless.
Global Research reported on November 20 that between Oct. 1 and Nov. 14, 2013, America rolled over $1 trillion in debt. Rolled over is a nice way of saying that America had to borrow more than $1 trillion of new money to pay off old loans that were coming due. Borrowing new money from investors to pay back money to old investors is the definition of a Ponzi scheme.
5. .... interest rates are lower than they have ever been. But eventually it will come to a crashing endas all Ponzi schemes ultimately do. America spends about $220 billion per year on interest.
6. But interest rates are being artificially suppressed by Federal Reserve money printing. Eventually, rates will be forced to rise. Right now the benchmark interest rate in the U.S. is a quarter of 1 percentnearly zero. What if it returns to 6 percent like it was about a decade ago? All of a sudden America will be paying $1 trillion per year in interest! That is more than a quarter of Americas total budget. And all of this would come at a time when Medicare, Medicaid and Social Security costs are skyrocketing.
7 . ... these millions of American consumers accumulated hundreds and thousands of dollars of additional debtspending money they dont have on gizmos and goods they dont need.
8. Americans owe $800 billion on their vehicles. Far too many people are driving brand new $40,000 trucks while making only $35,000 a year, and they borrow to make this happen....New vehicles lose 70% of their value after just four years..... the typical American is too distracted by sports, pop culture and other trivial things to care."
https://www.thetrumpet.com/article/11230.24.161.0/economy/is-americas-economy-improving
"....debt ......it doesn't necessarily matter..."
Some ideas are so stupid, only an intellectual could believe them. George Orwell
The second answered 150. "Good," said Einstein. "I look forward to discussing the role of New Zealand's nuclear-free legislation in the quest for world peace".
The third New Zealander mumbled 50. Einstein paused, and then asked, "So what is your forecast for the budget deficit next year?"
The Economist, June 13th 1992, p. 71
What makes the above so very perceptive is that there are huge numbers of self-proclaimed 'economists' who deny the injurious effects of high debt.
In a recent thread about debt, a self-proclaimed economics wonk revealed the that, actually, he was the bottomless pit of ignorance. He summarized his view of our national debt as ".......it doesn't necessarily matter.... so what? US public debt simply represents the total savings of the US economy - or the propensity of the private sector to save. If people correctly referred to it as national savings or equity, it would clear up a TON of confusion." ( http://www.usmessageboard.com/economy/335353-debt-and-if-i-laugh.html)
As there are actually dolts like this practically falling out of the trees, who probably believe that they have an understanding of economics, the following is necessary remediation.
1. "A record 141 million Americans shopped in stores and online from Nov. 28 to Dec. 1, 2013. Thats nearly half the American population. Millions lined up for hours outside stores, in the middle of the night, in freezing cold weather to spend money. The average shopper spent just over $407.
2. The average credit card debt is $4,878 per person. Fifty million Americans are on food stamps. Half the people in the country get some kind of financial assistance or benefit from the government.
And 27 percent of Americans have no emergency savings.
3. In 2010, [Liberal Democrat] House Majority Whip Rep. James Clyburn made a telling statement: Were not going to save our way out of this recession. Weve got to spend our way out of this recession, and I think most economists know that.
4. Most of Americas debt is now financed by the U.S. We print trillions of dollars to finance our addiction to spending. This is why inflation will get much worse and why the dollar is becoming worthless.
Global Research reported on November 20 that between Oct. 1 and Nov. 14, 2013, America rolled over $1 trillion in debt. Rolled over is a nice way of saying that America had to borrow more than $1 trillion of new money to pay off old loans that were coming due. Borrowing new money from investors to pay back money to old investors is the definition of a Ponzi scheme.
5. .... interest rates are lower than they have ever been. But eventually it will come to a crashing endas all Ponzi schemes ultimately do. America spends about $220 billion per year on interest.
6. But interest rates are being artificially suppressed by Federal Reserve money printing. Eventually, rates will be forced to rise. Right now the benchmark interest rate in the U.S. is a quarter of 1 percentnearly zero. What if it returns to 6 percent like it was about a decade ago? All of a sudden America will be paying $1 trillion per year in interest! That is more than a quarter of Americas total budget. And all of this would come at a time when Medicare, Medicaid and Social Security costs are skyrocketing.
7 . ... these millions of American consumers accumulated hundreds and thousands of dollars of additional debtspending money they dont have on gizmos and goods they dont need.
8. Americans owe $800 billion on their vehicles. Far too many people are driving brand new $40,000 trucks while making only $35,000 a year, and they borrow to make this happen....New vehicles lose 70% of their value after just four years..... the typical American is too distracted by sports, pop culture and other trivial things to care."
https://www.thetrumpet.com/article/11230.24.161.0/economy/is-americas-economy-improving
"....debt ......it doesn't necessarily matter..."
Some ideas are so stupid, only an intellectual could believe them. George Orwell
