Deficit

Discussion in 'Economy' started by froggy, Feb 3, 2011.

  1. froggy
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    froggy Gold Member

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    If we were to fire everyone in the Gov't and start a new one then our deficit would be wiped out with the old Gov't. This one no longer works so its time to get rid of it, maybe sell it to Mexico.
     
  2. editec
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    editec Mr. Forgot-it-All

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    Good luck trying to convince America's BANSTER MASTER CLASS that that is a good idea.

    I mean, come on froggy, who do you think benefits from the USA's debt load?

    Precisely the people who OWN our government.

    Wake up and SMELL the classism, amigo.
     
  3. waltky
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    waltky Wise ol' monkey Supporting Member

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    Global recession goin' into double-dip?...
    :eusa_eh:
    US trade deficit figure causes concern for investors
    10 March 2011 - Chinese government data also showed a surprise trade deficit
     
  4. Norman
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    Norman Gold Member

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    A bit easier would be to just default. Though firing the incompetent government would be quite awesome package deal. Problem with default is that it might also wipe out a lot and lot of liabilities to the people of the country. Which is the real problem.

    At editec, have you looked at all what the budget consists off? There are LOADS of people who benefit from all classes and some benefit just out of stupidity (bankers being one). The US government is "commercialized" or democratized or whatever you want to call it. That is a bad thing.
     
  5. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    Oh cool.

    Anarchy.
     
  6. zzzz
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    zzzz Just a regular American

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    Uhhh, wrong! If you fired them all then you would owe $45,738.84. Your share of the federal deficit. And don't think those Chinese don't want their money!
     
  7. skeptic
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    skeptic BANNED

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    There are two ways in which governments routinely escape the onerous burden of debt.

    1) the reset the currency to a lower value, call this inflation by fiat and usually in powers of ten. The press posts stories that say things like "the government has mandated that new currency will be issued and the 100 Peso note will be replaced and exchanged for 10 peso notes". This has happened at least a hundred times and it is not the end of the world as we know it.

    2) the other is simple default, and it isn't as bad as it sounds. Greece has been in default on their debt for more than half of their history as a constitutional democracy. The downsides are not life shattering.

    Take the most radical example on record of currency collapse and truthfully it was a shock when it happened but it passed and without destroying the nation.

    does that sound familiar?

    anyway the gist is: Fiat money never has any real value, only the value people infer into it with their confidence....


    But nations always have assets of real value that they can use to back new currency. So there is no real problem with a currency collapse except the drama of the transition. Which can be extreme tho short lived. But fortunes will also collapse. The rich can become paupers, the paupers need only to survive until the transition occurs.
     

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